Smurfit WestRock PLC SW

Morningstar Rating

Company Report

Smurfit WestRock Is the World's Largest Containerboard Producer, but Near-Term Headwinds Remain

Smurfit WestRock manufactures corrugated packaging, consumer packaging, paper products, and more. It accounts for roughly 20% of the North American containerboard market and is the second-largest producer in the region. Smurfit WestRock was formed from the 2024 merger of Smurfit Kappa and WestRock, which combined two of the largest containerboard and paper companies in Europe and North America, respectively. Smurfit WestRock is now one of the largest packaging producers in the world and has significant operations in North America, South America, and Europe. The company has over 60 paper mills and operates in 40 countries.

Price vs Fair Value

SW is trading at a 137% premium.
Price
$50.09
Fair Value
$82.00
Uncertainty
High
1-Star Price
$73.78
5-Star Price
$82.00
Economic Moat
Nfk
Capital Allocation
Xcrckql

Bulls Say, Bears Say

Bulls

The combination of Smurfit Kappa and WestRock creates the world’s largest containerboard producer. Smurfit WestRock’s combination will enable the firm to better service global customers.

Bears

The combination of Smurfit Kappa and WestRock will only generate limited synergies due to the geographic diversity of the companies, which will have minimal impact on margins and returns.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
16.95
Price/Sales
2.22
Dividend Yield (Trailing)
3.86%
Dividend Yield (Forward)
3.86%
Total Yield
3.86%

Company Profile

Smurfit WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of Smurfit Kappa and WestRock in summer 2024, Smurfit WestRock became the largest producer of containerboard in the world, with substantial operations in North America, South America, and Europe.
Sector
Consumer Cyclical
Industry
Packaging & Containers
Stock Style Box
Large Value
Total Number of Employees
47,000

Competitors

Valuation

Metric
SW
WY
PKG
Price/Earnings (Normalized)
16.9539.2426.60
Price/Book Value
910,727.272.444.69
Price/Sales
2.223.272.43
Price/Cash Flow
22.7919.0615.02
Price/Earnings
SW
WY
PKG

Financial Strength

Metric
SW
WY
PKG
Quick Ratio
2.181.421.57
Current Ratio
2.182.192.43
Interest Coverage
3.7822.88
Quick Ratio
SW
WY
PKG

Profitability

Metric
SW
WY
PKG
Return on Assets (Normalized)
8.86%3.67%8.53%
Return on Equity (Normalized)
21.79%6.19%18.36%
Return on Invested Capital (Normalized)
12.01%5.20%10.92%
Return on Assets
SW
WY
PKG

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