External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Sylvamo's stock has greatly appreciated since its spin-off from IP in 2021, with a recent price of $57 per share and total return of 135%</li><li>The company is now valued at $2.4 billion with an enterprise value of $3 billion, making it an attractive value investment</li><li>Factors contributing to its appeal include potential growth in Brazilian assets, the end of inventory destocking in North America, and expectations for improved earnings in Europe</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Sylvamo's stock has greatly appreciated since its spin-off from IP in 2021, with a recent price of $57 per share and total return of 135%The company is now valued at $2.4 billion with an enterprise value of $3 billion, making it an attractive value investmentFactors contributing to its appeal include potential growth in Brazilian assets, the end of inventory destocking in North America, and expectations for improved earnings in EuropeThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Sylvamo Corp (SLVM) - Monday, Mar 18, 2024

Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

<ul>
<li>Sylvamo net increased sales despite increasing input costs.</li>
<li>SLVM share price is still low due to the sell-off from International Paper and the lack of dividend payments.</li>
<li>We reiterate our positive stance on the story and continue to believe it is plenty of potential upside at the current price.</li>
</ul>


Sylvamo net increased sales despite increasing input costs.
SLVM share price is still low due to the sell-off from International Paper and the lack of dividend payments.
We reiterate our positive stance on the story and continue to believe it is plenty of potential upside at the current price.


<ul><li>International Paper is selling its 19.9% stake in Sylvamo. We believe Sylvamo is currently mispriced.</li><li>The priority of Sylvamo is to lower debt and then to return capital to shareholders.</li><li>Dividends and share buybacks are the catalysts expected to unlock value.</li><li>Sylvamo is under temporary selling pressure, which, with other contributing factors, has resulted in a share price far under fair value implied by our calculations.</li></ul>

International Paper is selling its 19.9% stake in Sylvamo. We believe Sylvamo is currently mispriced.The priority of Sylvamo is to lower debt and then to return capital to shareholders.Dividends and share buybacks are the catalysts expected to unlock value.Sylvamo is under temporary selling pressure, which, with other contributing factors, has resulted in a share price far under fair value implied by our calculations.

Sylvamo: Sell-Off Opens Up Opportunity For Bargain Purchase

United States

Clearwater Paper Corp. manufactures consumer tissue, bleached paperboard, and wood products.  The Company supplies private label tissue to major retail grocery chains and produces bleached paperboard that is used by printers and packaging converters.

Boise Cascade Company manufactures and markets wood products. The Company offers lumber, plywood, engineered wood, and particleboard, as well as adhesive sealants, concrete, fasteners, flashing, vents, framing accessories, gypsum, insulating, locks, and roofing products.

Quaker Chemical Corporation produces, develops, and markets custom-formulated chemical specialty products.  The Company also provides fluid management services for manufacturers around the world, primarily in the steel, automotive, and can industries.

Coeur Mining, Inc., through its subsidiaries, explores, develops, operates, and/or owns silver and gold mining properties and companies.  The Company's properties are located primarily in the United States, Australia, and South America.

Hecla Mining Company explores, develops, and mines precious metals, gold and silver.  The Company has operations in the United States and Mexico.

Minerals Technologies Inc. is a resource- and technology-based organization that develops and produces performance-enhancing minerals, mineral-based, and synthetic mineral products.  The Company offers its products to the paper, steel, polymer, and other manufacturing industries on a worldwide basis.

Hawkins, Inc. formulates, manufactures, blends, distributes, and sells reagent grade laboratory chemicals and industrial chemicals.  The Company also provides water treatment equipment and chemicals to commercial and industrial entities. Hawkins services customers located in the Midwest United States.

Greif Inc. manufactures and markets industrial packaging products and services. The Company provides steel, plastic, fiber, corrugated and multiwall containers. Greif also produces containerboard and has operations nationwide.

Tronox Holdings PLC operates as a holding company. The Company, through its subsidiaries, produces chemical products such as mineral sands, paints, and plastics. Tronox Holdings markets its products in the United Kingdom.

Worthington Industries, Inc., through its subsidiaries, processes steel and fabricates metal, focusing on specialized products requiring exact specifications.  The Company's products include flat rolled steel, pressure cylinders, metal framing products, and automotive body panels.  Worthington also provides technical services.

PT Indah Kiat Pulp & Paper Corporation Tbk operates a pulp and paper mill located in Perawang, a paper mill in Tangerang, and a packaging product mill in Serang. The Company manufactures various types of printing and writing paper including coated and uncoated free-sheets, photo copy paper, packaging container boards, corrugated shipping containers, and boxboards.

Metsa Board OYJ is a producer of fresh forest fibre cartonboards, a manufacturer of coated white-top kraftliners and a paper supplier. The Company offers solutions for consumer and retail packaging, graphics and office end-uses. Metsa's global sales network serves brand owners, carton printers, corrugated packaging manufacturers, printers, merchants and office suppliers.

Nine Dragons Paper Holdings Limited produces a wide range of containerboard products. The Company primarily produces linerboard, including kraft linerboard, test linerboard, white top linerboard, high performance corrugating medium and coated duplex board.

Oji Holdings Corp manufactures paper, pulp, and processed paper goods, including news print, carbonless paper, wrapping and packaging paper, and paperboard. The Company also produces sanitary paper goods such as disposable diapers. Oji Paper has forests in Japan and overseas, and operates forestry, timber sales, and real estate businesses.

Pabrik Kertas Tjiwi Kimia Tbk operates a pulp and paper factory in East Java which manufactures a range of printing and writing papers, both coated and uncoated. The Company also produces stationery and office products such as notebooks, writing pads, loose leaf, spirals, envelopes, computer forms, gift wraps, inkjet paper, and carbonless paper.

Stella-Jones Inc. produces and markets industrial structures and support components produced with pressure treated wood.  The Company specializes in the production of treated wood poles supplied to electrical utilities and telecommunications companies.  Stella-Jones's other products include railway ties as well as marine and foundation pilings.

Xianhe Co., Ltd. manufactures and distributes paper products. The Company produces and sells decoration, tobacco packaging, printing, and food packaging paper products. Xianhe also provides importing and exporting services.

Sappi Ltd. produces coated fine paper and chemical cellulose. The Company also produces uncoated graphic and business papers, premium quality packaging papers and a range of specialty papers. Sappi has production operations in North America, Europe, and Southern Africa and sells its products internationally.

Lee & Man Paper Manufacturing Limited, through its subsidiaries, produces linerboard and corrugating medium.  The Company's linerboard and corrugating medium are divided into a range of grades with different specifications customized for different industrial and consumer packaging purposes.

YFY Inc. manufactures and sells paper pulp and various paper products.

Sylvamo Corporation manufactures bulk paper, as well as raw pulp materials.

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Sylvamo (SLVM US)

Sylvamo Corp (SLVM) - Monday, Mar 18, 2024

Sylvamo's stock has greatly appreciated since its spin-off from IP in 2021, with a recent price of $57 per share and total return of 135%

Value Investors Club

Sylvamo: Q3 Earnings Update

Sylvamo net increased sales despite increasing input costs. UFS demand levels have not fully recovered. SLVM share price is still low due to the...

Moat Investing

Sylvamo: Sell-Off Opens Up Opportunity For Bargain Purchase

International Paper is selling its 19.9% stake in Sylvamo. We believe Sylvamo is currently mispriced. The priority of Sylvamo is to lower debt and...

Moat Investing

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