Market Inference Overview -- DSSMY Stock

Over the last year, DS Smith logged a 0.0% change, with its stock price reaching a high of $13.2 and a low of $13.2. Over the same period, the stock returned a similar cumulative performance to the S&P 500. As of April 2023, the company's 50-day average price was $13.2.

DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide. Based in London, United Kingdom, the Mid-Cap Consumer Cyclical company has 29,584 full time employees. DS Smith has offered a 1.2% dividend yield over the last 12 months.

Increasing Revenues but Narrowing Margins:

2020-04-30 2021-04-30 2022-04-30
Revenue (MM) $6,043 $5,976 $7,241
Revenue Growth n/a -1.11% 21.17%
Gross Margins 34.2% 33.0% 29.2%
Gross Margins Growth n/a -3.51% -11.52%
Operating Margins 8.6% 6.0% 6.6%
Operating Margins Growth n/a -30.23% 10.0%
Net Margins 8.72% 3.25% 3.87%
Net Margins Growth n/a -62.73% 19.08%
Earnings Per Share $1.53 $0.56 $0.96
EPS Growth n/a -63.4% 71.43%
Diluted Shares (MM) 344 344 344
Free Cash Flow (MM) $289 $430 $490
FCF Growth n/a 48.79% 13.95%
Capital Expenditures (MM) -$376 -$331 -$431
Net Debt / EBITDA 1.72 2.12 1.59

DS Smith has Attractive P/E and P/B Ratios and Trades Below Its Graham Number:

DS Smith has a trailing twelve month P/E ratio of 13.8 compared to the Consumer Cyclical sector's average of 22.33. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 3 years of reported EPS is -14.4%. On this basis, the company's PEG ratio is -0.96, which indicates that its shares are overpriced. In contrast, the market is likely undervaluing DS Smith in terms of its equity because its P/B ratio is 1.0 while the sector average is 3.12. The company's shares are currently trading -24.6% below their Graham number.

Most of the Market Indicators on DS Smith Are Negative:

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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