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Sylvamo Corporation (SLVM)

Company Dividend Discount ModelIndustry: Paper, Lumber & Forest ProductsSector: Basic Materials

Valuation Snapshot

Stable Growth$30.79 - $44.31$37.39
Multi-Stage$50.75 - $55.68$53.17
Blended Fair Value$45.28
Current Price$50.10
Upside-9.63%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018
DPS0.00%0.00%1.501.380.240.000.000.000.000.000.000.00
YoY Growth--8.77%470.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.24%2.24%0.52%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)180.00
(-) Cash Dividends Paid (M)74.00
(=) Cash Retained (M)106.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)36.0022.5013.50
Cash Retained (M)106.00106.00106.00
(-) Cash Required (M)-36.00-22.50-13.50
(=) Excess Retained (M)70.0083.5092.50
(/) Shares Outstanding (M)41.3041.3041.30
(=) Excess Retained per Share1.692.022.24
LTM Dividend per Share1.791.791.79
(+) Excess Retained per Share1.692.022.24
(=) Adjusted Dividend3.493.814.03
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$30.79$37.39$44.31
Upside / Downside-38.55%-25.37%-11.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)180.00178.20176.42174.65172.91171.18176.31
Payout Ratio41.11%50.89%60.67%70.44%80.22%90.00%92.50%
Projected Dividends (M)74.0090.68107.03123.03138.71154.06163.09

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)82.2883.1283.96
Year 2 PV (M)88.1189.9291.75
Year 3 PV (M)91.9194.7597.65
Year 4 PV (M)94.0297.91101.93
Year 5 PV (M)94.7599.68104.82
PV of Terminal Value (M)1,644.791,730.441,819.62
Equity Value (M)2,095.852,195.822,299.72
Shares Outstanding (M)41.3041.3041.30
Fair Value$50.75$53.17$55.68
Upside / Downside1.29%6.12%11.14%

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