Smurfit Westrock Plc (NYSE
W) is a prominent player in the paper and packaging industry. The company is known for its innovative packaging solutions and operates within the Zacks Paper and Related Products industry. Despite its strong market presence, SW faces competition from other major players in the sector, such as International Paper and WestRock Company.
On February 12, 2025, SW reported earnings per share (EPS) of $0.28, which was below the estimated $0.64. This represents a significant earnings surprise of -50%, as highlighted by Zacks. Despite an increase from the previous year's EPS of $0.20, the results were still below expectations. Over the past four quarters, SW has only surpassed consensus EPS estimates once, indicating a pattern of underperformance.
In terms of revenue, SW generated approximately $7.54 billion for the quarter ending December 2024, slightly below the estimated $7.71 billion. This revenue figure was 3.32% below the Zacks Consensus Estimate. However, it marked a substantial increase from the $4.62 billion reported in the same quarter the previous year. Despite this growth, the company has consistently failed to meet consensus revenue estimates over the last four quarters.
SW's financial metrics reveal insights into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 81, indicating that investors are willing to pay $81 for every $1 of earnings. The price-to-sales ratio stands at about 1.17, suggesting that the company's market value is 1.17 times its sales. Additionally, the debt-to-equity ratio is approximately 0.77, indicating a balanced use of debt and equity in its capital structure.
The company's current ratio is about 1.48, reflecting its ability to cover short-term obligations with $1.48 in current assets for every $1 of current liabilities. This suggests a relatively strong liquidity position. Despite these financial metrics, SW's earnings yield is about 1.24%, which is relatively low, indicating that the percentage of each dollar invested that was earned by the company is modest.
