Home Sectors Basic Materials Stock to Watch: Schweitzer-Mauduit International (NYSE: SWM)

Stock to Watch: Schweitzer-Mauduit International (NYSE: SWM)

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Schweitzer-Mauduit International is in the basic materials sector and trades as part of the forest products industry. The company CEO is Jeffrey Kramer. Schweitzer-Mauduit International, is a diversified producer of premium specialty papers and resin-based products. It manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products.

Previous Intraday Trading Performance:

The SWM stock showed a previous change of -0.20% with an open at 40.55 and a close of 40.59. It reached an intraday high of 40.78 and a low of 40.30.

SeekingAlpha:  Schweitzer-Mauduit International Inc. (SWM) CEO Jeffrey Kramer on Q2 2018 Results - Earnings Call Transcript

Liquidity:

The stock has a market cap of $1.2b with 30.8m shares outstanding, of which the float is 29.5m shares. Trading volume reached 222,739 shares compared to its average volume of 124,828 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Schweitzer-Mauduit International shares returned -4.20% and in the past 30 trading days it returned -6.97%. Over three months, it changed -5.90%. In one year it has changed 9.86% and within that year its 52-week high was 48.06 and its 52-week low was 37.05. SWM stock is 9.55% above its 52 Week Low.

Our calculations show a 200 day moving average of 42.26 and a 50 day moving average of 43.20. Currently SWM stock is trading -3.94% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  Schweitzer-Mauduit International Inc. 2018 Q2 - Results - Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 1.12 that ended on 31st of December 2017, which according to the previous close, that is a PE of 36.24. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.90. The TTM EPS is 3.45, which comes to a TTM PE of 11.77. Historically, the PE high was 36.24 and the PE low was 9.90. If the stock reached its PE low, that would represent a price of 34.14, which is a decrease of -15.89%.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.99
03-31-2018:  0.82
12-31-2017:  0.64
09-30-2017:  1.00

The dividend per share is currently 1.72, which is a dividend yield of 4.24%. Also, the payout ratio is 49.86%, therefore the dividend is safe according to our calculations. SWM stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 38.89, which means it may be overvalued by -4.38%

Indicators to Watch:

Based on the latest filings, there is 4.10% of insider ownership and 91.30% of institutional ownership. Short-interest is 646,805, which is 2.10% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.20. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.35

SeekingAlpha:  Schweitzer-Mauduit International Inc. 2018 Q2 - Results - Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company's return on equity is 8.24%, return on assets is 2.99%, profit margin is 4.38%, price-to-sales is 1.22 and price-to-book is 2.31.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 0  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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