Smurfit Westrock Receives Mixed Rating from Value Investors

A recent report reveals Smurfit Westrock PLC's performance rating of 57% under the Value Investor strategy by Benjamin Graham, highlighting both strengths and weaknesses in its financial fundamentals.

Date: 28-09-2024

AI Rating: 5

According to a recent report, Smurfit Westrock PLC (SW) received a rating of 57% based on a deep value methodology utilizing the Value Investor model. This model assesses stocks based on metrics like P/B and P/E ratios, long-term earnings growth, and debt levels.

The analysis shows that Smurfit Westrock passes key criteria such as sector classification, sales performance, and current ratio, indicating solid fundamentals in these areas.

Criteria	Result
SECTOR	PASS
SALES	PASS
CURRENT RATIO	PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS	FAIL
LONG-TERM EPS GROWTH	PASS
P/E RATIO	FAIL
PRICE/BOOK RATIO	FAIL

However, it has noted weaknesses in long-term debt management (in relation to net current assets) and both its P/E and price/book ratios, which failed the analysis benchmarks. This combination of strong sales and current ratio with failing financial ratios may suggest a mixed investment outlook.

Investors should keep an eye on the company's long-term earnings growth potential, but the high debt could raise concerns and affect its overall valuation negatively.

Stocks: SW