December 22, 2025 a 07:31 am
SW: Dividend Analysis - Smurfit Westrock Plc
Smurfit Westrock Plc, operating in the sector, has established a notable presence in the global market. Its dividend profile is characterized by a healthy yield, a robust history over 12 years without recent suspensions, and a strategic approach to growth. However, financial scrutiny reveals both optimism and challenges, necessitating a balanced analysis.
Overview 📊
Smurfit Westrock Plc is an established player with a steady dividend history. Its sectoral presence supports a competitive dividend yield, which is pivotal for income-focused investors.
| Metric | Details |
|---|---|
| Sector | Unknown |
| Dividend yield | 5.03 % |
| Current dividend per share | 1.68 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
Dividend History 📈
A consistent dividend history is essential for assessing reliability. Smurfit Westrock Plc has demonstrated dependability over 12 years, which is crucial for investor trust.
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 1.7232 |
| 2024 | 1.87874 |
| 2023 | 1.54172 |
| 2022 | 1.34598 |
| 2021 | 1.38429 |
Dividend Growth 📉
The assessment of dividend growth provides insight into the sustainability and potential future returns. Over recent years, growth trends have been modest yet stable.
| Time | Growth |
|---|---|
| 3 years | 10.72 % |
| 5 years | 10.79 % |
The average dividend growth is 10.79 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ✅
Payout ratios reveal the extent of earnings and cash flow used. Analyzing high payout ratios is vital to assess risk.
| Key figure | Ratio |
|---|---|
| EPS-based | 249.72 % |
| Free cash flow-based | 1034.51 % |
The EPS payout ratio of 249.72 % and FCF payout ratio of 1034.51 % are considerably high, indicating potential over-distribution.
Cashflow & Capital Efficiency 💰
Cashflow analysis indicates operational efficiency and capital reinvestment efficiency. It provides a clearer view of sustainability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.08 % | 6.46 % | 5.94 % |
| Earnings Yield | 1.48 % | 7.66 % | 11.40 % |
| CAPEX to Operating Cash Flow | 98.85 % | 59.59 % | 64.90 % |
| Stock-based Compensation to Revenue | 1.01 % | 0.60 % | 0.54 % |
| Free Cash Flow / Operating Cash Flow Ratio | 1.15 % | 40.41 % | 35.10 % |
The cashflow indicates varying efficiency levels with significant CAPEX investments impacting free cash flow yields.
Balance Sheet & Leverage Analysis 📊
A solid balance sheet underscores financial health. Smurfit Westrock's leverage ratios must be carefully assessed against its liquidity coverage.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 78.31 % | 67.05 % | 75.23 % |
| Debt-to-Assets | 31.07 % | 29.39 % | 30.04 % |
| Debt-to-Capital | 43.92 % | 40.14 % | 42.93 % |
| Net Debt to EBITDA | 4.64 | 1.74 | 1.39 |
| Current Ratio | 1.37 | 1.52 | 1.48 |
| Quick Ratio | 0.89 | 1.12 | 1.07 |
| Financial Leverage | 2.52 | 2.28 | 2.50 |
Debt levels are noteworthy; however, adequate liquidity manages the associated risks.
Fundamental Strength & Profitability 📈
Returns and margins are crucial indicators of market position and profitability. Evaluate these against industry benchmarks for better insight.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 1.77 % | 12.13 % | 19.41 % |
| Return on Assets | 0.70 % | 5.32 % | 7.75 % |
| Margins: | |||
| Net | 1.51 % | 6.82 % | 7.65 % |
| EBIT | 6.53 % | 11.59 % | 12.74 % |
| EBITDA | 13.46 % | 16.38 % | 16.91 % |
| Gross | 19.87 % | 25.25 % | 24.22 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
Overall profitability remains strong, although the ROE is showing a declining trend. R&D expenses are absent, which may suggest a focus on operational efficiencies.
Price Development 🔍
Dividend Scoring System 🗣️
| Criterion | Score | Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
Rating ⚠️
Smurfit Westrock Plc exhibits a promising dividend profile underpinned by stability and modest growth, albeit challenged by payout ratios. Investors should weigh the robust historical continuity against current financial strains to decide on long-term investment suitability.