| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 89 | 18.7x | 17.8x | Top tier | |
Growth | 9 | -7.1% | 7.1% | Bottom tier | |
Quality | 33 | 6.0% | 4.5% | Bottom tier | |
Safety | 54 | 2.3x | 2.6x | Around median | |
Capital Return | 60 | 5.10% | 2.12% | Around median | |
Momentum | 17 | -15.1% | 2.9% | Bottom tier | |
Sentiment | 35 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sylvamo Corp produces uncoated freesheet paper and sells it across North America, Latin America, Europe, and export markets including the Middle East and Africa. Revenue and profitability depend on paper sales volumes, pricing and geographic and product mix, mill efficiency, and wood, energy, chemical, and transportation costs. Some of its assets also benefit from different operating models; the Luiz Antonio mill is integrated and is considered the lowest-cost facility, while the Três Lagoas mill is connected to a Suzano pulp mill and receives wet pulp, steam, and energy from it on terms management described as attractive.
Revenue for Q2 FY 2026 was approximately $806 million, and the company reported a net loss of $11 million and a loss per share of $0.28. By contrast, adjusted earnings before interest, taxes, depreciation, and amortization more than doubled sequentially, from $29 million in Q1 FY 2026 to $60 million in Q2 FY 2026, at a 7% margin, while adjusted operating earnings were $0.03 per share. Free cash flow was negative $23 million, representing a sequential improvement of $36 million.
The operating improvement in Q2 FY 2026 came from a $32 million increase related to price and mix, $3 million from volume supported by seasonal demand in Latin America, and $22 million from operations and costs, offset by a negative impact of $24 million from planned maintenance outages and $2 million from input and transportation costs. North America's margin increased to 15% from 10% in Q1 FY 2026, with price and mix as the most significant factor, while supply-and-demand conditions in Europe remained difficult and its margins stayed at levels management described as unacceptable.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $49.5, within a narrow range of $49 to $50, with the consensus rated Buy. The average target is approximately $7.3 below the 52-week range high of $56.8 and approximately $15.25 above the range low of $34.25, reflecting a positive assessment but not returning the stock to the top of the range. No displayed price-to-earnings multiple is available, while quarterly losses, pressure in Europe, and the Eastover outage remain key factors to weigh against pricing and investment benefits when evaluating the consensus.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
The net loss was $11 million, or $0.28 per share, on revenue of $806 million in Q2 FY 2026. At the same time, adjusted earnings before interest, taxes, depreciation, and amortization were $60 million at a 7% margin, compared with $29 million in Q1 FY 2026. Results were affected by $24 million in planned maintenance outage costs and higher wood and transportation costs, while taxes also included a valuation allowance expense of approximately $9 million related to the Brazilian export entity.
Management expects a benefit of between $75 million and $85 million from improved price and mix compared with the first half of FY 2026. It estimated that approximately 70% of this benefit will come from pricing, with major contributions from North America and Northern Europe. The third increase in Europe, the second increase in North America, and increases in other Latin American markets and the Middle East and Africa were being implemented during Q3 FY 2026, with the full run rate expected by the end of Q4 FY 2026.
Sylvamo expects annual benefits of $50 million from the paper machine speed increase project and the new sheeter, including approximately $30 million to $40 million in FY 2027. The speed increase is scheduled to add 60 thousand tons of annual uncoated freesheet paper capacity after the project is completed during the maintenance outage in Q4 FY 2026. The 300 thousand-square-foot warehouse expansion also targets annual savings of more than $5 million after its completion in Q1 FY 2027, increasing the annual benefits from Eastover's four projects to $55 million.
Management said on the August 7, 2026 call that supply and demand in Europe remained difficult and that margins were at unacceptable levels. The company is targeting a combination of cost reductions, product mix improvements, and other operating factors totaling approximately $50 million to achieve cash profitability clearly above zero and returns exceeding the cost of capital on a mid-cycle basis. On the cost side, wood costs declined by approximately 20% from their peak in Q4 FY 2025, and the impact of this decline began to appear during Q3 FY 2026 because of an approximately six-month delay before it flowed through to operations.
Sylvamo expects lower production and sales in North America during the second half of FY 2026 due to the end of Riverdale supply and the extension of the Eastover outage beyond 45 days. The company had received approximately 90 thousand tons from Riverdale through April 2026, and this volume will not recur in FY 2027. Although the Eastover project will eventually add 60 thousand tons annually, management explained that the increase will ramp up gradually, leaving a long-term net impact of approximately a 40 thousand-ton decline compared with the previous Riverdale volume.
Free cash flow was negative $23 million in Q2 FY 2026, but it improved by $36 million compared with the prior quarter. The company ended the quarter with leverage of 2.2 times and built approximately 50 thousand tons of inventory in North America in preparation for the Eastover work. Management expects to draw down this inventory during the second half of FY 2026 and reverse most of the working capital build by the end of FY 2026, with the majority of annual free cash flow generated in the second half.
