Mercer International Inc. (MERC) vs Sylvamo Corporation (SLVM)

Mercer International Inc. and Sylvamo Corporation are both Paper & Paper Products companies. Sylvamo Corporation is the larger, with a market value of $1.4B against $22.7M — 63.1× the size. Mercer International Inc. has negative trailing earnings, so its P/E is not meaningful; Sylvamo Corporation trades at 18.8×. Mercer International Inc. grew revenue faster over the last twelve months: −4.81% against −7.13%. Sylvamo Corporation has the higher net margin (2.31% vs −27.9%) and the higher return on invested capital (7.91% vs −18.8%). Both pay a dividend; Mercer International Inc. yields more (3.75% vs 2.19%). Across the 19 metrics below, Sylvamo Corporation leads on 13 and Mercer International Inc. on 6.

Valuation

Metric MERC SLVM Paper & Paper Products median
P/E n/m 18.83 —
P/S 0.01 0.43 0.22
P/B n/m 1.50 —
Price to free cash flow n/m n/m —
EV/EBITDA n/m 5.36 —
EV/Sales 0.85 0.65 0.65
Earnings yield (2,415.63%) 5.31% (14.95%)
Free cash flow yield (692.16%) (0.77%) 9.02%

Profitability

Metric MERC SLVM Paper & Paper Products median
Gross margin (5.81%) 20.59% 5.69%
Operating margin (23.58%) 6.43% (5.41%)
Net margin (27.86%) 2.31% (3.24%)
Free cash flow margin (7.96%) (0.33%) 3.72%
Return on equity (296.95%) 7.94% (6.05%)
Return on assets (24.36%) 2.74% (3.07%)
Return on invested capital (18.83%) 7.91% (4.06%)

Growth

Metric MERC SLVM Paper & Paper Products median
Revenue growth (TTM) (4.81%) (7.13%) (1.93%)
EPS growth (last fiscal year) (485.83%) (54.87%) —
Revenue growth, 5-year CAGR 5.59% 7.04% 5.59%
Net income growth, 5-year CAGR 0.00% (4.93%) 0.00%

Health

Metric MERC SLVM Paper & Paper Products median
Debt to equity (16.69) 0.88 0.45
Current ratio 1.30 1.47 1.92
Net debt to EBITDA (5.97) 1.38 1.38

Dividend

Metric MERC SLVM Paper & Paper Products median
Dividend yield 3.75% 2.19% —
Payout ratio 0.06 0.11 0.06

Size

Metric MERC SLVM Paper & Paper Products median
Market cap 22.67m 1.43b 326.91m

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