Smith (DS) (SMDS)

Sector:

Manufacturing

Index:

FTSE 100

545.50p
   
  • Change Today:
      68.10p
  • 52 Week High: 551.50
  • 52 Week Low: 270.70
  • Currency: UK Pounds
  • Shares Issued: 1,380.50m
  • Volume: 15,387,967
  • Market Cap: £7,531m
  • RiskGrade: 168

DS Smith de-rating 'overdone', says JPM Cazenove

By Oliver Haill

Date: Tuesday 29 Jan 2019

LONDON (ShareCast) - (Sharecast News) - DS Smith shares have underperformed peers over the past 12 months and after the paper and packaging maker completed its European acquisition, JPMorgan Cazenove believes the de-rating has been "overdone".
The Cazenove analysts reinstate their 'overweight' rating following completion of the €1.8bn acquisition of Europac and affixed a 400p target price, down from 600p before the period of restriction during the acquisition.

Include the impact of the acquisition and associated rights issue in its estimates, the 2020 adjusted operating profit forecast increases 26% to £769m and adjusted earnings per share by 5% to 41.5p, which includes the discontinued Plastics operations.

The shares have fallen 35% since the end of August, a de-rating that puts the shares on an EV/EBITDA ratio of 6.1 times one-year out, down from an average of 8.3x over the past three years, which analysts said was likely to be "reflecting paper price trends and downward revisions to GDP growth in key end-markets".

"It has underperformed most of its major peers in paper and packaging over the past 12 months, despite the protection its 'short paper' operating model provides to margins," they added.

With a 2020 free cash flow yield of 10%, Caz believe the de-rating "has been overdone".

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Smith (DS) Market Data

Currency UK Pounds
Share Price 545.50p
Change Today 68.10p
% Change 14.26 %
52 Week High 551.50
52 Week Low 270.70
Volume 15,387,967
Shares Issued 1,380.50m
Market Cap £7,531m
RiskGrade 168

Smith (DS) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
14.50% above the market average14.50% above the market average14.50% above the market average14.50% above the market average14.50% above the market average
16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average16.67% above the sector average
Price Trend
95.93% above the market average95.93% above the market average95.93% above the market average95.93% above the market average95.93% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
10.31% above the market average10.31% above the market average10.31% above the market average10.31% above the market average10.31% above the market average
Sector averageSector averageSector averageSector averageSector average
Growth
56.43% below the market average56.43% below the market average56.43% below the market average56.43% below the market average56.43% below the market average
50% below the sector average50% below the sector average50% below the sector average50% below the sector average50% below the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 5
Sell 0
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Smith (DS) Dividends

  Latest Previous
  Final Interim
Ex-Div 05-Sep-24 14-Dec-23
Paid 04-Oct-24 31-Jan-24
Amount 12.00p 6.00p

Trades for 31-Oct-2024

Time Volume / Share Price
11:28 245,643 @ 471.66p
16:51 9,396 @ 545.50p
16:47 100,000 @ 543.51p
16:36 4,696 @ 545.50p
16:36 49,920 @ 545.50p

Smith (DS) Key Personnel

CEO Miles Roberts

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