Paper Mills
Mativ Holdings, Inc. operates as a performance materials company. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials segment manufactures and sells polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens. This segment serves filtration, protective solutions, release liners, healthcare, and industrials end-markets. The Fiber-Based Solutions segment provides packaging, printing, and specialty papers; and various paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. It also offers combustibles products comprising conventional papers and filter wraps, low-ignition propensity papers wrappers for small cigars, and hemp-based alternatives; noncombustibles; and lightweight papers. This segment serves cigarette and cigar manufacturers, and commercial print and combustibles end-markets. The company sells its products in the United States, Europe and the former Commonwealth of Independent States, the Asia Pacific, the Americas, and internationally. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.
Sector
Discounted Cash Flow Valuation of Mativ Holdings, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $55.3M | $50.79M | $46.66M | $42.86M | $39.36M | $36.16M | $33.21M | $30.51M | $28.02M | $25.74M | $23.64M | $236.4M |
DCF | $44.17M | $35.28M | $28.18M | $22.51M | $17.98M | $14.36M | $11.47M | $9.16M | $7.316M | $5.844M | $58.44M | |
Value | $254.7M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
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Net Margin | 12% | 9.8% | 3.5% | 9% | 8.3% | 7.7% | 6.1% | -0.3% | -15% | -18% |
ROA | 8.9% | 9.4% | 8.3% | 9.9% | 9.1% | 8.1% | 4.9% | 1.7% | -16% | -17% |
ROE | 19% | 16% | 6.2% | 17% | 14% | 13% | 13% | -0.56% | -33% | -36% |
The average Net Margin over the past 5 years is +2.59%.
The trend of Net Margin over the past 5 years is -4.26%.
The average ROA over the past 5 years is +3.01%.
The trend of ROA over the past 5 years is -4.38%.
The average ROE over the past 5 years is +3.92%.
The trend of ROE over the past 5 years is -8.33%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
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Debt FCF | 4.84 | 4.42 | 7.41 | 5.71 | 4.21 | 4.57 | 58.09 | 12.10 | 27.87 | 21.40 |
Debt Equity | 1.25 | 0.89 | 1.27 | 1.15 | 0.93 | 0.92 | 1.89 | 1.49 | 1.19 | 1.30 |
MIN | ||||||||||
Graham Stability | - | - | 39% | 100% | 100% | 100% | 100% | -7.7% | -570% | -570% |
The Debt/FCF trailing twelve month is 21.40.
The trend of Debt/FCF over the past 5 years is 5.37.
Graham’s Stability measure stands at -5.67.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
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Revenue | 13% | 14% | 24% | -6.5% | 2.4% |
Net Income | - | - | - | - | 2.7% |
Stockholders Equity | 9.3% | 11% | 13% | -20% | 2.2% |
FCF | -12% | -18% | -32% | -72% | 21% |
The Revenue CAGR over the past 5 years is +14.24%.
The trend of Revenue growth rate over the past 5 years is +2.4%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +2.73%.
The Equity CAGR over the past 5 years is +11.21%.
The trend of Equity growth rate over the past 5 years is +2.22%.
The FCF CAGR over the past 5 years is -18.38%.
The trend of FCF growth rate over the past 5 years is +21.41%.