Sylvamo Corp

Scaled but cyclical uncoated-freesheet paper producer with solid returns offset by secular volume decline.

Strengths

• ROE 13.7% (70th pct) and ROA 4.8% (78th pct) with interest coverage 5.1x (73rd pct)
• Low-cost integrated mills and Brazil forestlands; $155M returned to shareowners

Risks

• Secular demand decline in paper; revenue fell 11% and net income dropped 56%
• Customer concentration (top 10 = ~41%, one ~15%); commodity input/cyclical margin risk
• Free cash flow fell to $44M from $248M as EBITDA margin compressed to 13%

Notable findings

• Strong balance sheetStrong balance sheet — $135M cash & investments
• Revenue declineRevenue -15.2% YoY