📊 SW Key Takeaways
Is Smurfit Westrock plc (SW) a Good Investment?
Despite exceptional 47.7% YoY revenue growth, the company exhibits deeply concerning fundamentals with flat net income, razor-thin 0.8% net margins, and critically negative -$420M free cash flow. The inability to convert top-line expansion into profit growth, combined with unsustainable capital expenditures of $624M against only $204M operating cash flow, suggests operational distress or failed integration that outweighs the revenue growth narrative.
Smurfit Westrock plc Key Strengths (SW)
- Revenue growth of 47.7% YoY indicates significant business expansion or successful acquisition integration
- Reasonable leverage with Debt/Equity ratio of 0.74x and acceptable Current Ratio of 1.44x
- Positive operating cash flow of $204M demonstrates underlying operational cash generation
SW Stock Risks: Smurfit Westrock plc Investment Risks
- Critical negative free cash flow of -$420M (-5.4% margin) indicates the company is burning cash despite revenue growth
- Net income completely flat YoY despite 47.7% revenue growth indicates severe margin compression or integration challenges
- Extremely thin net margin of 0.8% and operating margin of only 3.3% leave minimal profitability cushion
- Negligible returns on equity (0.4%) and assets (0.1%) indicate poor capital efficiency and value destruction
- Heavy capital intensity with $624M CapEx unsustainable by $674M cash position against $13.3B debt
Key Metrics to Watch
- Free cash flow trajectory and path to positive FCF generation
- Operating margin expansion and ability to leverage revenue scale into profit growth
- Net income growth and net margin stabilization
- Return on equity improvement and capital efficiency
- Debt reduction and cash position strengthening
Smurfit Westrock plc (SW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Smurfit Westrock plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SW Profit Margin, ROE & Profitability Analysis
SW vs Materials Sector: How Smurfit Westrock plc Compares
How Smurfit Westrock plc compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Smurfit Westrock plc Stock Overvalued? SW Valuation Analysis 2026
Based on fundamental analysis, Smurfit Westrock plc shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Smurfit Westrock plc Balance Sheet: SW Debt, Cash & Liquidity
SW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Smurfit Westrock plc's revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.17 reflects profitable operations.
SW Revenue Growth, EPS Growth & YoY Performance
SW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.7B | $65.0M | $0.12 |
| Q3 2025 | $7.7B | -$150.0M | $-0.30 |
| Q2 2025 | $3.0B | -$28.0M | $-0.05 |
| Q1 2025 | $2.9B | $191.0M | $0.73 |
| Q3 2024 | $2.9B | -$150.0M | $-0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Smurfit Westrock plc Dividends, Buybacks & Capital Allocation
SW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Smurfit Westrock plc (CIK: 0002005951)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779202867.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779202856.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779202844.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779202829.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779202814.xml | View → |
❓ Frequently Asked Questions about SW
What is the AI rating for SW?
Smurfit Westrock plc (SW) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SW's key strengths?
Claude: Revenue growth of 47.7% YoY indicates significant business expansion or successful acquisition integration. Reasonable leverage with Debt/Equity ratio of 0.74x and acceptable Current Ratio of 1.44x.
What are the risks of investing in SW?
Claude: Critical negative free cash flow of -$420M (-5.4% margin) indicates the company is burning cash despite revenue growth. Net income completely flat YoY despite 47.7% revenue growth indicates severe margin compression or integration challenges.
What is SW's revenue and growth?
Smurfit Westrock plc reported revenue of $7.7B.
Does SW pay dividends?
Smurfit Westrock plc pays dividends, with $237.0M distributed to shareholders in the trailing twelve months.
Where can I find SW SEC filings?
Official SEC filings for Smurfit Westrock plc (CIK: 0002005951) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SW's EPS?
Smurfit Westrock plc has a diluted EPS of $0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Smurfit Westrock plc has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SW stock overvalued or undervalued?
Valuation metrics for SW: ROE of 0.4% (sector avg: 14%), net margin of 0.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SW's AI grade for 2026?
Our dual AI analysis gives Smurfit Westrock plc a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SW's free cash flow?
Smurfit Westrock plc's operating cash flow is $204.0M, with capital expenditures of $624.0M. FCF margin is -5.4%.
How does SW compare to other Materials stocks?
Vs Materials sector averages: Net margin 0.8% (avg: 10%), ROE 0.4% (avg: 14%), current ratio 1.44 (avg: 1.6).