Sappi Limited: Company Profile and SWOT Analysis by ICDResearch

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ICD Research's "Sappi Limited: Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, financial ratios, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company.

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									Sappi Limited

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Sappi Limited                                                                Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                    PO Box 31560, Johannesburg, 2001,South   The company reported revenue of US$6,572.00
Headquarters Address
                                    Africa                                   million during the fiscal year 2010 (2010). The
                                                                             company's revenue grew at a CAGR of 7.39% during
Telephone                           + 27 11 4078111
                                                                             2006–2010, with an annual growth of 22.41% over
                                                                             2009. In 2010, the company recorded an operating
Fax                                 + 27 11 4038236                          margin of 5.19%, as against -1.36% in 2009.

Website                             www.sappi.com
                                                                             Revenue and Margins
Ticker Symbol, Stock Exchange       SAP, Johannesburg Stock Exchange

Number of Employees                 16,427

Fiscal Year End                     September

Revenue (in US$ million)            6,572.00




SWOT Analysis

Strengths                           Weaknesses                               Return on Equity

Broad Product Portfolio             Weak Financial Performance               The company recorded a return on equity (ROE) of
                                                                             3.48% for 2010, as compared to its peers, Transpaco
                                                                             Limited (Ticker: TPC), Boise Inc. (Ticker: BZ) and
Global Presence                                                              Mondi plc (Ticker: MNDI), which recorded ROEs of
                                                                             23.98%, 9.70% and 8.11% respectively. The
Leading Market Position                                                      company reported a net profit margin of 5.19% in
                                                                             2010.
Opportunities                       Threats
                                                                             Return on Equity
Innovation                          Inexpensive Paper from China

Inorganic Growth Strategies         Intensity of Rivalry is high

Positive Outlook for Light-weight
                                    Regulatory Environment
Packaging




                                                                             Liquidity Position

                                                                             The company reported a current ratio of 1.24 in 2010,
                                                                             as compared to its peers, Transpaco Limited, Boise
                                                                             Inc. and Mondi plc, which recorded current ratios of
                                                                             1.88, 2.15 and 1.13 respectively. As of September
                                                                             2010, the company recorded cash and short-term
                                                                             investments of worth US$792.00 million, against
                                                                             US$691.00 million current debt. The company
                                                                             reported a debt to equity ratio of 1.59 in 2010 as
                                                                             compared to its peers, Transpaco Limited, Boise Inc.
                                                                             and Mondi plc, which recorded debt to equity ratios of
                                                                             0.27, 1.21 and 0.52 respectively.




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Sappi Limited - SWOT Profile                                                                                         Page 1
Sappi Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 23
5     SWOT Anal
								
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