DS SMITH

Analysis of DS Smith share price

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If you want to trade in the DS Smith stock price or if you plan to buy this stock, you must first be able to carry out proper analyses of this stock. We'll be helping you by revealing some practical information about this value such as the precise activities of this company, its sources of income and its main adversaries in its sector of activity. We'll also tell you about the recent partnerships established by the group as well as the elements that you'll need to take into account as part of the fundamental analyses of this share because of their possible impact on the growth of this group.

Elements that can influence the price of this asset:

Analysis N°1

First of all, keep an eye on the growth of the countries in which the DS Smith group operates and in particular on the growth of the industrial sector which is the main demand for its products.

Analysis N°2

It's also important to keep an eye on the investments made by DS Smith in research and development. It's through innovation that the group can offer its customers more efficient and practical products than those of the competition and develop less expensive and more efficient manufacturing processes.

Analysis N°3

At the same time, you'll need to monitor competition from this sector of activity and the major players in it, who may take market shares from it in the more or less long term.

Analysis N°4

You should pay attention to the strategic operations carried out by the company with the aim of establishing itself in new markets such as strategic partnerships, transfers, acquisitions and even the creation of joint ventures.

Analysis N°5

Finally, the financial results must be analysed with the greatest care. You'll be able to consult the group's quarterly and annual reports and assessments and compare them with the objectives set by the company each year in terms of development and growth and with the expectations of analysts specializing in this sector of activity.

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General presentation of DS Smith

It's obviously essential to have sound knowledge of the DS Smith Company before starting to trade on the price of this share. This is why you should check out this complete presentation of the company as well as its main activities and sources of income.

DS Smith Plc Group is a UK industrial company. Specifically, the group is currently one of the leaders in the manufacture of industrial packaging from corrugated cardboard and recycled paper in Europe.

To better understand the Company's activities, you can divide them into several divisions according to the percentage of turnover they generate like so:

  • First, most of the group's income comes from the production and sale of recycled corrugated cardboard packaging. These include American boxes, shipping packaging, octabins, and trays for caterers, dividers and even POS displays among others.
  • Finally, the production and marketing of flat cardboard boxes which can be double cardboard and foam cardboard, uncoated technical cardboard, special made-to-measure cardboard and even protective inserts.

The DS Smith Group was also formerly engaged in the manufacturing of plastic products, but it finally ceded these activities in 2020.

It's also important to know the geographical distribution of the group's income, which generates only 13.7% of its turnover in the United Kingdom, 14% in France, 9.7% in Germany, 9.4% in the United States, 9.3% in Italy and finally, 43.9% in the rest of the world.

Analysis of DS Smith share price
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The major competitors of DS Smith

Now it's time to discover some of the major competitors of the DS Smith group with the two other leaders in this sector of activity in Europe below:

Smurfit Kappa

 First of all, the Smurfit Kappa group is a company specializing in the manufacture of paper-based packaging. It's the European leader in this sector and the group operates in more than 35 different countries. It produces corrugated cardboard, bag-in-box and flat cardboard from ready-to-sell packaging to point-of-sale (POS) advertising, including cardboard pallets and resistant packaging. The company is also the world's number two in the production of cardboard packaging in terms of sales and owns and operates 368 facilities worldwide with 45,000 employees.

Saica

This other company is a multinational based in Spain and has recently consolidated positions in this sector by acquiring the French group Emin Leydier and its factories, two of which are paper and four are cardboard. It is the third producer on the French market and the group is also expanding in Northern and Southern Europe as well as in Turkey. It has particularly adapted to the demand of the food industry by developing a flexible concept of packaging for food and beverages and recently inaugurated new production lines in its factory in Savoie for one of its larger customers, Veepee, which has enabled it to meet the ever-increasing needs in terms of manufacturing deadlines.


The major partners of DS Smith

After learning about the main adversaries of the DS Smith group, take stock of the group's strategic partnerships, which regularly sets up alliances with other companies in order to promote its growth. For example, in two recent cases:

Solarenn

First of all, the group recently set up a partnership with the market gardening cooperative Solarenn, which is the third largest Breton producer in France and has been working for two years on changing its packaging. DS Smith has produced innovative, optimized and eco-designed packaging for the 2021 season. It is the collaboration between the two companies that has made it possible to optimize the packaging of tomatoes from end to end of the chain with the common objective of moving to sustainable solutions and anticipating the AGEC law by dispensing with plastic for single use only. The new concept of 100% eco-designed and innovative cardboard packaging was developed with the aim of allowing maximum flexibility and product visibility.

Touchgard

Another recent partnership that the group has put in place was with the Touchgard Company. The two companies have launched a range of recyclable corrugated cardboard antimicrobial packaging with the aim of reducing the spread of Covid-19. The new patented technology is particularly effective against bacteria and viruses, including viral envelopes not to mention those of the new coronavirus. It was then tested for the feline coronavirus which is part of the same family as Covid-19. The technology prevents the virus from multiplying and the packaging is also effective against the spread of SERM and E. Coli. According to DS Smith's sales, marketing and innovation director, Touchgard technology provides additional protection to customers and consumers throughout the supply chain even though it does not replace barrier gestures and other precautions. This packaging is of course also 100% recyclable and help to preserve the durability of the products. The range of this packaging is particularly intended for e-commerce and food products.

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Frequently Asked Questions

What are the key dates in the history of DS Smith?

In 2004, DS Smith bought the paper and cardboard activities of Linpac. In 2010, it bought the French group Otor and its cardboard factories, paper mills and cardboard factories then, in 2011, bought the packaging activities of Svenska Cellulosa Aktiebolaget. In February 2015, the group bought Duropack in Austria and then, in 2018, the Spanish company Europac. Finally in 2019, the group announced the sale of its plastic packaging activities to Olympus Partners, which is an investment fund.

Who are the main shareholders of the DS Smith group?

Among the major shareholders in the capital of the DS Smith group, we find Aviva Investors Global Services with 7.48% of the shares, Norges Bank Investment Management with 5.16%, Standard Life Investments with 5%, Threadneedle Asset management with 4.93%, Merpas with 3.26%, BlackRock Investment Management with 3.01%, The Vanguard Group with 2.67%, Legal & General Investment Management with 2.30%, Quilter Cheviot with 1.14% and M&G Investment Management with 2.12%.

How to analyse future variations in the DS Smith share price?

The best way to analyse possible variations in the DS Smith share price is to use two types of analysis jointly. Technical analysis and fundamental analysis should be favoured here. The first is based on the study of the historical charts of the share and the second on the events likely to have an influence on the growth of the company.

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