Stock Analysis & Valuation Mayr-Melnhof Karton AG (MYM.DE)

• Previous Close: €93.80
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	96.20	3
Intrinsic value (DCF)	33.10	-65
Graham-Dodd Method	73.52	-22
Graham Formula	33.65	-64

Strategic Investment Analysis

Company Overview

Mayr-Melnhof Karton AG (MYM.DE) is a leading European manufacturer of cartonboard and folding cartons, headquartered in Vienna, Austria. Operating through two key segments—MM Board & Paper and MM Packaging—the company produces high-quality coated and virgin fiber-based cartonboard, kraft papers, and uncoated fine papers. Its products are essential for food packaging, household goods, and hygiene products, serving a fragmented but critical folding carton industry. The MM Packaging segment further processes cartonboard into folding cartons, leaflets, and labels, primarily for the food and consumer goods sectors. Founded in 1950, Mayr-Melnhof Karton AG has established itself as a key player in sustainable packaging solutions, leveraging recycling fibers and innovative production techniques. With a market capitalization of approximately €1.48 billion, the company operates internationally, with a strong presence in Germany and Austria. Its commitment to eco-friendly packaging aligns with growing global demand for sustainable materials, positioning it well in the Consumer Cyclical sector.

Investment Summary

Mayr-Melnhof Karton AG presents a stable investment opportunity within the packaging industry, supported by its diversified product portfolio and strong European market presence. The company’s FY 2024 financials show solid revenue of €4.08 billion and net income of €108.2 million, with a diluted EPS of €5.41. Its operating cash flow of €458.6 million and manageable debt levels (€1.63 billion) indicate financial resilience. However, the packaging sector is highly competitive and sensitive to raw material costs, which could pressure margins. The company’s beta of 0.576 suggests lower volatility compared to the broader market, appealing to risk-averse investors. A dividend yield of approximately 1.8% adds income appeal. Long-term growth depends on continued demand for sustainable packaging and operational efficiency improvements.

Competitive Analysis

Mayr-Melnhof Karton AG holds a competitive edge through its vertically integrated operations, combining cartonboard production with downstream packaging solutions. This integration allows for cost control and quality assurance across the supply chain. The company’s focus on recycled and virgin fiber-based cartonboard caters to the increasing demand for sustainable packaging, differentiating it from competitors reliant on less eco-friendly materials. However, the folding carton industry is fragmented, with intense competition from both regional players and global giants. Mayr-Melnhof’s strength lies in its specialization in high-quality cartonboard and its strong relationships with printing businesses and food industry clients. Its geographic concentration in Europe could be a limitation compared to multinational competitors with broader global reach. The company’s ability to innovate in recyclable materials and maintain cost efficiency will be critical in sustaining its market position amid rising environmental regulations and shifting consumer preferences.

Major Competitors

• DS Smith Plc (DSM.AS): DS Smith is a leading European corrugated and plastic packaging provider with a strong focus on sustainability. Its extensive recycling infrastructure and innovation in lightweight packaging give it an edge in cost efficiency. However, it faces margin pressures from volatile raw material costs. Compared to Mayr-Melnhof, DSM has a broader geographic footprint but less specialization in cartonboard.
• Mondi Plc (MOND.L): Mondi is a global leader in sustainable packaging and paper, with diversified operations across packaging solutions and uncoated fine paper. Its strength lies in its integrated supply chain and strong R&D capabilities. However, its exposure to emerging markets introduces currency and political risks. Mondi’s broader product range contrasts with Mayr-Melnhof’s tighter focus on cartonboard.
• Stora Enso Oyj (STERV.HE): Stora Enso is a renewable materials giant, producing packaging, biomaterials, and wood products. Its strength is in its sustainable forestry operations and innovation in fiber-based packaging. However, its larger scale can lead to inefficiencies in niche markets. Compared to Mayr-Melnhof, Stora Enso has a more diversified but less specialized packaging business.
• Packaging Corporation of America (PKG): PKG is a major player in the North American corrugated and packaging market, with strong containerboard production capabilities. Its advantage lies in its domestic market dominance and efficient logistics. However, it lacks Mayr-Melnhof’s focus on high-end cartonboard and has limited exposure to European markets.