Company DescriptionNordic Paper Holding AB (publ) produces and sells natural greaseproof and kraft paper in Sweden, Italy, Germany, rest of Europe, the United States, and internationally. It offers a range of kraft paper, including sack/machine finished paper, machine glazed paper, absorbent kraft paper, and steel interleaving paper for carrier bags and food packaging, as well as in packaging for building materials and other industrial applications; and natural greaseproof paper, such as baking paper, paper for baking cups, food packaging and barrier paper, and lamination paper for building materials. The company was founded in 1871 and is headquartered in Karlstad, Sweden.

How the Company Makes Money

Nordic Paper Holding AB Financial Statement Overview

Summary

Nordic Paper Holding AB presents a strong financial performance with solid profitability metrics and efficient equity utilization. Revenue growth is steady, though margin pressures are noted. The balance sheet is stable but slightly leveraged, posing potential risks if market conditions worsen. Cash flow management needs attention due to negative free cash flow, but operating cash flow remains robust. Overall, the company is financially sound with areas needing strategic improvements.

Income Statement

Positive

Nordic Paper Holding AB demonstrates solid profitability with a strong gross profit margin of 42.5% and a healthy net profit margin of 10.2% for the TTM. The company's revenue growth rate from the previous annual report is 1.46%, which indicates stable growth. However, the slight decline in gross profit from 2024 to the TTM suggests potential margin pressures. EBIT and EBITDA margins remain robust, supporting overall profitability.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 1.01, suggesting a balanced capital structure. The return on equity (ROE) of 31.7% is encouraging, reflecting efficient use of equity capital. However, the equity ratio of 37% indicates a reliance on debt, which could pose risks in volatile market conditions. Overall, the balance sheet shows stability with some leverage concerns.

Cash Flow

Positive

Operating cash flow to net income ratio is 0.87, indicating effective conversion of earnings into cash. However, the free cash flow is negative due to substantial capital expenditures, which may impact short-term liquidity. The free cash flow to net income ratio is -0.06, highlighting the negative free cash flow. The company needs to manage its capital expenditures to improve cash flow stability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.74B	4.67B	4.47B	4.44B	3.08B	2.90B
	Gross Profit
2.01B	2.40B	2.35B	2.39B	1.64B	1.68B
	EBIT
648.00M	654.00M	623.00M	676.00M	208.00M	348.00M
	EBITDA
853.00M	822.00M	763.00M	902.00M	402.00M	447.00M
	Net Income Common Stockholders
484.00M	465.00M	416.00M	566.00M	144.00M	258.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
261.00M	398.00M	496.00M	325.00M	360.00M	415.00M
	Total Assets
4.13B	4.14B	3.84B	3.63B	3.25B	2.35B
	Total Debt
1.54B	1.59B	1.23B	1.26B	1.65B	1.13B
	Net Debt
1.28B	1.19B	737.00M	940.00M	1.29B	719.00M
	Total Liabilities
2.60B	2.77B	2.64B	2.58B	2.67B	1.76B
	Stockholders Equity
1.53B	1.36B	1.19B	1.04B	584.00M	593.00M
Cash Flow		Free Cash Flow
-27.46M	-169.00M	557.00M	415.00M	228.00M	250.00M
	Operating Cash Flow
419.99M	333.00M	765.00M	560.00M	408.00M	352.00M
	Investing Cash Flow
-449.46M	-504.00M	-223.00M	-92.00M	-824.00M	-102.00M
	Financing Cash Flow
471.29K	60.00M	-346.00M	-534.00M	361.00M	-70.00M

Nordic Paper Holding AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPH		€321.52M	7.45	33.28%	7.38%	―	―
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%
0GWS		kr25.65B	13.82	6.58%	3.41%	―	―
0R9X		kr13.55B	13.30	10.64%	2.44%	―	―
0NBN			―	5.07%	―	―	―
0M32		kr75.09B	―		―	―	―
0MCK		kr88.72B	24.05	3.50%	2.37%	―	―

* Basic Materials Sector Average

Performance Comparison

DE:NPH

Nordic Paper Holding AB

4.72

0.32

7.27%

GB:0GWS

BillerudKorsnas AB

105.44

5.22

5.21%

GB:0R9X

Granges AB

127.50

-5.00

-3.77%

GB:0NBN

Holmen AB

―

GB:0M32

Stora Enso Oyj

145.99

0.00

0.00%

GB:0MCK

Svenska Cellulosa SCA AB

126.55

-22.97

-15.36%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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