Arctic Paper S.A. (ATC) AI Stock Analysis

• Market Cap: zł609.73M
• Dividend Yield: 12.44%
• Average Volume (3M): 45.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -5.71%
• EPS Growth: -102.40%
• Country: PL
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.03
• Shares Outstanding: 69,287,780
• 10 Day Avg. Volume: 60,090
• 30 Day Avg. Volume: 45,182
• PEG Ratio: -0.19
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: zł8.50 ▲(2.41% Upside)

Arctic Paper S.A. faces significant financial and technical challenges. The most impactful factor is the declining financial performance, with negative trends in revenue, profitability, and cash flow. Technical analysis further highlights bearish momentum. While the high dividend yield offers some valuation appeal, the overall outlook remains cautious due to operational and liquidity pressures.

Arctic Paper S.A. Business Overview & Revenue Model

Company Description

Arctic Paper S.A. is a leading European manufacturer of high-quality paper products, primarily serving the printing and publishing sectors. The company operates in various segments, including graphic and specialty paper, and is known for its commitment to sustainable production practices. Arctic Paper's core products include coated and uncoated fine paper, as well as a range of specialty papers tailored for specific applications.

How the Company Makes Money

Arctic Paper S.A. generates revenue primarily through the sale of its paper products to a diverse customer base, which includes printers, publishers, and packaging companies. The company's revenue model is heavily reliant on both domestic and international sales, with a significant portion of its earnings derived from exporting products to various markets. Key revenue streams include the sale of coated and uncoated fine papers, specialty papers, and other paper-related products. Additionally, Arctic Paper benefits from long-term partnerships with distributors and suppliers, which helps stabilize its supply chain and enhance its market reach. Factors contributing to its earnings also include its focus on sustainability, which appeals to environmentally conscious consumers and businesses, and ongoing investments in production efficiency and technology.

Arctic Paper S.A. Financial Statement Overview

Summary

Arctic Paper S.A. is experiencing financial challenges with declining revenue, profitability, and cash flow. The income statement shows a decrease in gross and net profit margins, while the balance sheet remains stable but with concerns over profitability. Cash flow issues are evident with a significant decline in free cash flow and liquidity challenges.

Income Statement

Arctic Paper S.A. has experienced a decline in revenue and profitability over the TTM period. The gross profit margin decreased to 12.86% from 17.01% in the previous year, and the net profit margin turned negative at -0.15%. EBIT and EBITDA margins also declined, indicating operational challenges. The revenue growth rate is negative, reflecting a contraction in sales. These factors suggest financial pressure and a need for strategic adjustments.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.24, which is manageable. However, the return on equity has turned negative, indicating inefficiencies in generating returns from equity. The equity ratio remains stable, suggesting a solid capital structure. Overall, the balance sheet reflects stability but with concerns over profitability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow, with a negative growth rate of -15.76% in the TTM period. The operating cash flow to net income ratio is low at 0.14, and the free cash flow to net income ratio is negative, indicating cash flow challenges. These metrics highlight potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.43B	3.55B	4.89B	3.41B	2.85B
Gross Profit	372.09M	584.39M	745.68M	1.41B	707.93M	541.79M
EBITDA	57.76M	314.93M	466.26M	1.06B	358.07M	255.28M
Net Income	-33.50M	154.46M	247.13M	631.00M	175.91M	111.07M
Balance Sheet
Total Assets	2.79B	2.76B	2.72B	3.25B	2.39B	2.14B
Cash, Cash Equivalents and Short-Term Investments	159.41M	291.34M	552.25M	765.34M	265.29M	267.75M
Total Debt	259.39M	257.14M	151.92M	204.75M	282.80M	383.09M
Total Liabilities	1.02B	988.24M	921.37M	1.20B	1.15B	1.10B
Stockholders Equity	1.43B	1.46B	1.44B	1.59B	912.14M	749.98M
Cash Flow
Free Cash Flow	-225.56M	-235.20M	271.03M	452.50M	78.32M	74.97M
Operating Cash Flow	134.30M	188.40M	471.20M	607.38M	238.19M	211.46M
Investing Cash Flow	-356.58M	-416.63M	-146.72M	-155.88M	-159.51M	-141.24M
Financing Cash Flow	115.83M	22.84M	-288.93M	-124.59M	-162.07M	-100.95M

Arctic Paper S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:ATC, the sentiment is Positive. The current price of 8.3 is below the 20-day moving average (MA) of 8.32, above the 50-day MA of 8.26, and below the 200-day MA of 10.36, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 75.92 is Negative, neither overbought nor oversold. The STOCH value of 87.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:ATC.

Arctic Paper S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ATC	47 Neutral	zł609.73M	-18.61	-2.36%	12.44%	-5.71%	-102.40%
HUB	―	zł168.21M	6.49	―	―	―	―
SEL	79 Outperform	zł1.35B	11.58	15.05%	4.58%	-1.42%	-2.91%
ATT	52 Neutral	zł1.93B	-1.80	-24.17%	―	4.17%	52.69%