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Holmen AB (SE:HOLM.A)
:HOLM.A

Holmen AB (HOLM.A) AI Stock Analysis

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Holmen AB

(LSE:HOLM.A)

Rating:71Outperform
Price Target:
kr434.00
▲(9.87%Upside)
Holmen AB exhibits strong financial health, with robust profitability and effective cash flow management being the most significant positive factors. However, the valuation appears slightly elevated, and technical indicators suggest mixed market sentiment, which tempers the overall score.

Holmen AB (HOLM.A) vs. iShares MSCI Sweden ETF (EWD)

Holmen AB Business Overview & Revenue Model

Company DescriptionHolmen AB is a Swedish company operating primarily in the forestry and paper products sectors. The company is involved in the management of forest holdings, the production of paperboard, paper, and wood products, and operates renewable energy assets. Holmen AB is known for its sustainable approach to forestry and its focus on producing high-quality products while minimizing environmental impact.
How the Company Makes MoneyHolmen AB generates revenue through several key streams within its diversified operations. The company owns and manages extensive forest lands, which provide raw materials for its other business units and generate income through sustainable forestry practices. In the paperboard and paper segment, Holmen produces and sells a range of paper products, catering to various industries and exporting to international markets. The wood products segment produces timber and building materials, further capitalizing on the company's forestry resources. Additionally, Holmen operates in the renewable energy sector, generating and selling energy primarily from hydro and wind power installations, contributing to its earnings. Strategic partnerships and a focus on sustainability and innovation are significant factors supporting Holmen's revenue generation.

Holmen AB Financial Statement Overview

Summary
Holmen AB demonstrates a commendable financial standing across its financial statements. The company enjoys strong profitability, stable revenue growth, and prudent balance sheet management, supported by effective cash flow generation. Despite industry challenges, Holmen AB's financial metrics highlight its resilience and capability to sustain and grow its operations effectively.
Income Statement
85
Very Positive
Holmen AB's income statement exhibits robust financial health, characterized by a consistent and impressive net profit margin of 12.47% for TTM. Despite a slight dip in gross profit margin from previous years, the company maintains strong EBIT and EBITDA margins at 15.63% and 22.54% respectively for TTM. Revenue growth has been stable, with a modest increase from the previous year, indicating a steady growth trajectory in the challenging Paper, Lumber & Forest Products industry.
Balance Sheet
88
Very Positive
The balance sheet of Holmen AB is solid, with a notably low debt-to-equity ratio of 0.004 for TTM, reflecting prudent financial management and low leverage risk. The equity ratio is high at 67.15%, indicating a strong balance of equity financing. Return on Equity stands at a healthy 5.09%, demonstrating effective use of shareholders' funds. The company's financial stability is further strengthened by a significant reduction in total debt compared to prior periods.
Cash Flow
80
Positive
Holmen AB displays a strong cash flow performance, with a Free Cash Flow to Net Income ratio of 0.88 for TTM, indicating efficient cash conversion. The Free Cash Flow Growth Rate shows remarkable improvement from the previous year, signifying effective capital expenditure management. The Operating Cash Flow to Net Income ratio of 1.20 signals robust cash generation capacity, supporting ongoing operations and potential growth initiatives.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.01B22.76B22.80B23.95B19.48B16.33B
Gross Profit
8.35B10.24B12.12B13.75B9.83B8.04B
EBIT
3.60B3.72B4.75B7.53B3.73B2.48B
EBITDA
5.19B5.15B6.16B8.85B5.00B3.67B
Net Income Common Stockholders
2.87B2.86B3.70B5.87B3.00B1.98B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.15B234.00M1.20B1.94B507.00M346.00M
Total Assets
80.14B81.55B79.72B81.44B68.10B62.54B
Total Debt
272.00M2.73B3.17B3.15B4.34B4.69B
Net Debt
-875.00M2.49B1.97B1.21B3.84B4.34B
Total Liabilities
23.18B24.18B22.80B24.49B21.11B20.03B
Stockholders Equity
56.96B57.37B56.92B56.95B46.99B42.52B
Cash FlowFree Cash Flow
2.51B1.20B4.10B4.09B1.52B1.29B
Operating Cash Flow
3.45B3.32B5.80B5.48B3.23B2.46B
Investing Cash Flow
-2.27B-2.07B-1.65B-1.35B-1.31B-1.78B
Financing Cash Flow
-754.00M-2.22B-4.89B-2.71B-1.76B-808.00M

Holmen AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price395.00
Price Trends
50DMA
387.57
Positive
100DMA
394.82
Positive
200DMA
398.92
Negative
Market Momentum
MACD
0.86
Positive
RSI
49.16
Neutral
STOCH
20.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HOLM.A, the sentiment is Neutral. The current price of 395 is below the 20-day moving average (MA) of 403.05, above the 50-day MA of 387.57, and below the 200-day MA of 398.92, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 20.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:HOLM.A.

Holmen AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
kr3.52B7.2833.28%7.60%8.20%23.15%
71
Outperform
kr62.48B21.765.07%2.28%3.23%-5.41%
69
Neutral
kr25.65B13.896.58%3.41%9.83%1070.42%
69
Neutral
kr88.72B24.303.50%2.37%16.88%12.52%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
60
Neutral
kr75.09B
2.69%3.93%
52
Neutral
kr75.09B
2.54%3.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:HOLM.A
Holmen AB
395.00
-15.15
-3.69%
SE:BILL
BillerudKorsnas AB
103.30
1.80
1.77%
SE:STE.A
Stora Enso Oyj
101.00
-38.16
-27.42%
SE:STE.R
Stora Enso Oyj
95.25
-45.19
-32.18%
SE:SCA.B
Svenska Cellulosa SCA AB
126.30
-26.14
-17.15%
SE:NPAPER
Nordic Paper Holding AB
52.65
1.80
3.54%
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

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.