Holmen AB (HOLM.A) AI Stock Analysis

• Market Cap: kr60.60B
• Dividend Yield: 0.8%
• Average Volume (3M): 3.09K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.59
• Revenue Growth: 3.23%
• EPS Growth: -5.41%
• Country: SE
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.80
• Shares Outstanding: 45,246,468
• 10 Day Avg. Volume: 5,690
• 30 Day Avg. Volume: 3,093
• PEG Ratio: 40.55
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.26
• 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

• Rating: 71 Outperform
• Price Target: kr434.00 ▲(20.22%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 Business Overview & Revenue Model

Company Description

Holmen AB (publ) produces and sells paperboards, papers, wood products, and renewable energy in Sweden, Germany, the United Kingdom, France, Italy, rest of Europe, Asia, and internationally. The company's Forest segment offers logs, pulpwood, and biofuel to sawmills, pulp mills, and paperboard and paper mills; and manages forests, which cover approximately one million hectares. Its Paperboard segment provides paperboards for consumer packaging to brand owners, converters, and wholesalers. The company's Paper segment offers papers for books, magazines, printed advertising, and packaging to publishers, printing firms, and retailers. Its Wood Products segment provides construction and joinery timber, CLT and glulam products, and wood for pallets and packaging to construction, joinery, and packaging industries, as well as builders' merchants; and operates sawmills. The company's Renewable Energy segment operates 21 hydro power stations; and wind farms with a capacity of approximately 1.2 TWh of electricity. Holmen AB (publ) was founded in 1609 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Holmen 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.01B	22.76B	22.80B	23.95B	19.48B	16.33B
Gross Profit	8.35B	10.24B	12.12B	13.75B	9.83B	8.04B
EBITDA	5.19B	5.15B	6.16B	8.85B	5.00B	3.67B
Net Income	2.87B	2.86B	3.70B	5.87B	3.00B	1.98B
Balance Sheet
Total Assets	80.14B	81.55B	79.72B	81.44B	68.10B	62.54B
Cash, Cash Equivalents and Short-Term Investments	1.15B	234.00M	1.20B	1.94B	507.00M	346.00M
Total Debt	272.00M	2.73B	3.17B	3.15B	4.34B	4.69B
Total Liabilities	23.18B	24.18B	22.80B	24.49B	21.11B	20.03B
Stockholders Equity	56.96B	57.37B	56.92B	56.95B	46.99B	42.52B
Cash Flow
Free Cash Flow	2.51B	1.20B	4.10B	4.09B	1.52B	1.29B
Operating Cash Flow	3.45B	3.32B	5.80B	5.48B	3.23B	2.46B
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: Negative
• Last Price: 361.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HOLM.A, the sentiment is Negative. The current price of 361 is below the 20-day moving average (MA) of 375.65, below the 50-day MA of 386.52, and below the 200-day MA of 396.34, indicating a bearish trend. The MACD of -6.89 indicates Negative momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 48.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HOLM.A.

Holmen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	78 Outperform	kr4.47B	9.24	33.28%	5.98%	8.20%	23.15%
HOLM.A	71 Outperform	kr60.60B	20.55	5.07%	0.80%	3.23%	-5.41%
SCA.B	69 Neutral	kr88.42B	24.23	3.50%	2.38%	16.88%	12.52%
BILL	59 Neutral	kr24.65B	13.36	6.58%	34.19%	9.83%	1070.42%
STE.R	58 Neutral	kr85.71B	―		5.26%	3.93%	―
Sector *	58 Neutral	$1.34B	4.20	-2.93%	7.41%	3.67%	-51.13%
STE.A	46 Neutral	kr85.71B	―		56.71%	3.93%	―