Holmen AB (HOLM.A) AI Stock Analysis

• Market Cap: kr57.71B
• Dividend Yield: 2.43%
• Average Volume (3M): 874.00
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.64
• Revenue Growth: 1.15%
• EPS Growth: -5.92%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 3.80
• Shares Outstanding: 45,246,468
• 10 Day Avg. Volume: 829
• 30 Day Avg. Volume: 874
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: kr395.00
• Price Target Upside: 9.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: kr395.00 ▲(9.72% Upside)

Holmen AB's overall stock score is driven primarily by its strong financial performance, which underscores its resilience and capability to sustain operations. While the technical analysis indicates some bearish trends, the company's solid financial foundation and reasonable valuation provide a balanced outlook.

Holmen AB Business Overview & Revenue Model

Company Description

Holmen AB (HOLM.A) is a Swedish forest industry company that operates in the sectors of paper, paperboard, wood products, and renewable energy. The company is primarily involved in the production of sustainable products derived from its own forests, including printing paper, packaging materials, and sawn timber. Holmen AB places a strong emphasis on sustainability and responsible forestry, contributing to its reputation as a leader in the green transition within the forest industry.

How the Company Makes Money

Holmen AB generates revenue through multiple key streams. Its primary revenue comes from the sale of paper products, which includes printing and writing paper, as well as packaging solutions made from paperboard. The company also earns income from its wood products segment, which produces sawn timber and engineered wood products for construction and other industries. Additionally, Holmen AB capitalizes on its renewable energy operations, where it produces and sells electricity generated from biomass and hydropower. Significant partnerships with retailers and manufacturers in various sectors help bolster revenue, along with ongoing investments in sustainable practices that align with market demands for eco-friendly products.

Holmen AB Financial Statement Overview

Summary

Holmen AB demonstrates strong financial performance with robust profitability, stable revenue growth, and prudent balance sheet management. The company maintains strong profitability margins and has a low debt-to-equity ratio, indicating financial stability and resilience in a challenging industry.

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	83.92B	81.55B	79.72B	81.44B	68.10B	62.54B
Cash, Cash Equivalents and Short-Term Investments	1.56B	234.00M	1.20B	1.94B	507.00M	346.00M
Total Debt	244.00M	2.73B	3.17B	3.15B	4.34B	4.69B
Total Liabilities	27.57B	24.18B	22.80B	24.49B	21.11B	20.03B
Stockholders Equity	56.34B	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: 360.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 360 is below the 20-day moving average (MA) of 367.20, below the 50-day MA of 369.64, and below the 200-day MA of 388.52, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.33 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
SCA.B	76 Outperform	kr89.06B	23.57	3.64%	2.36%	12.89%	15.29%
HOLM.A	70 Neutral	kr57.71B	20.75	4.86%	2.43%	1.15%	-5.92%
BILL	64 Neutral	kr21.52B	11.71	6.73%	4.01%	6.04%	162.11%
SSAB.B	61 Neutral	kr55.66B	12.26	6.67%	4.68%	-10.87%	-55.90%
Sector *	59 Neutral	kr29.94B	0.02	-5.14%	3.50%	2.14%	-25.19%
NPAPER	57 Neutral	kr3.14B	8.36	26.92%	8.51%	3.95%	-10.26%
STE.R	54 Neutral	kr87.80B	―		2.30%	4.81%	―