Holmen AB (HOLM.A) AI Stock Analysis

• Market Cap: kr59.69B
• Dividend Yield: 0.8%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.59
• Revenue Growth: 3.23%
• EPS Growth: -5.41%
• Country: SE
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 93
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.80
• Shares Outstanding: 45,246,468
• 10 Day Avg. Volume: 1,007
• 30 Day Avg. Volume: 3,252
• PEG Ratio: 36.71
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.54
• 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: kr434.00
• Price Target Upside: 20.22% Upside
• Rating Consensus: Moderate Buy
• 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 is a Swedish company operating in the forest industry, with a focus on sustainable forestry and renewable energy production. The company is engaged in the production of paperboard, paper, and wood products, as well as managing extensive forest holdings and generating renewable energy. Holmen's core products include paperboard for consumer packaging, publication paper, and sawn timber, catering to a global customer base.

How the Company Makes Money

Holmen AB makes money through several key revenue streams, primarily derived from its forest and paperboard divisions. The company owns and manages large areas of forest land, which are crucial for supplying raw materials for its paperboard and sawn timber production. The paperboard division generates revenue from the sale of high-quality paperboard used in consumer packaging, benefiting from the growing demand for sustainable packaging solutions. The paper division contributes to earnings through the production and sale of paper products, including newsprint and magazine papers. Additionally, Holmen capitalizes on its forest resources by selling sawn timber and engaging in renewable energy production, particularly through hydroelectric power, which provides an additional income stream. These diversified operations, combined with a strong focus on sustainability and resource efficiency, underpin Holmen's ability to generate revenue.

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: Neutral
• 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 Neutral. The current price of 361 is below the 20-day moving average (MA) of 365.00, below the 50-day MA of 381.70, and below the 200-day MA of 392.51, indicating a neutral trend. The MACD of -3.96 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLM.A	71 Outperform	kr59.69B	20.22	5.07%	0.80%	3.23%	-5.41%
SCA.B	69 Neutral	kr86.46B	23.86	3.64%	2.44%	12.89%	15.29%
BILL	64 Neutral	kr21.50B	11.45	6.73%	3.99%	6.04%	162.11%
Sector *	63 Neutral	kr61.10B	12.50	1.88%	2.33%	0.13%	-4.39%
STE.R	62 Neutral	kr84.54B	―		0.02%	4.81%	―
NPAPER	61 Neutral	kr3.22B	8.48	26.92%	8.40%	3.95%	-10.26%
STE.A	51 Neutral	kr84.54B	―		0.24%	4.81%	―