Holmen AB (HOLM.A) AI Stock Analysis

• Market Cap: kr55.82B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.25K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.58
• Revenue Growth: -1.15%
• EPS Growth: 2.30%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 6.10
• Shares Outstanding: 45,246,468
• 10 Day Avg. Volume: 1,398
• 30 Day Avg. Volume: 1,253
• PEG Ratio: -1.03
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 53.66
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: kr368.00 ▲(6.36% Upside)

Holmen AB's overall stock score reflects a stable financial position with strong profitability and a solid balance sheet. However, the stock is currently experiencing bearish technical indicators, which weigh down the score. The valuation is reasonable, supported by a moderate dividend yield. Addressing revenue growth challenges and improving market momentum could enhance the stock's attractiveness.

Positive Factors

Sustainability Focus

Holmen's commitment to sustainability and eco-friendly practices aligns with global trends towards environmental responsibility, potentially enhancing long-term brand value and market appeal.

Strong Balance Sheet

A strong balance sheet with low leverage provides Holmen with financial stability and flexibility, allowing it to invest in growth opportunities and weather economic downturns.

Cash Flow Improvement

Improving free cash flow indicates enhanced cash generation capabilities, supporting reinvestment in the business and potential shareholder returns.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder Holmen's ability to expand market share and improve profitability, posing a risk to long-term financial performance.

Declining Return on Equity

A declining ROE suggests reduced efficiency in generating profits from shareholders' investments, potentially impacting investor confidence and capital attraction.

Profit Margin Pressure

Slight decreases in profit margins may indicate rising costs or competitive pressures, which could affect Holmen's ability to maintain profitability over time.

Holmen AB Business Overview & Revenue Model

Company Description

Holmen AB (HOLM.A) is a Swedish company that operates in the forestry and paper industries, with a strong emphasis on sustainability and environmental responsibility. The company is divided into several business areas, including wood products, paperboard, and renewable energy. Holmen produces a variety of products, such as paper, paperboard, and sawn timber, while also managing substantial forest land to ensure a sustainable supply of raw materials. With a commitment to innovation and eco-friendly practices, Holmen aims to contribute to a circular economy.

How the Company Makes Money

Holmen AB generates revenue primarily through the sale of its products across its various business segments. Key revenue streams include the production and sale of paper and paperboard products, which cater to packaging and printing markets, and the sale of wood products, including sawn timber and engineered wood products. Additionally, Holmen benefits from its extensive forest holdings, which provide a sustainable source of raw materials and contribute to carbon sequestration. The company also generates income from renewable energy operations, particularly through hydroelectric power generation. Significant partnerships with businesses in packaging and construction sectors enhance its market reach and stability, contributing to overall earnings.

Holmen AB Financial Statement Overview

Summary

Holmen AB demonstrates a stable financial position with strong profitability margins and a solid balance sheet characterized by low leverage. The recent decline in revenue growth is a concern, but the company has managed to maintain profitability and improve cash flow generation. Overall, Holmen AB is well-positioned in its industry, with a strong financial foundation to support future growth.

Income Statement

Holmen AB's income statement shows mixed performance. The TTM data indicates a slight decline in revenue growth, with a negative rate of -1.40%. However, the company maintains healthy margins, with a gross profit margin of 48.17% and a net profit margin of 12.02%. The EBIT and EBITDA margins are also strong at 15.91% and 22.20%, respectively. Despite the recent revenue decline, the company has demonstrated resilience in maintaining profitability.

Balance Sheet

Holmen AB's balance sheet is robust, with a very low debt-to-equity ratio of 0.004, indicating minimal leverage and financial risk. The return on equity is moderate at 4.82%, suggesting efficient use of equity to generate profits. The equity ratio is strong, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth, with a significant increase of 32.62% in the TTM period. The operating cash flow to net income ratio is 0.47, indicating that operating cash flows are adequately covering net income. The free cash flow to net income ratio is 0.66, showing a healthy conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.39B	22.76B	22.80B	23.95B	19.48B	16.33B
Gross Profit	8.15B	10.24B	12.12B	13.75B	9.83B	8.04B
EBITDA	4.72B	5.15B	6.16B	8.85B	5.00B	3.67B
Net Income	2.86B	2.86B	3.70B	5.87B	3.00B	1.98B
Balance Sheet
Total Assets	82.95B	81.55B	79.72B	81.44B	68.10B	62.54B
Cash, Cash Equivalents and Short-Term Investments	174.00M	234.00M	1.20B	1.94B	507.00M	346.00M
Total Debt	5.72B	2.73B	3.17B	3.15B	4.34B	4.69B
Total Liabilities	25.98B	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	3.68B	3.32B	5.80B	5.48B	3.23B	2.46B
Investing Cash Flow	-2.21B	-2.07B	-1.65B	-1.35B	-1.31B	-1.78B
Financing Cash Flow	-2.40B	-2.22B	-4.89B	-2.71B	-1.76B	-808.00M

Holmen AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 346.00
• 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 346 is below the 20-day moving average (MA) of 349.60, below the 50-day MA of 350.98, and below the 200-day MA of 373.41, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 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
BILL	70 Outperform	kr21.65B	17.88	4.43%	3.75%	2.55%	98.53%
SSAB.B	65 Neutral	kr57.66B	11.58	7.29%	3.97%	-8.04%	-37.18%
HOLM.A	63 Neutral	kr55.82B	19.24	5.02%	2.59%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr85.80B	24.24	3.38%	2.45%	6.10%	-3.62%
NPAPER	61 Neutral	―	―	―	―	3.95%	-10.26%
STE.R	49 Neutral	kr87.08B	―	―	3.48%	3.43%	78.62%