Holmen AB (HOLM.A) AI Stock Analysis

• Market Cap: kr57.73B
• Dividend Yield: 2.5%
• Average Volume (3M): 1.12K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.62
• Revenue Growth: 1.15%
• EPS Growth: -5.55%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 3.80
• Shares Outstanding: 45,246,468
• 10 Day Avg. Volume: 1,309
• 30 Day Avg. Volume: 1,117
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr345.00
• Price Target Upside: -4.17% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: kr375.00 ▲(4.17% Upside)

Holmen AB's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and a solid balance sheet. However, the technical analysis indicates a lack of strong momentum, and the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events means these factors did not influence the 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 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 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	22.69B	22.76B	22.80B	23.95B	19.48B	16.33B
Gross Profit	10.93B	10.24B	12.12B	13.75B	9.83B	8.04B
EBITDA	5.04B	5.15B	6.16B	8.85B	5.00B	3.67B
Net Income	2.73B	2.86B	3.70B	5.87B	3.00B	1.98B
Balance Sheet
Total Assets	82.49B	81.55B	79.72B	81.44B	68.10B	62.54B
Cash, Cash Equivalents and Short-Term Investments	324.00M	234.00M	1.20B	1.94B	507.00M	346.00M
Total Debt	234.00M	2.73B	3.17B	3.15B	4.34B	4.69B
Total Liabilities	26.30B	24.18B	22.80B	24.49B	21.11B	20.03B
Stockholders Equity	56.20B	57.37B	56.92B	56.95B	46.99B	42.52B
Cash Flow
Free Cash Flow	2.42B	1.20B	4.10B	4.09B	1.52B	1.29B
Operating Cash Flow	3.65B	3.32B	5.80B	5.48B	3.23B	2.46B
Investing Cash Flow	-2.24B	-2.07B	-1.65B	-1.35B	-1.31B	-1.78B
Financing Cash Flow	-1.46B	-2.22B	-4.89B	-2.71B	-1.76B	-808.00M

Holmen AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 360.00
• 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 Positive. The current price of 360 is above the 20-day moving average (MA) of 357.10, below the 50-day MA of 362.38, and below the 200-day MA of 381.83, indicating a neutral trend. The MACD of -0.95 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	kr88.60B	23.45	3.64%	2.38%	12.89%	15.29%
SSAB.B	71 Outperform	kr63.55B	14.04	6.67%	4.09%	-10.87%	-55.90%
BILL	66 Neutral	kr21.00B	11.43	6.73%	4.14%	6.04%	162.11%
HOLM.A	62 Neutral	kr57.73B	20.75	4.86%	2.50%	1.15%	-5.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NPAPER	61 Neutral	$3.19B	8.48	26.92%	8.39%	3.95%	-10.26%
STE.R	51 Neutral	kr83.32B	―	―	3.71%	4.81%	―