Holmen AB (HOLM.B) AI Stock Analysis

• Market Cap: kr61.89B
• Dividend Yield: 2.32%
• Average Volume (3M): 195.04K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.63
• Revenue Growth: 3.23%
• EPS Growth: -5.41%
• Country: SE
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 90
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.80
• Shares Outstanding: 117,265,854
• 10 Day Avg. Volume: 122,691
• 30 Day Avg. Volume: 195,045
• PEG Ratio: 0.12
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.38
• 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: kr396.25
• Price Target Upside: 3.19% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: kr442.00 ▲(15.10%Upside)

Holmen AB scores strongly on financial performance, reflecting solid profitability and cash flow, alongside a stable balance sheet. Technical analysis shows mixed signals with potential short-term volatility. The valuation is moderately attractive, providing a reasonable balance between growth and income prospects. Overall, Holmen AB is well-positioned in its industry, but investors should monitor technical trends closely.

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. Its paperboard segment, which provides materials for packaging, is a significant contributor, catering to industries requiring sustainable packaging solutions. The paper segment serves the publishing and printing industries with high-quality paper products. The company also capitalizes on its vast forest holdings for timber production and sales. Additionally, Holmen AB invests in renewable energy, generating and selling electricity from its hydroelectric plants and wind farms across Sweden. Strategic partnerships and a focus on sustainable forestry and energy practices bolster its revenue, as global demand for eco-friendly products continues to grow.

Holmen AB Financial Statement Overview

Summary

Holmen AB demonstrates a strong overall financial performance with robust profitability, cash flow, and a stable balance sheet. The company's low leverage and strong equity position minimize financial risk, while its ability to generate cash supports operational and strategic initiatives. However, the slight decline in Gross Profit Margin over time may warrant attention to ensure sustained profitability.

Income Statement

Holmen AB shows a solid financial performance with healthy profitability metrics. The TTM Gross Profit Margin stands at approximately 36.26%, indicating effective cost management. Net Profit Margin is robust at 12.47%, reflecting strong bottom-line efficiency. Revenue growth is modest, with a slight increase in the TTM period compared to the previous year. EBIT Margin and EBITDA Margin are strong, at 15.63% and 22.54% respectively, showcasing operational efficiency. However, a declining Gross Profit Margin trend over the years suggests potential cost pressures.

Balance Sheet

The company's balance sheet is strong and stable. The Debt-to-Equity Ratio is very low at 0.0043, indicating minimal leverage and financial risk. Return on Equity (ROE) is healthy at 5.09%, suggesting efficient use of equity capital. The Equity Ratio is high at 67.15%, underscoring a strong equity base. The company maintains solid liquidity with significant cash reserves, and a decreasing trend in total debt strengthens its financial position further.

Cash Flow

Cash flow performance is impressive, with a significant Free Cash Flow growth rate of over 108.96% in the TTM period compared to the previous year. The Operating Cash Flow to Net Income Ratio is 1.20, indicating strong cash generation relative to net income. Additionally, the Free Cash Flow to Net Income Ratio is 0.88, reinforcing the company's ability to generate cash relative to its earnings. Stable cash flow metrics highlight Holmen AB's strong cash generation capability, enhancing its financial flexibility.

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
	EBIT
3.60B	3.72B	4.75B	7.53B	3.73B	2.48B
	EBITDA
5.19B	5.15B	6.16B	8.85B	5.00B	3.67B
	Net Income Common Stockholders
2.87B	2.86B	3.70B	5.87B	3.00B	1.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.56B	234.00M	1.20B	1.94B	507.00M	346.00M
	Total Assets
83.92B	81.55B	79.72B	81.44B	68.10B	62.54B
	Total Debt
244.00M	2.73B	3.17B	3.15B	4.34B	4.69B
	Net Debt
-1.32B	2.49B	1.97B	1.21B	3.84B	4.34B
	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: 384.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HOLM.B, the sentiment is Negative. The current price of 384 is below the 20-day moving average (MA) of 400.24, below the 50-day MA of 389.21, and below the 200-day MA of 402.84, indicating a bearish trend. The MACD of -1.85 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HOLM.B.

Holmen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLM.B	73 Outperform	kr61.89B	21.36		2.32%	3.23%	-5.41%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
0R7O		kr31.07B	14.27	13.90%	4.68%	―	―
0HBT		kr95.60B	15.48	10.49%	3.43%	―	―
0NWX		kr97.43B	15.20	11.14%	3.61%	―	―
0NL3		kr81.76B	22.65	9.02%	2.10%	―	―
RTERF		$94.19M	70.07	1.21%	―	―	―

Holmen AB Corporate Events

Holmen AB Reports Strong Q1 2025 Amid Market Challenges

Holmen AB reported a strong operating profit of SEK 988 million for Q1 2025, driven by increased deliveries of paperboard and paper, and lower energy costs. Despite challenges such as tariffs and raw material shortages, the company maintained high capacity utilization and a strong financial position, positioning itself well amidst geopolitical tensions and market uncertainties.