Holmen AB (HOLM.B) AI Stock Analysis

• Market Cap: kr56.78B
• Dividend Yield: 2.51%
• Average Volume (3M): 151.74K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.68
• Revenue Growth: 1.15%
• EPS Growth: -5.55%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 3.80
• Shares Outstanding: 117,265,854
• 10 Day Avg. Volume: 112,028
• 30 Day Avg. Volume: 151,743
• 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: kr382.20
• Price Target Upside: 6.64% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: kr404.00 ▲(12.72% Upside)

Holmen AB's overall stock score reflects strong financial health and a solid balance sheet, which are offset by challenges in revenue growth and a bearish technical outlook. The valuation is fair, providing a balanced view of the company's current market position. The absence of earnings call and corporate event data limits additional insights.

Positive Factors

Sustainable Business Model

Holmen's focus on sustainable and renewable products aligns with global trends towards environmental responsibility, providing a durable competitive advantage and appealing to eco-conscious consumers.

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing Holmen to invest in growth opportunities and withstand economic fluctuations.

Efficient Cash Flow Generation

Efficient cash flow generation enhances Holmen's ability to fund operations, invest in new projects, and return capital to shareholders, supporting long-term financial health.

Negative Factors

Challenges in Revenue Growth

Slowing revenue growth may indicate difficulties in expanding market share or product demand, potentially impacting future profitability and competitive positioning.

Modest Return on Equity

A modest return on equity suggests that Holmen may not be maximizing shareholder value, highlighting a need for improved efficiency or strategic initiatives to enhance returns.

Decline in EPS Growth

Negative EPS growth reflects potential operational challenges or market pressures, which could affect investor confidence and the company's ability to generate sustainable earnings growth.

Holmen AB Business Overview & Revenue Model

Company Description

Holmen AB (HOLM.B) is a Swedish company primarily engaged in the forest industry, specializing in sustainable and renewable products. The company operates through several business segments including wood products, paperboard, and renewable energy. Holmen produces a variety of products such as sawn timber, wood-based panels, and paperboard used for packaging, as well as managing forests and generating energy from biomass, contributing to a circular economy.

How the Company Makes Money

Holmen AB generates revenue through multiple channels, primarily by selling its forest products including sawn timber and paperboard. The company benefits from its integrated value chain, which allows it to manage its own forests, ensuring a sustainable supply of raw materials. Key revenue streams include sales of wood products to construction and packaging industries, as well as the production of renewable energy from biomass used in its manufacturing processes. Additionally, Holmen has established partnerships with various stakeholders in the forestry and energy sectors, enhancing its market presence and contributing to its earnings through long-term contracts and collaborative projects.

Holmen AB Financial Statement Overview

Summary

Holmen AB demonstrates strong financial health with solid profitability and a robust balance sheet. The company maintains efficient operations and cash flow generation, with a low debt-to-equity ratio indicating minimal financial risk. However, challenges in revenue growth and modest return on equity suggest areas for improvement.

Income Statement

Holmen AB's income statement shows stable profitability with a gross profit margin of 48.17% and a net profit margin of 12.02% in the TTM period. However, there is a slight decline in revenue growth, indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins remain healthy, reflecting efficient cost management.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.004 in the TTM period, indicating minimal leverage and financial risk. The return on equity is modest at 4.82%, suggesting room for improvement in generating returns for shareholders. The equity ratio is robust, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 32.62% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.47, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.66 suggests strong cash conversion, although there is potential for further improvement.

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: Negative
• Last Price: 358.40
• 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 358.4 is below the 20-day moving average (MA) of 366.65, below the 50-day MA of 370.98, and below the 200-day MA of 390.11, indicating a bearish trend. The MACD of -3.67 indicates Positive momentum. The RSI at 38.33 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 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	68 Neutral	kr56.78B	20.79		2.51%	1.15%	-5.55%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
0GWS	―	kr21.47B	12.10	6.73%	―	―	―
0YAL	―	kr94.08B	11.55	12.34%	―	―	―
0MHZ	―	kr53.36B	11.75	6.67%	―	―	―
0KCK	―	kr82.43B	―		―	―	―
0MCK	―	kr87.17B	23.09	3.64%	―	―	―

Holmen AB Corporate Events

Holmen AB Reports Stable Profit Amid Market Challenges in H1 2025

Holmen AB reported an operating profit of SEK 1,794 million for the first half of 2025, down from SEK 1,927 million in the same period last year, with an operating margin of 16%. The company faced challenges such as low electricity prices in northern Sweden, impacting its Renewable Energy segment, and high competition for wood raw materials. Despite these challenges, Holmen maintained profitability through its integrated business model and strategic focus on niche markets. The company is adjusting production in response to market conditions and plans to launch a new packaging product in the autumn.

The most recent analyst rating on ($SE:HOLM.B) stock is a Hold with a SEK450.00 price target. To see the full list of analyst forecasts on Holmen AB stock, see the SE:HOLM.B Stock Forecast page.