Holmen AB (HOLM.B) AI Stock Analysis

• Market Cap: kr57.78B
• Dividend Yield: 2.39%
• Average Volume (3M): 132.70K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.63
• Revenue Growth: 3.23%
• EPS Growth: -5.41%
• Country: SE
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.80
• Shares Outstanding: 117,265,854
• 10 Day Avg. Volume: 90,156
• 30 Day Avg. Volume: 132,697
• 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: kr395.50
• Price Target Upside: 6.49% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: kr407.00 ▲(9.59%Upside)

Holmen AB's strong financial performance, characterized by robust cash flow and a stable balance sheet, is the primary driver of its score. However, the technical analysis indicates weak momentum, and while the company is moderately valued, the dividend yield is not particularly high. The absence of significant earnings call insights or corporate events did not impact the score.

Holmen AB Business Overview & Revenue Model

Company Description

Holmen AB is a Swedish company engaged in the forest industry, with operations spanning across forestry, paperboard, and paper production. The company is headquartered in Stockholm, Sweden, and manages large areas of forest land. Holmen's core products include paperboard for consumer packaging, specialty paper, and wood products. The company operates through two main business areas: Holmen Paper, which focuses on paper production, and Iggesund Paperboard, which is dedicated to producing high-quality paperboard products.

How the Company Makes Money

Holmen AB generates revenue primarily through the production and sale of paperboard and paper products. The company's Iggesund Paperboard division is a key revenue stream, producing high-quality paperboard used in packaging solutions for luxury brands, food, and other consumer goods. Holmen Paper focuses on specialty paper products, catering to sectors such as publishing and advertising. Additionally, Holmen benefits from its extensive forestry operations, which provide raw materials for its production processes and generate revenue through the sale of timber and bioenergy. The company's integrated business model, which includes sustainable forest management and a strong focus on innovation, enhances its profitability. Strategic partnerships and investments in technology further contribute to Holmen's earnings by improving operational efficiency and expanding its market reach.

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
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: Negative
• Last Price: 371.40
• 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.B, the sentiment is Negative. The current price of 371.4 is below the 20-day moving average (MA) of 374.33, below the 50-day MA of 382.50, and below the 200-day MA of 395.92, indicating a bearish trend. The MACD of -2.32 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, 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
SKA.B	78 Outperform	kr95.68B	15.50	10.55%	3.37%	8.54%	32.65%
HPOL.B	76 Outperform	kr29.09B	14.18	14.46%	4.83%	-4.96%	-17.47%
TREL.B	75 Outperform	kr78.75B	22.78	9.31%	2.09%	2.42%	4.02%
SKF.B	75 Outperform	kr106.24B	19.78	9.91%	3.39%	-4.94%	-5.76%
HOLM.B	69 Neutral	kr57.78B	20.05		2.39%	3.23%	-5.41%
Sector *	63 Neutral	kr60.40B	12.34	1.88%	2.39%	0.11%	-4.39%

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.