Holmen AB (HOLM.B) AI Stock Analysis

• Market Cap: kr59.09B
• Dividend Yield: 2.45%
• Average Volume (3M): 127.87K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.69
• Revenue Growth: 1.15%
• EPS Growth: -5.55%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 3.80
• Shares Outstanding: 117,265,854
• 10 Day Avg. Volume: 183,536
• 30 Day Avg. Volume: 127,868
• 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: kr404.80
• Price Target Upside: 7.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: kr422.00 ▲(11.70% Upside)

Holmen AB's strong financial performance is the primary driver of its stock score, supported by a robust balance sheet and efficient cash flow generation. The technical analysis suggests a neutral trend, while the valuation indicates the stock is fairly priced. The absence of earnings call data and corporate events does not impact 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 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 a strong overall financial performance with healthy profitability, robust 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	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: 377.80
• 50DMA: Positive
• 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.B, the sentiment is Positive. The current price of 377.8 is above the 20-day moving average (MA) of 372.67, above the 50-day MA of 374.72, and below the 200-day MA of 392.74, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	kr59.09B	21.44		2.45%	1.15%	-5.55%
Sector *	61 Neutral	$10.10B	6.13	0.58%	2.90%	3.10%	-40.33%
0GWS	―	kr22.80B	12.33	6.73%	―	―	―
0YAL	―	kr90.33B	11.21	12.34%	―	―	―
0MHZ	―	kr54.91B	12.21	6.67%	―	―	―
0KCK	―	kr88.42B	―		―	―	―
0MCK	―	kr90.16B	23.60	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.