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Holmen AB (SE:HOLM.B)
:HOLM.B

Holmen AB (HOLM.B) AI Stock Analysis

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Holmen AB

(HOLM.B)

Rating:73Outperform
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 (HOLM.B) vs. iShares MSCI Sweden ETF (EWD)

Holmen AB Business Overview & Revenue Model

Company DescriptionHolmen 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 MoneyHolmen 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
78
Positive
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
82
Very Positive
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
85
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.01B22.76B22.80B23.95B19.48B16.33B
Gross Profit
8.35B10.24B12.12B13.75B9.83B8.04B
EBIT
3.60B3.72B4.75B7.53B3.73B2.48B
EBITDA
5.19B5.15B6.16B8.85B5.00B3.67B
Net Income Common Stockholders
2.87B2.86B3.70B5.87B3.00B1.98B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.56B234.00M1.20B1.94B507.00M346.00M
Total Assets
83.92B81.55B79.72B81.44B68.10B62.54B
Total Debt
244.00M2.73B3.17B3.15B4.34B4.69B
Net Debt
-1.32B2.49B1.97B1.21B3.84B4.34B
Total Liabilities
27.57B24.18B22.80B24.49B21.11B20.03B
Stockholders Equity
56.34B57.37B56.92B56.95B46.99B42.52B
Cash FlowFree Cash Flow
2.51B1.20B4.10B4.09B1.52B1.29B
Operating Cash Flow
3.45B3.32B5.80B5.48B3.23B2.46B
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 Price384.00
Price Trends
50DMA
389.21
Negative
100DMA
398.52
Negative
200DMA
402.84
Negative
Market Momentum
MACD
-1.85
Positive
RSI
37.26
Neutral
STOCH
14.71
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
kr61.89B21.36
2.32%3.23%-5.41%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
kr31.07B14.2713.90%4.68%
kr95.60B15.4810.49%3.43%
kr97.43B15.2011.14%3.61%
kr81.76B22.659.02%2.10%
$94.19M70.071.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:HOLM.B
Holmen AB
384.00
-29.32
-7.09%
GB:0R7O
Hexpol AB
89.10
-28.10
-23.98%
GB:0HBT
Skanska AB
231.34
49.57
27.27%
GB:0NWX
SKF AB
210.32
3.79
1.84%
GB:0NL3
Trelleborg AB
351.14
-53.71
-13.27%
RTERF
Rottneros AB
0.94
0.00
0.00%

Holmen AB Corporate Events

Holmen AB Reports Strong Q1 2025 Amid Market Challenges
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.