Holmen AB (HOLM.B) AI Stock Analysis

• Market Cap: kr56.34B
• Dividend Yield: 2.53%
• Average Volume (3M): 162.48K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.65
• Revenue Growth: -1.15%
• EPS Growth: 2.30%
• Country: SE
• Employees: 3,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 6.10
• Shares Outstanding: 117,265,854
• 10 Day Avg. Volume: 143,474
• 30 Day Avg. Volume: 162,484
• 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: kr359.60
• Price Target Upside: 1.87% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: kr389.00 ▲(10.20% Upside)

Holmen AB's overall stock score reflects its strong financial performance and solid valuation, which are offset by technical indicators suggesting weak momentum and mixed results from the latest earnings call. The company's robust balance sheet and efficient cash flow generation provide a stable foundation, but challenges in revenue growth and market conditions present risks.

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 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: Positive
• Last Price: 353.00
• 50DMA: Negative
• 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 353 is above the 20-day moving average (MA) of 352.03, below the 50-day MA of 359.30, and below the 200-day MA of 383.31, indicating a neutral trend. The MACD of -1.92 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 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
SCA.B	―	kr90.96B	25.69	3.38%	2.39%	6.10%	-3.62%
BOL	―	kr119.37B	14.47	11.99%	―	8.30%	-8.62%
SSAB.B	―	kr59.55B	11.95	7.29%	4.36%	-8.04%	-37.18%
HOLM.B	―	kr56.34B	19.42	―	2.53%	-1.15%	2.30%
BILL	―	kr22.44B	18.53	4.43%	3.90%	2.55%	98.53%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STE.R	―	kr85.24B	―	―	3.65%	3.43%	78.62%

Holmen AB Corporate Events

Holmen AB Earnings Call: Mixed Sentiments Amid Market Challenges

The recent earnings call for Holmen AB presented a mixed sentiment, with notable strengths in certain segments overshadowed by significant challenges. While the company reported strong financial returns in the wood and paper sectors and increased profits in the Forest division, these positives were tempered by weak demand, loss-making in the renewable energy segment, and considerable price pressures in key markets.

Holmen AB Reports Decrease in Operating Profit Amid Industry Challenges

Holmen AB reported a decrease in operating profit for January-September 2025, primarily due to maintenance shutdowns and lower electricity prices in northern Sweden. Despite challenges in the forest industry, including weak demand for construction products and high wood costs, Holmen’s integrated business model allowed it to maintain a solid operating profit. The company is adapting to market conditions by optimizing its forest management and launching new products, such as a packaging product from Braviken Paper Mill, to enhance its competitiveness.

The most recent analyst rating on ($SE:HOLM.B) stock is a Hold with a SEK379.00 price target. To see the full list of analyst forecasts on Holmen AB stock, see the SE:HOLM.B Stock Forecast page.

Holmen AB to Release Interim Report and Host Conference

Holmen AB has announced that it will release its interim report for January–September 2025 on October 23. The company will host an online press and analyst conference on the same day, where the President and CEO, Henrik Sjölund, and CFO, Stefan Loréhn, will present and discuss the report. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on ($SE:HOLM.B) stock is a Sell with a SEK340.00 price target. To see the full list of analyst forecasts on Holmen AB stock, see the SE:HOLM.B Stock Forecast page.

Holmen AB Announces 2026 Nomination Committee Members

Holmen AB has announced the composition of its Nomination Committee for the period leading up to the 2026 Annual General Meeting. The committee will include the Chairman of the Board and representatives from the company’s three largest shareholders, with Bo Selling serving as the chairman. This move is expected to ensure strategic alignment and shareholder representation in the company’s governance.

The most recent analyst rating on ($SE:HOLM.B) stock is a Sell with a SEK340.00 price target. To see the full list of analyst forecasts on Holmen AB stock, see the SE:HOLM.B Stock Forecast page.

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.