Svenska Cellulosa Aktiebolaget Class A (SCA.A) AI Stock Analysis

• Market Cap: €86.99B
• Dividend Yield: 2.4%
• Average Volume (3M): 6.36K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.64
• Revenue Growth: 12.89%
• EPS Growth: 15.29%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.55
• Shares Outstanding: 62,866,430
• 10 Day Avg. Volume: 6,075
• 30 Day Avg. Volume: 6,358
• 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: €146.95
• Price Target Upside: 20.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: kr143.00 ▲(16.83% Upside)

Svenska Cellulosa Aktiebolaget Class A's strong financial performance is the most significant factor, supported by robust revenue growth and a solid balance sheet. Technical analysis suggests neutral momentum, while valuation indicates moderate attractiveness. The absence of earnings call and corporate events data limits further insights.

Svenska Cellulosa Aktiebolaget Class A Business Overview & Revenue Model

Company Description

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and containerboard products. The company offers various wood products, industrial components, standard wood products, and raw materials, as well as logistic, warehouse, and IT solutions for the wood industry. It also provides pulp products under the Pure, Star, and Cirrus names; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. In addition, the company offers forwarding services for various transport modes, such as truck, rail, and barge, as well as marine and road and rail transport; terminal services; and liquid and solid biofuels, pellets, stall pellets, and wind energy. Further, it engages in the processing and distribution of wood products; production of Kraft and chemical thermomechanical pulps, and containerboards; and generation of energy from wind power projects, biomass, and by-products. The company has operation in Sweden, the United States, the United Kingdom, Germany, rest of Europe, Asia, and internationally. Svenska Cellulosa Aktiebolaget SCA (publ) was founded in 1929 and is headquartered in Sundsvall, Sweden.

How the Company Makes Money

SCA makes money through its diverse portfolio of forest products and services. The company generates revenue primarily from the sale of pulp, wood products, and kraftliner, which are used in various applications such as packaging and construction. The Forest segment contributes to earnings by sustainably managing and harvesting timber, while the Pulp segment produces and sells pulp for paper and hygiene products. The Wood segment offers processed wood products, including sawn timber and wood-based components. Additionally, SCA capitalizes on its renewable energy operations by producing and selling biofuels and wind power. These activities are supported by SCA's commitment to sustainable practices and long-term forest management, ensuring a steady supply of raw materials and energy-efficient production processes.

Svenska Cellulosa Aktiebolaget Class A Financial Statement Overview

Summary

Svenska Cellulosa Aktiebolaget Class A demonstrates strong financial health with robust revenue growth and profitability. The company has a low debt-to-equity ratio, indicating financial stability. However, there is room for improvement in cash conversion efficiency.

Income Statement

Svenska Cellulosa Aktiebolaget Class A shows strong profitability with high gross and net profit margins, indicating efficient cost management and strong pricing power. The revenue growth rate is impressive at 42.7% TTM, reflecting robust demand or successful expansion strategies. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, which may indicate rising operational costs or increased competition.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.005 TTM, signifying strong financial stability and low leverage risk. The equity ratio is healthy, and the return on equity, though modest, is consistent. The balance sheet reflects a solid financial position with ample equity to support future growth and investment opportunities.

Cash Flow

The cash flow statement shows a significant increase in free cash flow growth rate at 58.7% TTM, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is below 1, suggesting that not all earnings are being converted into cash. The free cash flow to net income ratio is also moderate, indicating room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.92B	20.23B	18.08B	20.79B	18.82B	18.41B
Gross Profit	17.42B	17.10B	15.66B	17.96B	15.59B	12.50B
EBITDA	7.43B	7.19B	6.83B	10.28B	9.08B	2.76B
Net Income	3.78B	3.64B	3.67B	6.75B	5.94B	767.00M
Balance Sheet
Total Assets	149.47B	149.26B	147.95B	137.35B	118.23B	104.67B
Cash, Cash Equivalents and Short-Term Investments	74.00M	1.33B	502.00M	836.00M	1.06B	1.27B
Total Debt	544.00M	13.73B	13.38B	12.21B	9.87B	9.79B
Total Liabilities	45.89B	45.23B	43.67B	41.00B	35.18B	32.50B
Stockholders Equity	103.57B	104.03B	104.28B	96.36B	83.06B	72.16B
Cash Flow
Free Cash Flow	1.21B	1.31B	759.00M	364.00M	863.00M	1.04B
Operating Cash Flow	4.04B	3.49B	3.89B	6.33B	5.97B	3.70B
Investing Cash Flow	-2.67B	-1.70B	-3.10B	-6.52B	-4.93B	-2.96B
Financing Cash Flow	-1.76B	-959.00M	-1.12B	-30.00M	-1.27B	90.00M

Svenska Cellulosa Aktiebolaget Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.40
• 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:SCA.A, the sentiment is Negative. The current price of 122.4 is below the 20-day moving average (MA) of 127.71, below the 50-day MA of 126.57, and below the 200-day MA of 132.23, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SCA.A.

Svenska Cellulosa Aktiebolaget Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCA.A	73 Outperform	€86.99B	23.05		2.40%	12.89%	15.29%
SCA.B	73 Outperform	87.33B	23.24	3.65%	2.41%	12.89%	15.29%
HOLM.B	68 Neutral	57.96B	21.16	4.85%	2.45%	1.15%	-5.55%
HOLM.A	66 Neutral	57.96B	20.81	4.85%	2.51%	1.15%	-5.55%
STE.R	49 Neutral	84.67B	-61.43	-1.14%	2.41%	4.81%	0.00%
STE.A	46 Neutral	84.67B	-62.76	-1.14%	2.36%	4.81%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%