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

• Market Cap: kr84.33B
• Dividend Yield: 2.47%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.63
• Revenue Growth: 6.10%
• EPS Growth: -3.62%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.19
• Shares Outstanding: 61,866,430
• 10 Day Avg. Volume: 6,769
• 30 Day Avg. Volume: 7,893
• PEG Ratio: -28.18
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 4.85
• P/FCF Ratio: 74.56
• 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: kr135.98
• Price Target Upside: 10.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.92
• Revenue Forecast (FY): kr20.70B

• Rating: 65 Neutral
• Price Target: kr131.00 ▲(6.16% Upside)

Svenska Cellulosa Aktiebolaget Class A's overall score is driven primarily by its strong financial performance, characterized by high profitability and a solid balance sheet. However, technical indicators suggest a lack of momentum, and the valuation is moderate. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and successful expansion strategies, enhancing long-term market position and profitability.

Financial Stability

Low leverage risk provides financial stability, allowing the company to invest in growth opportunities without significant debt burdens.

Cash Flow Improvement

Improved cash generation capabilities enhance financial flexibility, supporting reinvestment in business operations and potential shareholder returns.

Negative Factors

Operational Cost Pressure

Decreasing margins may indicate rising operational costs or increased competition, potentially impacting profitability if not managed effectively.

Cash Conversion Efficiency

Inefficient cash conversion from earnings may limit immediate liquidity, affecting the company's ability to fund operations and growth initiatives.

Margin Sustainability

Slight margin decline could challenge long-term profitability if cost pressures persist, necessitating strategic adjustments to maintain margins.

Svenska Cellulosa Aktiebolaget Class A Business Overview & Revenue Model

Company Description

Svenska Cellulosa Aktiebolaget Class A (SCA.A) is a leading Swedish company specializing in the production of forest-based products. Operating primarily in the sectors of forestry, wood products, and paper, SCA is one of Europe's largest private forest owners. The company focuses on sustainable practices and offers a range of core products, including timber, pulp, and paper products, as well as hygiene products such as toilet paper and tissue. SCA is committed to sustainability and innovation in its operations, ensuring high-quality products while maintaining environmentally responsible practices.

How the Company Makes Money

SCA.A generates revenue through multiple key streams, primarily from the sale of wood products, pulp, and paper. The company benefits from its extensive ownership of forest land, which provides a steady supply of raw materials for its production processes. A significant portion of its revenue comes from the production and sale of hygiene products, which are marketed under well-known brands. SCA also engages in partnerships with retailers and distributors to expand its market reach, leveraging its strong brand recognition in the hygiene segment. Additionally, the company's commitment to sustainability and eco-friendly practices attracts environmentally conscious consumers, further enhancing its revenue potential.

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's low leverage and solid equity position provide a stable foundation for future growth. While cash flow metrics show improvement, there is potential to enhance 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	20.67B	20.23B	18.08B	20.79B	18.82B	18.41B
Gross Profit	15.56B	17.10B	15.66B	17.96B	15.59B	12.50B
EBITDA	7.06B	7.19B	6.83B	10.22B	9.08B	2.76B
Net Income	3.54B	3.64B	3.67B	6.75B	5.94B	767.00M
Balance Sheet
Total Assets	150.09B	149.26B	147.95B	137.35B	118.23B	104.67B
Cash, Cash Equivalents and Short-Term Investments	626.00M	1.33B	502.00M	836.00M	1.06B	1.27B
Total Debt	14.98B	13.73B	13.38B	12.21B	9.87B	9.79B
Total Liabilities	45.60B	45.23B	43.67B	41.00B	35.18B	32.50B
Stockholders Equity	104.47B	104.03B	104.28B	96.36B	83.06B	72.16B
Cash Flow
Free Cash Flow	1.59B	1.31B	759.00M	364.00M	863.00M	1.04B
Operating Cash Flow	4.47B	3.49B	3.89B	6.33B	5.97B	3.70B
Investing Cash Flow	-2.53B	-1.70B	-3.10B	-6.52B	-4.93B	-2.96B
Financing Cash Flow	-1.52B	-959.00M	-1.12B	-30.00M	-1.27B	90.00M

Svenska Cellulosa Aktiebolaget Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 123.4 is above the 20-day moving average (MA) of 122.84, below the 50-day MA of 123.52, and below the 200-day MA of 127.89, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, 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
HOLM.B	66 Neutral	kr55.82B	19.13	―	2.60%	-1.15%	2.30%
SCA.A	65 Neutral	kr84.33B	23.77	―	2.47%	6.10%	-3.62%
HOLM.A	63 Neutral	kr55.82B	19.24	5.02%	2.60%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr84.33B	23.83	3.38%	2.50%	6.10%	-3.62%
STE.R	49 Neutral	kr87.08B	―	―	3.49%	3.43%	78.62%
STE.A	49 Neutral	kr87.08B	―	―	2.41%	3.43%	78.62%