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

• Market Cap: kr88.72B
• Dividend Yield: 2.37%
• Average Volume (3M): 7.75K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.53
• Revenue Growth: 16.88%
• EPS Growth: 12.52%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.14
• Shares Outstanding: 62,866,430
• 10 Day Avg. Volume: 6,256
• 30 Day Avg. Volume: 7,749
• PEG Ratio: 62.86
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: kr143.00 ▲(12.95%Upside)

The stock score is driven primarily by strong financial performance, highlighted by robust revenue growth and a solid balance sheet. Technical indicators suggest neutral market sentiment, while a relatively high PE ratio indicates potential overvaluation. Dividend yield provides some support to the overall valuation.

Svenska Cellulosa Aktiebolaget Class A Business Overview & Revenue Model

Company Description

Svenska Cellulosa Aktiebolaget (SCA) is a leading European forest products company headquartered in Sweden, primarily involved in the production of forest-based products. The company operates in sectors including forestry, wood, pulp, and paper, with a strong focus on sustainability and resource efficiency. Its core products include timber, pulp, kraftliner (used in packaging), and renewable energy derived from its forest assets.

How the Company Makes Money

SCA generates revenue through multiple streams, primarily driven by its extensive forest holdings which provide the raw materials for its products. The company sells timber and wood products for construction and industrial applications, contributing significantly to its income. SCA's pulp and paper operations produce high-quality pulp and kraftliner, which are essential for packaging solutions, thereby tapping into the growing demand for sustainable packaging. Additionally, SCA capitalizes on its renewable energy initiatives by producing and selling biofuels and wind power generated from its forest lands. Strategic partnerships with packaging and energy companies, along with innovations in sustainable forestry management, bolster its earnings capability.

Svenska Cellulosa Aktiebolaget Class A Financial Statement Overview

Summary

Svenska Cellulosa Aktiebolaget Class A exhibits a solid financial standing with steady revenue growth and efficient operations. While profitability margins face some pressure, the company benefits from a strong balance sheet with reduced leverage and consistent equity returns. Cash flow management remains effective, although attention is needed on free cash flow amid rising capital expenditures. Overall, the company shows resilience in the forestry industry with opportunities for enhancing profitability.

Income Statement

The company's revenue has shown consistent growth from 2023 to TTM (Trailing-Twelve-Months), with a notable increase in total revenue from 2023 to 2024. However, the net income has remained relatively stable, leading to a slight decline in net profit margin. Gross profit margin and EBIT margin have also shown slight declines over the periods reviewed, indicating pressure on profitability. Despite this, EBITDA margin remains robust, reflecting strong operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity position, as evidenced by a high equity ratio. The debt-to-equity ratio has improved significantly in TTM due to a decrease in total debt, enhancing financial stability. Return on equity has remained stable, indicating consistent shareholder returns. Overall, the balance sheet suggests a solid financial foundation with minimized leverage risks.

Cash Flow

The cash flow metrics reveal steady operational cash flows, although there is a decline in free cash flow due to increased capital expenditures in TTM. The operating cash flow to net income ratio remains strong, indicating efficient cash generation from operations. However, the free cash flow to net income ratio has decreased, highlighting reduced cash available for other uses after capital investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.84B	20.23B	18.08B	20.79B	18.82B	18.41B
	Gross Profit
13.01B	17.10B	15.66B	17.96B	15.59B	12.50B
	EBIT
3.86B	5.03B	4.86B	8.64B	7.63B	1.15B
	EBITDA
6.79B	7.19B	6.83B	10.28B	9.08B	2.76B
	Net Income Common Stockholders
3.65B	3.64B	3.67B	6.75B	5.94B	767.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
564.00M	1.33B	502.00M	836.00M	1.06B	1.27B
	Total Assets
150.48B	149.26B	147.95B	137.35B	118.23B	104.67B
	Total Debt
646.00M	13.73B	13.38B	12.21B	9.87B	9.79B
	Net Debt
82.00M	12.40B	12.88B	11.38B	8.81B	8.52B
	Total Liabilities
47.14B	45.23B	43.67B	41.00B	35.18B	32.50B
	Stockholders Equity
103.34B	104.03B	104.28B	96.36B	83.06B	72.16B
Cash Flow		Free Cash Flow
762.00M	1.31B	759.00M	364.00M	863.00M	1.04B
	Operating Cash Flow
3.58B	3.49B	3.89B	6.33B	5.97B	3.70B
	Investing Cash Flow
-2.65B	-1.70B	-3.10B	-6.52B	-4.93B	-2.96B
	Financing Cash Flow
-2.09B	-959.00M	-1.12B	-30.00M	-1.27B	90.00M

Svenska Cellulosa Aktiebolaget Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.60
• 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 126.6 is below the 20-day moving average (MA) of 129.71, below the 50-day MA of 127.94, and below the 200-day MA of 136.71, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 16.60 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
HOLM.A	71 Outperform	kr62.48B	21.76	5.07%	2.28%	3.23%	-5.41%
BILL	69 Neutral	kr25.65B	13.89	6.58%	3.41%	9.83%	1070.42%
SCA.B	69 Neutral	kr88.72B	24.30	3.50%	2.37%	16.88%	12.52%
SCA.A	69 Neutral	kr88.72B	24.36		2.37%	16.88%	12.52%
STE.R	60 Neutral	kr75.09B	―		2.69%	3.93%	―
STE.A	52 Neutral	kr75.09B	―		2.54%	3.93%	―
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%