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

• Market Cap: kr87.81B
• Dividend Yield: 2.4%
• Average Volume (3M): 8.77K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.56
• Revenue Growth: 16.88%
• EPS Growth: 12.52%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.14
• Shares Outstanding: 62,866,430
• 10 Day Avg. Volume: 8,932
• 30 Day Avg. Volume: 8,769
• PEG Ratio: 62.07
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 114.97
• 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: kr142.95
• Price Target Upside: 12.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: kr138.00 ▲(8.32%Upside)

The overall stock score of 66.6 reflects a solid financial performance, characterized by steady revenue growth and a strong balance sheet. Technical analysis and valuation suggest moderate performance with room for improvement. The absence of earnings call data and corporate events means the score is primarily driven by financial fundamentals.

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 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
EBITDA	6.79B	7.19B	6.83B	10.28B	9.08B	2.76B
Net Income	3.65B	3.64B	3.67B	6.75B	5.94B	767.00M
Balance Sheet
Total Assets	150.11B	149.26B	147.95B	137.35B	118.23B	104.67B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.33B	502.00M	836.00M	1.06B	1.27B
Total Debt	564.00M	13.73B	13.38B	12.21B	9.87B	9.79B
Total Liabilities	45.11B	45.23B	43.67B	41.00B	35.18B	32.50B
Stockholders Equity	104.98B	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: 127.40
• 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:SCA.A, the sentiment is Negative. The current price of 127.4 is above the 20-day moving average (MA) of 124.07, above the 50-day MA of 126.49, and below the 200-day MA of 135.05, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, 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	kr59.57B	20.22	5.07%	0.82%	3.23%	-5.41%
SCA.A	67 Neutral	kr87.81B	24.01		2.40%	16.88%	12.52%
SCA.B	66 Neutral	kr87.81B	24.06	3.50%	2.40%	16.88%	12.52%
BILL	59 Neutral	kr23.94B	12.97	6.58%	3.63%	9.83%	1070.42%
STE.R	58 Neutral	kr83.73B	―		5.42%	3.93%	―
STE.A	46 Neutral	kr83.73B	―		56.19%	3.93%	―
Sector *	44 Neutral	C$979.30M	-6.66	-13.73%	2.43%	17.55%	-32.57%