Svenska Cellulosa SCA AB (SCA.B) AI Stock Analysis

• Market Cap: kr86.19B
• Dividend Yield: 2.44%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.69
• 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: 639,476,100
• 10 Day Avg. Volume: 1,198,362
• 30 Day Avg. Volume: 1,007,445
• 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: kr145.00
• Price Target Upside: 18.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: kr143.00 ▲(16.50% Upside)

Svenska Cellulosa SCA AB's strong financial performance and robust balance sheet are the primary drivers of its stock score. Technical indicators suggest moderate upward momentum, while valuation metrics indicate the stock is fairly valued. The absence of earnings call and corporate events data did not impact the score.

Svenska Cellulosa SCA AB 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 generates revenue through multiple key streams, including the sale of wood products, such as sawn timber and wood-based panels, as well as pulp products used in paper manufacturing. The company also earns significant income from its hygiene products division, which produces personal care items like toilet paper, napkins, and feminine hygiene products. SCA's revenue is bolstered by its focus on sustainable practices and innovative product development, allowing it to cater to the increasing demand for eco-friendly products. Additionally, strategic partnerships with retailers and distributors enhance its market reach and contribute to its earnings.

Svenska Cellulosa SCA AB Financial Statement Overview

Summary

Svenska Cellulosa SCA AB exhibits strong financial health with impressive revenue growth and profitability. The balance sheet is robust with minimal leverage, enhancing financial stability. While cash flow generation has improved, there are areas for enhancement in cash conversion efficiency.

Income Statement

Svenska Cellulosa SCA AB has demonstrated strong revenue growth with a 42.7% increase in TTM, indicating robust demand and market position. The company maintains high gross and net profit margins, showcasing operational efficiency and profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting potential cost pressures or increased competition.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.005, indicating minimal leverage and financial risk. The equity ratio is healthy, reflecting a strong capital structure. Return on equity is modest but stable, suggesting consistent shareholder value creation. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow performance is mixed with a significant 58.7% growth in free cash flow, indicating improved cash generation. However, the operating cash flow to net income ratio is below 1, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is moderate, reflecting adequate cash flow management.

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	12.51B	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	14.58B	12.77B	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 SCA AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SCA.B, the sentiment is Negative. The current price of 122.75 is below the 20-day moving average (MA) of 124.78, below the 50-day MA of 126.38, and below the 200-day MA of 131.80, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 40.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SCA.B.

Svenska Cellulosa SCA AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCA.B	73 Outperform	kr86.19B	22.83	3.64%	2.44%	12.89%	15.29%
HOLM.B	68 Neutral	57.48B	20.58	4.85%	2.52%	1.15%	-5.55%
BILL	66 Neutral	20.77B	11.30	6.68%	4.18%	6.04%	162.11%
HOLM.A	66 Neutral	57.48B	21.39	4.85%	2.43%	1.15%	-5.55%
STE.A	47 Neutral	80.61B	-60.16	-1.14%	2.65%	4.81%	―
STE.R	46 Neutral	80.61B	-58.44	-1.14%	3.83%	4.81%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Svenska Cellulosa SCA AB Corporate Events

SCA Reports Strong H1 2025 Performance Amid Market Challenges

SCA reported a strong performance in the first half of 2025, with increased net sales and EBITDA driven by higher selling prices and delivery volumes. Despite challenges such as higher raw material costs and exchange rate effects, the company maintained stable operations with strategic investments enhancing production efficiency. The market remains uncertain due to trade barriers and currency fluctuations, but SCA’s focus on customer relationships and strategic projects positions it well for future growth.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK157.00 price target. To see the full list of analyst forecasts on Svenska Cellulosa SCA AB stock, see the SE:SCA.B Stock Forecast page.

SCA Updates MTN Program and Green Bond Framework to Enhance Sustainability

Svenska Cellulosa SCA AB has updated its Medium Term Note program and published a new Green Bond Framework, reflecting its commitment to sustainability and alignment with the latest market practices. The updated Green Bond Framework, which has received the highest ‘Dark Green’ shading from S&P Global Ratings, aims to support SCA’s sustainability strategy by funding projects in valuable forests, a fossil-free world, and efficient resource use, enhancing its dialogue with investors and stakeholders.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK157.00 price target. To see the full list of analyst forecasts on Svenska Cellulosa SCA AB stock, see the SE:SCA.B Stock Forecast page.

SCA Announces Q2 2025 Financial Results Press Conference

SCA has announced a press conference for July 25, 2025, to discuss its Q2 2025 financial results. The conference will feature presentations by President and CEO Ulf Larsson and CFO Andreas Ewertz, and will be accessible via webcast and telephone, indicating the company’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK157.00 price target. To see the full list of analyst forecasts on Svenska Cellulosa SCA AB stock, see the SE:SCA.B Stock Forecast page.