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

• Market Cap: kr85.52B
• Dividend Yield: 2.49%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.74
• 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: 640,476,100
• 10 Day Avg. Volume: 1,284,656
• 30 Day Avg. Volume: 1,172,274
• PEG Ratio: -28.35
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 4.88
• P/FCF Ratio: 75.01
• 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: kr121.50
• Price Target Upside: 0.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr128.00 ▲(6.14% Upside)

The overall stock score of 61 reflects strong financial performance and stability, tempered by bearish technical indicators and moderate valuation metrics. The company's robust balance sheet and cash flow are positive factors, but the lack of revenue growth and bearish market momentum are concerns.

Positive Factors

Revenue Growth

The robust revenue growth of 42.7% TTM indicates strong demand and a solid market position, enhancing long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio signifies minimal leverage, reducing financial risk and enhancing the company's long-term financial stability.

Cash Flow Growth

The significant growth in free cash flow suggests improved cash generation, supporting future investments and operational resilience.

Negative Factors

Cash Conversion Efficiency

A low cash conversion efficiency indicates challenges in converting income into cash, potentially impacting liquidity and operational flexibility.

Margin Pressure

Decreased EBIT and EBITDA margins suggest potential cost pressures or increased competition, which could affect profitability long-term.

Cash Flow Management

Moderate free cash flow management may limit the company's ability to reinvest or buffer against economic downturns, impacting growth potential.

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 several key streams related to its diverse product offerings. The company's primary revenue source comes from the sale of timber and wood products, which are supplied to the construction and manufacturing industries. Additionally, SCA produces pulp and paper products that are sold to various sectors, including packaging and consumer goods. The company's focus on sustainability allows it to command premium pricing for its eco-friendly products. Furthermore, SCA benefits from long-term partnerships with major players in the paper and packaging industries, enhancing its market position and ensuring a steady demand for its products. The company's strategic investments in innovation and efficiency also contribute to its profitability, allowing it to reduce costs and improve margins.

Svenska Cellulosa SCA AB Financial Statement Overview

Summary

Svenska Cellulosa SCA AB shows strong financial health with significant revenue growth and high profit margins. The balance sheet is robust with minimal leverage, enhancing financial stability. However, cash flow conversion efficiency could be improved.

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	20.67B	20.23B	18.08B	20.79B	18.82B	18.41B
Gross Profit	15.56B	17.10B	12.51B	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	14.58B	12.77B	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 SCA AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.60
• 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.B, the sentiment is Negative. The current price of 120.6 is below the 20-day moving average (MA) of 121.03, below the 50-day MA of 122.13, and below the 200-day MA of 125.11, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 45.49 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
BILL	70 Outperform	kr23.76B	19.62	4.43%	3.81%	2.55%	98.53%
HOLM.B	66 Neutral	kr56.62B	19.49	―	2.59%	-1.15%	2.30%
HOLM.A	63 Neutral	kr56.62B	19.29	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	kr85.52B	24.17	3.38%	2.49%	6.10%	-3.62%
STE.R	51 Neutral	kr92.04B	-516.65	―	3.46%	3.43%	78.62%
STE.A	47 Neutral	kr92.04B	-519.80	―	2.50%	3.43%	78.62%

Svenska Cellulosa SCA AB Corporate Events

SCA to Present Q4 2025 Results in Webcast Press Conference on January 30

SCA has announced that it will publish its fourth-quarter 2025 interim report on January 30, 2026, followed by a webcast press conference the same day at 10:00 CET. President and CEO Ulf Larsson and CFO Andreas Ewertz will present the results and take questions, with investors and media able to follow the event via live webcast or by telephone, underscoring the company’s ongoing efforts to maintain transparency and engagement with the financial markets and other stakeholders.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK133.00 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 Share Conversion Impacting Voting Rights

SCA has announced the conversion of 1,000,000 Class A shares to Class B shares, which reduces the total number of votes in the company. Following this conversion, the total number of votes amounts to 1,259,140,359, with the total number of registered shares being 702,342,489. This change reflects SCA’s compliance with its articles of association and legal obligations to disclose such conversions.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK128.00 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 Reports Challenging Q3 2025 Amid Market Uncertainty

SCA’s interim report for Q3 2025 indicates a challenging market environment with declining earnings due to planned maintenance stops, lower selling prices, and negative exchange rate effects. Despite these challenges, the company maintained stable wood raw material supply, although prices have increased over recent years. The forest industry faces a weak economic environment, trade barriers, and currency fluctuations, impacting demand across various product areas. SCA’s focus on long-term customer relationships helped sustain delivery volumes, although seasonal declines were noted. The pulp segment saw stable prices in Europe and China, but a decline in the US, with improved demand in China. Packaging material prices decreased slightly, with production affected by maintenance stops and soft demand due to weak industrial production.

The most recent analyst rating on ($SE:SCA.B) stock is a Buy with a SEK133.00 price target. To see the full list of analyst forecasts on Svenska Cellulosa SCA AB stock, see the SE:SCA.B Stock Forecast page.