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

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SE:SCA.B

Svenska Cellulosa SCA AB

(LSE:SCA.B)

Rating:73Outperform
Price Target:
kr143.00
▲(12.55% 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 (SCA.B) vs. iShares MSCI Sweden ETF (EWD)

Svenska Cellulosa SCA AB Business Overview & Revenue Model

Company DescriptionSvenska Cellulosa SCA AB (SCA) is a leading Swedish company primarily engaged in the production of wood-based products and paper products. The company operates in several sectors, including forest management, wood products, and hygiene products. SCA is known for its sustainable forestry practices and offers a diverse range of products such as timber, pulp, and personal care items like tissue and hygiene papers, serving both consumer and industrial markets.
How the Company Makes MoneySCA 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
85
Very Positive
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
90
Very Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.92B20.23B18.08B20.79B18.82B18.41B
Gross Profit17.42B17.10B12.51B17.96B15.59B12.50B
EBITDA7.43B7.19B6.83B10.28B9.08B2.76B
Net Income3.78B3.64B3.67B6.75B5.94B767.00M
Balance Sheet
Total Assets149.47B149.26B147.95B137.35B118.23B104.67B
Cash, Cash Equivalents and Short-Term Investments74.00M1.33B502.00M836.00M1.06B1.27B
Total Debt544.00M14.58B12.77B12.21B9.87B9.79B
Total Liabilities45.89B45.23B43.67B41.00B35.18B32.50B
Stockholders Equity103.57B104.03B104.28B96.36B83.06B72.16B
Cash Flow
Free Cash Flow1.21B1.31B759.00M364.00M863.00M1.04B
Operating Cash Flow4.04B3.49B3.89B6.33B5.97B3.70B
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-1.27B90.00M

Svenska Cellulosa SCA AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price127.05
Price Trends
50DMA
126.32
Positive
100DMA
126.79
Positive
200DMA
132.96
Negative
Market Momentum
MACD
0.17
Positive
RSI
47.66
Neutral
STOCH
11.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SCA.B, the sentiment is Neutral. The current price of 127.05 is below the 20-day moving average (MA) of 128.72, above the 50-day MA of 126.32, and below the 200-day MA of 132.96, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 11.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SCA.B.

Svenska Cellulosa SCA AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
kr89.24B23.623.64%2.36%12.89%15.29%
62
Neutral
$10.36B6.350.76%2.84%3.10%-36.03%
kr22.29B12.136.73%
4.86%
kr84.94B
kr84.94B
68
Neutral
kr58.00B21.08
2.46%1.15%-5.55%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SCA.B
Svenska Cellulosa SCA AB
127.05
-9.02
-6.63%
GB:0GWS
BillerudKorsnas AB
89.82
-11.49
-11.34%
GB:0NBN
Holmen AB
GB:0M32
Stora Enso Oyj
145.99
0.00
0.00%
GB:0KCK
Stora Enso Oyj
108.05
-12.36
-10.26%
SE:HOLM.B
Holmen AB
365.60
-33.95
-8.50%

Svenska Cellulosa SCA AB Corporate Events

SCA Reports Strong H1 2025 Performance Amid Market Challenges
Jul 25, 2025

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
Jun 25, 2025

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
Jun 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025