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

• Market Cap: kr87.81B
• Dividend Yield: 2.4%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.62
• Revenue Growth: 16.88%
• EPS Growth: 12.52%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.14
• Shares Outstanding: 639,476,100
• 10 Day Avg. Volume: 1,082,336
• 30 Day Avg. Volume: 1,319,726
• PEG Ratio: 1.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 254.60
• 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: kr142.88
• Price Target Upside: 12.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: kr136.00 ▲(7.17%Upside)

Svenska Cellulosa SCA AB's overall stock score is primarily influenced by its solid financial performance and stable valuation. Technical indicators suggest neutral market sentiment, with no strong momentum evident. The lack of recent earnings call data and notable corporate events means these factors do not currently impact the stock 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

Svenska Cellulosa SCA AB generates revenue through multiple streams centered around its vast forest resources. The primary revenue sources include the sale of timber and processed wood products, which cater to construction and woodworking industries. SCA also produces and sells pulp and paper products, including kraftliner and publication paper, serving packaging and publishing sectors. Additionally, the company capitalizes on renewable energy by producing biofuels and utilizing wind power generated from its forest lands. Strategic partnerships and sustainable forestry certifications further enhance its market position and contribute to its earnings.

Svenska Cellulosa SCA AB Financial Statement Overview

Summary

Svenska Cellulosa SCA AB shows strong profitability with healthy EBIT and EBITDA margins and a robust balance sheet characterized by low leverage. However, modest revenue growth and a decrease in free cash flow indicate areas for improvement.

Income Statement

Svenska Cellulosa SCA AB shows strong profitability with a consistent gross profit margin and net profit margin. However, recent revenue growth has been modest, with the TTM showing a slight decline compared to previous years. The EBIT and EBITDA margins are healthy, indicating efficient operations. Nonetheless, the recent dip in gross profit suggests potential cost pressures.

Balance Sheet

The balance sheet is robust, characterized by a low debt-to-equity ratio and strong equity ratio, reflecting financial stability and low leverage. Return on equity is solid, though there has been a slight decrease in net income. The company's substantial equity base supports its long-term viability.

Cash Flow

The cash flow statements show a decrease in free cash flow, indicating pressures from capital expenditures. However, the operating cash flow remains strong, suggesting good earnings quality. The free cash flow to net income ratio reflects a need to enhance cash generation relative to profits.

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	12.51B	17.96B	15.59B	12.50B
EBITDA	7.25B	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	12.77B	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 SCA AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.90
• 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 Positive. The current price of 126.9 is above the 20-day moving average (MA) of 123.88, above the 50-day MA of 126.46, and below the 200-day MA of 135.53, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
HOLM.A	71 Outperform	kr60.07B	20.38	5.07%	0.81%	3.23%	-5.41%
NPAPER	69 Neutral	kr4.86B	10.05	33.28%	5.50%	8.20%	23.15%
SCA.B	65 Neutral	kr87.81B	24.06	3.50%	2.40%	16.88%	12.52%
BILL	59 Neutral	kr24.37B	13.20	6.58%	3.56%	9.83%	1070.42%
STE.R	58 Neutral	kr84.30B	―		5.35%	3.93%	―
STE.A	46 Neutral	kr84.30B	―		55.94%	3.93%	―
Sector *	44 Neutral	C$979.29M	-6.67	-13.73%	2.43%	17.55%	-32.57%

Svenska Cellulosa SCA AB Corporate Events

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.