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

• Market Cap: kr85.80B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.69
• 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: 639,476,100
• 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: kr134.67
• Price Target Upside: 9.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr128.00 ▲(4.36% 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 SCA AB (SCA) is a leading Swedish company focused on the production of sustainable wood-based products. Operating primarily in the forest products sector, SCA is engaged in the management and harvesting of forests, and the manufacturing of a wide range of products including timber, pulp, paper, and packaging solutions. The company emphasizes sustainability and environmentally friendly practices in its operations, catering to both domestic and international markets with a commitment to responsible forestry and innovation.

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: Neutral
• Last Price: 122.65
• 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 Neutral. The current price of 122.65 is below the 20-day moving average (MA) of 123.12, below the 50-day MA of 123.55, and below the 200-day MA of 128.21, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.53 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILL	70 Outperform	kr21.65B	17.88	4.43%	3.75%	2.55%	98.53%
HOLM.B	66 Neutral	kr55.82B	19.13	―	2.58%	-1.15%	2.30%
HOLM.A	63 Neutral	kr55.82B	19.24	5.02%	2.59%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr85.80B	24.24	3.38%	2.45%	6.10%	-3.62%
STE.R	49 Neutral	kr87.08B	―	―	3.48%	3.43%	78.62%
STE.A	49 Neutral	kr87.08B	―	―	2.43%	3.43%	78.62%

Svenska Cellulosa SCA AB Corporate Events

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.

SCA Announces Q3 2025 Interim Report Press Conference

SCA has announced a press conference for the release of its Q3 2025 interim report, scheduled for October 24, 2025. The conference will be available via webcast and phone, with presentations and a Q&A session led by President and CEO Ulf Larsson and CFO Andreas Ewertz, providing insights into the company’s financial performance and strategic direction.

The most recent analyst rating on ($SE:SCA.B) stock is a Hold with a SEK143.00 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 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.