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Svenska Cellulosa Sca Ab (SE:SCA.B)
:SCA.B

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

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Svenska Cellulosa SCA AB

(LSE:SCA.B)

Rating:69Neutral
Price Target:
kr143.00
▲(13.22%Upside)
Svenska Cellulosa SCA AB's strong financial health and positive technical indicators are balanced by high valuation concerns and modest revenue growth. The company's financial stability and profitability are key strengths, while valuation metrics suggest caution.

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.B) is a leading European company in the forest products industry, primarily engaged in the production and distribution of paper, pulp, and wood products. Headquartered in Sweden, SCA operates through various segments including forest, wood, pulp, and paper, providing high-quality materials to customers globally. The company is committed to sustainable forestry practices and innovation, contributing to environmentally friendly solutions in the industry.
How the Company Makes MoneySvenska Cellulosa SCA AB makes money through the sale of its diverse range of forest-based products. The company's revenue streams are primarily derived from its key segments: forest, wood, pulp, and paper. In the forest segment, SCA manages extensive forest lands, focusing on sustainable timber harvesting, which supplies raw material for its other operations. The wood segment processes this timber into products such as solid-wood products and engineered wood, catering to construction and industrial markets. The pulp segment produces pulp that is used internally or sold to external customers, including paper manufacturers. The paper segment manufactures and distributes high-quality publication and packaging paper. SCA also benefits from strategic partnerships and a focus on innovation and sustainability, enhancing its market position and profitability.

Svenska Cellulosa SCA AB Financial Statement Overview

Summary
Svenska Cellulosa SCA AB demonstrates strong financial health with efficient operations and solid profitability metrics. While the revenue growth has slowed, the company maintains good margin performance and a stable balance sheet with low leverage. Cash flow management remains an area for improvement, particularly in enhancing free cash flow generation.
Income Statement
72
Positive
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
80
Positive
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
20.84B20.23B18.08B20.79B18.82B18.41B
Gross Profit
13.01B17.10B12.51B17.96B15.59B12.50B
EBIT
3.86B5.03B4.86B8.64B7.63B1.15B
EBITDA
7.25B7.19B6.83B10.28B9.08B2.76B
Net Income Common Stockholders
3.65B3.64B3.67B6.75B5.94B767.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.33B1.33B502.00M836.00M1.06B1.27B
Total Assets
150.11B149.26B147.95B137.35B118.23B104.67B
Total Debt
564.00M13.73B12.77B12.21B9.87B9.79B
Net Debt
-763.00M12.40B12.26B11.38B8.81B8.52B
Total Liabilities
45.11B45.23B43.67B41.00B35.18B32.50B
Stockholders Equity
104.98B104.03B104.28B96.36B83.06B72.16B
Cash FlowFree Cash Flow
762.00M1.31B759.00M364.00M863.00M1.04B
Operating Cash Flow
3.58B3.49B3.89B6.33B5.97B3.70B
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-1.27B90.00M

Svenska Cellulosa SCA AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price126.30
Price Trends
50DMA
128.12
Negative
100DMA
135.73
Negative
200DMA
137.11
Negative
Market Momentum
MACD
-0.73
Positive
RSI
41.88
Neutral
STOCH
14.65
Positive
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 126.3 is below the 20-day moving average (MA) of 129.77, below the 50-day MA of 128.12, and below the 200-day MA of 137.11, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
kr3.52B7.2833.28%7.60%8.20%23.15%
71
Outperform
kr62.48B21.765.07%2.28%3.23%-5.41%
70
Outperform
kr26.54B14.386.58%3.32%9.83%1070.42%
69
Neutral
kr88.72B24.303.50%2.40%16.88%12.52%
56
Neutral
kr77.22B
2.64%3.93%
52
Neutral
kr77.22B
2.57%3.93%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SCA.B
Svenska Cellulosa SCA AB
126.30
-24.92
-16.48%
SE:BILL
BillerudKorsnas AB
106.90
6.27
6.23%
SE:STE.A
Stora Enso Oyj
99.80
-35.94
-26.48%
SE:STE.R
Stora Enso Oyj
96.85
-40.46
-29.47%
SE:HOLM.A
Holmen AB
392.00
-15.24
-3.74%
SE:NPAPER
Nordic Paper Holding AB
53.15
2.85
5.67%
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.