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

• Market Cap: kr88.72B
• Dividend Yield: 2.4%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.60
• Revenue Growth: 16.88%
• EPS Growth: 12.52%
• Country: SE
• Employees: 3,333
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.14
• Shares Outstanding: 639,476,100
• 10 Day Avg. Volume: 1,157,801
• 30 Day Avg. Volume: 1,300,689
• PEG Ratio: 62.19
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.43
• 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: kr143.83
• Price Target Upside: 13.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• 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 Business Overview & Revenue Model

Company Description

Svenska 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 Money

Svenska 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

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
	EBIT
3.86B	5.03B	4.86B	8.64B	7.63B	1.15B
	EBITDA
7.25B	7.19B	6.83B	10.28B	9.08B	2.76B
	Net Income Common Stockholders
3.65B	3.64B	3.67B	6.75B	5.94B	767.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33B	1.33B	502.00M	836.00M	1.06B	1.27B
	Total Assets
150.11B	149.26B	147.95B	137.35B	118.23B	104.67B
	Total Debt
564.00M	13.73B	12.77B	12.21B	9.87B	9.79B
	Net Debt
-763.00M	12.40B	12.26B	11.38B	8.81B	8.52B
	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: Negative
• Last Price: 126.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	77 Outperform	kr3.52B	7.28	33.28%	7.60%	8.20%	23.15%
HOLM.A	71 Outperform	kr62.48B	21.76	5.07%	2.28%	3.23%	-5.41%
BILL	70 Outperform	kr26.54B	14.38	6.58%	3.32%	9.83%	1070.42%
SCA.B	69 Neutral	kr88.72B	24.30	3.50%	2.40%	16.88%	12.52%
STE.R	56 Neutral	kr77.22B	―		2.64%	3.93%	―
STE.A	52 Neutral	kr77.22B	―		2.57%	3.93%	―
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%