Executive Summary
Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and paper products worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -48.6% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with proven track record.
Similar Companies
Share Price & News
How has Svenska Cellulosa Aktiebolaget's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SCA B has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.4%
SCA B
3.8%
SE Forestry
4.5%
SE Market
1 Year Return
17.4%
SCA B
-16.0%
SE Forestry
-10.2%
SE Market
Return vs Industry: SCA B exceeded the Swedish Forestry industry which returned -11.2% over the past year.
Return vs Market: SCA B exceeded the Swedish Market which returned -7.1% over the past year.
Shareholder returns
| SCA B | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.4% | 3.8% | 4.5% |
| 30 Day | -5.9% | -19.9% | -23.1% |
| 90 Day | -2.8% | -24.9% | -23.8% |
| 1 Year | 17.4%17.4% | -12.0%-16.0% | -7.4%-10.2% |
| 3 Year | 96.0%-67.3% | 3.2%-30.2% | -0.2%-15.4% |
| 5 Year | 195.2%-53.0% | 37.6%-12.3% | 8.5%-14.7% |
Price Volatility Vs. Market
How volatile is Svenska Cellulosa Aktiebolaget's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Is It Worth Considering Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B) For Its Upcoming Dividend?1 week ago | Simply Wall St
Have Insiders Sold Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B) Shares Recently?1 week ago | Simply Wall St
These 4 Measures Indicate That Svenska Cellulosa Aktiebolaget (STO:SCA B) Is Using Debt Reasonably WellValuation
Is Svenska Cellulosa Aktiebolaget undervalued compared to its fair value and its price relative to the market?
4.28x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCA B (SEK94.62) is trading above our estimate of fair value (SEK37.83)
Significantly Below Fair Value: SCA B is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCA B is good value based on its PE Ratio (4.3x) compared to the Forestry industry average (9.2x).
PE vs Market: SCA B is good value based on its PE Ratio (4.3x) compared to the Swedish market (14.4x).
Price to Earnings Growth Ratio
PEG Ratio: SCA B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SCA B is overvalued based on its PB Ratio (1x) compared to the XE Forestry industry average (0.9x).
Next Steps
Future Growth
How is Svenska Cellulosa Aktiebolaget forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-48.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCA B's earnings are forecast to decline over the next 3 years (-48.6% per year).
Earnings vs Market: SCA B's earnings are forecast to decline over the next 3 years (-48.6% per year).
High Growth Earnings: SCA B's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SCA B's revenue (0.2% per year) is forecast to grow slower than the Swedish market (4.1% per year).
High Growth Revenue: SCA B's revenue (0.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCA B's Return on Equity is forecast to be low in 3 years time (4.4%).
Next Steps
Past Performance
How has Svenska Cellulosa Aktiebolaget performed over the past 5 years?
-3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCA B has a high level of non-cash earnings.
Growing Profit Margin: SCA B's current net profit margins (72.6%) are higher than last year (17.9%).
Past Earnings Growth Analysis
Earnings Trend: SCA B's earnings have declined by -3% per year over the past 5 years.
Accelerating Growth: SCA B's earnings growth over the past year (324.2%) exceeds its 5-year average (-3% per year).
Earnings vs Industry: SCA B earnings growth over the past year (324.2%) exceeded the Forestry industry -10.7%.
Return on Equity
High ROE: SCA B's Return on Equity (22.7%) is considered high.
Next Steps
Financial Health
How is Svenska Cellulosa Aktiebolaget's financial position?
Financial Position Analysis
Short Term Liabilities: SCA B's short term assets (SEK8.7B) exceed its short term liabilities (SEK8.2B).
Long Term Liabilities: SCA B's short term assets (SEK8.7B) do not cover its long term liabilities (SEK22.4B).
Debt to Equity History and Analysis
Debt Level: SCA B's debt to equity ratio (12.8%) is considered satisfactory.
Reducing Debt: SCA B's debt to equity ratio has reduced from 53.6% to 12.8% over the past 5 years.
Debt Coverage: SCA B's debt is well covered by operating cash flow (37.6%).
Interest Coverage: SCA B's interest payments on its debt are well covered by EBIT (23.8x coverage).
Balance Sheet
Inventory Level: SCA B has a high level of physical assets or inventory.
Debt Coverage by Assets: SCA B's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Svenska Cellulosa Aktiebolaget's current dividend yield, its reliability and sustainability?
2.11%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SCA B's dividend (2.11%) is higher than the bottom 25% of dividend payers in the Swedish market (2.1%).
High Dividend: SCA B's dividend (2.11%) is low compared to the top 25% of dividend payers in the Swedish market (6.51%).
Stability and Growth of Payments
Stable Dividend: SCA B's dividend payments have been volatile in the past 10 years.
Growing Dividend: SCA B's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (9%), SCA B's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCA B's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Ulf Larsson (57yo)
2.75s
Tenure
kr13,105,625
Compensation
Mr. Ulf Larsson, BSc Forestry has been the Chief Executive Officer, President & Director of Svenska Cellulosa Aktiebolaget SCA (publ) since June 15, 2017. Mr. Larsson served as an Executive Vice President ...
CEO Compensation Analysis
Compensation vs Market: Ulf's total compensation ($USD1.32M) is about average for companies of similar size in the Swedish market ($USD1.37M).
Compensation vs Earnings: Ulf's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.75yrs | kr13.11m | 0.016% SEK10.4m | |
| Chief Financial Officer | 3yrs | no data | 0.0017% SEK1.1m | |
| Investor Relations Director | no data | no data | no data | |
| Vice President of Compliance & Ethics | no data | no data | no data | |
| Senior Vice President of Legal Affairs & General Counsel | 0.17yr | no data | no data | |
| Senior Vice President of Communications | no data | no data | 0.0018% SEK1.2m | |
| Senior Vice President of Human Resources | no data | no data | 0.00061% SEK405.7k | |
| Senior Vice President of Strategic Development | 4.17yrs | no data | 0.0063% SEK4.2m | |
| Former President of Wood | no data | no data | 0.0036% SEK2.4m | |
| President of Wood | no data | no data | 0.00074% SEK492.2k |
2.9yrs
Average Tenure
52.5yo
Average Age
Experienced Management: SCA B's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.75yrs | kr13.11m | 0.016% SEK10.4m | |
| Honorary Chairman of the Board | no data | no data | no data | |
| Independent Director | 8yrs | kr735.00k | 0.0024% SEK1.6m | |
| Independent Director | 5.17yrs | kr625.00k | 0.00088% SEK585.3k | |
| Chairman of the Board | 5.17yrs | kr2.28m | 0.0014% SEK944.5k | |
| Independent Director | 2.75yrs | kr735.00k | 0.00057% SEK379.1k | |
| Independent Director | 13.92yrs | kr985.00k | no data | |
| Independent Director | 2.75yrs | kr885.00k | no data | |
| Independent Director | 2.75yrs | kr625.00k | no data | |
| Independent Director | 2.75yrs | kr625.00k | 0.00034% SEK226.1k |
2.8yrs
Average Tenure
57.5yo
Average Age
Experienced Board: SCA B's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCA B insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Svenska Cellulosa Aktiebolaget SCA (publ)'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Svenska Cellulosa Aktiebolaget SCA (publ)
- Ticker: SCA B
- Exchange: OM
- Founded: 1929
- Industry: Forest Products
- Sector: Materials
- Market Cap: kr66.512b
- Shares outstanding: 702.34m
- Website: https://www.sca.com/en/
Number of Employees
Location
- Svenska Cellulosa Aktiebolaget SCA (publ)
- Skepparplatsen 1
- Sundsvall
- Västernorrland County
- 851 88
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SVCB.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jan 1984 | |
| SVCB.F | OTCPK (Pink Sheets LLC) | Yes | Class B Shares | US | USD | Jan 1992 |
| SCA A | OM (OMX Nordic Exchange Stockholm) | Class A Shares | SE | SEK | Jan 1992 | |
| SCA B | OM (OMX Nordic Exchange Stockholm) | Yes | Class B Shares | SE | SEK | Jan 1992 |
| 0MCK | LSE (London Stock Exchange) | Yes | Class B Shares | GB | SEK | Jan 1992 |
| 0MCJ | LSE (London Stock Exchange) | Class A Shares | GB | SEK | Jan 1992 | |
| SCA | DB (Deutsche Boerse AG) | Yes | Class B Shares | DE | EUR | Jan 1992 |
| SCABS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class B Shares | GB | SEK | Jan 1992 |
| SCAAS | BATS-CHIXE (BATS 'Chi-X Europe') | Class A Shares | GB | SEK | Jan 1992 | |
| SCAB | SWX (SIX Swiss Exchange) | Yes | Class B Shares | CH | CHF | Jan 1992 |
| SCA1 | DB (Deutsche Boerse AG) | Class A Shares | DE | EUR | Jan 1992 |
Biography
Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and paper products worldwide. The company offers wood products to the home improvement and building materials sectors, including machined softwood, carcassing, MDF, decking, and sheet materials for builders' merchants and DIY retailers; and 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 decking, carcassing, softwood PSE, door lining and casing, softwood molding, composite decking, sheet material, and MDF molding wood products for use in homes; and softwood shavings for horses. In addition, the company offers pulp products under the Celeste, Star, and Cirrus names; coated papers, including glossy and matt surfaces; uncoated printing paper; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. Further, it provides forwarding services for various transport modes, such as truck, rail, and barge, as well as marine and road transport; and liquid biofuels, solid biofuels, pellets, stall pellets, and wind energy. Additionally, the company engages in the distribution and wholesale of wood products; production of Kraft and chemical thermomechanical pulps, and containerboards; and publication of paper for magazines, catalogues, and commercial print. Svenska Cellulosa Aktiebolaget SCA (publ) was founded in 1929 and is headquartered in Sundsvall, Sweden.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/27 21:59 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.