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SCA

Svenska Cellulosa Aktiebolaget OM:SCA B Stock Report

Last Price

kr150.20

Market Cap

kr105.5b

7D

-2.0%

1Y

4.2%

Updated

01 Jul, 2022

Data

Company Financials +
SCA B fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends1/6

SCA B Stock Overview

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and containerboard products.

Svenska Cellulosa Aktiebolaget Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Svenska Cellulosa Aktiebolaget
Historical stock prices
Current Share Pricekr150.20
52 Week Highkr203.70
52 Week Lowkr129.40
Beta0.52
1 Month Change-14.51%
3 Month Change-17.99%
1 Year Change4.16%
3 Year Change80.49%
5 Year Change133.23%
Change since IPO374.32%

Recent News & Updates

Jun 16
We Think Svenska Cellulosa Aktiebolaget (STO:SCA B) Can Stay On Top Of Its Debt

We Think Svenska Cellulosa Aktiebolaget (STO:SCA B) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

SCA BSE ForestrySE Market
7D-2.0%-2.3%0.3%
1Y4.2%3.7%-24.3%

Return vs Industry: SCA B underperformed the Swedish Forestry industry which returned 6.5% over the past year.

Return vs Market: SCA B exceeded the Swedish Market which returned -24.2% over the past year.

Price Volatility

Is SCA B's price volatile compared to industry and market?
SCA B volatility
SCA B Average Weekly Movement4.6%
Forestry Industry Average Movement6.2%
Market Average Movement7.3%
10% most volatile stocks in SE Market12.5%
10% least volatile stocks in SE Market4.7%

Stable Share Price: SCA B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCA B's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19293,401Ulf Larssonhttps://www.sca.com

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.

Svenska Cellulosa Aktiebolaget Fundamentals Summary

How do Svenska Cellulosa Aktiebolaget's earnings and revenue compare to its market cap?
SCA B fundamental statistics
Market Capkr105.47b
Earnings (TTM)kr7.06b
Revenue (TTM)kr21.39b

14.9x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCA B income statement (TTM)
Revenuekr21.39b
Cost of Revenuekr5.42b
Gross Profitkr15.97b
Other Expenseskr8.91b
Earningskr7.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)10.05
Gross Margin74.65%
Net Profit Margin33.00%
Debt/Equity Ratio11.8%

How did SCA B perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SCA B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCA B?

Other financial metrics that can be useful for relative valuation.

SCA B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.4x
Enterprise Value/EBITDA13.9x
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does SCA B's PE Ratio compare to its peers?

SCA B PE Ratio vs Peers
The above table shows the PE ratio for SCA B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.8x
HOLM B Holmen
17.4x-16.1%kr66.5b
BRG B Bergs Timber
3.3x-16.5%kr1.4b
BOL Boliden
8.2x-13.4%kr85.8b
SSAB A SSAB
2.4x-55.9%kr43.9b
SCA B Svenska Cellulosa Aktiebolaget
14.9x-16.1%kr105.5b

Price-To-Earnings vs Peers: SCA B is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (7.8x).


Price to Earnings Ratio vs Industry

How does SCA B's PE Ratio compare vs other companies in the European Forestry Industry?

Price-To-Earnings vs Industry: SCA B is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the Swedish Forestry industry average (11.7x)


Price to Earnings Ratio vs Fair Ratio

What is SCA B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCA B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.9x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: SCA B is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).


Share Price vs Fair Value

What is the Fair Price of SCA B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCA B (SEK150.2) is trading above our estimate of fair value (SEK127.27)

Significantly Below Fair Value: SCA B is trading above our estimate of fair value.


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.


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Future Growth

How is Svenska Cellulosa Aktiebolaget forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-16.1%

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 (-16.1% per year).

Earnings vs Market: SCA B's earnings are forecast to decline over the next 3 years (-16.1% 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 (0.5% per year) is forecast to grow slower than the Swedish market (5.5% per year).

High Growth Revenue: SCA B's revenue (0.5% 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 (5.4%).


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Past Performance

How has Svenska Cellulosa Aktiebolaget performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCA B has a large one-off gain of SEK1.9B impacting its March 31 2022 financial results.

Growing Profit Margin: SCA B's current net profit margins (33%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: SCA B's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: SCA B's earnings growth over the past year (550%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: SCA B earnings growth over the past year (550%) exceeded the Forestry industry 97.8%.


Return on Equity

High ROE: SCA B's Return on Equity (8.5%) is considered low.


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Financial Health

How is Svenska Cellulosa Aktiebolaget's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCA B's short term assets (SEK9.7B) exceed its short term liabilities (SEK9.5B).

Long Term Liabilities: SCA B's short term assets (SEK9.7B) do not cover its long term liabilities (SEK28.5B).


Debt to Equity History and Analysis

Debt Level: SCA B's net debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: SCA B's debt to equity ratio has reduced from 73.8% to 11.8% over the past 5 years.

Debt Coverage: SCA B's debt is well covered by operating cash flow (66.4%).

Interest Coverage: SCA B's interest payments on its debt are well covered by EBIT (82.6x coverage).


Balance Sheet


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Dividend

What is Svenska Cellulosa Aktiebolaget current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SCA B's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.65%).

High Dividend: SCA B's dividend (1.5%) is low compared to the top 25% of dividend payers in the Swedish market (5.42%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.4%), SCA B's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (123.3%), SCA B's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Ulf Larsson (60 yo)

5yrs

Tenure

kr23,018,857

Compensation

Mr. Ulf Larsson, BSc Forestry has been the Chief Executive Officer, President and Director of Svenska Cellulosa Aktiebolaget SCA (publ) since June 15, 2017. Mr. Larsson served as an Executive Vice Presiden...


CEO Compensation Analysis

Compensation vs Market: Ulf's total compensation ($USD2.23M) is about average for companies of similar size in the Swedish market ($USD2.55M).

Compensation vs Earnings: Ulf's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SCA B's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SCA B's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SCA B insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: kr105.466b
  • Shares outstanding: 702.34m
  • Website: https://www.sca.com

Number of Employees


Location

  • Svenska Cellulosa Aktiebolaget SCA (publ)
  • Skepparplatsen 1
  • Sundsvall
  • Västernorrland County
  • 851 88
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.