OM:SCA B

Stock Analysis Report

Svenska Cellulosa Aktiebolaget

Executive Summary

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


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

-2.0%

SCA B

-2.0%

SE Forestry

-4.1%

SE Market


1 Year Return

19.1%

SCA B

-1.0%

SE Forestry

17.2%

SE Market

Return vs Industry: SCA B exceeded the Swedish Forestry industry which returned -1% over the past year.

Return vs Market: SCA B exceeded the Swedish Market which returned 17.2% over the past year.


Shareholder returns

SCA BIndustryMarket
7 Day-2.0%-2.0%-4.1%
30 Day10.7%0.9%-0.5%
90 Day2.8%-2.8%5.2%
1 Year21.7%19.1%3.5%-1.0%21.9%17.2%
3 Year118.9%-63.4%33.4%-9.9%34.6%14.2%
5 Year210.4%-50.6%82.8%15.6%41.1%11.1%

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

Valuation

Is Svenska Cellulosa Aktiebolaget undervalued compared to its fair value and its price relative to the market?

4.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCA B (SEK101.35) is trading above our estimate of fair value (SEK33.59)

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 (4.6x) compared to the Forestry industry average (10.8x).

PE vs Market: SCA B is good value based on its PE Ratio (4.6x) compared to the Swedish market (19.2x).


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 good value based on its PB Ratio (1x) compared to the XE Forestry industry average (1.1x).


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?

-56.8%

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 (-56.8% per year).

Earnings vs Market: SCA B's earnings are forecast to decline over the next 3 years (-56.8% 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 is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: SCA B's revenue is forecast to decline over the next 3 years (-1.2% 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 (71.3%) 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 -9.8%.


Return on Equity

High ROE: SCA B's Return on Equity (22.7%) is considered high.


Return on Assets


Return on Capital Employed


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 (23.2x 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?

1.97%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Svenska Cellulosa Aktiebolaget before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.0%marketbottom25%1.6%markettop25%4.3%industryaverage4.2%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: SCA B's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Swedish market (1.62%).

High Dividend: SCA B's dividend (1.97%) is low compared to the top 25% of dividend payers in the Swedish market (4.27%).


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 (51.9% 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)

2.7yrs

Tenure

kr19,444,039

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 ($USD2.00M) is about average for companies of similar size in the Swedish market ($USD1.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ulf Larsson
President2.7yrskr19.44m0.014% SEK10.2m
Toby Lawton
Chief Financial Officer2.9yrsno data0.0011% SEK792.9k
Andreas Ewertz
Investor Relations Director0yrsno datano data
Karin Henriksson
Vice President of Compliance & Ethics0yrsno datano data
Katarina Nilsson
Senior Vice President of Legal Affairs & General Counsel0yrsno datano data
Björn Lyngfelt
Senior Vice President of Communications0yrsno data0.0016% SEK1.1m
Stina Danielsson
Senior Vice President of Human Resources0yrsno data0.00061% SEK435.7k
Ole Terland
Senior Vice President of Strategic Development4.1yrsno data0.0063% SEK4.5m
Jonas Mårtensson
President of Forest0yrsno data0.0032% SEK2.3m
Jerry Larsson
President of Wood0yrsno data0.00074% SEK528.6k

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

NamePositionTenureCompensationOwnership
Ulf Larsson
President2.7yrskr19.44m0.014% SEK10.2m
Bo Rydin
Honorary Chairman of the Board0yrsno datano data
Bert Ake Nordberg
Independent Director7.9yrskr705.00k0.0024% SEK1.7m
Annemarie Gardshol
Independent Director5.1yrskr600.00k0.00088% SEK628.6k
Pär Boman
Chairman5.1yrskr2.19m0.0014% SEK1.0m
Lennart Evrell
Independent Director2.7yrskr705.00k0.00057% SEK407.2k
Barbara Milian Thoralfsson
Independent Director13.8yrskr930.00kno data
Martin Lindqvist
Independent Director2.7yrskr850.00kno data
Lotta Lyrå
Independent Director2.7yrskr600.00kno data
Charlotte Bengtsson
Independent Director2.7yrskr600.00k0.00017% SEK121.4k

2.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SCA B's board of directors are not considered experienced ( 2.7 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: Insufficient data to determine if 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 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: kr71.431b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVCB.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1984
SVCB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1992
SCA AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJan 1992
SCA BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJan 1992
0MCKLSE (London Stock Exchange)YesClass B SharesGBSEKJan 1992
0MCJLSE (London Stock Exchange)Class A SharesGBSEKJan 1992
SCADB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1992
SCABSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJan 1992
SCAASBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBSEKJan 1992
SCABSWX (SIX Swiss Exchange)YesClass B SharesCHCHFJan 1992
SCA1DB (Deutsche Boerse AG)Class A SharesDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:40
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.