Holmen AB (HOLM B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Embellence Group AB

Holmen AB

Bong AB

Svenska Cellulosa AB SCA

Billerud AB

Nordic Paper Holding AB

Rottneros AB

Why is Holmen AB ?

Poor Management Efficiency with a low ROE of 5.92%

The company has been able to generate a Return on Equity (avg) of 5.92% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 48.15

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.92%

The company has declared Negative results for the last 7 consecutive quarters

CASH AND EQV(HY) Lowest at SEK 564 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 3.82 times
NET SALES(Q) Lowest at SEK 5,183 MM

With ROE of 3.38%, it has a fair valuation with a 1.00 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.55%, its profits have fallen by -21.1%

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.55% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Holmen AB should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Holmen AB for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Holmen AB

-16.55%

-1.00

21.73%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.20%

EBIT Growth (5y)

4.44%

EBIT to Interest (avg)

48.15

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.38

Tax Ratio

22.24%

Dividend Payout Ratio

51.43%

Pledged Shares

Institutional Holding

0.15%

ROCE (avg)

7.25%

ROE (avg)

5.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.00

EV to EBIT

24.47

EV to EBITDA

15.63

EV to Capital Employed

1.00

EV to Sales

2.72

PEG Ratio

Dividend Yield

2.50%

ROCE (Latest)

4.10%

ROE (Latest)

3.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at SEK 5.57

RAW MATERIAL COST(Y)

Fallen by -41.87% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.57 times

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at SEK 564 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.82 times

NET SALES(Q)

Lowest at SEK 5,183 MM

Here's what is working for Holmen AB

Dividend per share

Highest at SEK 5.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Debtors Turnover Ratio

Highest at 5.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -41.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Holmen AB

Net Sales

Lowest at SEK 5,183 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Cash and Eqv

Lowest at SEK 564 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio