Svenska Cellulosa AB SCA (SCA 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Holmen AB

Billerud AB

Svenska Cellulosa AB SCA

Embellence Group AB

Nordic Paper Holding AB

Bong AB

Rottneros AB

Why is Svenska Cellulosa AB SCA ?

Poor long term growth as Net Sales has grown by an annual rate of 2.66% over the last 5 years

With ROE of 2.25%, it has a attractive valuation with a 0.83 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -14.40%, its profits have risen by 63.5% ; the PEG ratio of the company is 0.6

Below par performance in long term as well as near term

Along with generating -14.40% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Svenska Cellulosa AB SCA for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Svenska Cellulosa AB SCA

-14.4%

53.16

22.10%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.66%

EBIT Growth (5y)

15.72%

EBIT to Interest (avg)

13.27

Debt to EBITDA (avg)

7.72

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.17

Tax Ratio

19.63%

Dividend Payout Ratio

57.90%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

1.51%

ROE (avg)

3.04%

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

0.83

EV to EBIT

252.69

EV to EBITDA

39.77

EV to Capital Employed

0.85

EV to Sales

4.81

PEG Ratio

0.58

Dividend Yield

2.00%

ROCE (Latest)

0.34%

ROE (Latest)

2.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 771.05

RAW MATERIAL COST(Y)

Fallen by -199.46% (YoY

NET SALES(Q)

Highest at SEK 5,380 MM

OPERATING PROFIT(Q)

Highest at SEK 879 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.34 %

PRE-TAX PROFIT(Q)

Highest at SEK 948 MM

NET PROFIT(Q)

Highest at SEK 736.92 MM

EPS(Q)

Highest at SEK 1.55

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 14.65 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.62%

Here's what is working for Svenska Cellulosa AB SCA

Interest Coverage Ratio

Highest at 771.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at SEK 5,380 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Operating Profit

Highest at SEK 879 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Operating Profit Margin

Highest at 16.34 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SEK 948 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 736.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 1.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Raw Material Cost

Fallen by -199.46% (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 Svenska Cellulosa AB SCA

Debt-Equity Ratio

Highest at 14.65 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.62%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio