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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Holmen AB

Bong AB

Embellence Group AB

Rottneros AB

Nordic Paper Holding AB

Svenska Cellulosa AB SCA

Billerud AB

Why is Svenska Cellulosa AB SCA ?

Poor long term growth as Net Sales has grown by an annual rate of 2.10% over the last 5 years

With a fall in Net Sales of -3.13%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
ROCE(HY) Lowest at 2.72%
INTEREST COVERAGE RATIO(Q) Lowest at 743.02
RAW MATERIAL COST(Y) Grown by 21.52% (YoY)

With ROE of 1.75%, it has a expensive valuation with a 0.78 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 -16.33%, its profits have fallen by -17.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.33% 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 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

-18.84%

44.08

21.33%

OMX Stockholm 30

28.68%

1.89

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.10%

EBIT Growth (5y)

84.50%

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

65.74%

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

0.78

EV to EBIT

35.00

EV to EBITDA

19.41

EV to Capital Employed

0.81

EV to Sales

4.55

PEG Ratio

Dividend Yield

2.16%

ROCE (Latest)

2.30%

ROE (Latest)

1.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 4,057 MM

-26What is not working for the Company

ROCE(HY)

Lowest at 2.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 743.02

RAW MATERIAL COST(Y)

Grown by 21.52% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.26 times

NET SALES(Q)

Lowest at SEK 4,740 MM

OPERATING PROFIT(Q)

Lowest at SEK 639 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.48 %

PRE-TAX PROFIT(Q)

Lowest at SEK -11 MM

NET PROFIT(Q)

Lowest at SEK 32.04 MM

EPS(Q)

Lowest at SEK 0.54

Here's what is working for Svenska Cellulosa AB SCA

Operating Cash Flow

Highest at SEK 4,057 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Depreciation

Highest at SEK 564 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for Svenska Cellulosa AB SCA

Pre-Tax Profit

At SEK -11 MM has Fallen at -101.98%

over average net sales of the previous four periods of SEK 555.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 32.04 MM has Fallen at -92.77%

over average net sales of the previous four periods of SEK 442.86 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Interest Coverage Ratio

Lowest at 743.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at SEK 4,740 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 639 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 13.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK -11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 32.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0.54

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Debtors Turnover Ratio

Lowest at 4.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 21.52% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales