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

Nordic Paper Holding AB

Rottneros AB

Billerud AB

Svenska Cellulosa AB SCA

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

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At SEK 144 MM has Fallen at -65.07%
NET PROFIT(Q) At SEK 185.66 MM has Fallen at -45.31%
ROCE(HY) Lowest at 2.17%

With ROE of 1.36%, it has a expensive valuation with a 0.69 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 -15.86%, its profits have fallen by -37.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.86% 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

-15.86%

50.15

20.74%

OMX Stockholm 30

26.99%

1.74

15.47%

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)

32.44

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.17

Tax Ratio

19.51%

Dividend Payout Ratio

65.74%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.95%

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

0.69

EV to EBIT

40.30

EV to EBITDA

19.63

EV to Capital Employed

0.73

EV to Sales

4.14

PEG Ratio

Dividend Yield

2.47%

ROCE (Latest)

1.81%

ROE (Latest)

1.36%

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.26 times

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At SEK 144 MM has Fallen at -65.07%

NET PROFIT(Q)

At SEK 185.66 MM has Fallen at -45.31%

ROCE(HY)

Lowest at 2.17%

RAW MATERIAL COST(Y)

Grown by 125.35% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 15.2 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.13 times

Here's what is working for Svenska Cellulosa AB SCA

Inventory Turnover Ratio

Highest at 2.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at SEK 579 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 144 MM has Fallen at -65.07%

over average net sales of the previous four periods of SEK 412.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 185.66 MM has Fallen at -45.31%

over average net sales of the previous four periods of SEK 339.47 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Debt-Equity Ratio

Highest at 15.2 %

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

Debtors Turnover Ratio

Lowest at 4.13 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 125.35% (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