(SCA-B) Svenska Cellulosa - Ratings and Ratios

Svenska Cellulosa Aktiebolaget SCA (publ), a leading Swedish forest products company, specializes in the development, manufacturing, and distribution of a diverse range of forest, wood, pulp, and containerboard products. The companys operations span multiple regions, including Sweden, the United States, Germany, the United Kingdom, the rest of Europe, Asia, and other international markets. Its business is organized into five key segments: Forest, Wood, Pulp, Containerboard, and Renewable Energy.

The company offers a variety of wood products tailored for different applications. Its industrial building solutions include construction timber, outer panels, dimensionally planed timber, laths, base rafters, planks, and shaped timber products. For merchants, SCA provides joists, battens, untreated and painted outer panels, and pressure-impregnated wood products. Additionally, the company offers marine and land transportation services, including forwarding services using RoRo vessels, container express, and road and rail options.

In the pulp segment, SCA produces bleached softwood kraft pulp and chemical thermomechanical pulp. These products are used in a wide range of applications, including packaging solutions for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, and frozen foods. The company also manufactures Kraftliner products, which are used in various packaging applications.

SCA is also engaged in renewable energy initiatives, including the generation of energy from wind power projects, bioenergy, and the production of liquid and solid biofuels. The company manufactures and sells pellets, further diversifying its product portfolio in the renewable energy sector.

Founded in 1915, SCA is headquartered in Sundsvall, Sweden, and has a long history of innovation and sustainability in the forest products industry. The companys commitment to sustainable forestry practices and renewable energy solutions underscores its dedication to environmental stewardship.

Ticker Symbol: SCA-B
Exchange: ST
Type: common stock
Country Origin: Sweden
GICS Sub Industry: Forest Products

Average Volume 20d: 1602036
Last Price: 127.80
SMA 20: 128.13
SMA 50: 137.66
SMA 200: 139.47
ATR: 3.56

Market Cap: 91624.23M SEK
P/E: 25.02
P/E Forward: 20.20
P/B: 0.87
P/S: 4.07
RoE: 3.50

3-Month Forecast:

Based on the technical and fundamental data, SCA-B is expected to experience a period of consolidation in the coming months. The stock is currently trading near its 20-day SMA, with resistance levels at the 50-day SMA (137.66) and support at the 200-day SMA (139.47). The ATR of 3.56 indicates moderate volatility, suggesting that price movements may remain within a manageable range.

From a fundamental perspective, the companys P/E ratio of 25.02 is higher than its forward P/E of 20.20, indicating that investors expect earnings growth in the future. The P/B ratio of 0.87 suggests that the stock may be undervalued relative to its book value. The P/S ratio of 4.07 indicates that the stock is reasonably priced relative to its revenue.

Overall, SCA-B is expected to remain stable, with potential for modest growth driven by its diversified product portfolio and commitment to renewable energy initiatives. However, investors should monitor the companys profitability metrics, such as its return on equity (RoE), which is currently at 3.50, as improvements in this area could positively impact future valuations.