Svenska Cellulosa AB SCA SCA-B.ST
SCA is a Swedish forest company that produces paper, pulp, and hygiene products, managing its forests and selling renewable products. SCA presents weak fundamentals: ROE of 2.17%, ROIC of 0.76% and earnings growth of -51.90% reflect a deteriorating business, with a demanding valuation (P/E 38.80) not supported by current profitability. Financial health is mediocre (ND/EBITDA 4.74) and momentum is negative (-7.37%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
SCA is a Swedish forest company that produces paper, pulp, and hygiene products, managing its forests and selling renewable products. SCA presents weak fundamentals: ROE of 2.17%, ROIC of 0.76% and earnings growth of -51.90% reflect a deteriorating business, with a demanding valuation (P/E 38.80) not supported by current profitability. Financial health is mediocre (ND/EBITDA 4.74) and momentum is negative (-7.37%).
Score by category
| Category | Score |
|---|---|
| Financial health | 4.6 |
| Quality / Moat | 3.9 |
| Valuation | 3.0 |
| Growth | 2.0 |
| Dividend | 4.2 |
| Momentum | 2.2 |
| Risk & Context | 8.9 |
OVERALL SCORE: 4.2/10
Context and risks
No recent relevant news. The macro context (rates, oil, geopolitics) does not materially affect SCA: it is a Swedish forestry company with a defensive business, without direct exposure to interest rates, energy commodities or technology.
Verdict: Avoid: weak fundamentals and demanding valuation do not justify buying, despite the natural moat of the forestry business.
Main risk: The main risk is the combination of high leverage (ND/EBITDA 4.74) with a low-return business (ROE 2.17%) and negative growth, which could lead to further deterioration of financial health if results do not improve.
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