Klabin S.A. (KLBN11.SA) stock analysis

In our weekly check, Klabin S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6.

About Klabin S.A.

Klabin S.A. is a Basic Materials company (Paper, Lumber & Forest Products) based in Brazil, listed on SAO as KLBN11.SA.

What our checks show for KLBN11.SA

Red flags

• Net debt is 3.5x a year of EBITDA (debt/equity 3.75). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The net margin fell by 18 points over 5 years, to 0.3%: the company keeps less of each sale as profit.
• The gross margin fell by 8.5 points, to 37.3%: costs are rising faster than prices.
• The net margin is only 0.3%: little room if costs rise.
• The dividend takes 1197% of profit: little cushion if profit falls.

Warning signs

• Analysts expect only about 4.6% a year of growth in revenue.
• Revenue grew only 1.3% a year over the last 3 years.
• Earnings per share fell 75.3% a year over the last 3 years.
• Net profit fell 75% a year over the last 3 years.
• Free cash flow is only 2.5% of revenue.
• The stock has fallen as much as 48% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 8.6%.

Strengths

• Operating cash flow is 52.75x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 787% a year over the next years.
• Analysts expect the net margin to improve by 43 points from today's 0.3%.
• After its deepest fall the stock recovered in about 5 months.
• Beta 0.01: the stock usually moves less than the market.
• Actively traded: about 6.3 million shares a day.

Similar companies

IP · UPM.HE · SUZB3.SA · SCA-B.ST · LPX · WFG

Questions

What grade does Klabin S.A. (KLBN11.SA) have?

In our weekly check, Klabin S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of KLBN11.SA stock?

This week's biggest flags for Klabin S.A.: High debt, Weak interest cover, Margins falling. In total 13 of 25 checks show a warning or a red flag.

What does Klabin S.A. do?

Klabin S.A. is a Basic Materials company (Paper, Lumber & Forest Products) based in Brazil, listed on SAO as KLBN11.SA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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