Svenska Cellulosa Aktiebolaget SCA (publ) (SCA-B.ST) stock analysis

In our weekly check, Svenska Cellulosa Aktiebolaget SCA (publ) is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 6.

About Svenska Cellulosa Aktiebolaget SCA (publ)

Svenska Cellulosa Aktiebolaget SCA (publ) is a Basic Materials company (Paper, Lumber & Forest Products) based in Sweden, listed on STO as SCA-B.ST.

What our checks show for SCA-B.ST

Red flags

• The net margin fell by 20.8 points over 5 years, to 10.8%: the company keeps less of each sale as profit.
• The gross margin fell by 97 points, to -14.1%: costs are rising faster than prices.
• Revenue fell 1.2% a year over the last 3 years.
• The stock has fallen as much as 60% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.9 years.
• Return on capital (ROCE) is only 0.5%.

Warning signs

• Net debt is 3.6x a year of EBITDA (debt/equity 0.15). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.6 times: a weak year could make the payments hard.
• Earnings per share fell 31.6% a year over the last 3 years.
• Net profit fell 31.6% a year over the last 3 years.
• Free cash flow is only 4.4% of revenue.

Strengths

• Operating cash flow is 1.41x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.9% a year over the next years.
• Analysts expect the net margin to improve by 6 points from today's 10.8%.
• Beta 0.38: the stock usually moves less than the market.
• Pay in shares is only 0% of free cash flow.

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Questions

What grade does Svenska Cellulosa Aktiebolaget SCA (publ) (SCA-B.ST) have?

In our weekly check, Svenska Cellulosa Aktiebolaget SCA (publ) is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SCA-B.ST stock?

This week's biggest flags for Svenska Cellulosa Aktiebolaget SCA (publ): Margins falling, Gross margin falling, Weak revenue growth. In total 11 of 24 checks show a warning or a red flag.

What does Svenska Cellulosa Aktiebolaget SCA (publ) do?

Svenska Cellulosa Aktiebolaget SCA (publ) is a Basic Materials company (Paper, Lumber & Forest Products) based in Sweden, listed on STO as SCA-B.ST.

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 2026-10-24

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