Klabin is valued at around 6.2× EV/EBITDA (2026E), significantly lower than its 8.0–8.5× EV/EBITDA historical average, likely due to short-term concerns despite improved long-term outlook. The company is entering a phase with a more suave capex cycle, prioritizing mainly deleveraging with Debt/EBITDA at 3.3x (3Q25) and converging toward 3.0x expected for 2025.
Cyborg Score Rationale
Klabin is on the lower end of valuation and offers one of the highest yields in its sector, indicative of an undervalued asset if its growth and earnings prove sustainable. The stock's free cash flow yield is around 7% going forward, which combined with a 5–6% dividend yield, suggests an attractive total yield for investors.
Top Insights
Itaú BBA projects strong recovery in global pulp fundamentals by 2026, with prices rebounding toward ~$580/ton, which would benefit Klabin's pulp segment
Klabin's FCF yield is expected to rise to 6% for 2025 with annual growth of 5 percentage points
The company is focusing on deleveraging and optimizing product mix, with expected solid cash flows of roughly 7% free cash flow yield on average through 2025–2027
Main near-term challenges include high Brazilian interest rates (increasing finance costs) and currency fluctuations from USD-denominated export revenue
Named Competitors
Pulp & Paper Products — Brazil's largest pulp producer with high exposure to commodity cycles
Specialty Pulp & Paper — Global diversified pulp and paper company with strong market position
Specialty Fibers — Global diversified pulp, paper, and packaging company
Recent Developments
(December 2025) Capex revised down for 2025 with larger disbursements expected for 2026 due to delayed project transfers
(December 2025) Long-term capex guidance reduced, with normalization expected from 2028 onwards
(Q3 2025) Net debt/EBITDA improved to 3.3x, tracking toward 3.0x target for 2025
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