Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr77.34B
• Dividend Yield: 62.22%
• Average Volume (3M): 3.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 3.93%
• EPS Growth: N/A
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.43
• Shares Outstanding: 175,553,400
• 10 Day Avg. Volume: 3,366
• 30 Day Avg. Volume: 3,141
• PEG Ratio: 0.31
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: kr103.00 ▲(3.00%Upside)

Stora Enso Oyj faces significant profitability and cash flow challenges, impacting its financial health despite a strong asset base. Technical indicators suggest stable momentum, while valuation metrics highlight concerns due to negative earnings. The stock's moderate dividend yield provides some investor attraction amid these challenges.

Stora Enso Oyj Business Overview & Revenue Model

Company Description

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries worldwide. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber renewable and recyclable packaging materials for food and drink, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including corrugated, carton board and other converting products, design services, automation solutions, and formed fiber and wood foams for various market sectors, such as store retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp grades for paper, board, tissue, textile, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for designing of building projects; sawn woods; and pellets for sustainable heating, as well as applications for windows, doors, and packaging industries. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segment provides paper products for print and office use. The company's Other segment holds an interest in Pohjolan Voima Oy, a company that produces electricity and heat. It serves packaging manufacturers, brand owners, paper and board producers, publishers, retailers, printing houses, converters, joinery, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.

How the Company Makes Money

Stora Enso Oyj generates revenue through its diversified operations in the packaging, biomaterials, wooden construction, and paper sectors. Its primary revenue streams come from the sale of packaging materials and solutions, which include consumer board, industrial packaging, and corrugated solutions. The biomaterials segment contributes to revenue through the production of pulp, biocomposites, and other bio-based chemicals and materials. In the wooden construction sector, Stora Enso earns money by providing sustainable building solutions and materials such as cross-laminated timber and laminated veneer lumber. The paper division, although a smaller part of the business compared to others, continues to generate income through the production and sale of paper products. Strategic partnerships and collaborations in research and development enhance Stora Enso's ability to innovate and meet market demands, further supporting its revenue generation.

Stora Enso Oyj Financial Statement Overview

Summary

Stora Enso Oyj demonstrates a strong asset base and manageable leverage, with a stable equity ratio. However, challenges in profitability due to net losses and negative free cash flow highlight issues in operational efficiency and cash management.

Income Statement

Stora Enso Oyj's revenue has exhibited a volatile trend, with a 2.17% decrease from 2022 to 2023 and a slight increase in the TTM period. The gross profit margin in the TTM (39.56%) is relatively stable compared to historical data. However, the net profit margin is negative due to net losses over the recent periods, reflecting challenges in profitability. The EBIT and EBITDA margins, though improving, remain constrained, indicating operational efficiency concerns.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM due to reduced total debt, indicating better leverage management. The equity ratio remains strong at 51.51%, suggesting a solid equity base. Despite recent net losses, the balance sheet remains stable, reflecting prudent financial management and a strong asset base.

Cash Flow

Operating cash flow is positive, but free cash flow is negative due to high capital expenditures, indicating a strain on liquidity. The operating cash flow to net income ratio is notable, emphasizing cash generation despite net losses. However, free cash flow growth remains negative, signaling potential cash management issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.25B	9.05B	9.40B	11.68B	10.16B	8.55B
	Gross Profit
3.66B	3.57B	3.26B	5.15B	4.68B	3.85B
	EBIT
130.00M	93.00M	-322.00M	2.01B	1.57B	922.00M
	EBITDA
1.31B	603.00M	226.00M	2.52B	2.25B	1.52B
	Net Income Common Stockholders
-95.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	2.02B	2.46B	1.92B	1.53B	1.66B
	Total Assets
20.15B	19.80B	20.75B	20.92B	19.03B	17.43B
	Total Debt
1.83B	5.73B	4.92B	3.92B	3.87B	4.75B
	Net Debt
174.00M	3.73B	2.45B	2.00B	2.39B	3.09B
	Total Liabilities
9.92B	9.81B	9.87B	8.42B	8.36B	8.64B
	Stockholders Equity
10.38B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow		Free Cash Flow
-82.00M	-161.00M	-237.00M	878.00M	832.00M	467.00M
	Operating Cash Flow
897.00M	952.00M	752.00M	1.58B	1.48B	1.13B
	Investing Cash Flow
-918.00M	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
	Financing Cash Flow
-422.00M	-301.00M	1.08B	-450.00M	-1.22B	354.00M

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STE.A, the sentiment is Negative. The current price of 100 is below the 20-day moving average (MA) of 102.97, above the 50-day MA of 98.37, and below the 200-day MA of 111.11, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:STE.A.

Stora Enso Oyj Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	77 Outperform	€3.56B	7.35	33.28%	7.39%	8.20%	23.15%
HOLM.A	71 Outperform	kr62.60B	21.59	5.07%	0.77%	3.23%	-5.41%
BILL	70 Outperform	kr26.54B	14.38	6.58%	3.27%	9.83%	1070.42%
SCA.B	69 Neutral	kr90.00B	24.66	3.50%	2.36%	16.88%	12.52%
SCA.A	69 Neutral	kr90.00B	24.63		2.34%	16.88%	12.52%
STE.A	52 Neutral	kr77.34B	―		62.22%	3.93%	―
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%