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Stora Enso Oyj (0M32) (SE:STE.A)
:STE.A
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Stora Enso Oyj (STE.A) AI Stock Analysis

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SE:STE.A

Stora Enso Oyj

(LSE:STE.A)

Rating:51Neutral
Price Target:
kr110.00
▲(0.92%Upside)
Stora Enso Oyj faces significant financial challenges, particularly in profitability and cash flow management, which is reflected in the financial performance score. On the technical side, the stock exhibits positive momentum, yet valuation concerns persist due to a negative P/E ratio. The lack of earnings call data or notable corporate events means these factors do not influence the final score.

Stora Enso Oyj (STE.A) vs. iShares MSCI Sweden ETF (EWD)

Stora Enso Oyj Business Overview & Revenue Model

Company DescriptionStora Enso Oyj is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction, and paper. With a strong focus on sustainability, the company operates in several sectors, including packaging solutions, wood products, biomaterials, and paper, catering to a wide range of industries worldwide. Stora Enso's core products include packaging materials, pulp, paper, and engineered wood products, all designed to replace non-renewable materials with innovative and environmentally friendly alternatives.
How the Company Makes MoneyStora Enso Oyj generates revenue through its diverse range of products and services across multiple sectors. The company's key revenue streams include sales of packaging materials and solutions, which are increasingly in demand due to the global shift towards sustainable packaging. Additionally, its biomaterials division contributes significantly to earnings by providing renewable alternatives to fossil-based materials. The wood products sector is another vital revenue source, driven by the construction industry's growing interest in sustainable building materials. Stora Enso also profits from traditional paper products, although this segment is gradually declining in favor of more sustainable options. Strategic partnerships with industries focusing on sustainability, along with continuous innovation and investment in eco-friendly technologies, play a crucial role in enhancing the company's market position and financial performance.

Stora Enso Oyj Financial Statement Overview

Summary
Stora Enso Oyj has a stable asset base and improved leverage management, but faces significant challenges in profitability with negative net profit margins, and cash flow management with negative free cash flow growth. Operational efficiency and cash flow generation need enhancement.
Income Statement
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.05B9.40B11.68B10.16B8.55B
Gross Profit3.57B3.26B5.15B4.68B3.85B
EBITDA603.00M226.00M2.52B2.25B1.52B
Net Income-136.00M-357.00M1.55B1.27B626.00M
Balance Sheet
Total Assets19.80B20.75B20.92B19.03B17.43B
Cash, Cash Equivalents and Short-Term Investments2.02B2.46B1.92B1.53B1.66B
Total Debt5.73B4.92B3.92B3.87B4.75B
Total Liabilities9.81B9.87B8.42B8.36B8.64B
Stockholders Equity10.14B10.98B12.53B10.68B8.81B
Cash Flow
Free Cash Flow-161.00M-237.00M878.00M832.00M467.00M
Operating Cash Flow952.00M752.00M1.58B1.48B1.13B
Investing Cash Flow-1.13B-1.31B-742.00M-449.00M-681.00M
Financing Cash Flow-301.00M1.08B-450.00M-1.22B354.00M

Stora Enso Oyj Technical Analysis

Technical Analysis Sentiment
Positive
Last Price109.00
Price Trends
50DMA
105.28
Positive
100DMA
102.97
Positive
200DMA
108.44
Positive
Market Momentum
MACD
1.13
Positive
RSI
52.56
Neutral
STOCH
29.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STE.A, the sentiment is Positive. The current price of 109 is above the 20-day moving average (MA) of 108.85, above the 50-day MA of 105.28, and above the 200-day MA of 108.44, indicating a bullish trend. The MACD of 1.13 indicates Positive momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:STE.A.

Stora Enso Oyj Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
kr59.69B20.225.07%0.81%3.23%-5.41%
66
Neutral
kr86.46B23.94
2.45%16.88%12.52%
66
Neutral
kr86.46B23.863.50%2.44%16.88%12.52%
64
Neutral
kr21.50B11.456.73%4.04%6.04%162.11%
61
Neutral
kr3.22B8.4826.92%8.40%3.95%-10.26%
58
Neutral
kr29.95B-3.64-5.02%2.91%6.00%-66.99%
51
Neutral
kr84.54B
0.24%4.81%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:STE.A
Stora Enso Oyj
113.00
-17.85
-13.64%
SE:BILL
BillerudKorsnas AB
86.60
-18.00
-17.21%
SE:SCA.B
Svenska Cellulosa SCA AB
130.10
-11.15
-7.90%
SE:HOLM.A
Holmen AB
371.00
-34.30
-8.46%
SE:NPAPER
Nordic Paper Holding AB
48.10
-0.43
-0.89%
SE:SCA.A
Svenska Cellulosa Aktiebolaget Class A
130.60
-11.99
-8.41%

Stora Enso Oyj Corporate Events

Stora Enso Reports Q2 2025 Financial Results Amid Strategic Restructuring
Jul 23, 2025

Stora Enso reported a 5% increase in sales for Q2 2025 compared to the previous year, driven by higher deliveries and structural changes, although adjusted EBIT decreased by 18% due to the ramp-up costs of a new consumer board line. The company is undergoing significant strategic changes, including divesting a portion of its Swedish forest land and restructuring its packaging business to focus on renewable solutions, while maintaining a stable credit rating and improving its ESG score.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025