Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr96.91B
• Dividend Yield: 2.5%
• Average Volume (3M): 3.67K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.82
• Revenue Growth: 3.43%
• EPS Growth: 78.62%
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.32
• Shares Outstanding: 175,542,570
• 10 Day Avg. Volume: 4,379
• 30 Day Avg. Volume: 3,667
• PEG Ratio: -0.02
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -65.33
• 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
• EPS Forecast (FY): 6.23
• Revenue Forecast (FY): kr99.96B

• Rating: 58 Neutral
• Price Target: kr118.00 ▲(6.79% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back mainly by weak cash flow quality (negative free cash flow for three straight years despite the 2025 earnings rebound). A stable/improving balance sheet and reasonable valuation (P/E 11.6 with a ~2.46% yield) provide support, while technical indicators are broadly neutral with a negative MACD limiting upside confidence.

Positive Factors

Diversified renewable portfolio

A diversified portfolio across packaging, biomaterials, wood products and paper gives durable revenue optionality tied to structural sustainability trends. Multiple end markets reduce single-segment risk and support steady long-term demand as customers shift to renewable materials.

Improving leverage and strong equity base

Material improvement in leverage increases financial flexibility and reduces refinancing risk. A sizable equity base relative to debt supports investment capacity and credit resilience through commodity cycles, enabling strategic initiatives without immediate capital strain.

Profitability rebound in 2025

Return to positive net income and mid-single-digit net margin signals operational recovery and ability to generate accounting profits after prior losses. Sustained profitability can underpin reinvestment, deleveraging and shareholder returns if cash conversion improves.

Negative Factors

Negative free cash flow trend

Consecutive negative free cash flow despite 2025 earnings indicates earnings are not translating into durable cash after investments. Persistent FCF deficits strain funding for capex, dividends and debt service, raising reliance on external financing or asset sales long term.

Sustained revenue decline

Material multi-year revenue contraction points to structural headwinds in end markets or loss of volume/price mix. Continued top-line weakness limits operating leverage, caps margin recovery potential and raises execution burden to restore sustainable growth.

Margin volatility and cyclicality

Historic margin swings and industry cyclicality make earnings fragile to commodity and demand cycles. Even with a 2025 rebound, margins remain below prior peaks, increasing risk that downturns quickly erode profitability and strain returns and credit metrics.

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 generates revenue primarily through the sale of its product offerings across its diverse sectors. The Packaging Solutions segment contributes to earnings by providing innovative packaging materials and solutions that meet the needs of consumer goods manufacturers and retailers. In Biomaterials, the company capitalizes on the increasing demand for sustainable alternatives to fossil-based products, offering products such as bio-based chemicals and materials. The Wood Products division benefits from the growing construction market by supplying engineered wood products and solutions for building projects. Lastly, revenue from the Paper segment is derived from the production and sale of various paper grades, although this sector has been facing challenges due to digitalization trends. Additionally, Stora Enso partners with various stakeholders, including suppliers, customers, and research institutions, to enhance its product offerings and to drive innovation, thereby contributing to its overall earnings.

Stora Enso Oyj Financial Statement Overview

Summary

Earnings rebounded in 2025 (695M net income, ~7.5% net margin) and leverage improved (debt-to-equity ~0.41). However, revenue is negative across most years shown and margins remain well below the 2021–2022 peak. Cash flow is the major drag: operating cash flow is materially lower than 2021–2022 and free cash flow has been negative for 2023–2025, including -130M in 2025.

Income Statement

Profitability has recovered meaningfully in 2025 (annual) with net income of 695M and a ~7.5% net margin, after losses in 2023–2024. However, revenue growth is negative in most years shown (including 2023–2025), and margins are well below the 2021–2022 peak (when EBIT and net margins were materially higher). Overall: clear rebound from a weak cycle, but the top-line trajectory and margin volatility temper the score.

Balance Sheet

Leverage looks manageable for the industry: debt-to-equity improved to ~0.41 in 2025 from ~0.57 in 2024, and equity remains sizable (10.8B vs. 4.5B debt in 2025). Returns also turned positive in 2025 (~6.4% return on equity) after being negative in 2023–2024. The main drawback is the earnings cyclicality, which can pressure credit metrics even with moderate leverage.

Cash Flow

Cash generation is the weakest area. Operating cash flow is positive but has stepped down sharply versus 2021–2022 (645M in 2025 vs. 1.48–1.58B in 2021–2022), and free cash flow has been negative for three straight years (2023–2025). In 2025, free cash flow is -130M despite positive earnings, indicating profits are not currently translating into cash after investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.33B	9.05B	9.40B	11.68B	10.16B
Gross Profit	2.71B	3.57B	3.26B	5.15B	4.68B
EBITDA	1.36B	603.00M	226.00M	2.52B	2.10B
Net Income	695.00M	-136.00M	-357.00M	1.55B	1.27B
Balance Sheet
Total Assets	19.06B	19.80B	20.75B	20.92B	19.03B
Cash, Cash Equivalents and Short-Term Investments	1.28B	2.02B	2.46B	1.92B	1.53B
Total Debt	4.47B	5.73B	5.21B	3.92B	3.87B
Total Liabilities	8.41B	9.81B	9.87B	8.42B	8.36B
Stockholders Equity	10.80B	10.14B	10.98B	12.53B	10.68B
Cash Flow
Free Cash Flow	-130.00M	-161.00M	-237.00M	878.00M	832.00M
Operating Cash Flow	645.00M	952.00M	752.00M	1.58B	1.48B
Investing Cash Flow	60.00M	-1.13B	-1.31B	-742.00M	-449.00M
Financing Cash Flow	-1.49B	-301.00M	1.08B	-450.00M	-1.22B

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 110.5 is below the 20-day moving average (MA) of 118.25, below the 50-day MA of 115.14, and above the 200-day MA of 109.32, indicating a bullish trend. The MACD of 2.70 indicates Negative momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 40.04 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLM.A	63 Neutral	kr56.53B	18.97	5.02%	2.60%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HOLM.B	61 Neutral	kr56.53B	19.28	―	2.59%	-1.15%	2.30%
SCA.B	59 Neutral	kr86.28B	26.92	3.38%	2.49%	6.10%	-3.62%
STE.A	58 Neutral	kr96.91B	12.66	―	2.50%	3.43%	78.62%
SCA.A	57 Neutral	kr86.28B	26.91	―	2.49%	6.10%	-3.62%
BILL	53 Neutral	kr20.53B	28.88	4.43%	3.81%	2.55%	98.53%

Stora Enso Oyj Corporate Events

Stora Enso Calls March AGM, Sets Dividend and Governance Proposals

The board has convened the 24 March 2026 AGM in Helsinki, outlining agenda items such as approval of 2025 accounts, the sustainability assurance report, and an advisory vote on the remuneration report, while also opening with a pre-meeting shareholder Q&A with management. Directors propose a EUR 0.25 per-share dividend in two instalments, reaffirm 2025 board fee levels, and signal continuity in governance practices, suggesting steady capital allocation and predictable oversight for investors.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK113.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.

Stora Enso Narrows Focus as Earnings Pressure Meets Strategic Reshaping

Stora Enso reported 2025 sales of EUR 9.33 billion, slightly above 2024, but adjusted EBIT fell to EUR 528 million, reflecting lower pulp and board prices, adverse currency effects, and the ongoing ramp-up of its new consumer board line in Oulu, which weighed on fourth-quarter profitability. Despite weaker adjusted earnings and lower cash flow from operations year-on-year, the company’s IFRS operating result and earnings per share improved markedly, supported by fair value gains on biological assets, while leverage eased with net debt to adjusted EBITDA improving to 2.8x, and the board proposing an unchanged dividend of EUR 0.25 per share, payable in two instalments in 2026.
Stora Enso is sharpening its strategic focus by preparing to separate its Swedish forest assets into a new publicly listed company by the first half of 2027 and launching a strategic review, including potential divestment, of its Central European sawmills and building solutions operations to concentrate more tightly on renewable materials and packaging. The company continues to ramp up the Oulu consumer board line, expected to reach full capacity in 2027, and has signalled upcoming changes to financial targets and reporting from 2026, while its inclusion on CDP’s 2025 Climate Change A List underlines its positioning as a sustainability leader in the sector.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK113.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.

BlackRock Subsidiaries Report Sub-5% Holdings in Stora Enso

The disclosure lists a chain of controlled undertakings related to asset manager BlackRock, Inc. and its various international subsidiaries that together hold a stake in Stora Enso Oyj, with each individual holding reported as below 5% of shares and voting rights. The filing clarifies the structure of BlackRock’s ownership and indicates that Stora Enso’s shareholder base includes a globally diversified institutional investor, although no single BlackRock-related entity holds a significant controlling interest, suggesting limited direct impact on corporate control but continued engagement by major global capital markets players.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK113.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.

BlackRock Discloses Sub‑5% Indirect Holdings Structure in Stora Enso

A regulatory filing discloses the chain of controlled undertakings through which BlackRock, Inc. and its various subsidiaries hold an aggregate ownership in Stora Enso Oyj that remains below the 5% threshold of shares and voting rights. The notice details multiple legal entities across several jurisdictions that are part of BlackRock’s investment structure, indicating continued but non-significant institutional investor exposure to Stora Enso’s equity, with no single BlackRock-related entity crossing a major disclosure threshold that would signal a change in control or strategic influence.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK113.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.

Stora Enso to Form Europe’s Largest Pure Play Forest Company

Stora Enso has announced plans to separate its Swedish forest assets into a new publicly-listed company, aiming to create Europe’s largest pure play forest company. This strategic move is intended to enhance focus on core strengths, maximize shareholder value, and reduce complexity, with the new entity expected to generate stable returns and explore long-term growth opportunities in forest management and renewable energy.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK106.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.