Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr92.04B
• Dividend Yield: 2.5%
• Average Volume (3M): 3.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• 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): 2.83
• Shares Outstanding: 175,542,570
• 10 Day Avg. Volume: 4,379
• 30 Day Avg. Volume: 3,667
• PEG Ratio: 0.89
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -46.80
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: kr109.00 ▼(-1.36% Downside)

Stora Enso Oyj's overall stock score is primarily impacted by its mixed financial performance, with strong revenue growth but significant profitability challenges. Technical analysis suggests neutral momentum, while valuation is negatively affected by the company's earnings issues. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth suggests Stora Enso is effectively expanding its market reach and product adoption, supporting long-term business sustainability.

Market Position

As a leader in renewable solutions, Stora Enso benefits from strong market positioning, enhancing its competitive advantage in sustainable industries.

Balance Sheet Stability

A stable balance sheet with manageable leverage provides financial flexibility and supports long-term operational stability.

Negative Factors

Profitability Challenges

Negative profit margins highlight ongoing profitability issues, which could hinder the company's ability to reinvest in growth and innovation.

Cash Flow Issues

Negative free cash flow indicates inefficiencies in converting profits to cash, potentially limiting the company's ability to fund operations and growth initiatives.

Declining Margins

Declining margins suggest cost pressures or pricing challenges, which could impact long-term profitability and competitiveness.

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

Stora Enso Oyj is facing a challenging financial landscape, with profitability and cash flow being major concerns. The income statement shows a negative net profit margin and low EBIT margin, indicating operational inefficiencies. The balance sheet reflects moderate stability with a balanced debt-to-equity ratio, but negative ROE highlights profitability issues. Cash flow statement reveals significant challenges with negative free cash flow and low conversion of income into cash.

Income Statement

Stora Enso Oyj's income statement reveals a challenging financial environment. The TTM data shows a slight revenue growth of 1.35%, but the company is struggling with profitability, as indicated by a negative net profit margin of -1.23%. The gross profit margin remains relatively healthy at 38.83%, but the EBIT margin is extremely low at 0.39%, suggesting operational inefficiencies. The company has experienced fluctuating revenue growth rates in recent years, with a significant decline in 2023. Overall, the income statement reflects a need for improved cost management and revenue generation strategies.

Balance Sheet

The balance sheet of Stora Enso Oyj shows moderate financial stability. The debt-to-equity ratio is 0.56, indicating a balanced approach to leveraging. However, the return on equity is negative at -1.11%, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 51.37%, suggesting a solid capital structure. While the company maintains a reasonable level of debt, the negative ROE highlights the need for better profitability to enhance shareholder value.

Cash Flow

Stora Enso Oyj's cash flow statement indicates significant challenges. The TTM free cash flow is negative, and the free cash flow to net income ratio is -0.29, pointing to cash flow issues. Although there is a notable improvement in free cash flow growth at 150%, the operating cash flow to net income ratio is low at 0.16, indicating inefficiencies in converting income into cash. The company needs to focus on improving cash flow generation to support its operations and financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.50B	9.05B	9.40B	11.68B	10.16B	8.55B
Gross Profit	7.09B	3.57B	3.26B	5.15B	4.68B	3.85B
EBITDA	4.73B	603.00M	226.00M	2.52B	2.10B	1.52B
Net Income	2.00B	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet
Total Assets	219.68B	19.80B	20.75B	20.92B	19.03B	17.43B
Cash, Cash Equivalents and Short-Term Investments	24.62B	2.02B	2.46B	1.92B	1.53B	1.66B
Total Debt	60.70B	5.73B	5.21B	3.92B	3.87B	4.75B
Total Liabilities	103.90B	9.81B	9.87B	8.42B	8.36B	8.64B
Stockholders Equity	117.41B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow
Free Cash Flow	-246.71M	-161.00M	-237.00M	878.00M	832.00M	467.00M
Operating Cash Flow	2.32B	952.00M	752.00M	1.58B	1.48B	1.13B
Investing Cash Flow	6.52B	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
Financing Cash Flow	-2.10B	-301.00M	1.08B	-450.00M	-1.22B	354.00M

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 113.85, below the 50-day MA of 113.27, and above the 200-day MA of 106.00, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 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
BILL	70 Outperform	kr23.76B	19.62	4.43%	3.81%	2.55%	98.53%
HOLM.B	66 Neutral	kr56.62B	19.49	―	2.59%	-1.15%	2.30%
SCA.A	65 Neutral	kr85.52B	24.09	―	2.49%	6.10%	-3.62%
HOLM.A	63 Neutral	kr56.62B	19.29	5.02%	2.60%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr85.52B	24.17	3.38%	2.49%	6.10%	-3.62%
STE.A	47 Neutral	kr92.04B	-519.80	―	2.50%	3.43%	78.62%

Stora Enso Oyj Corporate Events

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.

Stora Enso Reports Q3 2025 Financials Amid Strategic Shifts

Stora Enso reported a 1% increase in sales for Q3 2025, primarily due to the acquisition of Junnikkala and the ramp-up of a new consumer board line at the Oulu site. However, adjusted EBIT fell by 28%, impacted by the ongoing ramp-up costs. The company completed a significant divestment of forest land in Sweden, which is part of a broader strategic review that could lead to a public listing of its remaining forest assets. Additionally, Stora Enso is collaborating with the International Union for Conservation of Nature to promote biodiversity in forestry.

The most recent analyst rating on ($SE:STE.A) stock is a Hold with a SEK103.00 price target. To see the full list of analyst forecasts on Stora Enso Oyj stock, see the SE:STE.A Stock Forecast page.