Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr84.54B
• Dividend Yield: 0.24%
• Average Volume (3M): 3.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 4.81%
• EPS Growth: N/A
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.56
• Shares Outstanding: 175,553,400
• 10 Day Avg. Volume: 2,151
• 30 Day Avg. Volume: 3,752
• PEG Ratio: -3.89
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -90.54
• 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: kr110.00
• Price Target Upside: 0.92% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• 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 Business Overview & Revenue Model

Company Description

Stora 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 Money

Stora 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.05B	9.40B	11.68B	10.16B	8.55B
Gross Profit	3.57B	3.26B	5.15B	4.68B	3.85B
EBITDA	603.00M	226.00M	2.52B	2.25B	1.52B
Net Income	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet
Total Assets	19.80B	20.75B	20.92B	19.03B	17.43B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.46B	1.92B	1.53B	1.66B
Total Debt	5.73B	4.92B	3.92B	3.87B	4.75B
Total Liabilities	9.81B	9.87B	8.42B	8.36B	8.64B
Stockholders Equity	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow
Free Cash Flow	-161.00M	-237.00M	878.00M	832.00M	467.00M
Operating Cash Flow	952.00M	752.00M	1.58B	1.48B	1.13B
Investing Cash Flow	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
Financing Cash Flow	-301.00M	1.08B	-450.00M	-1.22B	354.00M

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLM.A	71 Outperform	kr59.69B	20.22	5.07%	0.81%	3.23%	-5.41%
SCA.A	66 Neutral	kr86.46B	23.94		2.45%	16.88%	12.52%
SCA.B	66 Neutral	kr86.46B	23.86	3.50%	2.44%	16.88%	12.52%
BILL	64 Neutral	kr21.50B	11.45	6.73%	4.04%	6.04%	162.11%
NPAPER	61 Neutral	kr3.22B	8.48	26.92%	8.40%	3.95%	-10.26%
Sector *	58 Neutral	kr29.95B	-3.64	-5.02%	2.91%	6.00%	-66.99%
STE.A	51 Neutral	kr84.54B	―		0.24%	4.81%	―

Stora Enso Oyj Corporate Events

Stora Enso Reports Q2 2025 Financial Results Amid Strategic Restructuring

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.