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

Stora Enso Oyj (STE.A) AI Stock Analysis

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Stora Enso Oyj

(LSE:STE.A)

Rating:52Neutral
Price Target:
kr103.00
▲(1.48%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 (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 constructions, and paper. The company operates across several sectors including packaging, biomaterials, wooden construction, and paper, with a focus on sustainability and innovation. Stora Enso is headquartered in Helsinki, Finland, and Stockholm, Sweden, and serves a global market with its extensive portfolio of products and services aimed at replacing fossil-based materials with renewable alternatives.
How the Company Makes MoneyStora 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, but faces challenges in profitability and cash flow management. While revenue has shown slight recovery in the TTM, sustaining profitability and improving free cash flow will be crucial for long-term financial health. The company needs to focus on enhancing operational efficiency and cash flow generation.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.25B9.05B9.40B11.68B10.16B8.55B
Gross Profit
3.66B3.57B3.26B5.15B4.68B3.85B
EBIT
130.00M93.00M-322.00M2.01B1.57B922.00M
EBITDA
1.31B603.00M226.00M2.52B2.25B1.52B
Net Income Common Stockholders
-95.00M-136.00M-357.00M1.55B1.27B626.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.66B2.02B2.46B1.92B1.53B1.66B
Total Assets
20.15B19.80B20.75B20.92B19.03B17.43B
Total Debt
1.83B5.73B4.92B3.92B3.87B4.75B
Net Debt
174.00M3.73B2.45B2.00B2.39B3.09B
Total Liabilities
9.92B9.81B9.87B8.42B8.36B8.64B
Stockholders Equity
10.38B10.14B10.98B12.53B10.68B8.81B
Cash FlowFree Cash Flow
-82.00M-161.00M-237.00M878.00M832.00M467.00M
Operating Cash Flow
897.00M952.00M752.00M1.58B1.48B1.13B
Investing Cash Flow
-918.00M-1.13B-1.31B-742.00M-449.00M-681.00M
Financing Cash Flow
-422.00M-301.00M1.08B-450.00M-1.22B354.00M

Stora Enso Oyj Technical Analysis

Technical Analysis Sentiment
Negative
Last Price101.50
Price Trends
50DMA
98.33
Positive
100DMA
106.06
Negative
200DMA
111.40
Negative
Market Momentum
MACD
0.46
Positive
RSI
44.88
Neutral
STOCH
10.37
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 101.5 is below the 20-day moving average (MA) of 103.28, above the 50-day MA of 98.33, and below the 200-day MA of 111.40, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
kr3.52B7.2833.28%7.60%8.20%23.15%
71
Outperform
kr62.48B21.765.07%2.28%3.23%-5.41%
70
Outperform
kr26.54B14.386.58%3.32%9.83%1070.42%
69
Neutral
kr88.72B24.303.50%2.40%16.88%12.52%
69
Neutral
kr88.72B24.36
2.37%16.88%12.52%
52
Neutral
kr77.22B
2.57%3.93%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:STE.A
Stora Enso Oyj
99.60
-36.63
-26.89%
SE:BILL
BillerudKorsnas AB
106.90
6.56
6.54%
SE:SCA.B
Svenska Cellulosa SCA AB
126.30
-23.21
-15.52%
SE:HOLM.A
Holmen AB
392.00
-16.21
-3.97%
SE:NPAPER
Nordic Paper Holding AB
53.15
3.05
6.09%
SE:SCA.A
Svenska Cellulosa Aktiebolaget Class A
128.00
-21.62
-14.45%
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.