Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr87.63B
• Dividend Yield: 2.46%
• Average Volume (3M): 3.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• 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: 175,546,040
• 10 Day Avg. Volume: 1,990
• 30 Day Avg. Volume: 3,513
• 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): 4.59
• Revenue Forecast (FY): kr102.86B

• Rating: 49 Neutral
• Price Target: kr106.00 ▲(6.64% Upside)

Stora Enso Oyj's overall stock score reflects significant financial challenges, particularly in profitability and cash flow. The technical analysis provides some neutral signals, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events means the score heavily relies on financial performance and technical analysis.

Stora Enso Oyj Business Overview & Revenue Model

Company Description

Stora Enso Oyj is a leading Finnish-Swedish multinational company specializing in renewable materials, focusing on the forestry, paper, packaging, and biomaterials sectors. With a commitment to sustainability, Stora Enso produces a diverse range of products, including wood-based solutions, paper, and packaging materials that serve various industries, including construction, consumer goods, and food services. The company operates globally, leveraging its vast resources in forestry and innovative technologies to create eco-friendly products and solutions.

How the Company Makes Money

Stora Enso generates revenue primarily through the sale of wood products, paper, and packaging solutions. Its revenue model is diversified across several key segments: Biomaterials, Packaging Solutions, Paper, and Wood Products. The company benefits from strong demand in the packaging sector, driven by the growing trend towards sustainable materials and e-commerce. Additionally, Stora Enso has formed strategic partnerships with various industries to enhance its product offerings and expand its market reach. The company's focus on innovation, such as developing new biomaterials and improving production efficiencies, also contributes significantly to its profitability.

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	9.37B	9.05B	9.40B	11.68B	10.16B	8.55B
Gross Profit	3.64B	3.57B	3.26B	5.15B	4.68B	3.85B
EBITDA	1.27B	603.00M	226.00M	2.52B	2.25B	1.52B
Net Income	-115.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet
Total Assets	19.68B	19.80B	20.75B	20.92B	19.03B	17.43B
Cash, Cash Equivalents and Short-Term Investments	1.57B	2.02B	2.46B	1.92B	1.53B	1.66B
Total Debt	5.68B	5.73B	4.92B	3.92B	3.87B	4.75B
Total Liabilities	9.72B	9.81B	9.87B	8.42B	8.36B	8.64B
Stockholders Equity	10.10B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow
Free Cash Flow	-205.00M	-161.00M	-237.00M	878.00M	832.00M	467.00M
Operating Cash Flow	718.00M	952.00M	752.00M	1.58B	1.48B	1.13B
Investing Cash Flow	-860.00M	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
Financing Cash Flow	-364.00M	-301.00M	1.08B	-450.00M	-1.22B	354.00M

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 99.4 is below the 20-day moving average (MA) of 106.44, below the 50-day MA of 106.23, and below the 200-day MA of 105.81, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.31 is Negative, 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
SCA.B	73 Outperform	kr87.38B	24.69	3.38%	2.41%	6.10%	-3.62%
SCA.A	73 Outperform	kr87.38B	24.60	―	2.42%	6.10%	-3.62%
HOLM.B	70 Outperform	kr55.82B	19.13	―	2.54%	-1.15%	2.30%
HOLM.A	66 Neutral	kr55.82B	19.24	5.02%	2.57%	-1.15%	2.30%
BILL	65 Neutral	kr21.65B	17.88	4.43%	4.01%	2.55%	98.53%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STE.A	49 Neutral	kr87.63B	―	―	2.46%	3.43%	78.62%

Stora Enso Oyj Corporate Events

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.