Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr86.09B
• Dividend Yield: 2.26%
• Average Volume (3M): 3.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 4.81%
• EPS Growth: N/A
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.56
• Shares Outstanding: 175,553,400
• 10 Day Avg. Volume: 2,230
• 30 Day Avg. Volume: 3,078
• 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: kr108.00
• Price Target Upside: -5.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: kr108.00 ▼(-5.68% Downside)

Stora Enso Oyj's overall stock score is primarily influenced by its challenging financial performance, particularly in profitability and cash flow management. The technical analysis provides a slightly positive outlook, but valuation concerns due to a negative P/E ratio weigh heavily on the score. The absence of earnings call and corporate events data means these factors do not impact the score.

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 demonstrates a strong asset base and manageable leverage, but faces challenges in profitability and cash flow management. Revenue shows slight recovery, yet profitability and cash flow remain concerns, requiring focus on operational efficiency.

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	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: 114.50
• 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 114.5 is above the 20-day moving average (MA) of 109.73, above the 50-day MA of 107.11, and above the 200-day MA of 107.32, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.16 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.A	76 Outperform	kr90.57B	23.98		2.34%	12.89%	15.29%
SCA.B	76 Outperform	kr90.57B	23.97	3.64%	2.33%	12.89%	15.29%
HOLM.A	70 Neutral	kr57.71B	20.83	5.07%	2.43%	1.15%	-5.92%
BILL	64 Neutral	kr21.52B	11.71	6.73%	4.04%	6.04%	162.11%
HOLM.B	63 Neutral	kr57.71B	21.03		2.38%	1.15%	-5.92%
Sector *	59 Neutral	kr29.94B	0.02	-5.14%	3.51%	2.14%	-25.19%
STE.A	49 Neutral	kr86.09B	―		2.26%	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.