Stora Enso Oyj (STE.A) AI Stock Analysis

• Market Cap: kr84.67B
• Dividend Yield: 2.36%
• Average Volume (3M): 2.57K
• 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: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.56
• Shares Outstanding: 175,546,130
• 10 Day Avg. Volume: 2,129
• 30 Day Avg. Volume: 2,566
• 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: kr106.00
• Price Target Upside: -2.75% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: kr106.00 ▼(-2.75% Downside)

Stora Enso Oyj's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation. The technical analysis shows a bearish trend, and the valuation is unattractive due to negative earnings. These factors collectively contribute to a lower stock score, indicating potential risks for investors.

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 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: 109.00
• 50DMA: Negative
• 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 below the 20-day moving average (MA) of 111.10, below the 50-day MA of 110.83, and above the 200-day MA of 107.43, indicating a neutral trend. The MACD of -1.33 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 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
SCA.B	73 Outperform	87.33B	23.11	3.65%	2.46%	12.89%	15.29%
SCA.A	73 Outperform	87.33B	23.20	3.65%	2.45%	12.89%	15.29%
HOLM.B	68 Neutral	57.96B	21.10	4.85%	2.46%	1.15%	-5.55%
BILL	66 Neutral	21.65B	11.78	6.68%	4.07%	6.04%	162.11%
HOLM.A	66 Neutral	57.96B	20.69	4.85%	2.53%	1.15%	-5.55%
STE.A	46 Neutral	kr84.67B	―		2.36%	4.81%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%