Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr94.06B
• Dividend Yield: 3.46%
• Average Volume (3M): 440.82K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.20
• Revenue Growth: 3.43%
• EPS Growth: 78.62%
• Country: SE
• Employees: 19,000
• Sector: General
• Sector Strength: N/A
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.32
• Shares Outstanding: 613,077,400
• 10 Day Avg. Volume: 504,583
• 30 Day Avg. Volume: 440,818
• PEG Ratio: -0.02
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -64.97
• 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): 6.22
• Revenue Forecast (FY): kr99.96B

• Rating: 55 Neutral
• Price Target: kr130.00 ▲(12.55% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back mainly by weak cash generation and a sharp revenue decline despite improved profitability. Technicals are moderately supportive but mixed, while valuation is a relative strength due to a moderate P/E and a solid dividend yield.

Positive Factors

Renewable, diversified business model

Stora Enso's product diversification across packaging, biomaterials, wooden construction and paper is structurally durable. This mix exposes the company to secular shifts toward sustainable materials, supports long-term contract opportunities and reduces reliance on any single end market, aiding resilience.

Profitability rebound in 2025

The 2025 margin recovery signals improved execution, pricing and mix versus the prior loss years. Sustained mid-single-digit operating margins provide a stronger earnings base to fund capex and R&D, making future cash generation and reinvestment more feasible if margins hold through cycles.

Improving leverage and positive ROE

Lower leverage and a return to positive ROE enhance balance sheet flexibility. A debt/equity near 0.4 reduces refinancing pressure and supports investment or dividend capacity over the medium term, improving the company's ability to navigate cyclical downturns without severe balance sheet stress.

Negative Factors

Sharp revenue decline

A pronounced revenue decline undermines scale economics and heightens dependency on margin recovery to drive profits. Reduced topline limits operating leverage, constrains cash generation, and lengthens the time needed to restore pre-downturn earnings power if demand remains soft.

Negative free cash flow

Persistent negative free cash flow despite positive operating cash flow means capital spending and working capital absorb cash. Over months to years this forces external financing or asset measures, limiting strategic flexibility to invest in high-return projects or to accelerate deleveraging.

Cyclical earnings sensitivity

Exposure to commodity and cyclical end-markets causes large earnings swings, as shown by losses in 2023–2024 and the rebound in 2025. This structural volatility complicates planning, capital allocation and stable cash returns, raising execution risk through industry cycles.

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 through multiple key streams, primarily from the sale of its products in the packaging, biomaterials, and paper sectors. The company has established long-term contracts with major clients, ensuring a steady income from product sales. Additionally, Stora Enso benefits from its focus on sustainability, which allows it to tap into the growing market for environmentally friendly products. Partnerships with other firms in the forestry and manufacturing sectors enhance its supply chain efficiency and broaden its market reach. The company's investments in research and development aim to innovate and create new products, driving future revenue growth.

Stora Enso Oyj Financial Statement Overview

Summary

Profitability improved in 2025 after 2023–2024 losses and leverage looks manageable, but revenue declined sharply and free cash flow remains negative, limiting overall financial strength.

Income Statement

Profitability has rebounded in 2025 (net margin ~7.5% and EBIT margin ~9.2%) after losses in 2023–2024, showing improved execution and pricing/mix versus the prior two years. However, revenue momentum is weak: 2025 revenue is sharply down versus 2024, and the business has been volatile over the cycle (strong 2021–2022, then a steep downturn). Margins also remain well below the 2021–2022 peak, indicating earnings power is not fully restored.

Balance Sheet

Leverage looks manageable with debt-to-equity improving to ~0.41 in 2025 from ~0.57 in 2024, and equity remains sizable relative to the asset base. Returns on equity have turned positive again (~6.4% in 2025) after negative returns in 2023–2024, which supports balance sheet resilience. Key watch-outs are cyclical earnings sensitivity (seen in recent losses) and the still-meaningful absolute debt load for a commodity-exposed industry.

Cash Flow

Operating cash flow remains positive (about €645m in 2025), but cash conversion is weak: operating cash flow is low relative to net income and free cash flow is negative in 2025 (and also negative in 2023–2024). Free cash flow deterioration versus the prior year and recurring cash outflows after capital spending reduce financial flexibility, despite the recent return to accounting profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.33B	9.05B	9.40B	11.68B	10.16B
Gross Profit	2.71B	3.57B	3.05B	5.15B	4.68B
EBITDA	1.36B	603.00M	221.00M	2.32B	2.10B
Net Income	695.00M	-136.00M	-357.00M	1.55B	1.27B
Balance Sheet
Total Assets	19.06B	19.80B	20.75B	20.92B	19.03B
Cash, Cash Equivalents and Short-Term Investments	1.28B	2.02B	2.46B	1.92B	1.53B
Total Debt	4.47B	5.73B	4.92B	3.92B	3.87B
Total Liabilities	8.41B	9.81B	9.87B	8.42B	8.36B
Stockholders Equity	10.80B	10.14B	10.98B	12.53B	10.68B
Cash Flow
Free Cash Flow	-130.00M	-161.00M	-237.00M	878.00M	832.00M
Operating Cash Flow	645.00M	952.00M	752.00M	1.58B	1.48B
Investing Cash Flow	60.00M	-1.13B	-1.31B	-742.00M	-449.00M
Financing Cash Flow	-1.49B	-301.00M	1.08B	-450.00M	-1.22B

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.50
• 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.R, the sentiment is Positive. The current price of 115.5 is below the 20-day moving average (MA) of 119.04, above the 50-day MA of 114.63, and above the 200-day MA of 106.52, indicating a bullish trend. The MACD of 2.24 indicates Positive momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 53.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:STE.R.

Stora Enso Oyj Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLM.A	63 Neutral	kr55.34B	18.97	5.02%	2.60%	-1.15%	2.30%
HOLM.B	61 Neutral	kr55.34B	19.28	―	2.59%	-1.15%	2.30%
SCA.B	59 Neutral	kr82.49B	26.92	3.38%	2.49%	6.10%	-3.62%
SCA.A	57 Neutral	kr82.49B	26.91	―	2.49%	6.10%	-3.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
STE.R	55 Neutral	kr94.06B	12.55	―	3.46%	3.43%	78.62%
BILL	53 Neutral	kr19.78B	28.88	4.43%	3.81%	2.55%	98.53%