Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr87.80B
• Dividend Yield: 2.3%
• Average Volume (3M): 477.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• 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: 613,067,600
• 10 Day Avg. Volume: 567,882
• 30 Day Avg. Volume: 477,402
• PEG Ratio: 0.91
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -47.61
• 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: -4.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: kr106.00 ▼(-4.85% Downside)

Stora Enso Oyj's overall stock score reflects its challenging financial performance with declining profitability and cash flow issues. While technical indicators suggest some positive momentum, the valuation remains a concern due to a negative P/E ratio. The dividend yield offers a slight positive aspect, but the company needs to improve its profitability and cash flow to enhance its financial position.

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 core products: packaging solutions, paper products, and wood-based materials. The company benefits from its extensive global supply chain and diverse customer base, which includes industries such as food and beverage, construction, and retail. A significant portion of its earnings comes from its packaging segment, driven by both traditional and innovative sustainable packaging solutions. Stora Enso also engages in strategic partnerships and collaborations, enhancing its product offerings and market reach. Additionally, the company's emphasis on sustainability and renewable resources resonates with consumers and businesses alike, further boosting its revenue potential in a market increasingly focused on eco-friendly solutions.

Stora Enso Oyj Financial Statement Overview

Summary

Stora Enso Oyj's financial performance is mixed. Revenue growth is modest at 2.17%, but profitability is a concern with negative net income and declining margins. The balance sheet is stable with a good equity position and improved debt management, though inefficiencies are evident in generating profits. Cash flow is strained, with negative free cash flow despite some improvements.

Income Statement

Stora Enso Oyj's income statement reveals mixed performance. The TTM (Trailing-Twelve-Months) revenue showed a modest growth of 2.17% compared to the previous year. However, profitability is a concern with a negative net income and declining margins. The gross profit margin is 39.57%, while the EBIT and EBITDA margins are 1.41% and 14.14% respectively. The net profit margin remains negative, indicating challenges in converting revenue to profit.

Balance Sheet

The balance sheet reflects a stable equity position with an equity ratio of 51.52% in TTM. The Debt-to-Equity ratio improved to 0.18 from the previous year's level, suggesting better leverage management. However, the Return on Equity (ROE) is negative at -0.91%, which points to inefficiencies in utilizing shareholder investments to generate profits.

Cash Flow

Cash flow analysis shows a challenging situation with negative free cash flow in TTM, though it improved from the previous year. The operating cash flow to net income ratio is unfavorable due to negative net income, while the free cash flow to net income ratio is also negative, indicating inefficiencies in cash generation relative to reported earnings.

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	3.05B	5.15B	4.68B	3.85B
EBITDA	1.27B	603.00M	226.00M	2.32B	1.97B	1.48B
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: 111.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 111.4 is above the 20-day moving average (MA) of 105.32, above the 50-day MA of 102.51, and above the 200-day MA of 104.89, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.53 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
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%
STE.R	54 Neutral	kr87.80B	―		2.30%	4.81%	―
Sector *	44 Neutral	AU$1.54B	-7.28	-22.76%	4.37%	-3.13%	-36.41%