Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr81.76B
• Dividend Yield: 5.53%
• Average Volume (3M): 512.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 3.93%
• EPS Growth: N/A
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.43
• Shares Outstanding: 613,067,600
• 10 Day Avg. Volume: 873,933
• 30 Day Avg. Volume: 512,780
• PEG Ratio: 0.30
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.74
• 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

• Rating: 58 Neutral
• Price Target: kr112.00 ▲(8.42%Upside)

Stora Enso Oyj's overall stock score is driven primarily by its financial performance and technical analysis. The company's mixed financial health, with concerns over profitability and cash flow generation, is a significant factor. The technical analysis indicates some positive momentum, but potential overbought conditions suggest caution. Valuation metrics raise concerns with a negative P/E ratio, despite a high dividend yield.

Stora Enso Oyj Business Overview & Revenue Model

Company Description

Stora Enso Oyj is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction, and paper. Headquartered in Helsinki, Finland, the company operates in various sectors including consumer board, packaging solutions, forest, wood products, and paper. Stora Enso's core products and services focus on replacing fossil-based materials with sustainable, innovative, and eco-friendly alternatives derived from wood and other renewable resources.

How the Company Makes Money

Stora Enso makes money primarily through the production and sale of renewable products and solutions. Its revenue streams are diversified across several segments: the consumer board segment provides renewable packaging solutions for food and beverage, pharmaceutical, and luxury goods industries; the packaging solutions segment delivers corrugated packaging and recycling solutions; the forest segment involves sustainable forest management and wood supply; the wood products segment offers wood-based building solutions and material supply for the construction industry; and the paper segment provides paper products for printing and office use. Stora Enso's earnings are further supported by strategic partnerships and joint ventures aimed at expanding its market reach and enhancing its technological capabilities in renewable materials.

Stora Enso Oyj Financial Statement Overview

Summary

Stora Enso Oyj's financial health shows mixed results. Revenue growth is modest, but profitability remains a concern due to negative net income and declining margins. Improvements in leverage management are noted, but inefficiencies in cash flow generation persist with negative free cash flow. Overall, profitability and cash management need enhancement.

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	9.25B	9.05B	9.40B	11.68B	10.16B	8.55B
Gross Profit	3.21B	3.57B	3.05B	5.15B	4.68B	3.85B
EBITDA	1.31B	603.00M	226.00M	2.32B	1.97B	1.48B
Net Income	-95.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet
Total Assets	20.15B	19.80B	20.75B	20.92B	19.03B	17.43B
Cash, Cash Equivalents and Short-Term Investments	1.66B	2.02B	2.46B	1.92B	1.53B	1.66B
Total Debt	1.83B	5.73B	4.92B	3.92B	3.87B	4.75B
Total Liabilities	9.92B	9.81B	9.87B	8.42B	8.36B	8.64B
Stockholders Equity	10.38B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow
Free Cash Flow	-83.00M	-161.00M	-237.00M	878.00M	832.00M	467.00M
Operating Cash Flow	896.00M	952.00M	752.00M	1.58B	1.48B	1.13B
Investing Cash Flow	-918.00M	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
Financing Cash Flow	-422.00M	-301.00M	1.08B	-450.00M	-1.22B	354.00M

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 103.3 is above the 20-day moving average (MA) of 98.48, above the 50-day MA of 95.14, and below the 200-day MA of 107.99, indicating a neutral trend. The MACD of 2.66 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.68 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
NPAPER	78 Outperform	€4.40B	9.08	33.28%	6.09%	8.20%	23.15%
HOLM.A	71 Outperform	kr59.07B	19.89	5.07%	0.83%	3.23%	-5.41%
SCA.B	69 Neutral	kr86.27B	23.64	3.50%	2.44%	16.88%	12.52%
SCA.A	69 Neutral	kr86.27B	23.59		2.45%	16.88%	12.52%
Sector *	61 Neutral	kr33.87B	-7.65	0.97%	18.36%	12.43%	17.85%
BILL	59 Neutral	kr24.11B	13.06	6.58%	34.97%	9.83%	1070.42%
STE.R	58 Neutral	kr81.76B	―		5.53%	3.93%	―