Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr87.31B
• Dividend Yield: 3.51%
• Average Volume (3M): 440.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 3.43%
• EPS Growth: 78.62%
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 2.83
• Shares Outstanding: 613,077,400
• 10 Day Avg. Volume: 504,583
• 30 Day Avg. Volume: 440,818
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: kr112.00 ▼(-0.44% Downside)

Stora Enso Oyj's overall stock score is primarily influenced by its strong revenue growth and stable balance sheet. However, significant profitability and cash flow challenges weigh heavily on the score. Technical analysis shows positive price trends, but valuation concerns due to a negative P/E ratio further impact the overall assessment.

Positive Factors

Revenue Growth

The company's significant revenue growth indicates strong sales momentum and expanding market presence, which can drive long-term business success.

Sustainability Focus

Stora Enso's commitment to sustainability positions it well in the growing eco-friendly market, enhancing its competitive edge and long-term relevance.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility and resilience, supporting long-term strategic initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder reinvestment and growth opportunities, affecting the company's ability to sustain long-term operations.

Cash Flow Concerns

Negative cash flow growth suggests challenges in generating sufficient cash, potentially impacting the company's ability to fund operations and investments.

Declining Margins

Decreasing margins indicate cost pressures or pricing challenges, which could erode profitability and competitive positioning in the long term.

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

Stora Enso Oyj faces a challenging financial landscape with declining profitability and cash flow issues. Despite revenue stabilization and a manageable debt level, the company struggles with negative net income and cash flow. The balance sheet remains stable, but profitability metrics need improvement.

Income Statement

Stora Enso Oyj's income statement shows a challenging period with declining profitability. The TTM data reveals a negative net profit margin of -1.23%, indicating losses. While there is a slight revenue growth of 1.35% in the TTM, the overall trend from previous years shows volatility, with significant revenue declines in 2023. Gross profit margins have decreased from 44.13% in 2022 to 38.83% in the TTM. The EBIT margin is also low at 0.39%, reflecting operational challenges. Despite these issues, the company has managed to stabilize revenue recently.

Balance Sheet

The balance sheet of Stora Enso Oyj reflects moderate financial stability. The debt-to-equity ratio is 0.56 in the TTM, indicating a manageable level of leverage. However, the return on equity is negative at -1.11%, highlighting profitability challenges. The equity ratio stands at 51.37%, suggesting a solid equity base relative to total assets. While the company maintains a stable capital structure, the negative ROE is a concern for future profitability.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow to net income ratio is 0.16, indicating some cash generation capability despite net losses. Free cash flow has improved significantly by 146.99% in the TTM, although it remains negative. The free cash flow to net income ratio is -0.29, reflecting ongoing cash flow challenges. While there are improvements in cash flow, the company needs to address its negative free cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.39B	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	1.35B	603.00M	221.00M	2.32B	2.10B	1.48B
Net Income	-5.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet
Total Assets	19.88B	19.80B	20.75B	20.92B	19.03B	17.43B
Cash, Cash Equivalents and Short-Term Investments	2.23B	2.02B	2.46B	1.92B	1.53B	1.66B
Total Debt	5.49B	5.73B	4.92B	3.92B	3.87B	4.75B
Total Liabilities	9.40B	9.81B	9.87B	8.42B	8.36B	8.64B
Stockholders Equity	10.62B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow
Free Cash Flow	-164.00M	-161.00M	-237.00M	878.00M	832.00M	467.00M
Operating Cash Flow	658.00M	952.00M	752.00M	1.58B	1.48B	1.13B
Investing Cash Flow	52.00M	-1.13B	-1.31B	-742.00M	-449.00M	-681.00M
Financing Cash Flow	-494.00M	-301.00M	1.08B	-450.00M	-1.22B	354.00M

Stora Enso Oyj Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.50
• 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 112.5 is above the 20-day moving average (MA) of 110.46, above the 50-day MA of 107.41, and above the 200-day MA of 101.62, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 27.58 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
BILL	70 Outperform	kr22.59B	18.66	4.43%	3.80%	2.55%	98.53%
HOLM.B	66 Neutral	kr55.18B	19.00	―	2.59%	-1.15%	2.30%
SCA.A	65 Neutral	kr84.44B	23.81	―	2.50%	6.10%	-3.62%
HOLM.A	63 Neutral	kr55.18B	18.80	5.02%	2.63%	-1.15%	2.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr84.44B	23.86	3.38%	2.46%	6.10%	-3.62%
STE.R	51 Neutral	kr87.31B	-507.20	―	3.51%	3.43%	78.62%