Stora Enso Oyj (STE.R) AI Stock Analysis

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Stora Enso Oyj

(LSE:STE.R)

Rating:60Neutral

Price Target:

kr103.00

▲(8.14%Upside)

Stora Enso Oyj's overall stock score is driven primarily by its financial performance and technical analysis. The financial health shows mixed results with concerns over profitability and cash flow, while technical indicators provide a slightly positive outlook. The valuation is negatively impacted by the company's losses, although the dividend yield is a positive aspect.

Stora Enso Oyj (STE.R) vs. iShares MSCI Sweden ETF (EWD)

Market Cap

kr75.09B

Dividend Yield2.69%

Average Volume (3M)354.36K

Price to Earnings (P/E)―

Beta (1Y)1.04

Revenue Growth3.93%

EPS GrowthN/A

CountrySE

Employees19,000

SectorBasic Materials

Sector Strength62

IndustryPaper, Lumber & Forest Products

Share Statistics

EPS (TTM)1.43

Shares Outstanding613,067,600

10 Day Avg. Volume232,038

30 Day Avg. Volume354,364

Financial Highlights & Ratios

PEG Ratio-3.54

Price to Book (P/B)0.65

Price to Sales (P/S)0.00

P/FCF Ratio-82.98

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Stora Enso Oyj Business Overview & Revenue Model

Company DescriptionStora 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 MoneyStora 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 performance is mixed. Revenue growth is modest, but profitability is a concern with negative net income and declining margins. The balance sheet shows stable equity and improved leverage, but cash flow generation is under pressure with negative free cash flow.

Income Statement

Neutral

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

Positive

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

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
179.00M	93.00M	-322.00M	2.01B	1.57B	922.00M
	EBITDA
1.31B	603.00M	226.00M	2.32B	1.97B	1.48B
	Net Income Common Stockholders
-95.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
876.00M	2.02B	2.46B	1.92B	1.53B	1.66B
	Total Assets
15.05B	19.80B	20.75B	20.92B	19.03B	17.43B
	Total Debt
4.17B	5.73B	4.92B	3.92B	3.87B	4.75B
	Net Debt
3.29B	3.73B	2.45B	2.00B	2.39B	3.09B
	Total Liabilities
7.63B	9.81B	9.87B	8.42B	8.36B	8.64B
	Stockholders Equity
7.43B	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

Negative

Last Price95.25

Price Trends

50DMA

92.33

Positive

100DMA

103.27

Negative

200DMA

110.20

Negative

Market Momentum

MACD

0.70

Positive

RSI

50.00

Neutral

STOCH

16.69

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STE.R, the sentiment is Negative. The current price of 95.25 is below the 20-day moving average (MA) of 96.75, above the 50-day MA of 92.33, and below the 200-day MA of 110.20, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 16.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:STE.R.

Stora Enso Oyj Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	77 Outperform	€3.52B	7.28	33.28%	7.60%	8.20%	23.15%
HOLM.A	71 Outperform	kr62.48B	21.76	5.07%	2.28%	3.23%	-5.41%
BILL	69 Neutral	kr25.65B	13.89	6.58%	3.41%	9.83%	1070.42%
SCA.B	69 Neutral	kr88.72B	24.30	3.50%	2.37%	16.88%	12.52%
SCA.A	69 Neutral	€88.72B	24.36		2.37%	16.88%	12.52%
STE.R	60 Neutral	kr75.09B	―		2.69%	3.93%	―
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%

* Basic Materials Sector Average

Performance Comparison

SE:STE.R

Stora Enso Oyj

95.25

-45.19

-32.18%

SE:BILL

BillerudKorsnas AB

103.30

1.80

1.77%

SE:SCA.B

Svenska Cellulosa SCA AB

126.30

-26.14

-17.15%

SE:HOLM.A

Holmen AB

395.00

-15.15

-3.69%

SE:NPAPER

Nordic Paper Holding AB

52.65

1.80

3.54%

SE:SCA.A

Svenska Cellulosa Aktiebolaget Class A

126.60

-25.95

-17.01%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.