Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr83.32B
• Dividend Yield: 3.71%
• Average Volume (3M): 328.90K
• 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: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.56
• Shares Outstanding: 613,073,850
• 10 Day Avg. Volume: 330,442
• 30 Day Avg. Volume: 328,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: kr106.00 ▲(1.15% Upside)

Stora Enso Oyj's overall stock score reflects significant financial challenges, with declining profitability and cash flow issues being the most impactful factors. Technical analysis provides mixed signals, indicating potential stabilization but also bearish momentum. Valuation metrics are unattractive due to a negative P/E ratio, despite a reasonable dividend yield.

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 faces a challenging financial landscape with declining profitability and cash flow issues. While there are signs of revenue stabilization and a manageable debt level, the company struggles with negative net income and cash flow. The balance sheet remains relatively 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	9.37B	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: 104.80
• 50DMA: Negative
• 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 104.8 is above the 20-day moving average (MA) of 104.00, below the 50-day MA of 106.03, and above the 200-day MA of 103.08, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 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.B	76 Outperform	kr88.60B	23.45	3.64%	2.38%	12.89%	15.29%
SCA.A	74 Outperform	€88.60B	23.46	―	2.38%	12.89%	15.29%
HOLM.B	71 Outperform	kr57.73B	20.96	―	2.48%	1.15%	-5.55%
BILL	66 Neutral	kr21.00B	11.43	6.73%	4.14%	6.04%	162.11%
HOLM.A	62 Neutral	kr57.73B	20.75	4.86%	2.50%	1.15%	-5.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STE.R	51 Neutral	kr83.32B	―	―	3.71%	4.81%	―