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Stora Enso OYJ (SEOAY)
:SEOAY
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Stora Enso
(OTC:SEOAY)
Rating:52Neutral
Price Target:
$11.00
▼(-3.42% Downside)
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.18B
Dividend Yield2.27%
Average Volume (3M)6.33K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth7.61%
EPS Growth41.52%
CountryUS
Employees19,000
SectorBasic Materials
Sector Strength60
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.06
Shares Outstanding613,067,900
10 Day Avg. Volume0
30 Day Avg. Volume6,331
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)0.76
Price to Sales (P/S)0.85
P/FCF Ratio-47.87
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda10.34
Forecast
1Y Price Target
$9.50Price Target Upside-16.59% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Stora Enso Business Overview & Revenue Model
Company DescriptionStora 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 MoneyStora Enso generates revenue through multiple key streams, primarily centered around its diverse product offerings in packaging, biomaterials, wood products, and paper. The Packaging Solutions segment is a significant revenue driver, providing sustainable packaging solutions for a variety of industries, including food and consumer goods. The Biomaterials division focuses on developing and supplying renewable materials, which is increasingly in demand as industries shift toward sustainability. Wood Products contributes revenue through the sale of sawn timber and engineered wood products, catering to the construction and furniture sectors. Furthermore, the Paper segment, while facing declining demand in traditional printing and writing papers, still generates income from specialty papers and other value-added products. Stora Enso's revenue model is bolstered by strategic partnerships and collaborations with customers across various industries, enhancing its market reach and innovation capabilities. Factors such as operational efficiency, investment in technology, and a strong focus on sustainability also contribute significantly to the company's earnings.
Stora Enso Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid sales growth and strategic focus on Renewable Packaging, with positive EBIT across segments. However, the Oulu ramp-up impacted EBIT negatively, and market conditions in Biomaterials remain challenging. High wood costs and weak demand in China were also noted. Overall, the sentiment is cautiously optimistic with ongoing efforts to improve operational efficiency and financial health.Q2-2025 Updates
Positive Updates
Sales Growth and Strategic Focus
Sales increased by 5% year-on-year to EUR 2.4 billion, driven by stable prices and improved deliveries, with a focus on Renewable Packaging.
Positive Adjusted EBIT Across Segments
All operational segments achieved positive adjusted EBIT for the second consecutive quarter, despite challenging market conditions.
Debt Reduction and Strategic Divestment
Agreement to divest 12.4% of Swedish forest land for EUR 900 million to reduce debt and enhance financial flexibility.
Operational Efficiency Improvements
Operating working capital to sales improved to 6.9%, reflecting a decrease of 1.8 percentage points year-on-year.
Oulu Ramp-Up Progress
Ongoing ramp-up of Oulu consumer board line, with customer feedback on quality being very encouraging.
Negative Updates
Oulu Ramp-Up Impact on EBIT
The Oulu consumer board line ramp-up negatively impacted second quarter adjusted EBIT by approximately EUR 50 million.
Challenging Market Conditions in Biomaterials
Biomaterials segment faced weaker pulp demand, lower prices, and a negative currency impact, leading to decreased sales.
High Wood Costs
Persistently high fiber costs impacted the Packaging Materials segment, though offset by lower other variable costs.
Weak Demand in China
Deliveries decreased slightly due to weak market conditions in China, impacting the Packaging Materials segment.
Company Guidance
In the second quarter of 2025, Stora Enso reported a solid financial performance despite challenging market conditions. Sales increased by 5% year-on-year to EUR 2.4 billion, driven by strong demand for food products and packaging solutions, while adjusted EBIT totaled EUR 126 million, even with a negative impact of approximately EUR 50 million due to the Oulu Consumer Board ramp-up. The company achieved positive adjusted EBIT across all segments for the second consecutive quarter, maintaining operational working capital at 6.9% of sales, a 1.8 percentage point improvement year-on-year. Additionally, Stora Enso announced the divestment of 12.4% of its Swedish forest assets for an enterprise value of EUR 900 million, aligning with its strategic focus on enhancing financial flexibility and unlocking asset values. A strategic review of the remaining 1.2 million hectares of Swedish forest assets is underway, potentially leading to a separation and listing of the Forest business. The company continues to emphasize growth in Renewable Packaging, with a significant portion of investments directed towards this area over the past decade.Stora Enso Financial Statement Overview
Summary
Stora Enso is experiencing declining revenue and profitability challenges, with negative cash flows. While the balance sheet shows low leverage, the negative earnings and cash flow trends highlight financial pressures that need addressing.Income Statement
The income statement shows a decline in revenue and profitability. The TTM data reflects a gross profit margin of approximately 34.7%, but a negative net profit margin of -1.03%, indicating a loss in the period. Revenue growth is negative when compared to the previous year's revenue. Both EBIT and EBITDA margins have declined over time, suggesting operational challenges.45
Neutral
Balance Sheet
The balance sheet indicates a relatively stable equity position, with a debt-to-equity ratio of about 0.18 in the TTM period, showing low leverage. However, return on equity is negative due to net losses. The equity ratio is approximately 51.5%, suggesting a balanced asset financing structure, but the declining equity and asset base could pose future risks.55
Neutral
Cash Flow
The cash flow statement highlights a negative free cash flow in the TTM period, despite a positive operating cash flow. The operating cash flow to net income ratio is negative due to net losses, indicating a disconnect between earnings and cash generation. Free cash flow growth is also negative, reflecting ongoing cash outflows.50
Neutral
| 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 | 2.52B | 2.25B | 1.52B |
| 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 Technical Analysis
Positive
11.39
Price Trends
11.16
Positive
10.48
Positive
10.33
Positive
Market Momentum
0.09
Positive
49.59
Neutral
38.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEOAY, the sentiment is Positive. The current price of 11.39 is below the 20-day moving average (MA) of 11.62, above the 50-day MA of 11.16, and above the 200-day MA of 10.33, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 38.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEOAY.
Stora Enso Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.90B | 23.36 | 17.53% | 1.15% | -1.44% | -31.12% | |
72 Outperform | $6.27B | 18.18 | 10.71% | 1.37% | -5.09% | -26.13% | |
65 Neutral | $11.89B | 8.51 | 18.34% | 3.45% | 11.48% | 1773.12% | |
65 Neutral | $1.80B | 8.57 | 24.37% | 4.12% | -4.03% | -5.27% | |
61 Neutral | $10.41B | 7.18 | -0.06% | 2.87% | 2.87% | -36.73% | |
59 Neutral | $354.61M | 33.74 | -4.36% | ― | -26.71% | -329.19% | |
52 Neutral | $9.18B | ― | -1.03% | 2.27% | 7.61% | 41.52% |
* Basic Materials Sector Average
Performance Comparison
SEOAY
Stora Enso
11.39
-0.35
-2.98%
CLW
Clearwater Paper
21.32
-6.67
-23.83%
LPX
Louisiana-Pacific
95.41
2.18
2.34%
UFPI
UFP Industries
100.42
-11.58
-10.34%
SUZ
Suzano Papel e Celulose SA
9.56
0.02
0.21%
SLVM
Sylvamo Corp
43.74
-27.92
-38.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.