Education
About Us
Working with TipRanks
Follow Us
Stora Enso (SEOAY)
OTHER OTC:SEOAY
Top Page
Stora Enso
(OTC:SEOAY)
Rating:56Neutral
Price Target:
$11.00
▼(-4.51%Downside)
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.86B
Dividend Yield0.23%
Average Volume (3M)1.20K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth7.61%
EPS Growth41.52%
CountryUS
Employees19,000
SectorBasic Materials
Sector Strength67
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.06
Shares Outstanding613,067,800
10 Day Avg. Volume0
30 Day Avg. Volume1,198
Financial Highlights & Ratios
PEG Ratio-3.84
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio-89.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.50Price Target Upside-17.53% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Stora Enso Business Overview & Revenue Model
Company DescriptionStora Enso Oyj is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper industries. Headquartered in Helsinki, Finland, the company operates in several segments, including Packaging Solutions, Biomaterials, Wood Products, and Paper. It focuses on utilizing renewable resources to offer sustainable products and solutions, aiming to replace fossil-based materials with eco-friendly alternatives.
How the Company Makes MoneyStora Enso generates revenue through the production and sale of a diverse range of products across its key segments. In Packaging Solutions, the company earns by providing innovative and sustainable packaging materials and containers for various industries, including food and beverage, consumer goods, and e-commerce. The Biomaterials segment contributes by producing pulp, bio-based chemicals, and other materials used in textiles, hygiene products, and composite materials. Wood Products generate income through the sale of timber, engineered wood products, and construction solutions catering to the building and housing sectors. The Paper segment, although facing a declining market, still contributes by offering paper products for printing and office use. Stora Enso's earnings are bolstered by strategic partnerships and investments in research and development, reinforcing its commitment to sustainability and innovation in its product offerings.
Stora Enso Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: 12.50%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Stora Enso's solid performance in a challenging market, with positive revenue growth and strategic initiatives to focus on Renewable Packaging. However, challenges such as the negative impact from the Oulu ramp-up and high fiber costs were noted. Overall, the highlights and lowlights were balanced.Q2-2025 Updates
Positive Updates
Revenue Growth
Sales at EUR 2.4 billion grew 5% year-on-year, supported by high demand for food products and packaging solutions.
Operational Segments Performance
All operational segments achieved positive adjusted EBIT for the second consecutive quarter despite continued weakness in board and pulp markets.
Strategic Focus on Renewable Packaging
Significant steps taken to strengthen strategic focus on Renewable Packaging, including the Oulu Consumer Board ramp-up and the acquisition of Junnikkala.
Debt Reduction and Financial Flexibility
Agreement to divest approximately 12.4% of Swedish forest land for EUR 900 million, reducing debt and enhancing financial flexibility.
Cash Flow Improvement
Operating working capital to sales was 7%, a decrease of 2 percentage points year-on-year, reflecting dedication to improving cash flow.
Negative Updates
Oulu Consumer Board Ramp-up Impact
Oulu ramp-up had a negative impact of approximately EUR 50 million on the second quarter adjusted EBIT.
Challenging Market Conditions
Continued weakness in board and pulp markets with consumer demand at relatively low levels impacted by geopolitical uncertainty.
High Fiber Costs
Fiber costs remained persistently high, offset partially by lower energy, logistics, and chemicals costs.
Biomaterials Segment Challenges
Biomaterials faced challenging conditions with weaker pulp demand, a weaker dollar, and lower prices leading to decreased sales.
Company Guidance
During Stora Enso's second quarter of 2025 earnings call, the company provided guidance highlighting a 5% year-on-year increase in sales to EUR 2.4 billion, driven by stable prices and improved deliveries amidst challenging market conditions. The adjusted EBIT stood at EUR 126 million, impacted negatively by EUR 50 million due to the Oulu consumer board line ramp-up. Despite these challenges, all operational segments reported positive adjusted EBIT for the second consecutive quarter. Operating working capital to sales improved to 6.9%, a decrease of 1.8 percentage points year-on-year. The company announced a strategic review of its remaining 1.2 million hectares of Swedish forest assets, signaling a potential separation and listing of the Forest business to maximize shareholder value. Stora Enso's transformation strategy is focused on Renewable Packaging, with nearly 80% of investments over the last decade directed towards this area to enhance synergies, operational efficiency, and cost competitiveness. The company's net debt to adjusted EBITDA ratio improved from 3.5x to 3.3x year-on-year, with further improvement expected following the divestment of 12.4% of its Swedish forest assets.Stora Enso Financial Statement Overview
Summary
Stora Enso faces declining revenue, profitability challenges, and negative cash flows. The balance sheet shows low leverage, but negative earnings and cash flow trends indicate financial pressures. Improvements are needed in operational efficiencies and cash flow management.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 | 9.25B | 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 | 2.52B | 2.25B | 1.52B |
| 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 Technical Analysis
Positive
11.52
Price Trends
10.41
Positive
10.02
Positive
10.34
Positive
Market Momentum
0.16
Negative
62.70
Neutral
97.58
Negative
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 11.52 is above the 20-day moving average (MA) of 10.83, above the 50-day MA of 10.41, and above the 200-day MA of 10.34, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 97.58 is Negative, 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 (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.27B | 17.12 | 11.33% | 1.30% | -6.06% | -24.97% | |
73 Outperform | $6.16B | 15.55 | 24.41% | 1.20% | 8.09% | 55.08% | |
65 Neutral | $2.00B | 7.33 | 31.83% | 3.63% | 0.11% | 46.54% | |
63 Neutral | $485.88M | 33.74 | -8.15% | ― | -15.03% | -233.06% | |
56 Neutral | $8.86B | ― | -1.03% | 0.23% | 7.61% | 41.52% | |
55 Neutral | $11.68B | 15.71 | -2.72% | 0.50% | 14.78% | -111.06% | |
44 Neutral | AU$1.51B | -6.22 | -41.37% | 3.85% | -3.52% | -43.04% |
* Basic Materials Sector Average
Performance Comparison
SEOAY
Stora Enso
11.52
-0.78
-6.34%
CLW
Clearwater Paper
30.84
-25.25
-45.02%
LPX
Louisiana-Pacific
89.84
-6.70
-6.94%
UFPI
UFP Industries
104.84
-22.45
-17.64%
SUZ
Suzano Papel e Celulose SA
9.47
0.53
5.93%
SLVM
Sylvamo Corp
49.56
-23.87
-32.51%
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.