Stora Enso (SEOAY)
OTHER OTC:SEOAY
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Stora Enso
(OTC:SEOAY)
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Rating:59Neutral
Price Target:
$12.00
▲(0.42% Upside)
Action:Reiterated
Date:05/10/26
The score is driven primarily by mixed financial quality—profits have recovered and leverage is manageable, but persistently negative free cash flow is a major constraint. Technical indicators are weak with the stock trading below key moving averages, partially offset by attractive valuation (low P/E and moderate yield) and a constructive but challenged near-term outlook from management guidance.
Positive Factors
Balance-sheet repair
The EUR 900m forest land divestment materially cut net debt by about EUR 800m, improving leverage and financial flexibility. This creates structural capacity to pursue disciplined capex, dividends and deleveraging targets, supporting longer-term credit profile and strategic optionality.
Negative Factors
Persistent negative free cash flow
Sustained negative FCF despite positive operating cash indicates heavy capex and/or working-capital strain, reducing the company’s ability to fund dividends, pay down debt, or invest without asset sales. This constrains progress toward the stated sub-1x net debt/EBITDA goal.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet repair
The EUR 900m forest land divestment materially cut net debt by about EUR 800m, improving leverage and financial flexibility. This creates structural capacity to pursue disciplined capex, dividends and deleveraging targets, supporting longer-term credit profile and strategic optionality.
Read all positive factors
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.95B
Dividend Yield2.64%
Average Volume (3M)17.15K
Price to Earnings (P/E)62.5
Beta (1Y)0.85
Revenue Growth8.83%
EPS GrowthN/A
CountryUS
Employees19,000
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.78
Shares Outstanding613,084,900
10 Day Avg. Volume4,897
30 Day Avg. Volume17,151
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.78
Price to Sales (P/S)0.90
P/FCF Ratio-64.64
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda8.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.64
Revenue Forecast (FY)$11.05B
Stora Enso Business Overview & Revenue Model
Company Description
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction, and paper, headquartered in Helsinki, Finland. The company operates across various sectors, including consumer products, industrial pac...
How the Company Makes Money
Stora Enso makes money primarily by selling forest-based products and solutions to industrial and commercial customers. Its main revenue streams typically include: (1) Packaging materials and packaging solutions—selling fiber-based packaging produ...
Stora Enso Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call described a company in active transformation: strong strategic progress (asset separation, divestments, sustainability achievements), disciplined financial targets, and delivered value-creation actions (roughly EUR 900 million achieved plus EUR 500–700 million pipeline). At the same time, near-term profitability is constrained by the Oulu ramp-up drag (~EUR 140 million), weaker pulp prices hitting Biomaterials, notable fiber/wood cost headwinds, and subdued market conditions. The balance of evidence shows meaningful structural improvements and clear plans to restore margins and leverage, while material short-term challenges persist.Positive Updates
Group Sales and EBIT (2025)
Reported sales of EUR 9.3 billion and adjusted EBIT of EUR 528 million for full year 2025, demonstrating resilience in a challenging market.
Negative Updates
Adjusted EBIT Pressure and Q4 Decline
Adjusted EBIT decreased for the full year and in Q4; sales declined in Q4 due to slightly lower board prices and significantly lower pulp prices, with Biomaterials the primary segment hit by weaker pulp prices.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Sales and EBIT (2025)
Reported sales of EUR 9.3 billion and adjusted EBIT of EUR 528 million for full year 2025, demonstrating resilience in a challenging market.
Read all positive updates
Company Guidance
Stora Enso’s guidance focuses on disciplined growth and margin expansion: management targets about 4% annual revenue growth and roughly a 10% EBIT margin (excluding Swedish forests) within 2–4 years, plans to distribute 50% of net profit as dividends and to cut net debt/adjusted EBITDA from the current 2.8x to below 1x; the Board will propose a EUR 0.25/share dividend at the AGM on 24 March 2026. For 2025 the group reported EUR 9.3bn sales and EUR 528m EBIT, saw net debt fall by ~EUR 800m after divesting ~175,000 ha of Swedish forest for ~EUR 900m (forest fair value ~EUR 8.5bn / EUR 10.75 per share), and held operating working capital at 7% of sales. Management reiterated Oulu’s ramp‑up weighed ~EUR 140m on 2025 EBIT (Q1 2026 EBIT drag guided at EUR 15–30m) but should add ~EUR 800m of sales at full capacity (target 2027); it said value‑creation measures have delivered ~EUR 900m of annual P&L impact to date with an additional EUR 500–700m identified, cited fiber/wood cost headwinds (c. EUR 900m vs 2021 and ~EUR 300m this year), expects cash flow after investments to improve as heavy investments end, and plans CapEx around EUR 550m.Stora Enso Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.35B | 9.33B | 9.05B | 9.40B | 11.68B | 10.16B |
| Gross Profit | 2.28B | 2.71B | 3.57B | 3.05B | 5.15B | 4.68B |
| EBITDA | 1.36B | 1.36B | 603.00M | 226.00M | 2.53B | 2.10B |
| Net Income | 615.07M | 695.00M | -136.00M | -357.00M | 1.55B | 1.27B |
Balance Sheet | ||||||
| Total Assets | 18.83B | 19.06B | 19.80B | 20.75B | 20.92B | 19.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 1.28B | 2.02B | 2.46B | 1.92B | 1.53B |
| Total Debt | 4.56B | 4.47B | 5.73B | 5.21B | 3.92B | 3.87B |
| Total Liabilities | 8.53B | 8.41B | 9.81B | 9.87B | 8.42B | 8.36B |
| Stockholders Equity | 10.44B | 10.80B | 10.14B | 10.98B | 12.53B | 10.68B |
Cash Flow | ||||||
| Free Cash Flow | -119.76M | -130.00M | -161.00M | -237.00M | 878.00M | 832.00M |
| Operating Cash Flow | 568.59M | 645.00M | 952.00M | 752.00M | 1.58B | 1.48B |
| Investing Cash Flow | 109.46M | 60.00M | -1.13B | -1.31B | -742.00M | -449.00M |
| Financing Cash Flow | -1.38B | -1.49B | -301.00M | 1.08B | -450.00M | -1.22B |
Stora Enso Technical Analysis
Neutral
11.95
Price Trends
11.53
Negative
12.06
Negative
11.69
Negative
Market Momentum
-0.10
Negative
47.16
Neutral
93.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEOAY, the sentiment is Neutral. The current price of 11.95 is above the 20-day moving average (MA) of 11.21, above the 50-day MA of 11.53, and above the 200-day MA of 11.69, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 93.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEOAY.
Stora Enso Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $10.39B | 3.72 | 25.27% | 1.96% | 3.06% | ― | |
64 Neutral | $4.55B | 24.91 | 8.44% | 1.53% | -6.40% | -24.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $8.95B | 62.51 | 5.86% | 2.64% | 8.83% | ― | |
56 Neutral | $4.93B | 47.15 | 4.72% | 1.37% | -12.99% | -79.48% | |
52 Neutral | $1.51B | -140.80 | 10.51% | 3.51% | -10.95% | -63.39% | |
45 Neutral | $227.04M | -4.52 | -3.08% | ― | -11.89% | 79.35% |
* Basic Materials Sector Average
SEOAY
Stora Enso
11.31
1.39
14.04%
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SUZ
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8.31
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SLVM
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38.10
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-26.89%
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.