Education
About Us
Working with TipRanks
Follow Us
Stora Enso (SEOAY)
OTHER OTC:SEOAY
Top Page
Stora Enso
(OTC:SEOAY)
Select Model
Select Model
Rating:50Neutral
Price Target:
$11.00
▼(-3.51% Downside)
Stora Enso's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation. While technical analysis shows neutral momentum, the high P/E ratio indicates potential overvaluation. The earnings call provided some positive strategic developments, but market challenges and operational delays remain concerns.
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.16B
Dividend Yield3.6%
Average Volume (3M)17.15K
Price to Earnings (P/E)633.5
Beta (1Y)0.81
Revenue Growth7.62%
EPS GrowthN/A
CountryUS
Employees19,000
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.30
Shares Outstanding613,074,000
10 Day Avg. Volume4,897
30 Day Avg. Volume17,151
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 Cap1.61
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda10.34
Forecast
1Y Price Target
$10.80Price Target Upside-5.26% Downside
Rating ConsensusHold
Number of Analyst Covering1
Stora Enso Business Overview & Revenue Model
Company DescriptionStora Enso 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 Packaging Solutions, Biomaterials, Wood Products, and Paper. Stora Enso focuses on sustainable production methods and innovative products, utilizing renewable resources to meet the growing demand for environmentally friendly and sustainable materials.
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:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in cost savings, sustainability initiatives, and strategic divestments, which strengthened the balance sheet and reduced debt. However, it also noted challenges in market conditions, segment-specific struggles, and delays in the Oulu ramp-up, resulting in financial impacts. The sentiment reflects a balanced outlook, acknowledging both progress and difficulties.Q3-2025 Updates
Positive Updates
Forest Land Divestment
Stora Enso completed the divestment of approximately 175,000 hectares of forest land in Sweden, representing 12.4% of its total forest holdings, with an enterprise value of SEK 9.8 billion (approximately EUR 900 million), strengthening the balance sheet.
Cash Flow and Debt Reduction
The divestment improved cash flow and reduced net debt by almost EUR 800 million, bringing net debt to EUR 3.2 billion, with a net debt to EBITDA ratio of 2.7x.
Cost-Saving Initiatives
Implemented cost-saving programs totaling over EUR 230 million, with significant reductions in fixed costs by EUR 30 million and operational efficiency improvements.
Sustainability Achievements
Launched a science-based framework with IUCN to advance nature-positive forestry practices and received the Red Dot Design Award for sustainable design and innovation.
Packaging Board Line Ramp-Up
Stora Enso's new consumer packaging board line at the Oulu site in Finland continues to ramp-up, aiming for EBITDA breakeven by the end of 2025.
Negative Updates
Oulu Ramp-Up Delays
The production ramp-up at the Oulu site has been slower than anticipated, resulting in higher-than-expected EBIT impacts for Q4, estimated at EUR 15-35 million.
Market Challenges
Faced ongoing challenging market conditions with subdued demand and low consumer confidence, affecting delivery volumes in containerboard and biomaterials.
Packaging Materials Segment Pressure
Adjusted EBIT in Packaging Materials decreased by EUR 37 million year-on-year due to the Oulu ramp-up impact and increased costs for fiber, logistics, and tariffs.
Biomaterials Segment Struggles
Sales in Biomaterials decreased due to lower prices and adverse currency movements, with adjusted EBIT down year-on-year.
Wood Products Segment Decline
EBIT declined in Wood Products due to increased sawlog costs and the absence of a EUR 10 million insurance compensation received last year.
Company Guidance
During the third quarter of 2025, Stora Enso reported an adjusted EBIT of EUR 126 million, with profitability impacted by a EUR 45 million effect from the Oulu consumer board ramp-up. The company's strategic divestment of 175,000 hectares of Swedish forest land, valued at SEK 9.8 billion (approximately EUR 900 million), significantly reduced net debt by almost EUR 800 million, bringing it to EUR 3.2 billion. This move also improved the net debt to adjusted EBITDA ratio to 2.7x. Stora Enso's sales increased by 1% to EUR 2.3 billion, driven by the Junnikkala acquisition and the Oulu ramp-up. Despite market challenges, the company executed over 4,000 cost-saving measures, achieving EUR 230 million in savings. The Oulu site is on track to reach EBITDA breakeven by the end of 2025, despite a slower-than-expected ramp-up. Additionally, Stora Enso is considering a strategic review of its remaining 1.2 million hectares of Swedish forest, potentially unlocking further shareholder value.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.40
Negative
| 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
11.40
Price Trends
11.05
Positive
10.83
Positive
10.43
Positive
Market Momentum
-0.08
Negative
64.20
Neutral
99.44
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 11.4 is above the 20-day moving average (MA) of 10.55, above the 50-day MA of 11.05, and above the 200-day MA of 10.43, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 99.44 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.54B | 16.19 | 10.71% | 1.50% | -5.09% | -26.13% | |
69 Neutral | $6.29B | 21.41 | 17.53% | 1.21% | -1.44% | -31.12% | |
68 Neutral | $1.72B | 8.35 | 24.37% | 4.14% | -4.03% | -5.27% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $11.21B | 8.07 | 18.34% | 3.62% | 11.48% | 1773.12% | |
58 Neutral | $321.44M | -3.17 | -4.36% | ― | -26.71% | -329.19% | |
50 Neutral | $8.16B | 633.47 | -1.03% | 3.60% | 7.62% | ― |
* Basic Materials Sector Average
SEOAY
Stora Enso
11.40
>-0.01
-0.09%
CLW
Clearwater Paper
19.93
-7.25
-26.67%
LPX
Louisiana-Pacific
92.78
-6.90
-6.92%
UFPI
UFP Industries
91.78
-36.74
-28.59%
SUZ
Suzano Papel e Celulose SA
9.12
-1.02
-10.06%
SLVM
Sylvamo Corp
42.88
-39.59
-48.01%
Stora Enso Corporate Events
Stora Enso OYJ Reports Q3 2025 Earnings Amid Market Challenges
Oct 24, 2025
Stora Enso OYJ is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper, operating primarily in the forestry and paper industry.
Stora Enso’s Earnings Call: Balancing Achievements and Challenges
Oct 24, 2025
Stora Enso’s recent earnings call presented a balanced sentiment, highlighting both significant achievements and ongoing challenges. The company celebrated strides in cost savings, sustainability, and strategic divestments, which have bolstered the balance sheet and reduced debt. However, the call also acknowledged difficulties in market conditions, segment-specific struggles, and delays in the Oulu ramp-up, which have impacted financial performance.
Stora Enso Reports Mixed Q2 2025 Results Amid Strategic Shifts
Jul 24, 2025
Stora Enso OYJ is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper, with a strong focus on sustainability and innovation in the forestry and packaging sectors. The company operates globally, with a significant presence in Europe and a commitment to reducing its environmental impact through sustainable practices.
Stora Enso’s Earnings Call: Strategic Focus Amid Challenges
Jul 24, 2025
Stora Enso’s recent earnings call painted a picture of resilience and strategic focus amidst a challenging market landscape. The company reported positive revenue growth and emphasized its commitment to Renewable Packaging. However, it also acknowledged hurdles such as the negative impact from the Oulu ramp-up and high fiber costs, balancing the highlights with the lowlights of the quarter.
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.