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Stora Enso (SEOAY)
OTHER OTC:SEOAY
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Stora Enso
(OTC:SEOAY)
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Rating:54Neutral
Price Target:
$12.00
▲(0.42% Upside)
Stora Enso's overall stock score reflects a mix of financial challenges and technical strengths. The company's profitability and cash flow issues weigh heavily on the score, despite a stable balance sheet and positive technical indicators. The high P/E ratio suggests overvaluation, but the earnings call provided a balanced outlook with significant cost-saving achievements and strategic divestments.
Positive Factors
Cost-Saving Initiatives
Significant cost-saving measures enhance operational efficiency and reduce fixed costs, improving long-term profitability and financial health.
Debt Reduction
Reducing net debt strengthens the balance sheet, providing greater financial flexibility and reducing interest expenses, enhancing long-term stability.
Sustainability Initiatives
Commitment to sustainability strengthens brand reputation and aligns with increasing consumer demand for eco-friendly products, supporting long-term growth.
Negative Factors
Oulu Ramp-Up Delays
Delays in the Oulu ramp-up impact profitability and operational efficiency, potentially affecting revenue and margins in the short to medium term.
Market Challenges
Challenging market conditions with low demand can hinder sales growth and pressure margins, affecting financial performance over the medium term.
Packaging Materials Segment Pressure
Decreased EBIT in Packaging Materials due to increased costs and ramp-up impacts may strain profitability, affecting the segment's long-term viability.
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.89B
Dividend Yield2.64%
Average Volume (3M)17.15K
Price to Earnings (P/E)664.4
Beta (1Y)0.83
Revenue Growth7.62%
EPS GrowthN/A
CountryUS
Employees19,000
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.30
Shares Outstanding613,077,600
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 Cap1.27
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit3.83
Enterprise Value/Ebitda8.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 across various sectors, including consumer products, industrial packaging, building solutions, and paper, with a strong emphasis on sustainability and innovation. Stora Enso's core products include corrugated packaging, wooden products, and a range of paper grades, all designed to meet the growing demand for eco-friendly and renewable materials.
How the Company Makes MoneyStora Enso generates revenue primarily through the sale of its diverse range of products across multiple sectors. Key revenue streams include packaging solutions, which cater to consumer goods and industrial markets, wooden construction products for the building sector, and various paper products for printing and publishing. The company's focus on sustainability has led to partnerships with businesses aiming to reduce their carbon footprint, enhancing its market position. Additionally, Stora Enso capitalizes on innovations in biomaterials and renewable energy, further diversifying its income sources. The company's strong presence in Europe and strategic investments in technology and sustainability initiatives contribute significantly to its 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 faces profitability and cash flow challenges despite some revenue growth. The company maintains a stable balance sheet with manageable leverage, but operational inefficiencies and cash generation issues need addressing to improve financial health.Income Statement
Stora Enso's income statement reveals a mixed performance. The TTM (Trailing-Twelve-Months) shows a slight revenue growth of 4.34%, but profitability is a concern with a negative net profit margin of -0.05%. The gross profit margin has decreased from previous years, indicating pressure on cost management. EBIT and EBITDA margins are low, reflecting operational challenges.Balance Sheet
The balance sheet shows moderate financial stability. The debt-to-equity ratio is at 0.52, indicating manageable leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is stable, reflecting a solid asset base.Cash Flow
Cash flow analysis indicates challenges, with a negative free cash flow growth rate of -15.89% in the TTM. The operating cash flow to net income ratio is low, and free cash flow to net income is negative, highlighting cash generation issues relative to earnings.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.78B | 9.05B | 9.40B | 11.68B | 10.16B | 8.55B |
| Gross Profit | 3.28B | 3.57B | 3.05B | 5.15B | 4.68B | 3.85B |
| EBITDA | 1.41B | 603.00M | 226.00M | 2.53B | 2.10B | 1.47B |
| Net Income | 28.37M | -136.00M | -357.00M | 1.55B | 1.27B | 626.00M |
Balance Sheet | ||||||
| Total Assets | 23.36B | 19.80B | 20.75B | 20.92B | 19.03B | 17.43B |
| Cash, Cash Equivalents and Short-Term Investments | 2.62B | 2.02B | 2.46B | 1.92B | 1.53B | 1.66B |
| Total Debt | 6.45B | 5.73B | 5.21B | 3.92B | 3.87B | 4.75B |
| Total Liabilities | 11.05B | 9.81B | 9.87B | 8.42B | 8.36B | 8.64B |
| Stockholders Equity | 12.48B | 10.14B | 10.98B | 12.53B | 10.68B | 8.81B |
Cash Flow | ||||||
| Free Cash Flow | -172.42M | -161.00M | -237.00M | 878.00M | 832.00M | 467.00M |
| Operating Cash Flow | 687.22M | 952.00M | 752.00M | 1.58B | 1.48B | 1.13B |
| Investing Cash Flow | 117.88M | -1.13B | -1.31B | -742.00M | -449.00M | -681.00M |
| Financing Cash Flow | -523.53M | -301.00M | 1.08B | -450.00M | -1.22B | 354.00M |
Stora Enso Technical Analysis
Positive
11.95
Price Trends
11.90
Positive
11.47
Positive
10.75
Positive
Market Momentum
0.21
Positive
54.95
Neutral
59.17
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 11.95 is below the 20-day moving average (MA) of 12.25, above the 50-day MA of 11.90, and above the 200-day MA of 10.75, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.17 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.91B | 11.60 | 18.81% | 3.51% | -8.92% | -32.30% | |
68 Neutral | $5.88B | 29.69 | 12.75% | 1.37% | -3.26% | -46.80% | |
68 Neutral | $5.69B | 19.24 | 9.78% | 1.53% | -3.90% | -25.97% | |
62 Neutral | $11.88B | 10.08 | 14.56% | 1.96% | 6.65% | 47.88% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $9.89B | 664.41 | -1.03% | 2.64% | 7.62% | ― | |
46 Neutral | $310.34M | -1.94 | -10.47% | ― | -21.76% | -1214.73% |
* Basic Materials Sector Average
SEOAY
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12.32
2.57
26.41%
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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.