Stora Enso Oyj (STE.R) AI Stock Analysis

• Market Cap: kr78.07B
• Dividend Yield: 2.62%
• Average Volume (3M): 427.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 3.93%
• EPS Growth: N/A
• Country: SE
• Employees: 19,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.43
• Shares Outstanding: 613,067,600
• 10 Day Avg. Volume: 277,492
• 30 Day Avg. Volume: 427,677
• PEG Ratio: -3.41
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -82.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Stora Enso Oyj's stock score reflects significant challenges in financial performance, with persistent negative profitability and cash flow issues. The technical analysis indicates bearish trends, and the valuation is impacted by negative earnings, despite a reasonable dividend yield. These factors combined suggest caution for investors.

Stora Enso Oyj Business Overview & Revenue Model

Company Description

Stora Enso Oyj 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 consumer board, packaging solutions, forest, wood products, and paper. Stora Enso's core products and services focus on replacing fossil-based materials with sustainable, innovative, and eco-friendly alternatives derived from wood and other renewable resources.

How the Company Makes Money

Stora Enso makes money primarily through the production and sale of renewable products and solutions. Its revenue streams are diversified across several segments: the consumer board segment provides renewable packaging solutions for food and beverage, pharmaceutical, and luxury goods industries; the packaging solutions segment delivers corrugated packaging and recycling solutions; the forest segment involves sustainable forest management and wood supply; the wood products segment offers wood-based building solutions and material supply for the construction industry; and the paper segment provides paper products for printing and office use. Stora Enso's earnings are further supported by strategic partnerships and joint ventures aimed at expanding its market reach and enhancing its technological capabilities in renewable materials.

Stora Enso Oyj Financial Statement Overview

Summary

Stora Enso Oyj shows signs of operational challenges with declining revenues and profitability, reflected in negative net income margins. The balance sheet remains stable with a strong equity ratio but is affected by recent earnings losses. Cash flows are under pressure due to capital expenditures, leading to negative free cash flow. The company needs to focus on improving profitability and managing capital investments to enhance financial health.

Income Statement

The company has experienced a notable decline in revenue from 2022 to 2024, with a revenue growth rate of -3.70% in 2024 compared to 2023. The gross profit margin improved slightly to 39.44% in 2024, but the net profit margin remains negative at -1.50%, indicating continued losses. EBIT and EBITDA margins are low at 1.03% and 6.66% respectively, showing weak operational profitability.

Balance Sheet

Stora Enso Oyj maintains a moderate debt-to-equity ratio of 0.57, reflecting a balanced leverage level. However, the return on equity (ROE) is negative due to net losses. The equity ratio is strong at 51.20%, indicating a solid capital structure. Overall, the balance sheet shows stability but is impacted by recent profitability issues.

Cash Flow

Operating cash flow is positive, but free cash flow remains negative due to high capital expenditures. The free cash flow to net income ratio is unfavorable at -1.18, and the operating cash flow to net income ratio is 7.00, indicating reliance on operating activities to cover losses.

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
3.66B	3.57B	3.26B	5.15B	4.68B	3.85B
	EBIT
130.00M	93.00M	-322.00M	2.01B	1.57B	922.00M
	EBITDA
1.31B	603.00M	226.00M	2.52B	2.25B	1.52B
	Net Income Common Stockholders
-95.00M	-136.00M	-357.00M	1.55B	1.27B	626.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.27B	2.02B	2.46B	1.92B	1.53B	1.66B
	Total Assets
17.12B	19.80B	20.75B	20.92B	19.03B	17.43B
	Total Debt
4.61B	5.73B	4.92B	3.92B	3.87B	4.75B
	Net Debt
3.34B	3.73B	2.45B	2.00B	2.39B	3.09B
	Total Liabilities
8.43B	9.81B	9.87B	8.42B	8.36B	8.64B
	Stockholders Equity
8.71B	10.14B	10.98B	12.53B	10.68B	8.81B
Cash Flow		Free Cash Flow
-82.00M	-161.00M	-237.00M	878.00M	832.00M	467.00M
	Operating Cash Flow
897.00M	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 Oyj Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 92.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STE.R, the sentiment is Neutral. The current price of 92.4 is above the 20-day moving average (MA) of 86.91, below the 50-day MA of 96.96, and below the 200-day MA of 112.63, indicating a neutral trend. The MACD of -1.33 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:STE.R.

Stora Enso Oyj Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPAPER	77 Outperform	€3.35B	6.91	33.28%	7.60%	8.20%	23.15%
BILL	71 Outperform	kr27.16B	14.72	6.58%	1.89%	9.83%	1070.42%
HOLM.A	68 Neutral	kr65.71B	22.70	5.07%	2.18%	3.23%	-5.41%
SCA.A	68 Neutral	kr91.79B	25.13		2.30%	16.88%	12.52%
SCA.B	62 Neutral	kr91.79B	25.15	3.50%	2.37%	16.88%	12.52%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%
STE.R	49 Neutral	kr78.07B	―		2.62%	3.93%	―