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Stora Enso
(OTC:SEOAY)
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Rating:55Neutral
Price Target:
$12.00
▲(3.81% Upside)
Action:Reiterated
Date:07/24/26
Overall score reflects improved profitability and a de-risked balance sheet, but is held back most by weak cash conversion/negative free cash flow. Technicals also weigh on the score given a clear downtrend versus key moving averages. These are partially offset by reasonable valuation (P/E ~11.7 and ~2.83% yield) and a generally constructive earnings call focused on execution and profitability improvements despite identifiable near-term headwinds.
Positive Factors
Profitability Recovery
The return to solid profitability improves earnings stability after the 2023–2024 downturn. Although margins remain below 2021–2022 peaks, recovered EBIT and net income provide a stronger base for reinvestment, debt service, and sustained operating improvement.
Negative Factors
Weak Free Cash Flow
Persistent negative free cash flow indicates that capital spending and working-capital requirements are absorbing operating earnings. This weakens self-funded growth, limits flexibility for debt reduction or shareholder returns, and makes improved cash conversion a critical execution requirement.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to solid profitability improves earnings stability after the 2023–2024 downturn. Although margins remain below 2021–2022 peaks, recovered EBIT and net income provide a stronger base for reinvestment, debt service, and sustained operating improvement.
Read all positive factors
Stora Enso (SEOAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.32B
Dividend Yield2.49%
Average Volume (3M)8.43K
Price to Earnings (P/E)13.9
Beta (1Y)0.80
Revenue Growth6.58%
EPS GrowthN/A
CountryUS
Employees18,515
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.73
Shares Outstanding613,108,100
10 Day Avg. Volume8,977
30 Day Avg. Volume8,432
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.58
Revenue Forecast (FY)$10.83B
Stora Enso Business Overview & Revenue Model
Company Description
Stora Enso Oyj, a company headquartered in Helsinki, Finland, and established in 1996, is a global provider of sustainable products and services. Its core business revolves around delivering renewable solutions for the packaging, biomaterials, tim...
How the Company Makes Money
Stora Enso makes money primarily by manufacturing and selling wood-based products to business customers, with revenues largely tied to shipment volumes and market pricing for its core categories. Key revenue streams include: (1) Packaging material...
Stora Enso Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call highlights clear operational progress and disciplined execution: adjusted EBIT rose 27% to EUR 160 million, consumer packaging margins and volumes improved, the balance sheet was strengthened (EUR 1bn hybrid, net debt/EBITDA ~2.2x), and a EUR 500–700m value creation program is underway. These positives are balanced against significant, but largely identifiable, headwinds — notably the loss of >EUR 50m in EU ETS allowances, Sweden wood-price volatility following Storm Johannes, Central European sawmill margin pressure, ongoing Oulu ramp-up drag, and elevated logistics/energy costs and FX impacts. Overall the company presents constructive operational momentum and active portfolio/cost management while acknowledging near-term market and regulatory challenges.Positive Updates
Improved Profitability and EBIT Growth
Adjusted EBIT increased 27% year-on-year to EUR 160 million in Q2 2026 while sales were stable at EUR 2.4 billion; profitability improved due to disciplined own actions and operational progress.
Negative Updates
Weakness in Other Segment and Sweden Wood Prices
Other segment sales and profitability declined to around EUR 7 million, down approximately EUR 30 million year-on-year, largely driven by lower external wood sales prices in Sweden following Storm Johannes which flooded the market with storm-damaged timber.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Profitability and EBIT Growth
Adjusted EBIT increased 27% year-on-year to EUR 160 million in Q2 2026 while sales were stable at EUR 2.4 billion; profitability improved due to disciplined own actions and operational progress.
Read all positive updates
Company Guidance
The call reiterated clear operational guidance and financial targets: Oulu’s new consumer board line is expected to reach full capacity during 2027 (ramp‑up remains a short‑term drag at Q1‑level), the company has identified EUR 500–700m of value‑creation initiatives with ~2,000 actions underway, and CapEx will be reduced while capital allocation stays disciplined; following a EUR 1bn hybrid issuance net debt/adjusted EBITDA is ~2.2x with deleveraging guided via structural execution and cash conversion focus. Q2 metrics: sales €2.4bn, adjusted EBIT €160m (up 27%), Consumer Packaging EBIT +€42m, Biomaterials EBIT +€23m, consumer board EBIT margin ~6.5% (vs ~2.3% last year); strategic targets include 90% material circularity in direct operations by 2030 and the planned separation of Bergslagets Skogar — key headwinds noted were >€50m loss of free CO2 allowances, adverse FX and higher logistics/energy/chemical costs.Stora Enso Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
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 | 2.06B | 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 | 578.07M | 695.00M | -136.00M | -357.00M | 1.55B | 1.27B |
Balance Sheet | ||||||
| Total Assets | 19.66B | 19.06B | 19.80B | 20.75B | 20.92B | 19.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 1.28B | 2.02B | 2.46B | 1.92B | 1.53B |
| Total Debt | 5.17B | 4.47B | 5.73B | 5.21B | 3.92B | 3.87B |
| Total Liabilities | 8.01B | 8.41B | 9.81B | 9.87B | 8.42B | 8.36B |
| Stockholders Equity | 11.80B | 10.80B | 10.14B | 10.98B | 12.53B | 10.68B |
Cash Flow | ||||||
| Free Cash Flow | -57.76M | -130.00M | -161.00M | -237.00M | 878.00M | 832.00M |
| Operating Cash Flow | 533.59M | 645.00M | 952.00M | 752.00M | 1.58B | 1.48B |
| Investing Cash Flow | 199.46M | 60.00M | -1.13B | -1.31B | -742.00M | -449.00M |
| Financing Cash Flow | -779.19M | -1.49B | -301.00M | 1.08B | -450.00M | -1.22B |
Stora Enso Technical Analysis
Positive
11.56
Price Trends
11.12
Positive
11.27
Positive
11.71
Positive
Market Momentum
0.18
Negative
62.36
Neutral
68.11
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 11.56 is above the 20-day moving average (MA) of 11.41, above the 50-day MA of 11.12, and below the 200-day MA of 11.71, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.14B | 8.02 | 18.34% | 4.12% | 12.01% | ― | |
67 Neutral | $21.14B | 30.69 | 14.86% | 2.21% | 10.35% | -23.16% | |
65 Neutral | $20.87B | 18.89 | 9.45% | 5.76% | 56.62% | 32.08% | |
62 Neutral | $23.96B | 48.30 | 2.73% | 3.90% | 1.69% | 42.09% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $9.32B | 13.87 | 5.30% | 2.49% | 6.58% | ― | |
51 Neutral | $3.09B | 15.80 | 5.92% | 4.22% | 0.02% | -63.11% |
* Consumer Cyclical Sector Average
SEOAY
Stora Enso
11.83
0.32
2.83%
GPK
Graphic Packaging
10.43
-9.93
-48.78%
PKG
Packaging
237.25
26.52
12.59%
SON
Sonoco Products
51.95
7.69
17.38%
SW
Smurfit Westrock
45.83
1.04
2.33%
AMCR
Amcor
45.15
6.41
16.53%
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.