Assessing Metsä Board (HLSE:METSB) Valuation After Cost-Cutting Drive and €30m Efficiency Plan

Metsä Board Oyj (HLSE:METSB) has wrapped up wide ranging change negotiations across its operations, cutting 310 jobs and targeting about €30 million in annual cost savings from early 2026.

See our latest analysis for Metsä Board Oyj.

The latest restructuring news lands after a tough stretch for investors, with the 1 year total shareholder return down about 31 percent and the 3 year total shareholder return off around 60 percent. This signals still weak momentum despite management’s drive for efficiency gains.

If this kind of repositioning has you thinking more broadly about where to put fresh capital, it could be worth exploring fast growing stocks with high insider ownership as a source of new ideas.

But with shares trading well below some valuation estimates despite years of weak returns, should investors view Metsä Board as a discounted turnaround story, or has the market already priced in all of the realistic recovery in earnings?

Most Popular Narrative Narrative: 3.1% Undervalued

With Metsä Board last closing at €2.91 against a narrative fair value of €3.00, expectations lean slightly positive, hinging on ambitious earnings and margin recovery.

Metsä Board's ambitious EBITDA improvement and cost-saving program (targeting €200 million annual uplift by 2027) reflects a proactive shift toward enhanced cost efficiency, supply chain optimization, and commercial focus, which should significantly boost profitability and net margins if executed successfully.

Read the complete narrative.

Curious how modest revenue growth, rising margins and a re-rated earnings multiple can still justify upside from here? The narrative’s math may surprise you.

Result: Fair Value of $3.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, prolonged weak demand, high input costs and ambitious profit targets could keep volumes below capacity and delay the expected margin recovery.

Find out about the key risks to this Metsä Board Oyj narrative.

Build Your Own Metsä Board Oyj Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can build a full narrative in just minutes, Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Metsä Board Oyj.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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