HLSE:STERV

Stock Analysis Report

Executive Summary

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries worldwide.

Rewards

Trading at 9.1% below its fair value

Earnings are forecast to grow 17.82% per year

Pays a high and reliable dividend of 4.13%

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer with adequate balance sheet.


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Share Price & News

How has Stora Enso Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STERV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

STERV

-0.9%

FI Forestry

-1.0%

FI Market


1 Year Return

9.2%

STERV

12.8%

FI Forestry

8.7%

FI Market

Return vs Industry: STERV matched the Finnish Forestry industry which returned 12.8% over the past year.

Return vs Market: STERV exceeded the Finnish Market which returned 8.7% over the past year.


Shareholder returns

STERVIndustryMarket
7 Day-1.4%-0.9%-1.0%
30 Day-2.8%-1.2%-2.1%
90 Day14.4%13.0%2.0%
1 Year14.0%9.2%17.8%12.8%13.7%8.7%
3 Year43.0%28.8%46.4%0.4%27.4%12.1%
5 Year102.9%70.4%128.1%43.2%52.3%22.9%

Price Volatility Vs. Market

How volatile is Stora Enso Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stora Enso Oyj undervalued compared to its fair value and its price relative to the market?

9.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STERV (€12.11) is trading below our estimate of fair value (€13.32)

Significantly Below Fair Value: STERV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: STERV is poor value based on its PE Ratio (14.3x) compared to the Forestry industry average (11.6x).

PE vs Market: STERV is good value based on its PE Ratio (14.3x) compared to the Finnish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: STERV is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: STERV is overvalued based on its PB Ratio (1.4x) compared to the XE Forestry industry average (1.2x).


Next Steps

Future Growth

How is Stora Enso Oyj forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STERV's forecast earnings growth (17.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: STERV's earnings (17.8% per year) are forecast to grow faster than the Finnish market (14.4% per year).

High Growth Earnings: STERV's earnings are forecast to grow, but not significantly.

Revenue vs Market: STERV's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: STERV's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STERV's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Stora Enso Oyj performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STERV has a large one-off loss of €263.0M impacting its September 30 2019 financial results.

Growing Profit Margin: STERV's current net profit margins (6.4%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: STERV's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: STERV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STERV had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the Forestry industry average (-8.6%).


Return on Equity

High ROE: STERV's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stora Enso Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: STERV's short term assets (€3.6B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: STERV's short term assets (€3.6B) do not cover its long term liabilities (€4.8B).


Debt to Equity History and Analysis

Debt Level: STERV's debt to equity ratio (59.7%) is considered high.

Reducing Debt: STERV's debt to equity ratio has reduced from 93.6% to 59.7% over the past 5 years.

Debt Coverage: STERV's debt is well covered by operating cash flow (31.3%).

Interest Coverage: STERV's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: STERV has a high level of physical assets or inventory.

Debt Coverage by Assets: STERV's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Stora Enso Oyj's current dividend yield, its reliability and sustainability?

4.13%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.2%markettop25%4.8%industryaverage4.1%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: STERV's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Finnish market (2.23%).

High Dividend: STERV's dividend (4.13%) is low compared to the top 25% of dividend payers in the Finnish market (4.85%).


Stability and Growth of Payments

Stable Dividend: STERV's dividends per share have been stable in the past 10 years.

Growing Dividend: STERV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.1%), STERV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STERV's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).


Next Steps

Management

What is the CEO of Stora Enso Oyj's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Annica Bresky (44yo)

0yrs

Tenure

0

Ms. Annica Bresky M.Sc. (Engineering), MBA, serves as the President & CEO of Stora Enso Oyj since December 1, 2019. She had been Executive Vice President of Consumer Board Division at Stora Enso Oyj since  ...


Management Age and Tenure

8.2yrs

Average Tenure

55yo

Average Age

Experienced Management: STERV's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: STERV's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jarmo Alm (65yo)

    Senior VP of Business Area Newsprint & Book Papers - Stora Enso Publication Paper Division

    • Tenure: 16.6yrs
  • Sakari Eloranta

    Senior Vice President of Pulp Competence Centre

    • Tenure: 16.3yrs
  • Ulla Paajanen-Sainio (56yo)

    Senior VP & Head of Investor Relations

    • Tenure: 10.6yrs
  • Seppo Parvi (55yo)

    CFO, Deputy CEO & Country Manager of Finland

    • Tenure: 5.8yrs
  • Per Lyrvall (60yo)

    Executive VP of Legal

    • Tenure: 0yrs
  • Ulrika Lilja (44yo)

    Executive Vice President of Communications

    • Tenure: 5.3yrs
  • Annica Bresky (44yo)

    President & CEO

    • Tenure: 0yrs
  • Aruna Arumugam

    Head of Human Resources and Administration

    • Tenure: 0yrs
  • Joakim Alpsten

    Head of M&A and Corporate Finance

    • Tenure: 0yrs
  • Malin Bendz (43yo)

    Executive Vice President of Human Resources

    • Tenure: 3.1yrs

Board Members

  • Hans Stråberg (62yo)

    Independent Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: €109.00k
  • Jorma Eloranta (68yo)

    Independent Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: €200.00k
  • Mikko Helander (59yo)

    Independent Director

    • Tenure: 0.8yrs
  • Richard Nilsson (49yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: €93.00k
  • Hock Goh (64yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: €78.00k
  • Göran Sandberg (64yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: €78.00k
  • Elisabeth Fleuriot (63yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: €78.00k
  • Christiane Kuehne (64yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: €87.00k
  • Antti Mäkinen (58yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: €87.00k

Company Information

Stora Enso Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stora Enso Oyj
  • Ticker: STERV
  • Exchange: HLSE
  • Founded:
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: €9.792b
  • Shares outstanding: 788.62m
  • Website: https://www.storaenso.com

Number of Employees


Location

  • Stora Enso Oyj
  • Kanavaranta 1
  • PO Box 309
  • Helsinki
  • Uusimaa
  • 101
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENURETLX (Eurotlx)YesSeries R SharesITEURMay 1996
STERVHLSE (OMX Nordic Exchange Helsinki)YesSeries R SharesFIEURMay 1996
ENURDB (Deutsche Boerse AG)YesSeries R SharesDEEURMay 1996
0CXCLSE (London Stock Exchange)YesSeries R SharesGBEURMay 1996
SEOJ.FOTCPK (Pink Sheets LLC)YesSeries R SharesUSUSDMay 1996
STERVHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries R SharesGBEURMay 1996
STEAVHLSE (OMX Nordic Exchange Helsinki)Series A SharesFIEURMay 1996
0CX9LSE (London Stock Exchange)Series A SharesGBEURMay 1996
STEAVHBATS-CHIXE (BATS 'Chi-X Europe')Series A SharesGBEURMay 1996
0KCKLSE (London Stock Exchange)SER'R'NPV (SEK QUOTE)GBSEKDec 1998
STE ROM (OMX Nordic Exchange Stockholm)SER'R'NPV (SEK QUOTE)SESEKDec 1998
0M32LSE (London Stock Exchange)SER'A'NPV (SEK QUOTE)GBSEKDec 1998
STERSBATS-CHIXE (BATS 'Chi-X Europe')SER'R'NPV (SEK QUOTE)GBSEKDec 1998
STEASBATS-CHIXE (BATS 'Chi-X Europe')SER'A'NPV (SEK QUOTE)GBSEKDec 1998
STE AOM (OMX Nordic Exchange Stockholm)SER'A'NPV (SEK QUOTE)SESEKDec 1998
SEOA.YOTCPK (Pink Sheets LLC)SPON ADR REP RUSUSDSep 2000

Biography

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries worldwide. The company operates through five divisions: Consumer Board, Packaging Sol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/04 20:49
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.