HLSE:STERV

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

STERV

3.8%

FI Forestry

5.6%

FI Market


1 Year Return

-23.1%

STERV

-16.0%

FI Forestry

-19.3%

FI Market

Return vs Industry: STERV underperformed the Finnish Forestry industry which returned -16% over the past year.

Return vs Market: STERV underperformed the Finnish Market which returned -19.3% over the past year.


Shareholder returns

STERVIndustryMarket
7 Day4.3%3.8%5.6%
30 Day-21.8%-14.6%-19.0%
90 Day-35.4%-24.6%-22.7%
1 Year-18.0%-23.1%-12.2%-16.0%-15.3%-19.3%
3 Year-10.6%-24.4%2.8%-30.2%-3.9%-15.9%
5 Year8.8%-14.3%37.2%-12.2%4.7%-15.4%

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?

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STERV (€8.38) is trading below our estimate of fair value (€16.01)

Significantly Below Fair Value: STERV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STERV is good value based on its PE Ratio (7.5x) compared to the Forestry industry average (9x).

PE vs Market: STERV is good value based on its PE Ratio (7.5x) compared to the Finnish market (15x).


Price to Earnings Growth Ratio

PEG Ratio: STERV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: STERV is overvalued based on its PB Ratio (0.9x) compared to the XE Forestry industry average (0.9x).


Next Steps

Future Growth

How is Stora Enso Oyj forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STERV's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: STERV's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: STERV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STERV's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: STERV's revenue is forecast to decline over the next 3 years (-0.9% 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 (9.6%).


Next Steps

Past Performance

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

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STERV has a large one-off gain of €206.0M impacting its December 31 2019 financial results.

Growing Profit Margin: STERV's current net profit margins (8.8%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: STERV's earnings have grown by 19.9% 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 (-13.1%) over the past year, making it difficult to compare to the Forestry industry average (-10.7%).


Return on Equity

High ROE: STERV's Return on Equity (11.5%) is considered low.


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 (€2.9B).

Long Term Liabilities: STERV's short term assets (€3.6B) do not cover its long term liabilities (€4.7B).


Debt to Equity History and Analysis

Debt Level: STERV's debt to equity ratio (50.6%) is considered high.

Reducing Debt: STERV's debt to equity ratio has reduced from 92.1% to 50.6% over the past 5 years.

Debt Coverage: STERV's debt is well covered by operating cash flow (43.9%).

Interest Coverage: STERV's interest payments on its debt are well covered by EBIT (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 1x debt).


Next Steps

Dividend

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

5.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STERV's dividend (5.97%) is higher than the bottom 25% of dividend payers in the Finnish market (3.2%).

High Dividend: STERV's dividend (5.97%) is low compared to the top 25% of dividend payers in the Finnish market (6.48%).


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 reasonably low payout ratio (44.8%), STERV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STERV's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Annica Bresky (44yo)

0.25

Tenure

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Annica Bresky
President & CEO0.25yrno datano data
Seppo Parvi
CFO, Deputy CEO & Country Manager of Finland6yrsno data0.0041% 284.5k
Joakim Alpsten
Head of M&A and Corporate Financeno datano datano data
Aruna Arumugam
Head of Human Resources and Administrationno datano datano data
Ulla Paajanen-Sainio
Senior VP & Head of Investor Relations10.83yrsno datano data
Per Lyrvall
EVP of Legal12.17yrsno data0.0075% 525.1k
Ulrika Lilja
Executive Vice President of Communications5.5yrsno data0.0033% 227.3k
Jarmo Alm
Senior VP of Business Area Newsprint & Book Papers - Stora Enso Publication Paper Division16.83yrsno datano data
Sakari Eloranta
Senior Vice President of Pulp Competence Centre16.58yrsno datano data
Hannu Kasurinen
Executive VP Consumer Board Division & Head of Packaging Materials0.25yrno data0.0040% 278.2k

8.4yrs

Average Tenure

56yo

Average Age

Experienced Management: STERV's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hans Stråberg
Independent Vice Chairman2.92yrs€115.00k0.0052% 365.4k
Jorma Eloranta
Independent Chairman of the Board2.92yrs€217.00k0.0036% 249.7k
Mikko Helander
Independent Director1yr€74.00k0.00055% 38.4k
Richard Nilsson
Director5.92yrs€95.00k0.0026% 184.1k
Hock Goh
Independent Director7.92yrs€80.00k0.0036% 251.7k
Göran Sandberg
Director2.92yrs€80.00k0.00086% 60.0k
Elisabeth Fleuriot
Independent Director6.92yrs€88.00k0.0030% 209.9k
Christiane Kuehne
Independent Director2.92yrs€84.00k0.0010% 73.2k
Antti Mäkinen
Director2yrs€80.00k0.00060% 41.8k

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: STERV's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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: €6.973b
  • 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
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
ENURETLX (Eurotlx)YesSeries R SharesITEURMay 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
ENUADB (Deutsche Boerse AG)Series A SharesDEEURMay 1996
STE AOM (OMX Nordic Exchange Stockholm)SER'A'NPV (SEK QUOTE)SESEKDec 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
0KCKLSE (London Stock Exchange)SER'R'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
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 Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and Paper divisions. The company develops virgin fiber carton board used for packaging for liquid, food, pharmaceutical, and luxury goods; provides fiber-based board materials and corrugated packaging products and services for various applications. It also offers various pulp grades for paper, board, tissue, textile, and hygiene product producers; wood-based solutions, such as massive wood elements and components, sawn timber goods, and pellets for sustainable heating; and paper products for print and office use, including papers made from recycled and virgin fiber. The company serves packaging manufacturers, brand owners, paper and board producers, publishers, retailers, printing houses, converters, joinery, and construction companies. Stora Enso Oyj is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:09
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.