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STER

Stora Enso Oyj HLSE:STERV Stock Report

Last Price

€15.49

Market Cap

€12.3b

7D

3.1%

1Y

-8.9%

Updated

11 Aug, 2022

Data

Company Financials +
STERV fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

STERV Stock Overview

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

Stora Enso Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stora Enso Oyj
Historical stock prices
Current Share Price€15.49
52 Week High€20.01
52 Week Low€13.67
Beta1.05
1 Month Change1.54%
3 Month Change-10.72%
1 Year Change-8.91%
3 Year Change60.75%
5 Year Change34.35%
Change since IPO140.73%

Recent News & Updates

Aug 09
Is Stora Enso Oyj (HEL:STERV) A Risky Investment?

Is Stora Enso Oyj (HEL:STERV) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 13
Calculating The Intrinsic Value Of Stora Enso Oyj (HEL:STERV)

Calculating The Intrinsic Value Of Stora Enso Oyj (HEL:STERV)

Does the July share price for Stora Enso Oyj ( HEL:STERV ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

STERVFI ForestryFI Market
7D3.1%2.6%2.0%
1Y-8.9%-7.0%-18.6%

Return vs Industry: STERV underperformed the Finnish Forestry industry which returned -6.1% over the past year.

Return vs Market: STERV exceeded the Finnish Market which returned -18.9% over the past year.

Price Volatility

Is STERV's price volatile compared to industry and market?
STERV volatility
STERV Average Weekly Movement5.8%
Forestry Industry Average Movement5.4%
Market Average Movement5.0%
10% most volatile stocks in FI Market8.8%
10% least volatile stocks in FI Market3.3%

Stable Share Price: STERV is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STERV's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199622,000Annica Breskyhttps://www.storaenso.com

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries worldwide. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company’s Packaging Materials segment offers virgin and recycled fiber renewable and recyclable packaging materials for food and drink, pharmaceutical, and transport packaging.

Stora Enso Oyj Fundamentals Summary

How do Stora Enso Oyj's earnings and revenue compare to its market cap?
STERV fundamental statistics
Market Cap€12.33b
Earnings (TTM)€1.51b
Revenue (TTM)€11.15b

8.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STERV income statement (TTM)
Revenue€11.15b
Cost of Revenue€6.39b
Gross Profit€4.76b
Other Expenses€3.25b
Earnings€1.51b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 21, 2022

Earnings per share (EPS)1.91
Gross Margin42.72%
Net Profit Margin13.54%
Debt/Equity Ratio32.1%

How did STERV perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

29%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is STERV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STERV?

Other financial metrics that can be useful for relative valuation.

STERV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA7.3x
PEG Ratio-0.8x

Price to Earnings Ratio vs Peers

How does STERV's PE Ratio compare to its peers?

STERV PE Ratio vs Peers
The above table shows the PE ratio for STERV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.8x
UPM UPM-Kymmene Oyj
14.4x7.7%€17.8b
METSB Metsä Board Oyj
8.5x-11.3%€3.1b
HUH1V Huhtamäki Oyj
17.7x6.0%€4.0b
KEMIRA Kemira Oyj
14.6x5.3%€1.9b
STERV Stora Enso Oyj
8.1x-10.7%€12.3b

Price-To-Earnings vs Peers: STERV is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (13.8x).


Price to Earnings Ratio vs Industry

How does STERV's PE Ratio compare vs other companies in the European Forestry Industry?

Price-To-Earnings vs Industry: STERV is good value based on its Price-To-Earnings Ratio (8.1x) compared to the European Forestry industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is STERV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STERV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: STERV is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).


Share Price vs Fair Value

What is the Fair Price of STERV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STERV (€15.49) is trading below our estimate of fair value (€16.74)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-10.7%

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 (-10.7% per year).

Earnings vs Market: STERV's earnings are forecast to decline over the next 3 years (-10.7% 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 (-1.5% per year).

High Growth Revenue: STERV's revenue is forecast to decline over the next 3 years (-1.5% 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 (8.1%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STERV has high quality earnings.

Growing Profit Margin: STERV's current net profit margins (13.5%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: STERV's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: STERV's earnings growth over the past year (123.2%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: STERV earnings growth over the past year (123.2%) exceeded the Forestry industry 86.6%.


Return on Equity

High ROE: STERV's Return on Equity (13.3%) is considered low.


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Financial Health

How is Stora Enso Oyj's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: STERV's short term assets (€4.9B) exceed its short term liabilities (€3.5B).

Long Term Liabilities: STERV's short term assets (€4.9B) exceed its long term liabilities (€4.8B).


Debt to Equity History and Analysis

Debt Level: STERV's net debt to equity ratio (20.1%) is considered satisfactory.

Reducing Debt: STERV's debt to equity ratio has reduced from 57.8% to 32.1% over the past 5 years.

Debt Coverage: STERV's debt is well covered by operating cash flow (44.4%).

Interest Coverage: STERV's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: STERV's dividend (3.43%) is higher than the bottom 25% of dividend payers in the Finnish market (2.39%).

High Dividend: STERV's dividend (3.43%) is low compared to the top 25% of dividend payers in the Finnish market (4.75%).


Stability and Growth of Payments

Stable Dividend: STERV's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.7%), STERV's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.8%), STERV's dividend payments are well covered by cash flows.


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Management

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

8.5yrs

Average management tenure


CEO

Annica Bresky (47 yo)

2.67yrs

Tenure

Ms. Annica Bresky, M.Sc. (Engineering), MBA, serves as President and Chief Executive Officer of Stora Enso Oyj since December 1, 2019. Ms. Bresky has been employed at Stora Enso Oyj in May 1, 2017. She ser...


Leadership Team

Experienced Management: STERV's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: STERV's board of directors are considered experienced (4.4 years average tenure).


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 employee growth, exchange listings and data sources


Key Information

  • Name: Stora Enso Oyj
  • Ticker: STERV
  • Exchange: HLSE
  • Founded: 1996
  • Industry: Paper Products
  • Sector: Materials
  • Implied Market Cap: €12.332b
  • Shares outstanding: 788.62m
  • Website: https://www.storaenso.com

Number of Employees


Location

  • Stora Enso Oyj
  • Salmisaarenaukio 2
  • P.O.Box 309
  • Helsinki
  • Uusimaa
  • 101
  • Finland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.