HLSE:STERV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

6.4%

STERV

4.4%

FI Forestry

2.4%

FI Market


1 Year Return

-16.8%

STERV

-11.5%

FI Forestry

3.7%

FI Market

Return vs Industry: STERV underperformed the Finnish Forestry industry which returned -11.5% over the past year.

Return vs Market: STERV underperformed the Finnish Market which returned 3.7% over the past year.


Shareholder returns

STERVIndustryMarket
7 Day6.4%4.4%2.4%
30 Day0.3%1.0%-0.2%
90 Day20.6%13.0%3.0%
1 Year-13.2%-16.8%-7.4%-11.5%8.4%3.7%
3 Year57.9%42.3%50.9%0.2%28.8%13.5%
5 Year115.3%80.8%131.5%46.9%62.3%31.2%

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?

11.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: STERV (€11.67) is trading above our estimate of fair value (€10.29)

Significantly Undervalued: STERV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STERV is poor value based on its PE Ratio (11.4x) compared to the Forestry industry average (10.4x).

PE vs Market: STERV is good value based on its PE Ratio (11.4x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: STERV is poor value based on its PEG Ratio (1.2x)


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?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STERV's forecast earnings growth (9.2% per year) is above the savings rate (0.5%).

Earnings vs Market: STERV's earnings (9.2% per year) are forecast to grow slower than the Finnish market (13.4% 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 (-0.3% per year).

High Growth Revenue: STERV's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: STERV's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

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

29.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STERV's earnings have grown significantly by 29.2% 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 (-5.9%) over the past year, making it difficult to compare to the Forestry industry average (1.2%).


Return on Equity

High ROE: STERV's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: STERV has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: STERV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Stora Enso Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: STERV's short term assets (€3.9B) exceeds its short term liabilities (€2.9B)

Long Term Liabilities: STERV's short term assets (3.9B) do not cover its long term liabilities (5.1B)


Debt to Equity History and Analysis

Debt Level: STERV's debt to equity ratio (65.3%) is considered high

Reducing Debt: STERV's debt to equity ratio has reduced from 94.9% to 65.3% over the past 5 years.

Debt Coverage: STERV's debt is well covered by operating cash flow (28.9%).

Interest Coverage: STERV's interest payments on its debt are well covered by EBIT (8.2x 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?

4.28%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.2%markettop25%5.1%industryaverage4.4%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STERV's dividend (4.28%) is higher than the bottom 25% of dividend payers in the Finnish market (2.25%).

High Dividend: STERV's dividend (4.28%) is low compared to the top 25% of dividend payers in the Finnish market (5.08%).

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 (48.8%), 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 (53% 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?

5.7yrs

Average management tenure


CEO

Karl-Henrik Sundström (59yo)

5.2yrs

Tenure

€524,000

Compensation

Mr. Karl-Henrik Sundström serves as Chief Executive Officer at Stora Enso Oyj since August 1, 2014. He joined Stora Enso in 2012 as Chief Financial Officer and took on the role as divisional head of the Pa ...


CEO Compensation Analysis

Compensation vs. Market: Karl-Henrik's total compensation ($USD0.00) is too low to compare against companies of similar size in the Finnish market ($USD497.86K).

Compensation vs Earnings: Insufficient data to compare Karl-Henrik's compensation with company performance.


Management Age and Tenure

5.7yrs

Average Tenure

56yo

Average Age

Experienced Management: STERV's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

63yo

Average Age

Experienced Board: STERV's board of directors are not considered experienced ( 2.5 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


Management Team

  • Karl-Henrik Sundström (59yo)

    Chief Executive Officer

    • Tenure: 5.2yrs
    • Compensation: €524.00k
  • Jarmo Alm (65yo)

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

    • Tenure: 16.4yrs
  • Sakari Eloranta

    Senior Vice President of Pulp Competence Centre

    • Tenure: 16.2yrs
  • Ulla Paajanen (56yo)

    Senior VP & Head of Investor Relations

    • Tenure: 10.4yrs
  • Seppo Parvi (55yo)

    CFO, Deputy CEO & Country Manager of Finland

    • Tenure: 5.7yrs
  • Per Lyrvall (60yo)

    Executive VP of Legal

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

    Executive Vice President of Communications

    • Tenure: 5.1yrs
  • 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: 2.9yrs

Board Members

  • Hans Stråberg (62yo)

    Independent Vice Chairman

    • Tenure: 2.5yrs
    • Compensation: €109.00k
  • Jorma Eloranta (68yo)

    Independent Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: €200.00k
  • Mikko Helander (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • Richard Nilsson (49yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: €93.00k
  • Hock Goh (64yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: €78.00k
  • Göran Sandberg (64yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: €78.00k
  • Elisabeth Fleuriot (63yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: €78.00k
  • Christiane Kuehne (64yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: €87.00k
  • Antti Mäkinen (58yo)

    Director

    • Tenure: 1.6yrs
    • 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: €9.429b
  • 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
0CXCLSE (London Stock Exchange)YesSeries R SharesGBEURMay 1996
STERVHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries R SharesGBEURMay 1996
STERVHLSE (OMX Nordic Exchange Helsinki)YesSeries R SharesFIEURMay 1996
ENURDB (Deutsche Boerse AG)YesSeries R SharesDEEURMay 1996
SEOJ.FOTCPK (Pink Sheets LLC)YesSeries R SharesUSUSDMay 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
0M32LSE (London Stock Exchange)SER'A'NPV (SEK QUOTE)GBSEKDec 1998
0KCKLSE (London Stock Exchange)SER'R'NPV (SEK QUOTE)GBSEKDec 1998
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
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 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 Analysis2019/10/16 20:44
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.