Executive Summary
UPM-Kymmene Oyj operates in the forest-based bio industry.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -1% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has UPM-Kymmene Oyj's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: UPM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.9%
UPM
2.1%
FI Forestry
3.8%
FI Market
1 Year Return
-6.6%
UPM
-12.1%
FI Forestry
-16.3%
FI Market
Return vs Industry: UPM exceeded the Finnish Forestry industry which returned -19.6% over the past year.
Return vs Market: UPM exceeded the Finnish Market which returned -21.6% over the past year.
Shareholder returns
| UPM | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | 2.1% | 3.8% |
| 30 Day | -8.3% | -5.0% | -7.3% |
| 90 Day | -17.7% | -16.1% | -17.3% |
| 1 Year | -1.5%-6.6% | -8.4%-12.1% | -13.5%-16.3% |
| 3 Year | 25.8%9.4% | 10.4%-24.9% | 1.2%-9.7% |
| 5 Year | 67.5%32.7% | 41.1%-9.6% | 7.5%-11.8% |
Price Volatility Vs. Market
How volatile is UPM-Kymmene Oyj's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Be Sure To Check Out UPM-Kymmene Oyj (HEL:UPM) Before It Goes Ex-Dividend3 weeks ago | Simply Wall St
Does UPM-Kymmene Oyj's (HEL:UPM) CEO Pay Compare Well With Peers?1 month ago | Simply Wall St
Here's Why UPM-Kymmene Oyj (HEL:UPM) Can Manage Its Debt ResponsiblyValuation
Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?
45.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UPM (€23.79) is trading below our estimate of fair value (€50.45)
Significantly Below Fair Value: UPM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UPM is poor value based on its PE Ratio (12x) compared to the Forestry industry average (9x).
PE vs Market: UPM is good value based on its PE Ratio (12x) compared to the Finnish market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: UPM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: UPM is overvalued based on its PB Ratio (1.3x) compared to the XE Forestry industry average (1x).
Next Steps
Future Growth
How is UPM-Kymmene Oyj forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPM's earnings are forecast to decline over the next 3 years (-1% per year).
Earnings vs Market: UPM's earnings are forecast to decline over the next 3 years (-1% per year).
High Growth Earnings: UPM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: UPM's revenue (0.04% per year) is forecast to grow slower than the Finnish market (2.9% per year).
High Growth Revenue: UPM's revenue (0.04% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UPM's Return on Equity is forecast to be low in 3 years time (9%).
Next Steps
Past Performance
How has UPM-Kymmene Oyj performed over the past 5 years?
16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPM has high quality earnings.
Growing Profit Margin: UPM's current net profit margins (10.4%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: UPM's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: UPM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UPM had negative earnings growth (-29%) over the past year, making it difficult to compare to the Forestry industry average (-10.7%).
Return on Equity
High ROE: UPM's Return on Equity (10.5%) is considered low.
Next Steps
Financial Health
How is UPM-Kymmene Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: UPM's short term assets (€4.6B) exceed its short term liabilities (€1.8B).
Long Term Liabilities: UPM's short term assets (€4.6B) exceed its long term liabilities (€2.7B).
Debt to Equity History and Analysis
Debt Level: UPM's debt to equity ratio (7%) is considered satisfactory.
Reducing Debt: UPM's debt to equity ratio has reduced from 44.9% to 7% over the past 5 years.
Debt Coverage: UPM's debt is well covered by operating cash flow (259%).
Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (48.9x coverage).
Balance Sheet
Next Steps
Dividend
What is UPM-Kymmene Oyj's current dividend yield, its reliability and sustainability?
5.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPM's dividend (5.46%) is higher than the bottom 25% of dividend payers in the Finnish market (3.21%).
High Dividend: UPM's dividend (5.46%) is low compared to the top 25% of dividend payers in the Finnish market (6.35%).
Stability and Growth of Payments
Stable Dividend: UPM's dividends per share have been stable in the past 10 years.
Growing Dividend: UPM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.3%), UPM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UPM's dividends in 3 years are forecast to be covered by earnings (75.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.1yrs
Average management tenure
CEO
Jussi Pesonen (59yo)
16.25s
Tenure
€6,041,000
Compensation
Mr. Jussi Pesonen, M.Sc. (Eng.), has been Chief Executive Officer and President of UPM-Kymmene Oyj since January 29, 2004 and has been its Head of UPM Biorefining since November 2018. Mr. Pesonen serves as ...
CEO Compensation Analysis
Compensation vs Market: Jussi's total compensation ($USD6.52M) is above average for companies of similar size in the Finnish market ($USD4.16M).
Compensation vs Earnings: Jussi's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 16.25yrs | €6.04m | 0.087% €11.1m | |
| CFO & Executive VP of UPM Energy | 9.92yrs | no data | 0.032% €4.0m | |
| Executive Vice President of Technology | 6.42yrs | no data | 0.019% €2.4m | |
| Vice President of Investor Relations | 8.67yrs | no data | no data | |
| General Counsel | 14.92yrs | no data | 0.014% €1.8m | |
| Vice President of Communications & Brand | 0.67yr | no data | no data | |
| Executive Vice President of Human Resources | 15.92yrs | no data | 0.0050% €636.9k | |
| Executive Vice President of Stakeholder Relations | 6.42yrs | no data | 0.017% €2.2m | |
| Executive Vice President of UPM Biorefining | 12.25yrs | no data | 0.016% €2.0m | |
| Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America | 12.25yrs | no data | no data |
11.1yrs
Average Tenure
56.5yo
Average Age
Experienced Management: UPM's management team is seasoned and experienced (11.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 8.08yrs | €125.00k | 0.0040% €506.2k | |
| Independent Deputy Chairman | 15.25yrs | €145.00k | 0.059% €7.4m | |
| Independent Chairman | 12.08yrs | €210.00k | 0.050% €6.3m | |
| Independent Director | 13.08yrs | €130.00k | 0.0083% €1.1m | |
| Independent Director | 5.67yrs | €120.00k | 0.0022% €274.1k | |
| Independent Director | 5yrs | €120.00k | 0.0018% €225.8k | |
| Independent Director | 7yrs | €145.00k | 0.0036% €461.8k | |
| Independent Director | 2yrs | €125.00k | 0.00059% €74.9k | |
| Director | 0.083yr | no data | no data | |
| Director | 0.083yr | no data | no data |
6.3yrs
Average Tenure
61.5yo
Average Age
Experienced Board: UPM's board of directors are considered experienced (6.3 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
UPM-Kymmene Oyj's company bio, employee growth, exchange listings and data sources
Key Information
- Name: UPM-Kymmene Oyj
- Ticker: UPM
- Exchange: HLSE
- Founded: 1995
- Industry: Paper Products
- Sector: Materials
- Market Cap: €12.688b
- Shares outstanding: 533.32m
- Website: https://www.upm.com
Number of Employees
Location
- UPM-Kymmene Oyj
- Alvar Aallon katu 1
- Helsinki
- Uusimaa
- 101
- Finland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UPMK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 1996 |
| RPL | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 1996 |
| UPM | HLSE (OMX Nordic Exchange Helsinki) | Yes | Ordinary Shares | FI | EUR | May 1996 |
| RPL | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | May 1996 |
| 0NV5 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | May 1996 |
| UPM N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | May 1996 |
| UPMM.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADS | US | USD | Aug 2019 |
Biography
UPM-Kymmene Oyj operates in the forest-based bio industry. It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments. The company provides softwood, birch, and eucalyptus pulp for tissue, specialty and graphic papers and packaging; sawn timber for joinery, packaging, furniture, distribution, and construction industries; and wood-based renewable diesel and renewable naphtha for fuel distributors, transportation, and oil and petrochemicals industries. It is also involved in the generation of electricity through hydro, nuclear, and condensing power plants. In addition, the company offers self-adhesive papers and film label stocks for product and information labelling to label printers and brand owners in food, beverage, personal care, pharmaceutical, and retail segments; labeling materials, release liner base papers, flexible packaging papers, and office and graphic papers, as well as label and packaging papers production lines for paper converters, merchants, distributors, retailers, printers, publishers, label stock manufactures, and commercial siliconisers. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and parquet industries, as well as for other industrial applications; wood and wood-based biomass, and forestry services for woodland and forest owners; wood-based lignin products for industrial use and cell culture hydrogel products for biomedical applications; UPM ProFi decking products and UPM formi granules; and biomedical products. The company primarily operates in Europe, North America, and Asia. UPM-Kymmene Oyj was founded in 1995 and is headquartered in Helsinki, Finland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 20:47 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.