Executive Summary
UPM-Kymmene Oyj operates in the forest-based bio industry. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet 6 star 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.3%
UPM
-2.3%
FI Forestry
0.09%
FI Market
1 Year Return
-7.1%
UPM
3.5%
FI Forestry
6.4%
FI Market
Return vs Industry: UPM underperformed the Finnish Forestry industry which returned 5.4% over the past year.
Return vs Market: UPM underperformed the Finnish Market which returned 6.4% over the past year.
Shareholder returns
| UPM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | -2.3% | 0.09% |
| 30 Day | -2.6% | -0.4% | 1.7% |
| 90 Day | 9.8% | 11.3% | 10.6% |
| 1 Year | -2.1%-7.1% | 6.5%3.5% | 15.4%6.4% |
| 3 Year | 22.1%6.2% | 16.3%4.0% | 22.2%1.4% |
| 5 Year | 96.8%55.9% | 79.7%9.7% | 62.3%27.8% |
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
5 months ago | Simply Wall St
UPM-Kymmene Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions5 months ago | Simply Wall St
Do Institutions Own UPM-Kymmene Oyj (HEL:UPM) Shares?6 months ago | Simply Wall St
Is It Too Late To Consider Buying UPM-Kymmene Oyj (HEL:UPM)?Valuation
Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?
34.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UPM (€26.55) is trading below our estimate of fair value (€40.31)
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 (17.6x) compared to the XE Forestry industry average (12.6x).
PE vs Market: UPM is good value based on its PE Ratio (17.6x) compared to the Finnish market (24x).
Price to Earnings Growth Ratio
PEG Ratio: UPM is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: UPM is overvalued based on its PB Ratio (1.5x) 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?
15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPM's forecast earnings growth (15.4% per year) is above the savings rate (0.4%).
Earnings vs Market: UPM's earnings (15.4% per year) are forecast to grow faster than the Finnish market (14.6% per year).
High Growth Earnings: UPM's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPM's revenue (3.5% per year) is forecast to grow slower than the Finnish market (4.4% per year).
High Growth Revenue: UPM's revenue (3.5% 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 (8.7%).
Next Steps
Past Performance
How has UPM-Kymmene Oyj performed over the past 5 years?
9.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPM has high quality earnings.
Growing Profit Margin: UPM's current net profit margins (8.6%) are lower than last year (13.7%).
Past Earnings Growth Analysis
Earnings Trend: UPM's earnings have grown by 9.3% 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 (-45.2%) over the past year, making it difficult to compare to the Forestry industry average (-35.2%).
Return on Equity
High ROE: UPM's Return on Equity (8.7%) 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 (€3.8B) exceed its short term liabilities (€1.6B).
Long Term Liabilities: UPM's short term assets (€3.8B) exceed its long term liabilities (€2.8B).
Debt to Equity History and Analysis
Debt Level: UPM's debt to equity ratio (8.4%) is considered satisfactory.
Reducing Debt: UPM's debt to equity ratio has reduced from 42.9% to 8.4% over the past 5 years.
Debt Coverage: UPM's debt is well covered by operating cash flow (174.5%).
Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (86.4x coverage).
Balance Sheet
Next Steps
Dividend
What is UPM-Kymmene Oyj current dividend yield, its reliability and sustainability?
4.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPM's dividend (4.9%) is higher than the bottom 25% of dividend payers in the Finnish market (1.91%).
High Dividend: UPM's dividend (4.9%) is in the top 25% of dividend payers in the Finnish market (4.55%)
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: At its current payout ratio (86.2%), UPM's 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 (78.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.6yrs
Average management tenure
CEO
Jussi Pesonen (60 yo)
16.75yrs
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 ($USD7.12M) is above average for companies of similar size in the Finnish market ($USD4.01M).
Compensation vs Earnings: Jussi's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 16.75yrs | €6.04m | 0.087% € 12.3m | |
| CFO & Executive VP of UPM Energy | 10.42yrs | no data | 0.032% € 4.4m | |
| Executive Vice President of Technology | 6.92yrs | no data | 0.019% € 2.6m | |
| Vice President of Investor Relations | 9.17yrs | no data | no data | |
| General Counsel | 15.42yrs | no data | 0.014% € 1.9m | |
| Vice President of Communications & Brand | 1.17yrs | no data | no data | |
| Executive Vice President of Human Resources | 16.42yrs | no data | 0.0050% € 705.2k | |
| Executive Vice President of Stakeholder Relations | 6.92yrs | no data | 0.017% € 2.4m | |
| Executive Vice President of UPM Biorefining | 12.75yrs | no data | 0.016% € 2.2m | |
| Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America | 12.75yrs | no data | no data | |
| Executive Vice President of Strategy | 10.75yrs | no data | 0.0079% € 1.1m | |
| Executive Vice President of UPM Plywood | 6.92yrs | no data | 0.0099% € 1.4m |
10.6yrs
Average Tenure
57.5yo
Average Age
Experienced Management: UPM's management team is seasoned and experienced (10.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 8.58yrs | €125.00k | 0.0040% € 560.5k | |
| Independent Deputy Chairman | 15.75yrs | €145.00k | 0.059% € 8.2m | |
| Independent Chairman | 12.58yrs | €210.00k | 0.050% € 7.0m | |
| Independent Director | 13.58yrs | €130.00k | 0.0083% € 1.2m | |
| Independent Director | 6.17yrs | €120.00k | 0.0022% € 303.4k | |
| Independent Director | 5.5yrs | €120.00k | 0.0018% € 250.1k | |
| Independent Director | 7.5yrs | €145.00k | 0.0036% € 511.3k | |
| Independent Director | 2.5yrs | €125.00k | 0.00059% € 82.9k | |
| Director | 0.58yr | no data | no data | |
| Director | 0.58yr | no data | no data |
6.8yrs
Average Tenure
62.5yo
Average Age
Experienced Board: UPM's board of directors are considered experienced (6.8 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: €14.048b
- 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 |
| UPMH | BATS-CHIXE (BATS 'Chi-X Europe') | 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 s ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/19 22:07 |
| End of Day Share Price | 2020/10/19 00:00 |
| Earnings | 2020/06/30 |
| 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.