Executive Summary
UPM-Kymmene Oyj operates in the forest-based bio industry.
Snowflake
Fundamentals
Flawless balance sheet with solid track record and pays a dividend.
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
Market Performance
7 Day Return
3.6%
UPM
4.4%
FI Forestry
2.4%
FI Market
1 Year Return
-7.9%
UPM
-11.5%
FI Forestry
3.7%
FI Market
Return vs Industry: UPM exceeded the Finnish Forestry industry which returned -11.5% over the past year.
Return vs Market: UPM underperformed the Finnish Market which returned 3.7% over the past year.
Shareholder returns
| UPM | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.6% | 4.4% | 2.4% |
| 30 Day | 3.4% | 1.0% | -0.2% |
| 90 Day | 28.3% | 13.0% | 3.0% |
| 1 Year | -3.4%-7.9% | -7.4%-11.5% | 8.4%3.7% |
| 3 Year | 65.4%45.5% | 50.9%0.2% | 28.8%13.5% |
| 5 Year | 213.4%152.1% | 131.5%46.9% | 62.3%31.2% |
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 month ago | Simply Wall St
Dividend Hunters Should Consider UPM-Kymmene Oyj (HEL:UPM), With A 5.6% Yield1 month ago | Simply Wall St
Are Investors Undervaluing UPM-Kymmene Oyj (HEL:UPM) By 48%?2 months ago | Simply Wall St
Here’s What UPM-Kymmene Oyj’s (HEL:UPM) Return On Capital Can Tell UsValuation
Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?
41.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: UPM (€28.01) is trading below our estimate of fair value (€48.02)
Significantly Undervalued: UPM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UPM is good value based on its PE Ratio (10.2x) compared to the Forestry industry average (10.4x).
PE vs Market: UPM is good value based on its PE Ratio (10.2x) compared to the Finnish market (20.2x).
Price to Earnings Growth Ratio
Low 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 (1.6x) compared to the XE Forestry industry average (1.2x).
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?
-2.0%
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 (-2% per year).
Earnings vs Market: UPM's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: UPM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: UPM's revenue (1.5% per year) is forecast to grow slower than the Finnish market (2.1% per year).
High Growth Revenue: UPM's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: UPM's Return on Equity is forecast to be low in 3 years time (10.2%).
Next Steps
Past Performance
How has UPM-Kymmene Oyj performed over the past 5 years?
20.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: UPM's earnings have grown significantly by 20.1% per year over the past 5 years.
Accelerating Growth: UPM's earnings growth over the past year (32.6%) exceeds its 5-year average (20.1% per year).
Earnings vs Industry: UPM earnings growth over the past year (32.6%) exceeded the Forestry industry 1.2%.
Return on Equity
High ROE: UPM's Return on Equity (15.4%) is considered low.
Return on Assets
ROA vs Industry: UPM has a higher Return on Assets than the Forestry industry average last year.
Return on Capital Employed
ROCE Improving: UPM has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is UPM-Kymmene Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: UPM's short term assets (€4.2B) exceeds its short term liabilities (€1.9B)
Long Term Liabilities: UPM's short term assets (4.2B) exceeds its long term liabilities (2.6B)
Debt to Equity History and Analysis
Debt Level: UPM's debt to equity ratio (12.2%) is considered satisfactory
Reducing Debt: UPM's debt to equity ratio has reduced from 51.8% to 12.2% over the past 5 years.
Debt Coverage: UPM's debt is well covered by operating cash flow (137.3%).
Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (68x coverage).
Balance Sheet
Inventory Level: UPM has a high level of physical assets or inventory.
Debt Coverage by Assets: UPM's debt is covered by short term assets (assets are 3.555170x debt).
Next Steps
Dividend
What is UPM-Kymmene Oyj's current dividend yield, its reliability and sustainability?
4.64%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: UPM's dividend (4.64%) is higher than the bottom 25% of dividend payers in the Finnish market (2.25%).
High Dividend: UPM's dividend (4.64%) is low compared to the top 25% of dividend payers in the Finnish market (5.08%).
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 reasonably low payout ratio (47.3%), UPM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UPM's dividends in 3 years are forecast to be covered by earnings (74.5% payout ratio).
Next Steps
Management
What is the CEO of UPM-Kymmene Oyj's salary, the management and board of directors tenure and is there insider trading?
10.6yrs
Average management tenure
CEO
Jussi Pesonen (59yo)
15.8yrs
Tenure
€5,978,000
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 ($USD6.61M) is about average for companies of similar size in the Finnish market ($USD497.86K).
Compensation vs Earnings: Jussi's compensation has been consistent with company performance over the past year.
Management Age and Tenure
10.6yrs
Average Tenure
56.5yo
Average Age
Experienced Management: UPM's management team is seasoned and experienced (10.6 years average tenure).
Board Age and Tenure
7.0yrs
Average Tenure
60yo
Average Age
Experienced Board: UPM's board of directors are considered experienced (7 years average tenure).
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
Jussi Pesonen (59yo)
President
- Tenure: 15.8yrs
- Compensation: €5.98m
Jyrki Ovaska (61yo)
Executive Vice President of Technology
- Tenure: 5.9yrs
Pirkko Harrela (59yo)
Executive Vice President of Stakeholder Relations
- Tenure: 5.9yrs
Riitta Savonlahti (55yo)
Executive Vice President of Human Resources
- Tenure: 15.4yrs
Juha Mäkelä (57yo)
General Counsel
- Tenure: 14.4yrs
Bernd Eikens (54yo)
Executive Vice President of UPM Biorefining
- Tenure: 11.8yrs
Tapio Korpeinen (56yo)
CFO & Executive VP of UPM Energy
- Tenure: 9.4yrs
Anu Ahola (54yo)
Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America
- Tenure: 11.8yrs
Mika Mikkola
Vice President of Investor Relations
- Tenure: 8.2yrs
Hanna Maula
Vice President of Communications & Brand
- Tenure: 0.2yrs
Board Members
Kim Wahl (59yo)
Independent Director
- Tenure: 7.6yrs
- Compensation: €125.00k
Berndt Brunow (69yo)
Deputy Chairman
- Tenure: 14.8yrs
- Compensation: €145.00k
Jussi Pesonen (59yo)
President
- Tenure: 15.8yrs
- Compensation: €5.98m
Björn Wahlroos (67yo)
Independent Chairman
- Tenure: 11.6yrs
- Compensation: €210.00k
Veli-Matti Reinikkala (62yo)
Independent Director
- Tenure: 12.6yrs
- Compensation: €130.00k
Ari Puheloinen (68yo)
Independent Director
- Tenure: 5.2yrs
- Compensation: €120.00k
Henrik Ehrnrooth (50yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: €120.00k
Suzanne Thoma (57yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: €120.00k
Piia-Noora Kauppi (44yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: €145.00k
Marjan Oudeman (61yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: €125.00k
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: €14.938b
- 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 |
| 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 s ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/16 20:40 |
| End of Day Share Price | 2019/10/16 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.