Executive Summary
UPM-Kymmene Oyj engages in the forest-based bio industry. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: UPM's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
UPM
-1.1%
FI Forestry
0.2%
FI Market
1 Year Return
31.3%
UPM
42.2%
FI Forestry
35.4%
FI Market
Return vs Industry: UPM underperformed the Finnish Forestry industry which returned 45.2% over the past year.
Return vs Market: UPM underperformed the Finnish Market which returned 38.2% over the past year.
Shareholder returns
| UPM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -1.1% | 0.2% |
| 30 Day | 5.8% | 1.4% | 4.2% |
| 90 Day | 7.7% | 7.3% | 5.0% |
| 1 Year | 36.7%31.3% | 47.8%42.2% | 44.8%35.4% |
| 3 Year | 24.2%7.9% | 18.3%6.5% | 34.8%12.6% |
| 5 Year | 150.5%100.6% | 137.9%41.9% | 94.5%53.5% |
Long-Term 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 day ago | Simply Wall St
Returns At UPM-Kymmene Oyj (HEL:UPM) Appear To Be Weighed Down2 weeks ago | Simply Wall St
UPM-Kymmene Oyj's (HEL:UPM) Stock Financial Prospects Look Bleak: Should Shareholders Be Prepared For A Share Price Correction?1 month ago | Simply Wall St
Is UPM-Kymmene Oyj (HEL:UPM) A Good Dividend Stock?Valuation
Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?
29.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UPM (€33.04) is trading above our estimate of fair value (€32.03)
Significantly Below Fair Value: UPM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: UPM is poor value based on its PE Ratio (29.7x) compared to the XE Forestry industry average (20.3x).
PE vs Market: UPM is poor value based on its PE Ratio (29.7x) compared to the Finnish market (26.8x).
Price to Earnings Growth Ratio
PEG Ratio: UPM is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: UPM is overvalued based on its PB Ratio (1.9x) compared to the XE Forestry industry average (1.3x).
Future Growth
How is UPM-Kymmene Oyj forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
10.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPM's forecast earnings growth (10.5% per year) is above the savings rate (0.2%).
Earnings vs Market: UPM's earnings (10.5% per year) are forecast to grow slower than the Finnish market (14.5% per year).
High Growth Earnings: UPM's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPM's revenue (5.4% per year) is forecast to grow faster than the Finnish market (3.9% per year).
High Growth Revenue: UPM's revenue (5.4% 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 (11.8%).
Past Performance
How has UPM-Kymmene Oyj performed over the past 5 years?
-2.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPM has high quality earnings.
Growing Profit Margin: UPM's current net profit margins (7%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: UPM's earnings have declined by 2.5% 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 (-37.3%) over the past year, making it difficult to compare to the Forestry industry average (-16.8%).
Return on Equity
High ROE: UPM's Return on Equity (6.5%) is considered low.
Financial Health
How is UPM-Kymmene Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: UPM's short term assets (€5.4B) exceed its short term liabilities (€2.5B).
Long Term Liabilities: UPM's short term assets (€5.4B) exceed its long term liabilities (€4.2B).
Debt to Equity History and Analysis
Debt Level: UPM's debt to equity ratio (23.2%) is considered satisfactory.
Reducing Debt: UPM's debt to equity ratio has reduced from 35.8% to 23.2% over the past 5 years.
Debt Coverage: UPM's debt is well covered by operating cash flow (50.3%).
Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (38.7x coverage).
Balance Sheet
Dividend
What is UPM-Kymmene Oyj current dividend yield, its reliability and sustainability?
3.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPM's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Finnish market (1.73%).
High Dividend: UPM's dividend (3.93%) is in the top 25% of dividend payers in the Finnish market (3.61%)
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 high payout ratio (116.7%), UPM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UPM's dividends in 3 years are forecast to be covered by earnings (65.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.2yrs
Average management tenure
CEO
Jussi Pesonen (60 yo)
17.33yrs
Tenure
€5,095,000
Compensation
Mr. Jussi Pesonen, M.Sc. (Eng.), has been Chief Executive Officer and President of UPM-Kymmene Oyj since January 29, 2004 and was its Head of UPM Biorefining since November 2018. Mr. Pesonen serves as Depu...
CEO Compensation Analysis
Compensation vs Market: Jussi's total compensation ($USD6.11M) is above average for companies of similar size in the Finnish market ($USD3.69M).
Compensation vs Earnings: Jussi's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: UPM's management team is seasoned and experienced (11.2 years average tenure).
Board Members
Experienced Board: UPM's board of directors are considered experienced (6.1 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: 1871
- Industry: Paper Products
- Sector: Materials
- Market Cap: €17.658b
- Shares outstanding: 533.32m
- Website: https://www.upm.com
Number of Employees
Location
- UPM-Kymmene Oyj
- Alvar Aallon katu 1
- Helsinki
- Uusimaa
- 100
- Finland
Listings
Biography
UPM-Kymmene Oyj engages 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 se...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 18:19 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.