Stock Analysis Report

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Executive Summary

UPM-Kymmene Oyj operates in the forest-based bio industry. More Details

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 not significantly more volatile than the rest 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




FI Forestry


FI Market

1 Year Return




FI Forestry


FI Market

Return vs Industry: UPM underperformed the Finnish Forestry industry which returned 23.7% over the past year.

Return vs Market: UPM matched the Finnish Market which returned 8.2% over the past year.

Shareholder returns

7 Day-2.5%-1.3%-0.2%
30 Day2.3%3.8%4.7%
90 Day16.9%17.3%8.6%
1 Year13.4%7.5%25.1%21.2%17.1%8.0%
3 Year31.0%14.0%25.4%11.8%34.1%10.8%
5 Year164.5%109.5%142.9%43.0%79.4%39.8%

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


Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: UPM (€30.78) is trading above our estimate of fair value (€27.43)

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 (25.7x) compared to the XE Forestry industry average (14.5x).

PE vs Market: UPM is good value based on its PE Ratio (25.7x) compared to the Finnish market (25.9x).

Price to Earnings Growth Ratio

PEG Ratio: UPM is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: UPM is overvalued based on its PB Ratio (1.8x) 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?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: UPM's forecast earnings growth (18.1% per year) is above the savings rate (0.3%).

Earnings vs Market: UPM's earnings (18.1% per year) are forecast to grow faster than the Finnish market (15.4% per year).

High Growth Earnings: UPM's earnings are forecast to grow, but not significantly.

Revenue vs Market: UPM's revenue (3.3% per year) is forecast to grow slower than the Finnish market (4.3% per year).

High Growth Revenue: UPM's revenue (3.3% 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?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UPM has high quality earnings.

Growing Profit Margin: UPM's current net profit margins (7.2%) are lower than last year (13.2%).

Past Earnings Growth Analysis

Earnings Trend: UPM's earnings have grown by 4.4% 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 (-53.9%) over the past year, making it difficult to compare to the Forestry industry average (-4.8%).

Return on Equity

High ROE: UPM's Return on Equity (6.8%) 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 (7.7%) is considered satisfactory.

Reducing Debt: UPM's debt to equity ratio has reduced from 39% to 7.7% over the past 5 years.

Debt Coverage: UPM's debt is well covered by operating cash flow (170.3%).

Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (42.2x coverage).

Balance Sheet

Next Steps


What is UPM-Kymmene Oyj current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UPM's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Finnish market (1.66%).

High Dividend: UPM's dividend (4.22%) is in the top 25% of dividend payers in the Finnish market (4.02%)

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 (108.7%), 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 (78.9% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Jussi Pesonen (60 yo)





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 ($USD7.34M) is above average for companies of similar size in the Finnish market ($USD3.97M).

Compensation vs Earnings: Jussi's compensation has been consistent with company performance over the past year.

Leadership Team

Jussi Pesonen
€ 14.8m
Tapio Korpeinen
CFO & Executive VP of UPM Energy10.67yrsno data0.032%
€ 5.3m
Jyrki Ovaska
Executive Vice President of Technology7.17yrsno data0.019%
€ 3.2m
Mika Mikkola
Vice President of Investor Relations9.42yrsno datano data
Juha Mäkelä
General Counsel15.67yrsno data0.014%
€ 2.4m
Hanna Maula
Vice President of Communications & Brand1.42yrsno datano data
Riitta Savonlahti
Executive Vice President of Human Resources16.67yrsno data0.0050%
€ 851.6k
Pirkko Harrela
Executive Vice President of Stakeholder Relations7.17yrsno data0.017%
€ 2.9m
Bernd Eikens
Executive Vice President of UPM Biorefining13yrsno datano data
Anu Ahola
Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America13yrsno datano data
Kari Ståhlberg
Executive Vice President of Strategy11yrsno data0.0079%
€ 1.3m
Mika Sillanpää
Executive Vice President of UPM Plywood7.17yrsno data0.0099%
€ 1.7m


Average Tenure


Average Age

Experienced Management: UPM's management team is seasoned and experienced (10.8 years average tenure).

Board Members

Kim Wahl
Independent Director8.83yrs€125.00k0.0040%
€ 676.9k
Berndt Brunow
Independent Deputy Chairman16yrs€145.00k0.059%
€ 9.9m
Björn Wahlroos
Independent Chairman12.83yrs€210.00k0.050%
€ 8.4m
Veli-Matti Reinikkala
Independent Director13.83yrs€130.00k0.0083%
€ 1.4m
Ari Puheloinen
Independent Director6.42yrs€120.00k0.0022%
€ 366.4k
Henrik Ehrnrooth
Independent Director5.75yrs€120.00k0.0018%
€ 302.0k
Martin Porta
Director0.83yrno datano data
Piia-Noora Kauppi
Independent Director7.75yrs€145.00k0.0036%
€ 617.5k
Marjan Oudeman
Independent Director2.75yrs€125.00k0.00059%
€ 100.1k
Emma FitzGerald
Director0.83yrno datano data


Average Tenure


Average Age

Experienced Board: UPM's board of directors are considered experienced (7.1 years average tenure).


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: €16.965b
  • Shares outstanding: 533.32m
  • Website: https://www.upm.com

Number of Employees


  • UPM-Kymmene Oyj
  • Alvar Aallon katu 1
  • Helsinki
  • Uusimaa
  • 101
  • Finland


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UPMK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1996
RPLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1996
UPMHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURMay 1996
RPLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1996
0NV5LSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1996
UPMHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1996
UPM NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1996


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/14 19:42
End of Day Share Price2021/01/14 00:00
Annual Earnings2019/12/31

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.