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UPM-Kymmene Oyj

HLSE:UPM
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UPM
HLSE
€14B
Market Cap
  1. Home
  2. FI
  3. Materials
Company description

UPM-Kymmene Oyj operates in the forest-based bio industry. The last earnings update was 17 days ago. More info.


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UPM Share Price and Events
7 Day Returns
3%
HLSE:UPM
1.6%
FI Forestry
3.4%
FI Market
1 Year Returns
-9.5%
HLSE:UPM
-12.6%
FI Forestry
3.3%
FI Market
UPM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
UPM-Kymmene Oyj (UPM) 3% -0.2% 18.7% -9.5% 66% 122.9%
FI Forestry 1.6% -1.4% 11.9% -12.6% 8.9% 39.3%
FI Market 3.4% 3% 10.7% 3.3% 24.1% 42.4%
1 Year Return vs Industry and Market
  • UPM outperformed the Forestry industry which returned -12.6% over the past year.
  • UPM underperformed the Market in Finland which returned 3.3% over the past year.
Price Volatility
UPM
Industry
5yr Volatility vs Market

Value

 Is UPM-Kymmene Oyj undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of UPM-Kymmene Oyj to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for UPM-Kymmene Oyj.

HLSE:UPM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year FI Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for HLSE:UPM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FI Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.5%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.291 (1 + (1- 20%) (5.45%))
1.233
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.54% + (1.233 * 6.51%)
8.57%

Discounted Cash Flow Calculation for HLSE:UPM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for UPM-Kymmene Oyj is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

HLSE:UPM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 8.57%)
2019 1,274.00 Analyst x9 1,173.48
2020 1,166.20 Analyst x5 989.43
2021 1,129.00 Analyst x5 882.29
2022 1,123.00 Analyst x2 808.36
2023 1,013.50 Analyst x2 671.97
2024 985.40 Est @ -2.77% 601.80
2025 967.88 Est @ -1.78% 544.45
2026 957.40 Est @ -1.08% 496.06
2027 951.69 Est @ -0.6% 454.20
2028 949.26 Est @ -0.26% 417.30
Present value of next 10 years cash flows €7,039.34
HLSE:UPM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €949.26 × (1 + 0.54%) ÷ (8.57% – 0.54%)
€11,891.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €11,891.07 ÷ (1 + 8.57%)10
€5,227.32
HLSE:UPM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €7,039.34 + €5,227.32
€12,266.66
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €12,266.66 / 533.32
€23
HLSE:UPM Discount to Share Price
Calculation Result
Value per share (EUR) From above. €23.00
Current discount Discount to share price of €26.75
= -1 x (€26.75 - €23.00) / €23.00
-16.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of UPM-Kymmene Oyj is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for UPM-Kymmene Oyj's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are UPM-Kymmene Oyj's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
HLSE:UPM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €2.80
HLSE:UPM Share Price ** HLSE (2019-03-15) in EUR €26.75
Europe Forestry Industry PE Ratio Median Figure of 33 Publicly-Listed Forestry Companies 12.41x
Finland Market PE Ratio Median Figure of 108 Publicly-Listed Companies 19.59x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of UPM-Kymmene Oyj.

HLSE:UPM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= HLSE:UPM Share Price ÷ EPS (both in EUR)

= 26.75 ÷ 2.80

9.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UPM-Kymmene Oyj is good value based on earnings compared to the Europe Forestry industry average.
  • UPM-Kymmene Oyj is good value based on earnings compared to the Finland market.
Price based on expected Growth
Does UPM-Kymmene Oyj's expected growth come at a high price?
Raw Data
HLSE:UPM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
-9.2%per year
Europe Forestry Industry PEG Ratio Median Figure of 22 Publicly-Listed Forestry Companies 1.15x
Finland Market PEG Ratio Median Figure of 91 Publicly-Listed Companies 1.72x

*Line of best fit is calculated by linear regression .

HLSE:UPM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.54x ÷ -9.2%

-1.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UPM-Kymmene Oyj earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on UPM-Kymmene Oyj's assets?
Raw Data
HLSE:UPM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €18.36
HLSE:UPM Share Price * HLSE (2019-03-15) in EUR €26.75
Europe Forestry Industry PB Ratio Median Figure of 37 Publicly-Listed Forestry Companies 1.36x
Finland Market PB Ratio Median Figure of 141 Publicly-Listed Companies 2.04x
HLSE:UPM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= HLSE:UPM Share Price ÷ Book Value per Share (both in EUR)

= 26.75 ÷ 18.36

1.46x

* Primary Listing of UPM-Kymmene Oyj.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UPM-Kymmene Oyj is overvalued based on assets compared to the Europe Forestry industry average.
X
Value checks
We assess UPM-Kymmene Oyj's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. UPM-Kymmene Oyj has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is UPM-Kymmene Oyj expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is UPM-Kymmene Oyj expected to grow at an attractive rate?
  • UPM-Kymmene Oyj's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.5%.
Growth vs Market Checks
  • UPM-Kymmene Oyj's earnings are expected to decrease over the next 1-3 years, this is below the Finland market average.
  • UPM-Kymmene Oyj's revenue growth is positive but not above the Finland market average.
Annual Growth Rates Comparison
Raw Data
HLSE:UPM Future Growth Rates Data Sources
Data Point Source Value (per year)
HLSE:UPM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts -9.2%
HLSE:UPM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 0.3%
Europe Forestry Industry Earnings Growth Rate Market Cap Weighted Average 0.2%
Europe Forestry Industry Revenue Growth Rate Market Cap Weighted Average 2%
Finland Market Earnings Growth Rate Market Cap Weighted Average 15.7%
Finland Market Revenue Growth Rate Market Cap Weighted Average 0.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
HLSE:UPM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
HLSE:UPM Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 10,988 1,395 1
2022-12-31 10,634 1,613 1,094 3
2021-12-31 10,465 1,547 1,124 8
2020-12-31 10,515 1,549 1,160 13
2019-12-31 10,532 1,603 1,179 12
HLSE:UPM Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 10,483 1,391 1,495
2018-09-30 10,323 1,377 1,145
2018-06-30 10,166 1,430 1,106
2018-03-31 10,040 1,370 1,041
2017-12-31 10,010 1,558 973
2017-09-30 9,915 1,556 917
2017-06-30 9,867 1,576 899
2017-03-31 9,848 1,741 892
2016-12-31 9,812 1,686 879
2016-09-30 9,910 1,671 885
2016-06-30 9,995 1,528 1,025
2016-03-31 10,098 1,418 988

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • UPM-Kymmene Oyj's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • UPM-Kymmene Oyj's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
HLSE:UPM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from UPM-Kymmene Oyj Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:UPM Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.10 2.27 1.85 6.00
2020-12-31 2.14 2.28 1.83 9.00
2019-12-31 2.17 2.33 2.09 10.00
HLSE:UPM Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 2.80
2018-09-30 2.15
2018-06-30 2.07
2018-03-31 1.95
2017-12-31 1.82
2017-09-30 1.72
2017-06-30 1.69
2017-03-31 1.67
2016-12-31 1.65
2016-09-30 1.66
2016-06-30 1.92
2016-03-31 1.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • UPM-Kymmene Oyj is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess UPM-Kymmene Oyj's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
UPM-Kymmene Oyj has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has UPM-Kymmene Oyj performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare UPM-Kymmene Oyj's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • UPM-Kymmene Oyj has delivered over 20% year on year earnings growth in the past 5 years.
  • UPM-Kymmene Oyj's 1-year earnings growth exceeds its 5-year average (53.6% vs 20.8%)
  • UPM-Kymmene Oyj's earnings growth has exceeded the Europe Forestry industry average in the past year (53.6% vs 25%).
Earnings and Revenue History
UPM-Kymmene Oyj's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from UPM-Kymmene Oyj Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:UPM Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 10,483.00 1,495.00 37.00
2018-09-30 10,323.00 1,145.00 42.00
2018-06-30 10,166.00 1,106.00 42.00
2018-03-31 10,040.00 1,041.00 42.00
2017-12-31 10,010.00 973.00 42.00
2017-09-30 9,915.00 917.00 48.00
2017-06-30 9,867.00 899.00 48.00
2017-03-31 9,848.00 892.00 48.00
2016-12-31 9,812.00 879.00 48.00
2016-09-30 9,910.00 885.00 51.00
2016-06-30 9,995.00 1,025.00 51.00
2016-03-31 10,098.00 988.00 51.00
2015-12-31 10,138.00 916.00 51.00
2015-09-30 10,095.00 731.00 52.00
2015-06-30 9,980.00 505.00 52.00
2015-03-31 9,873.00 474.00 52.00
2014-12-31 9,868.00 512.00 52.00
2014-09-30 9,925.00 540.00 59.00
2014-06-30 9,982.00 496.00 59.00
2014-03-31 10,061.00 481.00 59.00
2013-12-31 10,054.00 335.00 59.00
2013-09-30 10,123.00 -1,187.00 62.00
2013-06-30 10,246.00 -1,289.00 62.00
2013-03-31 10,358.00 -1,195.00 62.00
2012-12-31 10,492.00 -1,122.00 62.00
2012-09-30 10,521.00 466.00 53.00
2012-06-30 10,529.00 321.00 53.00
2012-03-31 10,320.00 408.00 53.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • UPM-Kymmene Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • UPM-Kymmene Oyj used its assets more efficiently than the Europe Forestry industry average last year based on Return on Assets.
  • UPM-Kymmene Oyj has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess UPM-Kymmene Oyj's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
UPM-Kymmene Oyj has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is UPM-Kymmene Oyj's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up UPM-Kymmene Oyj's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • UPM-Kymmene Oyj is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • UPM-Kymmene Oyj's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of UPM-Kymmene Oyj's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from UPM-Kymmene Oyj Company Filings, last reported 2 months ago.

HLSE:UPM Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,797.00 778.00 888.00
2018-09-30 9,186.00 757.00 639.00
2018-06-30 8,733.00 957.00 464.00
2018-03-31 8,978.00 754.00 623.00
2017-12-31 8,664.00 1,113.00 716.00
2017-09-30 8,330.00 1,768.00 1,006.00
2017-06-30 8,078.00 1,887.00 664.00
2017-03-31 7,964.00 1,956.00 974.00
2016-12-31 8,237.00 2,419.00 992.00
2016-09-30 7,870.00 2,593.00 771.00
2016-06-30 7,662.00 2,739.00 459.00
2016-03-31 7,975.00 3,025.00 803.00
2015-12-31 7,944.00 3,066.00 626.00
2015-09-30 7,944.00 3,203.00 394.00
2015-06-30 7,631.00 3,381.00 409.00
2015-03-31 7,804.00 3,302.00 469.00
2014-12-31 7,480.00 3,464.00 700.00
2014-09-30 7,628.00 4,093.00 825.00
2014-06-30 7,327.00 4,063.00 794.00
2014-03-31 7,518.00 4,092.00 1,005.00
2013-12-31 7,455.00 4,128.00 787.00
2013-09-30 7,409.00 3,930.00 298.00
2013-06-30 7,360.00 4,197.00 314.00
2013-03-31 7,556.00 4,026.00 390.00
2012-12-31 7,461.00 4,141.00 486.00
2012-09-30 7,450.00 4,007.00 284.00
2012-06-30 7,433.00 4,071.00 89.00
2012-03-31 7,251.00 4,015.00 92.00
  • UPM-Kymmene Oyj's level of debt (7.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (55.4% vs 7.9% today).
  • Debt is well covered by operating cash flow (178.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 70x coverage).
X
Financial health checks
We assess UPM-Kymmene Oyj's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. UPM-Kymmene Oyj has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.86%
Current annual income from UPM-Kymmene Oyj dividends. Estimated to be 5.27% next year.
If you bought €2,000 of UPM-Kymmene Oyj shares you are expected to receive €97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • UPM-Kymmene Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.29%).
  • UPM-Kymmene Oyj's dividend is below the markets top 25% of dividend payers in Finland (4.89%).
Upcoming dividend payment

Purchase UPM-Kymmene Oyj on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
HLSE:UPM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Europe Forestry Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 4.1%
Finland Market Average Dividend Yield Market Cap Weighted Average of 101 Stocks 4.1%
Finland Minimum Threshold Dividend Yield 10th Percentile 1.5%
Finland Bottom 25% Dividend Yield 25th Percentile 2.3%
Finland Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

HLSE:UPM Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.45 1.00
2021-12-31 1.46 8.00
2020-12-31 1.43 14.00
2019-12-31 1.36 14.00
HLSE:UPM Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-01-31 1.300 4.867
2018-01-31 1.150 4.010
2017-03-29 0.950 3.883
2016-04-07 0.750 3.882
2015-04-09 0.700 4.374
2014-02-26 0.600 4.609
2014-01-30 0.600 4.834
2013-01-31 0.600 6.347
2012-08-09 0.600 6.776
2012-08-07 0.600 6.653
2012-02-15 0.600 6.527
2012-02-01 0.600 5.889
2011-02-02 0.550 5.277
2010-02-02 0.450 4.122
2009-03-18 0.400 5.535

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of UPM-Kymmene Oyj's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess UPM-Kymmene Oyj's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can UPM-Kymmene Oyj afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. UPM-Kymmene Oyj has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of UPM-Kymmene Oyj's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jussi Pesonen
COMPENSATION €5,978,000
AGE 58
TENURE AS CEO 15.2 years
CEO Bio

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 Deputy Supervisor of Investment Operations at Ilmarinen Pension Insurance Co. Ltd. He served as the Chief Operating Officer of UPM-Kymmene from September 2001 to January 30, 2004 and as its Executive Vice President since September 2001 with responsibility for the Paper Industry business area. Mr. Pesonen served as a Senior Executive Vice President and Head of Wood Products and Converting Divisions of UPM-Kymmeme until January 30, 2004. He served as Vice-President of the Newsprint division of UPM-Kymmene Corporation since 2001 and Deputy to the President and Chief Executive Officer from 2001 to 2004. He joined UPM in 1987 and occupied several posts, including Production Manager at Jämsänkoski mill and Production Unit Director of Kajaani and Kaukas mills and Shotton Paper Ltd. and served as its Executive Vice President since September 2001. He has been Chairman of the Board of Finnish Forest Industries Federation since November 2013. Mr. Pesonen served as the Chairman of Confederation of European Paper Industries since January 01, 2012. He served as the Chairman of Ilmarinen Mutual Pension Insurance Company from January 25, 2012 to December 31, 2015 and its Director until December 31,2015. He served as Vice Chairman of Metsä Fibre Oy and its Director since 2004. He has been a Director of UPM-Kymmene Oyj since March 27, 2007. He has been a Director of Finnish Forest Industries Federation since 2003 and Confederation of Finnish Industries EK since 2005. He serves as a Member of Supervisory Board at Ilmarinen Mutual Pension Insurance Company. He served as a Director of Outokumpu Oyj since March 2009. He served as a Director of Sampo Oyj since April 5, 2006. He served as a Member of the Boards of Cepiprint. Mr. Pesonen holds a Master of Science degree in Engineering from the University of Oulu, Finland.

CEO Compensation
  • Jussi's compensation has been consistent with company performance over the past year.
  • Jussi's remuneration is higher than average for companies of similar size in Finland.
Management Team Tenure

Average tenure and age of the UPM-Kymmene Oyj management team in years:

10.2
Average Tenure
55
Average Age
  • The average tenure for the UPM-Kymmene Oyj management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jussi Pesonen

TITLE
President
COMPENSATION
€6M
AGE
58
TENURE
15.2 yrs

Tapio Korpeinen

TITLE
CFO & Executive VP of UPM Energy
AGE
55
TENURE
8.8 yrs

Jyrki Ovaska

TITLE
Executive Vice President of Technology
AGE
60
TENURE
5.3 yrs

Mika Mikkola

TITLE
Vice President of Investor Relations
TENURE
7.6 yrs

Juha Mäkelä

TITLE
General Counsel
AGE
56
TENURE
13.8 yrs

Riitta Savonlahti

TITLE
Executive Vice President of Human Resources
AGE
54
TENURE
14.8 yrs

Pirkko Harrela

TITLE
Executive Vice President of Stakeholder Relations
AGE
58
TENURE
5.3 yrs

Bernd Eikens

TITLE
Executive Vice President of UPM Biorefining
AGE
53
TENURE
11.2 yrs

Anu Ahola

TITLE
Senior Vice President of SBU Newspaper Publishing for UPM Paper Europe & North America
AGE
53
TENURE
11.2 yrs

Kari Ståhlberg

TITLE
Executive Vice President of Strategy
AGE
47
TENURE
9.2 yrs
Board of Directors Tenure

Average tenure and age of the UPM-Kymmene Oyj board of directors in years:

6.5
Average Tenure
59
Average Age
  • The tenure for the UPM-Kymmene Oyj board of directors is about average.
Board of Directors

Björn Wahlroos

TITLE
Chairman
COMPENSATION
€210K
AGE
66
TENURE
11 yrs

Jussi Pesonen

TITLE
President
COMPENSATION
€6M
AGE
58
TENURE
12 yrs

Berndt Brunow

TITLE
Deputy Chairman
COMPENSATION
€145K
AGE
68
TENURE
14.2 yrs

Veli-Matti Reinikkala

TITLE
Independent Director
COMPENSATION
€130K
AGE
61
TENURE
12 yrs

Piia-Noora Kauppi

TITLE
Independent Director
COMPENSATION
€145K
AGE
43
TENURE
5.9 yrs

Kim Wahl

TITLE
Independent Director
COMPENSATION
€125K
AGE
58
TENURE
7 yrs

Ari Puheloinen

TITLE
Independent Director
COMPENSATION
€120K
AGE
67
TENURE
4.6 yrs

Suzanne Thoma

TITLE
Independent Director
COMPENSATION
€120K
AGE
56
TENURE
3.9 yrs

Henrik Ehrnrooth

TITLE
Independent Director
COMPENSATION
€120K
AGE
49
TENURE
3.9 yrs

Marjan Oudeman

TITLE
Director
COMPENSATION
€125K
AGE
60
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess UPM-Kymmene Oyj's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. UPM-Kymmene Oyj has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Grab UPM-Kymmene Oyj (HEL:UPM) Today With A Solid 5.0% Dividend Yield

Over the past 10 years UPM-Kymmene Oyj (HEL:UPM) has grown its dividend payouts from €0.40 to €1.3. … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come … It is paying an annual yield above 75% of dividend payers

Simply Wall St -

UPM-Kymmene Oyj (HEL:UPM): Set To Experience A Decrease In Earnings?

In December 2018, UPM-Kymmene Oyj (HEL:UPM) released its most recent earnings announcement, whicha … confirmed … company

Simply Wall St -

Is UPM-Kymmene Oyj (HEL:UPM) Expensive For A Reason? A Look At The Intrinsic Value

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Should UPM-Kymmene Oyj (HEL:UPM) Be Part Of Your Dividend Portfolio?

Help shape the future of investing tools and you could win a $250 gift card! … There is a lot to be liked about UPM-Kymmene Oyj (HEL:UPM) as an income stock. … Let's dig deeper into whether UPM-Kymmene Oyj should have a place in your portfolio.

Simply Wall St -

A Close Look At UPM-Kymmene Oyj’s (HEL:UPM) 12% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Why I Like UPM-Kymmene Oyj (HEL:UPM)

UPM-Kymmene Oyj (HEL:UPM) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of UPM, it

Simply Wall St -

Do Institutions Own UPM-Kymmene Oyj (HEL:UPM) Shares?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

Is UPM-Kymmene Oyj's (HEL:UPM) CEO Pay Justified?

How Does Jussi Pesonen's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that UPM-Kymmene Oyj has a market cap of €12b, and is paying total annual CEO compensation of €5.3m. … We looked at a group of companies with market capitalizations over €7.0b and the median CEO compensation was €4.1m

Simply Wall St -

Is UPM-Kymmene Oyj (HEL:UPM) As Strong As Its Balance Sheet Indicates?

Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. … Today I will analyse the latest financial data for UPM to determine is solvency and liquidity and whether the stock is a sound investment.

Simply Wall St -

Do You Like UPM-Kymmene Oyj (HEL:UPM) At This P/E Ratio?

UPM-Kymmene Oyj has a price to earnings ratio of 11.32, based on the last twelve months. … How Do I Calculate UPM-Kymmene Oyj's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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 eucalyptus, birch, and softwood pulp grades for tissue, specialty and graphic papers, boards, and packaging; sawn timber for construction, packaging, distribution, joinery, and furniture 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; label papers and release liners, fine papers, and flexible packaging, as well as label and packaging papers production lines for retailers, printers, publishers, distributors, and paper converters; and graphic papers for advertising, magazines, newspapers, and home and office to publishers, cataloguers, retailers, printers, and merchants. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and other manufacturing industries; wood and wood-based biomass, and forestry services for woodland and forest owners; outdoor products for construction, and granulates for injection molding and extrusion; wood-based lignin products for industrial use and cell culture hydrogel products for biomedical applications; 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.

Details
Name: UPM-Kymmene Oyj
UPM
Exchange: HLSE
Founded: 1995
€14,266,418,230
533,324,046
Website: http://www.upm.com
Address: UPM-Kymmene Oyj
Alvar Aallon katu 1,
Helsinki,
Uusimaa, 00101,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
HLSE UPM Ordinary Shares OMX Nordic Exchange Helsinki FI EUR 03. May 1996
OTCPK UPMK.F Ordinary Shares Pink Sheets LLC US USD 03. May 1996
DB RPL Ordinary Shares Deutsche Boerse AG DE EUR 03. May 1996
XTRA RPL Ordinary Shares XETRA Trading Platform DE EUR 03. May 1996
LSE 0NV5 Ordinary Shares London Stock Exchange GB EUR 03. May 1996
OTCPK UPMK.Y SPONSORED ADR Pink Sheets LLC US USD 29. Jun 1999
Number of employees
Current staff
Staff numbers
18,978
UPM-Kymmene Oyj employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 20:43
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.