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 +/- 3% a week.
Volatility Over Time: UPM's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.1%
UPM
0.3%
FI Forestry
-0.9%
FI Market
1 Year Return
52.2%
UPM
49.1%
FI Forestry
36.2%
FI Market
Return vs Industry: UPM exceeded the Finnish Forestry industry which returned 49.1% over the past year.
Return vs Market: UPM exceeded the Finnish Market which returned 36.2% over the past year.
Shareholder returns
| UPM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | 0.3% | -0.9% |
| 30 Day | 7.9% | 7.8% | 5.2% |
| 90 Day | 5.8% | 3.5% | 8.9% |
| 1 Year | 58.5%52.2% | 54.6%49.1% | 40.3%36.2% |
| 3 Year | 28.7%11.8% | 23.5%11.1% | 47.0%24.9% |
| 5 Year | 131.0%85.1% | 123.2%35.7% | 88.6%50.2% |
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 week ago | Simply Wall St
UPM-Kymmene Oyj's (HEL:UPM) Stock Been Rising But Financials Look Weak: Should Shareholders Be Worried?3 weeks ago | Simply Wall St
Here's Why UPM-Kymmene Oyj (HEL:UPM) Can Manage Its Debt Responsibly1 month ago | Simply Wall St
Is UPM-Kymmene Oyj (HEL:UPM) Expensive For A Reason? A Look At Its Intrinsic ValueValuation
Is UPM-Kymmene Oyj undervalued compared to its fair value and its price relative to the market?
25.13x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UPM (€34.44) is trading above our estimate of fair value (€28.83)
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 (25.1x) compared to the European Forestry industry average (18.9x).
PE vs Market: UPM is good value based on its PE Ratio (25.1x) compared to the Finnish market (26.2x).
Price to Earnings Growth Ratio
PEG Ratio: UPM is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: UPM is overvalued based on its PB Ratio (2x) compared to the XE Forestry industry average (1.4x).
Future Growth
How is UPM-Kymmene Oyj forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
7.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPM's forecast earnings growth (7.1% per year) is above the savings rate (0.2%).
Earnings vs Market: UPM's earnings (7.1% per year) are forecast to grow slower than the Finnish market (10.1% per year).
High Growth Earnings: UPM's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPM's revenue (4.3% per year) is forecast to grow faster than the Finnish market (3.5% per year).
High Growth Revenue: UPM's revenue (4.3% 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 (12.6%).
Past Performance
How has UPM-Kymmene Oyj performed over the past 5 years?
-4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPM has high quality earnings.
Growing Profit Margin: UPM's current net profit margins (8.3%) are lower than last year (8.6%).
Past Earnings Growth Analysis
Earnings Trend: UPM's earnings have declined by 4.1% 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 (-9.1%) over the past year, making it difficult to compare to the Forestry industry average (-14.5%).
Return on Equity
High ROE: UPM's Return on Equity (7.7%) is considered low.
Financial Health
How is UPM-Kymmene Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: UPM's short term assets (€4.9B) exceed its short term liabilities (€2.0B).
Long Term Liabilities: UPM's short term assets (€4.9B) exceed its long term liabilities (€4.1B).
Debt to Equity History and Analysis
Debt Level: UPM's debt to equity ratio (22.3%) is considered satisfactory.
Reducing Debt: UPM's debt to equity ratio has reduced from 33.5% to 22.3% over the past 5 years.
Debt Coverage: UPM's debt is well covered by operating cash flow (57.7%).
Interest Coverage: UPM's interest payments on its debt are well covered by EBIT (51.7x coverage).
Balance Sheet
Dividend
What is UPM-Kymmene Oyj current dividend yield, its reliability and sustainability?
3.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPM's dividend (3.77%) is higher than the bottom 25% of dividend payers in the Finnish market (1.64%).
High Dividend: UPM's dividend (3.77%) is in the top 25% of dividend payers in the Finnish market (3.48%)
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 (94.8%), 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 (61% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.3yrs
Average management tenure
CEO
Jussi Pesonen (61 yo)
17.5yrs
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 ($USD6.04M) is above average for companies of similar size in the Finnish market ($USD3.65M).
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 (11.3 years average tenure).
Board Members
Experienced Board: UPM's board of directors are considered experienced (6.2 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: €18.368b
- 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 | 2021/07/31 18:34 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| 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.