One-glance verdict
Undervalued
$31.32 our estimate vs market $10.55
Wall Street consensus: $13.42 (-57.2% lower than our fair-value estimate)
66% below our estimate, below the bear case
Fundamentals snapshot
Stora Enso Oyj
SEOAY · OQX · Consumer Cyclical · Packaging & Containers
Current price
$10.55
52-week range
$10.13 - $14.41
Market cap
$8.32B
Balance sheet
Stretched
2.94x Stretched
Net debt $2.92B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.1% last year.
- Reward Returns 3.7% on equity, ahead of 40% of its peers.
- Risk Stock trades 82.6% above its 5-year average P/E.
- Risk Net debt grew 62.4% over 3 years.
What this company does
Stora Enso Oyj
Stora Enso Oyj makes renewable materials from trees, like wood for buildings and paper packaging instead of plastic. Most of their money comes from selling these packaging materials and wood products to companies that make and sell things, showing they help other businesses reduce their reliance on fossil fuels. This matters because it positions them as a key player in the growing market for environmentally friendly solutions.
How the company got here
Stora Enso Oyj has a long history, tracing its roots back over 800 years to forestry operations in Sweden and Finland. The modern company was formed in 1998 through the merger of Sweden's Stora and Finland's Enso. This combination created a major player in the forest products industry, aiming to leverage scale and expertise across different parts of the value chain, from forests to finished products. Over the years, Stora Enso has evolved, shifting its focus towards more sustainable and renewable solutions in response to changing market demands and environmental concerns.
What it actually does
Stora Enso Oyj is a company that turns trees into a wide variety of everyday products. Think of the cardboard boxes that deliver your online shopping, the paper cups for your coffee, or even the wooden beams used to build houses. They focus on using renewable resources, primarily wood, to create materials that can replace less sustainable options like plastics and fossil-based products. Their goal is to offer eco-friendly alternatives for packaging, building, and other industrial uses.
Packaging Materials
This part of Stora Enso makes the raw materials used for packaging. They produce different types of paper and cardboard, both from new wood fibers and recycled materials, which are then used by other companies to make boxes, bags, and other packaging. These materials are designed to be renewable and recyclable, offering an alternative to packaging made from fossil fuels. This segment is a significant portion of Stora Enso's business, providing the foundation for many packaging solutions.
Packaging Solutions
Building on the materials produced, this segment focuses on creating ready-to-use packaging products and services. They take materials like carton and corrugated boards and convert them into specific packaging designs for various customers, including those in retail, e-commerce, and industrial sectors. This means they might design and produce the actual boxes you receive your online orders in, or the containers for food and beverages. This segment adds value by transforming raw materials into functional packaging.
Biomaterials
The Biomaterials segment is where Stora Enso extracts valuable components from wood beyond just fibers for paper and packaging. They produce different types of pulp, which are essential ingredients for making not only paper and packaging but also tissue paper, hygiene products, and specialty items. Additionally, they derive other valuable byproducts like tall oil and turpentine from the wood processing, which can be used in various chemical and industrial applications. This segment highlights the company's ability to utilize the full potential of wood as a renewable resource.
Wood Products
This segment focuses on using wood to create building materials and other construction-related solutions. They offer wood-based products that can be used in homes and other structures, and even provide digital tools to help design and plan wooden construction projects. They also produce components for things like windows and doors, as well as pellets used for sustainable heating. This part of the business directly contributes to the construction industry with renewable materials.
What management is betting on now
Stora Enso's management is heavily focused on driving growth through renewable and sustainable solutions. A key priority is expanding their offerings in packaging materials and solutions, aiming to capture more market share from traditional, less eco-friendly options. They are also investing in innovations within their biomaterials and wood products segments to unlock new revenue streams and applications for wood. The overarching strategy is to position Stora Enso as a leader in the circular economy, where resources are used efficiently and waste is minimized.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $31.32 vs current price $10.55
Wall Street consensus is the average analyst price target: $13.42 (-57.2% lower than our fair-value estimate).
Our most-likely fair value is $31.32 a share — about 196.9% above today's price of $10.55, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.9B. Interest coverage 2.9x.
Net debt
$2.92B
Interest coverage
2.94x
Stora Enso Oyj's profit covers its interest bill about 2.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
SEOAY
BASELINE
Stora Enso Oyj
Total debt $3.84B Interest coverage 2.94x This is the baseline the peer rows are being compared against.
Total debt $10.35B Interest coverage -0.02x -100% vs SEOAY This peer has almost no interest-payment cushion compared with SEOAY.
Total debt $4.41B Interest coverage 15.87x +441% vs SEOAY Carries about 5.4x more debt cushion than SEOAY.
Total debt $1.31B Interest coverage 6.72x +129% vs SEOAY Carries about 2.3x more debt cushion than SEOAY.
Total debt $4.61B Interest coverage 3.05x +4% vs SEOAY Has roughly the same debt cushion as SEOAY.
What you should know
The case for and against SEOAY
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.1% last year.
-
Returns 3.7% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Stock trades 82.6% above its 5-year average P/E.
-
Net debt grew 62.4% over 3 years.
-
Operating margin compressed from 14.7% to 5.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.54x
Forward P/E
12.04x
P/B
0.70x
P/S
0.90x
EV/EBITDA
15.19x
PEG ratio
41.46x
Profitability
How much profit each dollar creates
Gross margin
24.9%
Operating margin
5.0%
Net margin
4.3%
ROE
3.7%
ROA
0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.30x
Current ratio
1.09x
Quick ratio
0.55x
Total debt
$3.84B
Total cash
$927.97M
Growth
How the business has been compounding
Revenue TTM
$10.36B
Revenue 5Y CAGR
-7.2%
EPS TTM
0.54
EPS 5Y CAGR
-23.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$720.27M
Free CF TTM
$-145.17M
FCF margin
-1.4%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
51.4%
Last ex-div date
2026-09-25