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Stora Enso STERV.HE

Finland Consumer Cyclical
5.4/10
AI Analyst score
10.31 EUR
Last price at analysis date · analyst target 11.37 (+10.2%)
🛒 Where to buy STERV.HEPartner brokers · Finland · sample 200.00 € orderFinland
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🟡 HOLD — Hold: reasonable valuation and solid cash generation, but watch leverage and demand trends in a rising-rate environment.

Stora Enso is a Finnish packaging and forest products company that manufactures renewable packaging solutions, pulp, wood, and paper, operating across the entire forest value chain. Stora Enso shows fragile financial health (ND/EBITDA 4.27) and low profitability (ROE 5.44%), but its valuation is attractive (P/E 14.32, FCF yield 9.28%) and cash conversion is excellent (120.3%), partially offsetting weak revenue growth (-0.10%).

Financial health
3.4
Quality / Moat
4.0
Valuation
7.3
Growth
3.9
Dividend
6.6
Momentum
5.1
Risk & Context
7.9

Detailed metrics

Market and fundamental data as of the analysis date.

💵 Valuation
P/E14.32
Fwd P/E14.30
EV/EBITDA17.16
P/B0.75
P/S0.87
PEGN/D
Market cap8.13 B EUR
Enterprise value10.76 B EUR
🏰 Quality and moat
ROIC (approx.)2.5%
Gross margin24.69%
FCF conversion120%
Operating margin4.04%
📈 Profitability and margins
ROE5.44%
ROA0.58%
Net margin6.19%
FCF754.2 M EUR
FCF yield9.28%
🏦 Solvency and liquidity
Total debt4.24 B EUR
Net debt2.68 B EUR
Cash1.56 B EUR
EBITDA627.0 M EUR
Net debt / EBITDA4.27
D/E36.36
Current ratio1.33
Quick ratio0.79
🚀 Growth
Revenue growth-0.10%
Earnings growthN/D
EPS (TTM)0.72 EUR
EPS (Fwd)0.72 EUR
💰 Dividend and risk
Dividend yield2.42%
Payout34.7%
Beta0.60
Analyst consensusBuy (15)
Target price11.37 EUR
52-week range8.50 EUR – 12.26 EUR
⚠️ Main risk: High leverage (ND/EBITDA 4.27) combined with ECB tightening and weak revenue growth could pressure financial health and limit investment capacity.
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Full AI report

Generated automatically from the metrics, the macro context and the company's news.

Stora Enso is a Finnish packaging and forest products company that manufactures renewable packaging solutions, pulp, wood, and paper, operating across the entire forest value chain. Stora Enso shows fragile financial health (ND/EBITDA 4.27) and low profitability (ROE 5.44%), but its valuation is attractive (P/E 14.32, FCF yield 9.28%) and cash conversion is excellent (120.3%), partially offsetting weak revenue growth (-0.10%).

Score by category

CategoryScore
Financial health3.4
Quality / Moat4.0
Valuation7.3
Growth3.9
Dividend6.6
Momentum5.1
Risk & Context7.9

OVERALL SCORE: 5.4/10

Context and risks

Moderate regulatory/governance risk in Finland and exposure to geopolitical tensions on maritime routes (Hormuz, Aden) affecting the supply chain of raw materials and exports, though not a severe country risk.

News considered in the analysis

  • What Does Stora Enso Oyj (HLSE:STERV) Naming Its CFO Deputy CEO Mean? — Nombramiento del CFO como Deputy CEO: señal de continuidad y posible sucesión, impacto moderado en gobernanza.
  • Stora Enso Oyj's Dividend Analysis — Análisis de dividendo sin información nueva; el payout y la rentabilidad ya están en el precio.
  • Stora Enso Oyj (SEOAY) (Half Year 2026) Earnings Call Highlights: Strong EBIT Growth Amid ... — Resultados semestrales con fuerte crecimiento de EBIT, señal positiva de eficiencia operativa y control de costes.
  • Are Investors Undervaluing Stora Enso Oyj (SEOAY) Right Now? — Artículo de opinión sobre valoración, sin información nueva.
  • 2 Paper and Related Products Stocks Set to Weather Industry Challenges — Listículo genérico del sector, sin información específica de la empresa.

Verdict: Hold: reasonable valuation and solid cash generation, but watch leverage and demand trends in a rising-rate environment.

Main risk: High leverage (ND/EBITDA 4.27) combined with ECB tightening and weak revenue growth could pressure financial health and limit investment capacity.

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Automatically generated analysis from fundamental, market and news data. Not personalised financial advice — a research tool, not an individual recommendation. Past performance does not guarantee future results. Last update of this analysis: 2026-09-28. Legal notice, privacy & cookies.