UPM-Kymmene UPM.HE
UPM-Kymmene is a Finnish forest industry company that produces paper, pulp, renewable materials, and biofuels, with an integrated business model ranging from forest management to the manufacture of final products. UPM shows acceptable financial health (ND/EBITDA 2.71) and reasonable valuation (forward P/E 13.71), but quality is weak (ROE 6.21%) and the 124% earnings growth is clearly cyclical and unsustainable, warranting caution.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
UPM-Kymmene is a Finnish forest industry company that produces paper, pulp, renewable materials, and biofuels, with an integrated business model ranging from forest management to the manufacture of final products. UPM shows acceptable financial health (ND/EBITDA 2.71) and reasonable valuation (forward P/E 13.71), but quality is weak (ROE 6.21%) and the 124% earnings growth is clearly cyclical and unsustainable, warranting caution.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.1 |
| Quality / Moat | 3.6 |
| Valuation | 6.2 |
| Growth | 6.4 |
| Dividend | 4.4 |
| Momentum | 4.2 |
| Risk & Context | 8.8 |
OVERALL SCORE: 5.7/10
Context and risks
UPM is a Finnish company with operations in Uruguay, where it has a large pulp mill. Regulatory and governance risk in Finland is moderate, and exposure to Uruguay adds additional, though not critical, jurisdictional risk.
News considered in the analysis
- UPM (HLSE:UPM) Stock Could Be 46% Undervalued On Cash Flow Outlook — Análisis de valoración de terceros que sugiere infravaloración; no es un hecho material, pero refuerza la percepción de valor.
- UPM-Kymmene Oyj (UPMKF) (Half Year 2026) Earnings Call Highlights: Strong EBIT Growth Amidst ... — Resultados semestrales con fuerte crecimiento de EBIT, confirmando la mejora operativa ya reflejada en el crecimiento de beneficios del 124%.
- Assessing Whether UPM-Kymmene (HLSE:UPM) Is Quietly Undervalued After Recent Share Price Softness — Otro análisis de valoración de terceros; sin información nueva material.
- UPM-Kymmene Oyj (UPMKF) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic ... — Resultados del primer trimestre ya conocidos y descontados por el mercado.
- A Look At UPM-Kymmene Oyj (HLSE:UPM) Valuation After Recent Annual Results — Análisis de valoración post-resultados anuales; sin información nueva.
Verdict: Hold; the market already discounts the cyclical improvement, and weak moat and dividend sustainability limit upside potential.
Main risk: The main risk is the cyclical nature of the pulp and paper business: current earnings, driven by a cyclical peak, could reverse sharply, putting pressure on a dividend that already consumes 127% of earnings.
Other Basic Materials companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →