Fact based stock research
Stora Enso (HLSE:STERV)
FI0009005961
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Stora Enso stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 5 (worse than 95% compared with investment alternatives), Stora Enso (Paper Products, Finland) shares have lower financial characteristics compared with similar stocks. Shares of Stora Enso are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 21), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 5, is a sell recommendation based on Stora Enso's financial characteristics. As the company Stora Enso's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 31), low growth (Obermatt Growth Rank of 29), and risky financing practices (Obermatt Safety Rank of 21), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Finland |
| Industry | Paper Products |
| Index | OMX 25, Low Emissions, Energy Efficient, Human Rights, SDG 12, SDG 13, SDG 15, Water Efficiency |
| Size class | X-Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Stora Enso
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 61 |
|
35 |
|
31 |
|
31 |
|
| GROWTH | ||||||||
| GROWTH | 28 |
|
57 |
|
5 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 24 |
|
17 |
|
61 |
|
21 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
46 |
|
8 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
21 |
|
1 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 5 (worse than 95% compared with investment alternatives), Stora Enso (Paper Products, Finland) shares have lower financial characteristics compared with similar stocks. Shares of Stora Enso are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 21), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 5, is a sell recommendation based on Stora Enso's financial characteristics. As the company Stora Enso's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 31), low growth (Obermatt Growth Rank of 29), and risky financing practices (Obermatt Safety Rank of 21), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 61 |
|
35 |
|
31 |
|
31 |
|
| GROWTH | ||||||||
| GROWTH | 28 |
|
57 |
|
5 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 24 |
|
17 |
|
61 |
|
21 |
|
| COMBINED | ||||||||
| COMBINED | 26 |
|
19 |
|
11 |
|
5 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Stora Enso shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Stora Enso. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 72, which means that the stock price is lower compared with invested capital than for 72% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 42 which means the stock price compared with what market professionals expect for future profits is higher than 58% of comparable companies, indicating a low value concerning Stora Enso's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 72 and for the dividend yields rank which is lower than for 59% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Stora Enso's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Stora Enso, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 41 |
|
33 |
|
37 |
|
42 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 47 |
|
33 |
|
17 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 73 |
|
57 |
|
71 |
|
72 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 63 |
|
69 |
|
30 |
|
41 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 61 |
|
35 |
|
31 |
|
31 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Stora Enso shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Stora Enso. Sales Growth has a rank of 63, which means that, currently, professionals expect the company to grow more than 63% of its competitors. Profit Growth with a rank of 73 is also above average. But Capital Growth has only a rank of 10, and Stock Returns with 25 are also below-average. Stock returns for Stora Enso have recently been below 75% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Stora Enso. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 24 |
|
16 |
|
37 |
|
63 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 53 |
|
69 |
|
10 |
|
73 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
89 |
|
14 |
|
10 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 29 |
|
31 |
|
41 |
|
25 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 28 |
|
57 |
|
5 |
|
29 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 21 (better than 21% compared with alternatives), the company Stora Enso has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Stora Enso is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Stora Enso and the other two below average. Leverage is at a rank of 50 meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors.Refinancing is at a rank of 31, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 69% of its competitors. Liquidity is at a rank of 22, meaning that the company generates less profit to service its debt than 78% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 21 (worse than 79% compared with alternatives), Stora Enso has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Stora Enso are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Stora Enso and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 43 |
|
42 |
|
66 |
|
50 |
|
| REFINANCING | ||||||||
| REFINANCING | 24 |
|
35 |
|
49 |
|
31 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 43 |
|
29 |
|
52 |
|
22 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 24 |
|
17 |
|
61 |
|
21 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
3 |
|
19 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
43 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
72 |
|
32 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
58 |
|
9 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
46 |
|
8 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Stora Enso from November 14, 2024.
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