(STE-A) Stora Enso Oyj ser. - Ratings and Ratios

Stora Enso Oyj (STE-A) is a leading global provider of renewable solutions across packaging, biomaterials, wooden constructions, and paper industries. Headquartered in Helsinki, Finland, the company leverages its expertise in sustainable forestry and biomaterial innovation to deliver high-performance, eco-friendly products. Stora Enso operates through six key segments: Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and Other.

Its Packaging Materials division replaces fossil-based materials with renewable alternatives, offering virgin and recycled fiber-based packaging solutions for food, beverage, pharmaceutical, and transport industries. The division focuses on creating lightweight, durable, and fully recyclable materials that meet stringent sustainability standards.

The Packaging Solutions segment specializes in fiber-based packaging products, including carton and corrugated boards, bespoke packaging, and trays tailored for retail, e-commerce, and industrial applications. This division emphasizes customization, functionality, and sustainability to meet the evolving demands of modern supply chains.

The Biomaterials segment produces a range of pulps for packaging, paper, tissue, and hygiene products. Additionally, it extracts tall oil and turpentine from biomass, which are used in bioenergy, chemicals, and other industrial applications. This division plays a critical role in the circular economy by converting biomass into high-value, renewable products.

The Wood Products division offers innovative wood-based solutions, including digital design tools for construction projects, applications for windows and doors, and sustainable wood pellets for heating. This segment highlights Stora Ensos commitment to advancing sustainable building practices and renewable energy solutions.

The Forest segment manages sustainable forestry operations, ensuring responsible wood sourcing and reforestation practices. It also supplies raw materials to the companys production facilities, maintaining a balanced approach between resource utilization and environmental stewardship.

The Other segment focuses on energy production, generating electricity and heat primarily for internal use and external sales. This contributes to the companys energy independence and supports its broader sustainability goals.

Stora Enso serves a diverse customer base, including packaging manufacturers, brand owners, retailers, converters, and construction companies. With a strong emphasis on innovation and sustainability, the company has established itself as a leader in the renewable materials sector. Incorporated in 1996, Stora Enso continues to expand its portfolio of eco-friendly products and solutions.

Ticker Symbol: STE-A
Exchange: ST
Type: common stock
Country Origin: Finland
GICS Sub Industry: Paper & Plastic Packaging Products & Materials
Web URL: https://www.storaenso.com

3-Month Forecast:
Based on the current technical and fundamental data, Stora Enso Oyj (STE-A) is expected to face headwinds in the short term. The stock price has fallen below its SMA20 and SMA50 levels, indicating bearish momentum. The SMA200 remains above the current price, suggesting potential long-term support at the 117.04 level. However, with an ATR of 3.95, volatility is expected to remain elevated. The stock may test the lower end of its recent range, potentially reaching 85.00-87.50 in the next three months.

Fundamentally, the companys forward P/E of 13.87 suggests moderate valuations, but the negative RoE of -1.21 raises concerns about profitability. The P/B ratio of 0.69 indicates undervaluation relative to book value, which could attract value investors. However, the P/S ratio of 8.18 reflects elevated valuations relative to sales, which may limit upside potential in the near term. Overall, the stock is likely to remain range-bound with a bearish bias, driven by technical weakness and mixed fundamental signals.