Stora Enso: Risk lies in the market situation being perfect
Stora Enso's short-term market situation is strong and robust earnings growth seems to continue this year. However, the risk of approaching a cyclical earnings peak is still too great in our view, and we also estimate that the market is also becoming increasingly nervous about that. Thus, we don't see purchases worth the risks at this stage, even though the valuation multiples for the current year are very low and there is a reasonable probability that Stora Enso will raise its guidance for the current year.
Stora Enso
Stora Enso is a global forest industry group. The business segments include the production and development of newsprint and book paper, consumer boxes, industrial packaging and other wood products. The group is active on a global level with the largest presence in Europe and North America. The company was founded in 1998 at the merger of Finska Enso and Swedish Stora Kopparbergs Bergslags Aktiebolag. The head office is located in Helsinki.
Read more on company pageKey Estimate Figures28.04.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 10,164.0 | 11,300.8 | 10,710.6 |
growth-% | 18.84 % | 11.18 % | -5.22 % |
EBIT (adj.) | 1,528.0 | 1,815.3 | 1,366.7 |
EBIT-% (adj.) | 15.03 % | 16.06 % | 12.76 % |
EPS (adj.) | 1.56 | 1.69 | 1.24 |
Dividend | 0.55 | 0.65 | 0.70 |
Dividend % | 3.31 % | 5.04 % | 5.43 % |
P/E (adj.) | 10.61 | 7.63 | 10.39 |
EV/EBITDA | 6.86 | 5.40 | 6.56 |