Stora Enso: We still favor the peers in the sector
We added M&As announced by the company in September to our estimates and after Friday's Q3 report, we updated our estimates to include the further weakened economic outlook and other market data. Short-term estimate changes are minimal, but we raised the required return due to increased interest rates. Stora Enso's share is already cheap compared to historical levels, but due to increased interest rates and the earnings trend about to make a downturn, we do not expect the market to be enthusiastic about the lowish valuation. We favor UPM and Metsä Board in the sector that still offer slightly more attractive short-term expected returns than Stora Enso.
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 Figures23.10.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 10,164.0 | 11,720.4 | 11,489.3 |
growth-% | 18.84 % | 15.31 % | -1.97 % |
EBIT (adj.) | 1,528.0 | 1,944.9 | 1,327.7 |
EBIT-% (adj.) | 15.03 % | 16.59 % | 11.56 % |
EPS (adj.) | 1.56 | 1.81 | 1.18 |
Dividend | 0.55 | 0.60 | 0.65 |
Dividend % | 3.41 % | 4.35 % | 4.71 % |
P/E (adj.) | 10.31 | 7.61 | 11.67 |
EV/EBITDA | 6.70 | 5.91 | 7.02 |