SEOJF - Stora Enso: Waiting For The Trend To Turn

2024-05-30 10:30:00 ET

Summary

• Stora Enso is shifting its focus from paper to cardboard production at the Oulu mill, aiming for a 20% return on operating capital.
• Q1 results were negatively impacted by a strike and lower sales prices, but the company expects a gradual recovery in 2024.
• The company's net debt continues to increase, but it has sufficient liquidity and expects the debt ratio to decrease in the future.

Introduction

Stora Enso ( SEOAY ) ( SEOJF ) (SEOFF) is slowly reducing its exposure to paper by increasing the exposure to cardboard. One of its idle mills is currently being converted to start producing cardboard, and although that’s weighing on the cash flows, the fact that Stora aims for a 20% return on operating capital bodes well for the future....

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