Stora Enso as an investment

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Why to invest in Stora Enso

Stora Enso is the renewable materials growth company, delivering sustainable profitable growth.

Three reasons to invest in Stora Enso:

  • Continuous strategic growth
  • Businesses driven by clear financial targets
  • Financially strong company

Stora Enso is creating a renewable future in the bioeconomy by providing products based on wooden fibres that are replacing non-renewable materials. Megatrends support our future, enabling us to be truly the renewable materials growth company. All our divisions, excluding Paper operate in growth markets, and Stora Enso has set a Group level financial target to grow faster than the relevant market, excluding Paper. The divisions are well-positioned for growth, with strong market positions, including #1 in LPB, FSB and CUK in the world.


Stora Enso has completed a major asset transformation and now the focus is on improving sales and innovation, with continued strategic growth investments. All our divisions have clear financial targets and these Operational ROOC targets also drive our capex allocation. Stora Enso’s aim is to keep the capex at or below depreciation and depletion over the business cycle.

Stora Enso has defined clear strategic targets for each division and the Group. The targets will enable the markets to better follow each division’s performance, while guiding the divisions to implement the Group’s strategy. As the divisions operate in very distinct business environments, the targets vary between the divisions. All divisions excluding Paper have Operational ROOC (Operational Return on Operating Capital) percentage set as the key divisional financial target, while the target set for Paper focuses on its cash flow generation. The targets are defined to be ambitious but reachable within a 5-year planning horizon.

Stora Enso has a strong balance sheet, thanks to strong cash flow generation combined with sale of noncore assets. We have also reduced our capital expenditure, in accordance with our policy, to the level of depreciation and depletion. In 2018, the targets for net debt to Operational EBITDA were revised to below 2 from 3 and Debt/equity to below 0.6 from 0.8, demonstrating the success of the transformation.

Stora Enso’s dividend policy outlines that the Group strives to pay stable dividends linked to the long-term performance and to distribute 50% of net income over the cycle. Stora Enso has increased its dividend by 10-12% in 2015-2017.

Please find Group and Divisional financial target as well as more information about Stora Enso's capex allocation below.

Find out more

Through the selected links below you can find out more about our company.

Group financial targets

​KPI​Target​Outcome 2017​Outcome 2016​Outcome 2015
Payout ratio, %​To distribute 50% of net income over the cycle​52%​63%​32%
Operational ROCE, %​​>13%​11.9%​10.2%10.6%
Sales growth excl. Paper​​To grow faster than the relevant market​8.5%​3.1%​4.6%
Net Debt / last 12 months'  Operational EBITDA​<2.0x​1.4​2.02.4
​Fixed Costs to sales<20%​​25.1%​25.3%25.0%
Debt/equity ratio​​<0.60​0.38​0.470.60​

Key divisional financial targets

​Division​KPI​TargetOutcome 2017
Consumer Board​​Operational ROOC​​>20%14.6%
Packaging Solutions​Operational ​ROOC​>20%19.6%
Biomaterials​​Operational ROOC​>15%10.5%
Wood Products​​Operational ROOC​>20%20.5%
Paper​​Cash flow after investing activities to Sales​>7%5.5%

Capex allocation

Stora Enso has completed a significant asset transformation and is now targeting to keep the capital expenditure at or lower level of depreciation and depletion (operational decrease in the value of biological assets).

In recent years, Stora Enso has actively transformed its asset base through closures and divestments, strenghtening its balance sheet. At the same time, the company has made large scale investments – including the establishment of the Montes del Plata pulp Mill, Uruguay and the consumer board mill in Beihai, China. Transformation has been visible also on smaller scale, including investments made in Varkaus Mill (conversion and LVL), Murów sawmill, Sunila (bio-refinery), Ingerois (MFC) and Skutskär (fluff pulp).

Ongoing investments include Maxau boiler green energy generation and on acquisition side, letter of intent aiming at structural changes in Bergvik Skog has been signed. Stora Enso is also conducting a feasibility study at Oulu Mill. The potential EUR 700 million investment would aim to convert the current fine paper production to board grades. The feasibility study is expected to be concluded by the end of 2018–early 2019.

 EUR million  Forecast 2018
 Capital expenditure*  550 - 600
 Depreciation  485 - 505
 Operational decrease in biological asset values  50 - 70

The current capital expenditure forecast includes maintenance capex, strategic capex and biological capex.

Capital allocation