-0.25%
3.94%
4.90%
-7.47%
-16.10%
-12.13%
-0.98%
AI Spotlight on UPM
Company Description
UPM-Kymmene Oyj engages in the forest-based bio industry.It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments.The company provides softwood, birch, and eucalyptus pulp for tissue, specialty, and graphic papers and packaging; sawn timber for joinery, packaging, furniture, planning, and construction industries; and wood-based renewable diesel and renewable naphtha for the petrochemical industry.
It is also involved in the generation of electricity through hydro and nuclear power plants.In addition, the company offers self-adhesive label materials for branding and promotion, information, and functional labelling in the food, beverage, personal care, pharmaceutical, and logistics segments; and label papers, release base papers, office papers, and flexible packaging for labelling, packing, commercial siliconizing, and printing, as well as graphic papers for advertising, publishing, and home and office use.Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and parquet manufacturing, as well as for other industrial applications; wood and wood-based biomass, and forestry services for forest investors and owners; wood-based lignin products for industrial use and cell hydrogels for 3D cell culturing; UPM ProFi decking products and UPM formi granules; and biomedical products.
The company primarily operates in Europe, North America, Asia, and internationally.UPM-Kymmene Oyj was founded in 1871 and is headquartered in Helsinki, Finland.
Market Data
| Last Price | 28.25 |
| Change Percentage | -0.25% |
| Open | 28.25 |
| Previous Close | 28.32 |
| Market Cap ( Millions) | 15066 |
| Volume | 386518 |
| Year High | 35.77 |
| Year Low | 24.78 |
| M A 50 | 26.38 |
| M A 200 | 29.82 |
Financial Ratios
| FCF Yield | 3.97% |
| Dividend Yield | 5.31% |
| ROE | 6.30% |
| Debt / Equity | 36.10% |
| Net Debt / EBIDTA | 199.67% |
| Price To Book | 1.39 |
| Price Earnings Ratio | 21.68 |
| Price To FCF | 25.19 |
| Price To sales | 1.47 |
| EV / EBITDA | 12.08 |
News
- 04:02 - 3 Stocks Estimated To Be Undervalued By Up To 44.8%
- Jan -16 - UPM Raflatac unveils new swatchbooks for wine, spirits, beverage and premium labeling
- Jan -02 - Three Stocks Conceivably Priced Below Estimated Value In January 2025
- Dec -04 - 3 Stocks Estimated To Be Up To 42.7% Below Intrinsic Value
- Dec -02 - Change in UPM's Group Executive Team: Susanna Rinne assumes interim role leading UPM Plywood business area as of 1 January 2025
- Nov -27 - UPM Raflatac will close its Kaltenkirchen factory in Germany to improve competitiveness
- Nov -12 - UPM Timber has been awarded Timber Development UK's Sustainability Award
- Oct -31 - UPM Raflatac launches OptiCut™ WashOff linerless label to promote plastic packaging reuse
- Oct -30 - UPM-Kymmene Oyj (UPMKF) Q3 2024 Earnings Call Highlights: Strong EBIT Growth Amidst Sales Decline
- Oct -29 - UPM's financial reports and Annual General Meeting in 2025
- Oct -29 - Mika Kekki appointed Executive Vice President, UPM Specialty Papers business area as of 1 January 2025
- Oct -29 - UPM Interim Report Q3 2024: Comparable EBIT +32% from last year in a challenging market
- Oct -28 - Estimated Value Stocks With Potential Upside In October 2024
- Oct -24 - UPM Specialty Papers and Michelman introduce a new generation of structures for high performance, recyclable paper packaging
- Oct -24 - UPM Biomedicals launches FibGel™ the world's first injectable nanocellulose hydrogel for medical devices
- Oct -16 - Profit warning, inside information: UPM lowers its outlook due to lower deliveries in most businesses and decreased pulp prices
- Oct -09 - UPM Specialty Papers to display new co-created recyclable packaging solutions at PACK EXPO International 2024
- Aug -22 - 3 Stocks Possibly Trading Up To 49% Below Intrinsic Value
- Jul -23 - Power from waste – the world’s biggest biomass power plants
- Jul -23 - UPM Half-Year Financial Report 2024: Comparable EBIT increased by 60% in Q2, UPM Paso de los Toros reached full capacity
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> UPM Communication Papers
Expected Growth : 2.5 %
What the company do ?
UPM Communication Papers from UPM-Kymmene Oyj provides sustainable and innovative paper products for printing, writing, and packaging, serving the global communication market.
Why we expect these perspectives ?
UPM Communication Papers' 2.5% growth is driven by increasing demand for sustainable packaging, growing e-commerce, and rising need for specialty papers. Additionally, UPM-Kymmene Oyj's strategic investments in production capacity, cost savings initiatives, and focus on high-margin products contribute to the segment's growth.
Segment n°2 -> UPM Fibers
Expected Growth : 2.8 %
What the company do ?
UPM Fibers from UPM-Kymmene Oyj produces a range of wood-based fibers, including pulp, timber, and bioenergy, for use in paper, packaging, and construction industries.
Why we expect these perspectives ?
UPM Fibers' 2.8% growth is driven by increasing demand for sustainable packaging, pulp, and paper products. Strong biofuels market and growing use of biocomposites in construction and automotive industries also contribute to growth. Additionally, UPM-Kymmene's strategic investments in production capacity and cost savings initiatives support the segment's expansion.
Segment n°3 -> UPM Raflatac
Expected Growth : 3.2 %
What the company do ?
UPM Raflatac is a leading global supplier of pressure-sensitive labels and RFID tags, part of UPM-Kymmene Oyj, a Finnish forest industry company.
Why we expect these perspectives ?
UPM Raflatac's 3.2% growth driven by increasing demand for sustainable labeling solutions, expansion in emerging markets, and strategic investments in digitalization and product development, enabling the company to capitalize on trends such as e-commerce growth and brand owners' focus on sustainability.
Segment n°4 -> UPM Specialty Papers
Expected Growth : 2.2 %
What the company do ?
UPM Specialty Papers from UPM-Kymmene Oyj produces specialty papers for labeling, packaging, and technical applications, offering a range of products with unique properties.
Why we expect these perspectives ?
UPM Specialty Papers' 2.2% growth is driven by increasing demand for sustainable and specialty paper products, particularly in the packaging and labeling segments. Additionally, the company's focus on innovation, cost savings, and operational efficiency have contributed to its growth. Furthermore, the rising trend of e-commerce and online shopping has led to higher demand for specialty papers used in packaging materials.
Segment n°5 -> Other
Expected Growth : 1.8 %
What the company do ?
UPM-Kymmene Oyj's 'Other' segment includes the forestry and wood products businesses, as well as the company's stakes in associated companies and joint ventures.
Why we expect these perspectives ?
UPM-Kymmene Oyj's 1.8% growth is driven by increasing demand for sustainable packaging, growing e-commerce, and rising need for specialty papers. Additionally, the company's strategic focus on innovation, cost savings, and expansion into emerging markets contribute to its growth momentum.
Segment n°6 -> UPM Energy
Expected Growth : 3.5 %
What the company do ?
UPM Energy is a segment of UPM-Kymmene Oyj, a Finnish forest industry company, that generates renewable energy from biomass and hydro power.
Why we expect these perspectives ?
UPM Energy's 3.5% growth is driven by increasing demand for renewable energy, favorable regulatory environment, and strategic investments in bioenergy and wind power. Additionally, growing electricity demand from industrial customers and expanding presence in emerging markets contribute to the segment's growth.
Segment n°7 -> UPM Plywood
Expected Growth : 2.0 %
What the company do ?
UPM Plywood from UPM-Kymmene Oyj is a sustainable, high-quality plywood product used in construction, furniture, and packaging, made from renewable wood resources.
Why we expect these perspectives ?
UPM Plywood's 2.0% growth is driven by increasing demand for sustainable building materials, growth in the construction industry, and rising popularity of eco-friendly furniture. Additionally, UPM-Kymmene's strategic investments in production capacity and product development, as well as its strong market position, contribute to the segment's growth.
Segment n°8 -> Eliminations and Reconciliations
Expected Growth : 0.5 %
What the company do ?
Eliminations and Reconciliations in UPM-Kymmene Oyj refer to the process of removing inter-company transactions and reconciling financial statements to present a consolidated view of the company's financial performance.
Why we expect these perspectives ?
UPM-Kymmene Oyj's 0.5% growth is driven by steady demand for sustainable paper products, efficient cost management, and strategic investments in emerging markets. Additionally, the company's focus on innovation and digitalization has improved operational efficiency, contributing to the modest growth.
Upm-Kymmene Oyj Products
| Product Range | What is it ? |
|---|---|
| Graphic Papers | UPM-Kymmene Oyj produces a wide range of graphic papers for printing, writing, and packaging applications. |
| Specialty Papers | UPM-Kymmene Oyj offers specialty papers for labelling, packaging, and technical applications. |
| Pulp | UPM-Kymmene Oyj produces pulp for paper, board, and tissue products. |
| Timber | UPM-Kymmene Oyj produces sawn timber for construction, furniture, and packaging industries. |
| Bioenergy | UPM-Kymmene Oyj produces bioenergy from wood residues and other biomass. |
| Biorefinery Products | UPM-Kymmene Oyj produces biorefinery products such as biofuels, biochemicals, and bioplastics. |
UPM-Kymmene Oyj's Porter Forces
Threat Of Substitutes
The threat of substitutes for UPM-Kymmene Oyj is moderate due to the availability of alternative products such as recycled paper and digital media.
Bargaining Power Of Customers
The bargaining power of customers is low due to the company's strong brand reputation and diversified customer base.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate due to the company's dependence on wood pulp and other raw materials.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the paper and forest products industry.
Intensity Of Rivalry
The intensity of rivalry is high due to the competitive nature of the industry and the presence of several large players.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 19.89% |
| Debt Cost | 3.95% |
| Equity Weight | 80.11% |
| Equity Cost | 6.27% |
| WACC | 5.81% |
| Leverage | 24.83% |
UPM-Kymmene Oyj : Quality Control
UPM-Kymmene Oyj passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| IBG.MC | Iberpapel Gestión, S.A., together with its subsidiaries, manufactures, sells, and exports writing and printing paper in Spain, rest of European Union, Africa, South America, and internationally. The company operates through … |
| NPAPER.ST | Nordic Paper Holding AB (publ) produces and sells natural greaseproof and kraft paper in Sweden, Italy, Germany, rest of Europe, the United States, and internationally. It offers a range of … |
| ALEXA.PA | Exacompta Clairefontaine S.A. engages in producing, finishing, and formatting of papers in France, Europe, and internationally. It operates through Paper and Processing segments. The company also manufactures stationery, office and … |
| SEM.LS | Semapa - Sociedade de Investimento e Gestão, SGPS, S.A., through its subsidiaries, produces and sells uncoated wood free (UWF) printing and writing paper. It operates through three segments: Pulp and … |
| ATC.WA | Arctic Paper S.A., together with its subsidiaries, produces and sells paper for printing houses, paper distributors, book and magazine publishing houses, and the advertising industries in Poland, Germany, France, the … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Semapa
A-Score
1-Year Total Return ->
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Nordic Paper Holding
A-Score
1-Year Total Return ->
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Iberpapel
A-Score
1-Year Total Return ->
4
Arctic Paper
A-Score
1-Year Total Return ->
5
Exacompta Clairefontaine
A-Score
1-Year Total Return ->
6
