UPM-Kymmene Oyj
UPM-Kymmene Oyj Fundamental Analysis
UPM-Kymmene Oyj (UPMKF) shows weak financial fundamentals with a PE ratio of 27.60, profit margin of 4.98%, and ROE of 4.78%. The company generates $9.7B in annual revenue with weak year-over-year growth of -1.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UPMKF's fundamental strength across five key dimensions:
Efficiency Score
WeakUPMKF struggles to generate sufficient returns from assets.
Valuation Score
ModerateUPMKF shows balanced valuation metrics.
Growth Score
ModerateUPMKF shows steady but slowing expansion.
Financial Health Score
ExcellentUPMKF maintains a strong and stable balance sheet.
Profitability Score
WeakUPMKF struggles to sustain strong margins.
Key Financial Metrics
Is UPMKF Expensive or Cheap?
P/E Ratio
UPMKF trades at 27.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UPMKF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values UPM-Kymmene Oyj at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.53 times EBITDA. This is generally considered low.
How Well Does UPMKF Make Money?
Net Profit Margin
For every $100 in sales, UPM-Kymmene Oyj keeps $4.98 as profit after all expenses.
Operating Margin
Core operations generate 6.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.78 in profit for every $100 of shareholder equity.
ROA
UPM-Kymmene Oyj generates $2.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UPM-Kymmene Oyj produces operating cash flow of $1.41B, showing steady but balanced cash generation.
Free Cash Flow
UPM-Kymmene Oyj generates strong free cash flow of $977.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
UPMKF converts 7.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How UPMKF Stacks Against Its Sector Peers
| Metric | UPMKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.60 | 24.02 | Worse (Expensive) |
| ROE | 4.78% | 867.00% | Weak |
| Net Margin | 4.98% | -102872.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 5.08 | Neutral |
| ROA | 2.74% | -6488.00% (disorted) | Weak |
UPMKF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UPM-Kymmene Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.99%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-58.91%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-26.80%
Industry Style: Cyclical, Commodity, Value
Declining