STORA ENSO Debt To Equity vs. Return On Asset

ENUA Stock  EUR 9.60  0.02  0.21%   
Considering STORA ENSO's profitability and operating efficiency indicators, STORA ENSO OYJ may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess STORA ENSO's ability to earn profits and add value for shareholders.
For STORA ENSO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of STORA ENSO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well STORA ENSO OYJ utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between STORA ENSO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of STORA ENSO OYJ over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between STORA ENSO's value and its price as these two are different measures arrived at by different means. Investors typically determine if STORA ENSO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, STORA ENSO's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

STORA ENSO OYJ Return On Asset vs. Debt To Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining STORA ENSO's current stock value. Our valuation model uses many indicators to compare STORA ENSO value to that of its competitors to determine the firm's financial worth.
STORA ENSO OYJ is one of the top stocks in debt to equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about  0.09  of Return On Asset per Debt To Equity. The ratio of Debt To Equity to Return On Asset for STORA ENSO OYJ is roughly  10.66 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the STORA ENSO's earnings, one of the primary drivers of an investment's value.

STORA Return On Asset vs. Debt To Equity

Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

STORA ENSO

D/E

 = 

Total Debt

Total Equity

 = 
0.53 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

STORA ENSO

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0499
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

STORA Return On Asset Comparison

STORA ENSO is currently under evaluation in return on asset category among its peers.

STORA ENSO Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in STORA ENSO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, STORA ENSO will eventually generate negative long term returns. The profitability progress is the general direction of STORA ENSO's change in net profit over the period of time. It can combine multiple indicators of STORA ENSO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries worldwide. The company was founded in 1998 and is headquartered in Helsinki, Finland. STORA ENSO operates under Paper Paper Products classification in Germany and is traded on Frankfurt Stock Exchange. It employs 23000 people.

STORA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on STORA ENSO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of STORA ENSO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the STORA ENSO's important profitability drivers and their relationship over time.

Use STORA ENSO in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if STORA ENSO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in STORA ENSO will appreciate offsetting losses from the drop in the long position's value.

STORA ENSO Pair Trading

STORA ENSO OYJ Pair Trading Analysis

The ability to find closely correlated positions to STORA ENSO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace STORA ENSO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back STORA ENSO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling STORA ENSO OYJ to buy it.
The correlation of STORA ENSO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as STORA ENSO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STORA ENSO OYJ moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for STORA ENSO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your STORA ENSO position

In addition to having STORA ENSO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Hedge Favorites
Hedge Favorites Theme
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Other Information on Investing in STORA Stock

To fully project STORA ENSO's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of STORA ENSO OYJ at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include STORA ENSO's income statement, its balance sheet, and the statement of cash flows.
Potential STORA ENSO investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although STORA ENSO investors may work on each financial statement separately, they are all related. The changes in STORA ENSO's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on STORA ENSO's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.