- UPM-Kymmene’s dividend per share for the fiscal year surpassed estimates, with EU1.50 per share against the estimated EU1.49.
- The company’s adjusted Ebit for the fourth quarter was EU323 million, beating the estimated EU318.1 million.
- Fourth quarter sales were reported at EU2.53 billion, slightly lower than the estimated EU2.73 billion.
- The adjusted earnings per share (EPS) for the fourth quarter was EU0.46, surpassing the estimated EU0.42.
- Adjusted Ebit margin for the quarter stood at 12.8%.
- The company’s adjusted Ebitda was EU465 million, slightly lower than the estimate of EU477.8 million.
- UPM-Kymmene’s comparable EBIT for the full year 2024 is expected to increase from 2023, thanks to higher delivery volumes, continued ramp-up, and optimisation of the UPM Paso de los Toros pulp mill, along with lower fixed costs.
- The first half (H1) of 2024’s comparable EBIT is expected to be lower than the second half (H2) of 2023, due to energy-related refunds in Q4 2023 and high maintenance activity in H1 2024.
- Despite challenging operating conditions in 2023, UPM delivered solid results, thanks to milestone investments that increased pulp and energy capacity by about 50%.
- UPM Communications Papers achieved strong results in Q4 and the full year of 2023, generating a record-high cash flow and strong results despite low capacity utilisation rates.
- Investment recommendations for UPM-Kymmene currently stand at 13 buys, 5 holds, and 2 sells.
A look at UPM-Kymmene OYJ Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
UPM-Kymmene OYJ, a company that specializes in manufacturing forest products, has a positive long-term outlook according to the Smartkarma Smart Scores. The company has received high scores in the categories of Value, Resilience, and Momentum, with scores of 4 in each category. This indicates that UPM-Kymmene is performing well in terms of its financial value, ability to withstand market volatility, and overall momentum in the industry.
Additionally, UPM-Kymmene has received moderate scores of 3 in the categories of Dividend and Growth. This suggests that while the company may not be experiencing significant growth at the moment, it still offers a stable dividend to its shareholders. Overall, based on the Smartkarma Smart Scores, UPM-Kymmene OYJ appears to be in a strong position for long-term success in the forest products industry.
According to the company’s description, UPM-Kymmene OYJ is a global company that produces a variety of forest products such as magazine papers, newsprint, and specialty papers. It also manufactures self-adhesive labels, industrial wrappings, and packaging papers. The company’s Wood Products division is responsible for producing sawn products, plywood, and other building materials. With its presence in multiple countries, UPM-Kymmene is well-positioned to continue its success in the forest products market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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