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UPM-Kymmene Oyj

UPM.HE
46
Paper, Lumber & Forest Products · Basic Materials
Price
€22.46
+0.23 (+1.03%)
Market Cap
€11.84B
Exchange
NASDAQ Helsinki
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 25, 2026 · filings through Jun 30, 2026

UPM-Kymmene Oyj, established in 1871 and headquartered in Helsinki, Finland, is a global player in the forest-based bioindustry. The company organizes its diverse operations across several key segments, including UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and other business areas. UPM is a significant producer of wood-derived materials, supplying softwood, birch, and eucalyptus pulp used in the creation of tissue, specialty, graphic papers, and packaging. It also provides sawn timber for various applications in joinery, packaging, furniture, planning, and construction. Beyond traditional timber products, the company innovates in sustainable fuels, producing wood-based renewable diesel and naphtha for the petrochemical sector, and generates electricity from its hydro and nuclear power plants. In the realm of paper and labeling, UPM offers self-adhesive label materials crucial for branding, promotion, and functional labeling across diverse industries such as food, beverage, personal care, pharmaceuticals, and logistics. Its product range also includes label papers, release base papers, office papers, and flexible packaging for printing, packing, and commercial siliconizing, alongside graphic papers tailored for advertising, publishing, and home/office use. Furthermore, UPM is a leading supplier of plywood and veneer products, which are vital for construction, vehicle flooring, liquefied natural gas (LNG) shipbuilding, parquet manufacturing, and various other industrial applications. The company also extends its expertise through forestry services, providing wood and biomass to forest investors and owners. Its innovative offerings encompass wood-based lignin for industrial applications, cell hydrogels for 3D cell culturing, UPM ProFi decking products, UPM formi granules, and a range of biomedical products. UPM maintains an expansive international presence, conducting operations across Europe, North America, Asia, and other global markets.

Winston Score History

Share count broadly stable

0.9% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 533.3M (2021) → 528.6M (2025)

Score breakdown

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Quality

Gross Margin
12.0%
Thin — 12.0% gross margin
Operating Margin
8.8%
Modest — 8.8% operating margin
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-7.1%
Shrinking sales (-7.1% YoY)
EPS YoY
+86.0%
Earnings growing fast (86.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
186%
Turns 186% of profit into real cash
FCF Margin
8.4%
Modest free cash flow (8.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
5.95x
Adequate interest coverage (5.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
18.9x
Fair value — P/E 18.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+8.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.9 → 10.6)

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Dividends

Dividend Yield
6.68%
Healthy income — 6.68% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth
+0.0%
Dividend flat

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