DB:HBQ

Stock Analysis Report

Executive Summary

Hofseth BioCare ASA, a biotech company, offers value added biomarine ingredients and finished products for human consumption and pet in Norway.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Hofseth BioCare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HBQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

HBQ

-2.3%

DE Biotechs

-0.2%

DE Market


1 Year Return

209.2%

HBQ

8.4%

DE Biotechs

13.7%

DE Market

Return vs Industry: HBQ exceeded the German Biotechs industry which returned 8.4% over the past year.

Return vs Market: HBQ exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

HBQIndustryMarket
7 Day-2.5%-2.3%-0.2%
30 Day-20.0%-3.2%0.3%
90 Day-14.8%6.3%3.7%
1 Year209.2%209.2%8.6%8.4%17.2%13.7%
3 Yearn/a44.5%42.9%15.4%5.3%
5 Yearn/a13.0%10.6%21.3%4.7%

Price Volatility Vs. Market

How volatile is Hofseth BioCare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hofseth BioCare undervalued compared to its fair value and its price relative to the market?

20.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HBQ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HBQ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HBQ is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: HBQ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HBQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBQ is overvalued based on its PB Ratio (20.1x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Hofseth BioCare forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.5%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hofseth BioCare has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hofseth BioCare performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBQ is currently unprofitable.

Growing Profit Margin: HBQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HBQ is unprofitable, but has reduced losses over the past 5 years at a rate of 6% per year.

Accelerating Growth: Unable to compare HBQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HBQ is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: HBQ has a negative Return on Equity (-64.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hofseth BioCare's financial position?


Financial Position Analysis

Short Term Liabilities: HBQ's short term assets (NOK148.3M) exceed its short term liabilities (NOK69.4M).

Long Term Liabilities: HBQ's short term assets (NOK148.3M) exceed its long term liabilities (NOK107.0M).


Debt to Equity History and Analysis

Debt Level: HBQ's debt to equity ratio (91.2%) is considered high.

Reducing Debt: HBQ's debt to equity ratio has reduced from 117.3% to 91.2% over the past 5 years.


Balance Sheet

Inventory Level: HBQ has a high level of physical assets or inventory.

Debt Coverage by Assets: HBQ's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HBQ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: HBQ has sufficient cash runway for 1.7 years if free cash flow continues to grow at historical rates of 12% each year.


Next Steps

Dividend

What is Hofseth BioCare's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HBQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HBQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HBQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HBQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HBQ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Roger Hofseth (45yo)

2.5yrs

Tenure

kr483,708

Compensation

Mr. Roger Hofseth has been the Chief Executive Officer of Hofseth BioCare ASA since August 14, 2017. He is Director at Aqua Bio Technology ASA since January 9, 2019. Mr. Hofseth serves as the Chief Executi ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD625.18K).

Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jon Ødegård
Chief Financial Officer3.5yrskr1.63m0.70% NOK1.8m
Bomi Framroze
Chief Scientific Officer10.1yrskr4.33m0.27% NOK686.9k
Henriette Heggdal
Lab Manager & Director6.2yrskr902.00kno data
Roger Hofseth
Chief Executive Officer2.5yrskr483.71k14.71% NOK37.1m
Karl Slotsvik
Chief Operating Officer2.8yrsno datano data
Kai Thuen
Marketing Manager5.5yrskr902.00kno data
Matt Mixter
Managing Partner of Hofseth North America4.1yrskr1.09mno data
Olav Flaten
Executive0yrsno datano data

4.1yrs

Average Tenure

42yo

Average Age

Experienced Management: HBQ's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Henriette Heggdal
Lab Manager & Director6.2yrskr902.00kno data
Ola Holen
Chairman2.4yrskr138.00k0.16% NOK410.5k
Christoph Baldegger
Independent Director5.1yrskr96.00k0.18% NOK449.3k
Torill Eliassen
Independent Director4.7yrskr116.00kno data

4.9yrs

Average Tenure

46yo

Average Age

Experienced Board: HBQ's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18%.


Top Shareholders

Company Information

Hofseth BioCare ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hofseth BioCare ASA
  • Ticker: HBQ
  • Exchange: DB
  • Founded: 2000
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr2.541b
  • Listing Market Cap: kr252.409m
  • Shares outstanding: 325.82m
  • Website: https://www.hofsethbiocare.no

Number of Employees


Location

  • Hofseth BioCare ASA
  • Havnegata 11
  • Ålesund
  • Møre og Romsdal
  • 6005
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBCOB (Oslo Bors)YesCommon SharesNONOKDec 2011
0Q6HLSE (London Stock Exchange)YesCommon SharesGBNOKDec 2011
HBCOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKDec 2011
HOFB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2011
HBQDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2011

Biography

Hofseth BioCare ASA, a biotech company, offers value added biomarine ingredients and finished products for human consumption and pet in Norway. Its products include OmeGo salmon oil; ProGo, a salmon protein hydrolysate powder used as a fast absorbing protein supplement; and CalGo, a marine calcium powder produced from salmon bones that enhances bone density and bone deposition in older individuals. The company was founded in 2000 and is headquartered in Ålesund, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:58
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.