Marel hf (ICSE:MAREL) - Share price, News & Analysis

MAREL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

MAREL Stock Overview

Marel hf. develops, manufactures, sells, and distributes processing equipment, systems, software, and services for poultry, meat, and fish industries.

Rewards

Trading at 13.5% below our estimate of its fair value

Earnings are forecast to grow 30.66% per year

Risk Analysis

No risks detected for MAREL from our risk checks.

Marel hf Competitors

Mettler-Toledo International

NYSE:MTD

US$27.9b

Cognex

NasdaqGS:CGNX

US$8.0b

Middleby

NasdaqGS:MIDD

US$7.6b

GEA Group

XTRA:G1A

€6.6b

Price History & Performance

Summary of all time highs, changes and price drops for Marel hf
Historical stock prices
Current Share Price	Kr606.00
52 Week High	Kr979.00
52 Week Low	Kr604.00
Beta	0.31
1 Month Change	-14.89%
3 Month Change	-15.13%
1 Year Change	-32.40%
3 Year Change	8.41%
5 Year Change	75.65%
Change since IPO	14,328.57%

Recent News & Updates

Apr 23

Is Marel hf. (ICE:MAREL) Expensive For A Reason? A Look At Its Intrinsic Value

In this article we are going to estimate the intrinsic value of Marel hf. ( ICE:MAREL ) by taking the expected future...

Shareholder Returns

	MAREL	IS Machinery	IS Market
7D	-3.2%	-1.0%	-2.5%
1Y	-32.4%	-21.4%	-2.4%

Return vs Industry: MAREL underperformed the IS Machinery industry which returned -21.3% over the past year.

Return vs Market: MAREL underperformed the IS Market which returned -2.6% over the past year.

Price Volatility

Is MAREL's price volatile compared to industry and market?
MAREL volatility
MAREL Average Weekly Movement	3.4%
Machinery Industry Average Movement	6.3%
Market Average Movement	4.0%
10% most volatile stocks in IS Market	5.2%
10% least volatile stocks in IS Market	3.0%

Stable Share Price: MAREL is not significantly more volatile than the rest of IS stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MAREL's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1977	7,000	Arni Thordarson	https://marel.com

Marel hf. develops, manufactures, sells, and distributes processing equipment, systems, software, and services for poultry, meat, and fish industries. The company’s Poultry Processing segment offers integrated systems, software, and services for processing broilers, turkeys, and ducks.

Marel hf Fundamentals Summary

How do Marel hf's earnings and revenue compare to its market cap?
MAREL fundamental statistics
Market Cap	€3.31b
Earnings (TTM)	€97.30m
Revenue (TTM)	€1.40b

34.0x

P/E Ratio

2.4x

P/S Ratio

Is MAREL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAREL income statement (TTM)
Revenue	€1.40b
Cost of Revenue	€892.70m
Gross Profit	€505.70m
Other Expenses	€408.40m
Earnings	€97.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	0.13
Gross Margin	36.16%
Net Profit Margin	6.96%
Debt/Equity Ratio	25.5%

How did MAREL perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is Marel hf undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

13.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MAREL (ISK606) is trading below our estimate of fair value (ISK700.61)

Significantly Below Fair Value: MAREL is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: MAREL is poor value based on its Price-To-Earnings Ratio (34x) compared to the European Machinery industry average (16.3x).

PE vs Market: MAREL is poor value based on its Price-To-Earnings Ratio (34x) compared to the IS market (11.7x).

Price to Earnings Growth Ratio

PEG Ratio: MAREL is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: MAREL is overvalued based on its Price-To-Book Ratio (3.2x) compared to the XE Machinery industry average (1.7x).

Future Growth

How is Marel hf forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAREL's forecast earnings growth (30.7% per year) is above the savings rate (4.2%).

Earnings vs Market: MAREL's earnings (30.7% per year) are forecast to grow faster than the IS market (9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAREL's revenue (9.9% per year) is forecast to grow faster than the IS market (4.5% per year).

High Growth Revenue: MAREL's revenue (9.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MAREL's Return on Equity is forecast to be low in 3 years time (15.1%).

Past Performance

How has Marel hf performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAREL has high quality earnings.

Growing Profit Margin: MAREL's current net profit margins (7%) are lower than last year (8.7%).

Past Earnings Growth Analysis

Earnings Trend: MAREL's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: MAREL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MAREL had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Machinery industry average (53.1%).

Return on Equity

High ROE: MAREL's Return on Equity (9.5%) is considered low.

Financial Health

How is Marel hf's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAREL's short term assets (€701.6M) exceed its short term liabilities (€658.4M).

Long Term Liabilities: MAREL's short term assets (€701.6M) exceed its long term liabilities (€393.9M).

Debt to Equity History and Analysis

Debt Level: MAREL's net debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: MAREL's debt to equity ratio has reduced from 82.6% to 25.5% over the past 5 years.

Debt Coverage: MAREL's debt is well covered by operating cash flow (57.5%).

Interest Coverage: MAREL's interest payments on its debt are well covered by EBIT (30.7x coverage).

Balance Sheet

Dividend

What is Marel hf current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAREL's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the IS market (1.74%).

High Dividend: MAREL's dividend (1.17%) is low compared to the top 25% of dividend payers in the IS market (5.49%).

Stability and Growth of Payments

Stable Dividend: MAREL's dividend payments have been volatile in the past 10 years.

Growing Dividend: MAREL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.7%), MAREL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.5%), MAREL's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure

CEO

Arni Thordarson (52 yo)

8.5yrs

Tenure

€1,421,000

Compensation

Mr. Arni Oddur Thordarson has been the Chief Executive Officer of Marel hf since October 31, 2013. Mr. Thórdarson is the Founder of LME eignarhaldsfélag ehf. He has over 15 years of extensive experience on...

CEO Compensation Analysis

Compensation vs Market: Arni's total compensation ($USD1.52M) is about average for companies of similar size in the IS market ($USD1.84M).

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

Leadership Team

Experienced Management: MAREL's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: MAREL's board of directors are considered experienced (3.2 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31