ICSE:MAREL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Marel hf's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAREL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

MAREL

-3.2%

IS Machinery

0.8%

IS Market


1 Year Return

25.2%

MAREL

4.4%

IS Machinery

3.9%

IS Market

Return vs Industry: MAREL exceeded the IS Machinery industry which returned 4.4% over the past year.

Return vs Market: MAREL exceeded the IS Market which returned 3.9% over the past year.


Shareholder returns

MARELIndustryMarket
7 Day-0.3%-3.2%0.8%
30 Day9.7%1.3%9.0%
90 Day2.1%2.6%2.6%
1 Year27.4%25.2%7.3%4.4%5.0%3.9%
3 Year121.9%111.8%0.8%-9.8%-4.2%-7.5%
5 Year244.2%223.1%56.5%33.2%-26.8%-31.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAREL (ISK735) is trading above our estimate of fair value (ISK475.27)

Significantly Below Fair Value: MAREL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAREL is poor value based on its PE Ratio (40.1x) compared to the XE Machinery industry average (21.8x).

PE vs Market: MAREL is poor value based on its PE Ratio (40.1x) compared to the IS market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MAREL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MAREL is overvalued based on its PB Ratio (3.6x) compared to the XE Machinery industry average (1.5x).


Next Steps

Future Growth

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

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAREL's forecast earnings growth (27.9% per year) is above the savings rate (5.1%).

Earnings vs Market: MAREL's earnings (27.9% per year) are forecast to grow faster than the IS market (22% per year).

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

Revenue vs Market: MAREL's revenue (10.1% per year) is forecast to grow faster than the IS market (6% per year).

High Growth Revenue: MAREL's revenue (10.1% 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%).


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

How has Marel hf performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAREL has high quality earnings.

Growing Profit Margin: MAREL's current net profit margins (6.9%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: MAREL's earnings have grown by 13.2% 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 (-39.2%) over the past year, making it difficult to compare to the Machinery industry average (-22.6%).


Return on Equity

High ROE: MAREL's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Marel hf's financial position?


Financial Position Analysis

Short Term Liabilities: MAREL's short term assets (€472.8M) exceed its short term liabilities (€452.0M).

Long Term Liabilities: MAREL's short term assets (€472.8M) exceed its long term liabilities (€243.2M).


Debt to Equity History and Analysis

Debt Level: MAREL's debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: MAREL's debt to equity ratio has reduced from 56.2% to 15.6% over the past 5 years.

Debt Coverage: MAREL's debt is well covered by operating cash flow (140.8%).

Interest Coverage: MAREL's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAREL's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the IS market (1.3%).

High Dividend: MAREL's dividend (1.3%) is low compared to the top 25% of dividend payers in the IS market (3.26%).


Stability and Growth of Payments

Stable Dividend: MAREL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MAREL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.3%), MAREL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Árni Thórdarson (51 yo)

6.92yrs

Tenure

€1,279,000

Compensation

Mr. Árni Oddur Thórdarson 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: Árni's total compensation ($USD1.51M) is about average for companies of similar size in the IS market ($USD1.78M).

Compensation vs Earnings: Árni's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Árni Thórdarson
Chief Executive Officer6.92yrs€1.28m0.018%
€ 96.9m
Linda Jónsdóttir
CFO and Executive VP of Finance6yrs€46.00kno data
Audbjorg Olafsdottir
Corporate Director of Investor Relations & Communications6yrsno datano data
Ulrika Lindberg
Executive Vice President of Global Markets & Services0.58yrno datano data
David Wilson
Executive Vice President of Marel Meat9yrs€232.00kno data
Howard Sims
Managing Director of the Grimsby Plantno datano datano data
Rob Smith
Head of Operationsno datano datano data
Arni Sigurdsson
Chief Strategy Officer & Executive VP of Strategic Business Unitsno datano datano data
Folkert Bölger
Executive Vice President of Global Supply Chain3.33yrsno datano data
Roger Claessens
Executive Vice President of Marel Poultry1.08yrsno datano data
Anna Palsdottir
Executive Vice President of Innovation0.58yrno datano data
Gudbjorg Gudmundsdottir
Executive Vice President of Marel Fish0.58yrno datano data

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: MAREL's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thorkild Christensen
Managing Director of Carnitech A/S and Director of Carnitech A/Sno data€201.00kno data
Ann Savage
Independent Director7.58yrs€60.00kno data
Magnús Ólason
Director of Marel UKno datano datano data
Diego Lages
Director of Marel Spainno datano datano data
Arnbjörn Eyþórsson
Director of Marel Australiano datano datano data
Jesper Christensen
Director of Marel Deutschland & Marel TVMno datano datano data
Ásthildur Otharsdóttir
Independent Chairman of the Board6.92yrs€156.00kno data
Arnar Másson
Independent Vice Chairman6.92yrs€108.00kno data
Lillie Valeur
Director0.58yrno datano data
Ástvaldur Jóhannsson
Independent Director6.58yrs€60.00kno data
Ton Van der Laan
Director1.58yrs€50.00kno data
Olafur Gudmundsson
Director0.17yrno datano data

6.6yrs

Average Tenure

51yo

Average Age

Experienced Board: MAREL's board of directors are considered experienced (6.6 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.


Top Shareholders

Company Information

Marel hf.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marel hf.
  • Ticker: MAREL
  • Exchange: ICSE
  • Founded: 1977
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: Kr549.895b
  • Shares outstanding: 748.16m
  • Website: https://marel.com

Number of Employees


Location

  • Marel hf.
  • Austurhraun 9
  • Garðabær
  • 210
  • Iceland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MARELICSE (OMX Nordic Exchange Iceland)YesOrdinary SharesISISKNov 1995
0MDBLSE (London Stock Exchange)YesOrdinary SharesGBISKNov 1995
MARELENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURNov 1995
MARELABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1995
MAREL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1995

Biography

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 integr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 19:38
End of Day Share Price2020/10/27 00:00
Earnings2020/09/30
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.