OB:HYARD

Stock Analysis Report

Executive Summary

Havyard Group ASA primarily engages in shipbuilding, engineering, ship design, and ship equipment businesses worldwide.

Rewards

Trading at 99% below its fair value

Risk Analysis

Earnings have declined by -50.69% per year over past 5 years

Does not have a meaningful market cap (NOK72M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Havyard Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

HYARD

-7.8%

NO Machinery

-0.8%

NO Market


1 Year Return

-72.0%

HYARD

11.5%

NO Machinery

4.9%

NO Market

Return vs Industry: HYARD underperformed the Norwegian Machinery industry which returned 21.7% over the past year.

Return vs Market: HYARD underperformed the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

HYARDIndustryMarket
7 Day-1.7%-7.8%-0.8%
30 Day-8.8%-3.3%1.1%
90 Day-19.4%6.3%4.4%
1 Year-72.0%-72.0%17.5%11.5%10.5%4.9%
3 Year-69.1%-69.1%8.7%2.6%31.4%15.1%
5 Year-88.5%-88.8%67.0%43.4%64.3%26.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Havyard Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HYARD (NOK2.92) is trading below our estimate of fair value (NOK285.74)

Significantly Below Fair Value: HYARD is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HYARD is good value based on its PB Ratio (0.4x) compared to the NO Machinery industry average (1x).


Next Steps

Future Growth

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

10.7%

Forecasted Capital Goods 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 Havyard Group 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 Havyard Group performed over the past 5 years?

-50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HYARD is currently unprofitable.

Growing Profit Margin: HYARD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HYARD is unprofitable, and losses have increased over the past 5 years at a rate of -50.7% per year.

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

Earnings vs Industry: HYARD is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (2.7%).


Return on Equity

High ROE: HYARD has a negative Return on Equity (-82.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Havyard Group's financial position?


Financial Position Analysis

Short Term Liabilities: HYARD's short term assets (NOK2.6B) do not cover its short term liabilities (NOK2.9B).

Long Term Liabilities: HYARD's short term assets (NOK2.6B) exceed its long term liabilities (NOK65.8M).


Debt to Equity History and Analysis

Debt Level: HYARD's debt to equity ratio (454.3%) is considered high.

Reducing Debt: HYARD's debt to equity ratio has increased from 97.1% to 454.3% over the past 5 years.


Balance Sheet

Inventory Level: HYARD has a low level of unsold assets or inventory.

Debt Coverage by Assets: HYARD's debt is covered by short term assets (assets are 2.3x 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: Whilst unprofitable HYARD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HYARD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.7% per year.


Next Steps

Dividend

What is Havyard Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.5%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate HYARD'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 HYARD's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: HYARD is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Havyard Group's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Gunnar Larsen 0

0.08yrs

Tenure

kr1,346,000

Compensation

Mr. Gunnar Larsen serves as Senior Vice President of Market at Havyard Group ASA and is its Interim Chief Executive Officer since December 2, 2019. He served as Senior Vice President of Market & Business D ...


CEO Compensation Analysis

Compensation vs Market: Gunnar's total compensation ($USD151.62K) is below average for companies of similar size in the Norwegian market ($USD423.16K).

Compensation vs Earnings: Gunnar's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.5yrs

Average Tenure

Experienced Management: HYARD's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

50yo

Average Age

Experienced Board: HYARD's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buykr56,41008 Jul 19
Helge Simonnes
EntityIndividual
Shares7,307
Max Pricekr7.72
Buykr37,07514 Jun 19
Helge Simonnes
EntityIndividual
Shares4,693
Max Pricekr7.90
Buykr97,68007 Jun 19
Helge Simonnes
EntityIndividual
Shares12,000
Max Pricekr8.14

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Management Team

  • Stig Espeseth

    Executive Vice President of Havyard Design & Solutions AS

    • Gunnar Larsen

      CEO & Senior Vice President of Market

      • Tenure: 0.08yrs
      • Compensation: kr1.35m
    • Tor Mongstad

      Executive Vice President of Norwegian Electric Systems AS

      • Jan Berg

        Executive Vice President of Business Development - Norwegian Electric Systems-Sub

        • Lasse Stokkeland (49yo)

          Executive Vice President of Havyard Ship Technology AS

          • Frank-Levi Kvalsund

            Senior Vice President of HR/QHSE

            • Compensation: kr1.55m
          • Dag Alvik

            Chief Procurement Officer

            • Compensation: kr1.47m
          • Ricardo Aquirre

            Managing Director of MMC Peru

            • Håvard Gjelseth

              Managing Director of MMC Green Technology AS

              • Tenure: 8.3yrs
            • Pål Aurvåg

              Chief Financial Officer

              • Tenure: 4.5yrs
              • Compensation: kr1.74m

            Board Members

            • Svein Milford (75yo)

              Director of Norwegian Electric Systems

              • Hege Rabben (48yo)

                Director

                • Vegard Sævik (41yo)

                  Chairman

                  • Tenure: 2.3yrs
                • Svein Gjelseth (69yo)

                  Director

                  • Petter Frøystad (42yo)

                    Director

                    • Torill Haddal (48yo)

                      Director

                      • Stig Breidvik (52yo)

                        Director

                        • Tenure: 4.1yrs
                      • Hege Notøy (53yo)

                        Director

                        • Tenure: 2.3yrs

                      Company Information

                      Havyard Group ASA's company bio, employee growth, exchange listings and data sources


                      Key Information

                      • Name: Havyard Group ASA
                      • Ticker: HYARD
                      • Exchange: OB
                      • Founded: 1999
                      • Industry: Construction Machinery and Heavy Trucks
                      • Sector: Capital Goods
                      • Market Cap: kr71.705m
                      • Shares outstanding: 24.73m
                      • Website: https://www.havyard.com

                      Number of Employees


                      Location

                      • Havyard Group ASA
                      • Havyard House
                      • Holmefjordvegen 1
                      • Fosnavåg
                      • Møre og Romsdal
                      • 6090
                      • Norway

                      Listings

                      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                      HYARDOB (Oslo Bors)YesOrdinary SharesNONOKJul 2014
                      HYARDOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2014
                      0QWRLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2014

                      Biography

                      Havyard Group ASA primarily engages in shipbuilding, engineering, ship design, and ship equipment businesses worldwide. It operates in five segments: Ship Technology, Design & Solutions, Power & Systems, Fish Handling, and Havyard Production. The Ship Technology segment constructs and repairs offshore vessels, windmill service vessels, live-fish carriers, fishing vessels, and other specialty vessels. The Design & Solutions segment develops, sells, and delivers ship design and engineering, and system packages to yards and shipping companies. The Power & Systems segment manufactures and supplies diesel- and hybrid-electric propulsion systems, including boards, electromechanical products, and automation and safety systems; designs, engineers, and installs electrical systems; and develops and delivers control and automation systems for ships. The Fish Handling segment delivers solutions for handling and cooling of seafood onboard fishing vessels and live fish carriers, and in on-shore plants; and produces, rents, and sells waste machines. The Havyard Production segment hires out personnel; and pre-fabricates steel products, including piping, switchboards, and starters. The company was founded in 1999 and is headquartered in Fosnavåg, Norway. 


                      Company Analysis and Financial Data Status

                      All financial data provided by Standard & Poor's Capital IQ.
                      DataLast Updated (UTC time)
                      Company Analysis2020/01/24 22:28
                      End of Day Share Price2020/01/24 00:00
                      Earnings2019/06/30
                      Annual Earnings2018/12/31


                      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.