OB:NEL

Stock Analysis Report

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Executive Summary

Nel ASA, a hydrogen company, delivers various solutions to produce, store, and distribute hydrogen from renewable energy worldwide. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

NEL

0.2%

NO Electrical

1.9%

NO Market


1 Year Return

126.1%

NEL

27.2%

NO Electrical

-12.5%

NO Market

Return vs Industry: NEL exceeded the Norwegian Electrical industry which returned 27.2% over the past year.

Return vs Market: NEL exceeded the Norwegian Market which returned -12.7% over the past year.


Shareholder returns

NELIndustryMarket
7 Day-0.4%0.2%1.9%
30 Day-7.9%2.4%1.5%
90 Day-5.2%18.1%7.7%
1 Year126.1%126.1%30.3%27.2%-9.9%-12.5%
3 Year573.4%573.4%29.5%18.6%9.7%-2.6%
5 Year840.7%840.7%94.6%-7.2%54.4%23.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

50.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: NEL is poor value based on its PE Ratio (50.5x) compared to the XE Electrical industry average (26.4x).

PE vs Market: NEL is poor value based on its PE Ratio (50.5x) compared to the Norwegian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: NEL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NEL is overvalued based on its PB Ratio (5.2x) compared to the XE Electrical industry average (2.7x).


Next Steps

Future Growth

How is Nel forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEL's earnings are forecast to decline over the next 3 years (-20.8% per year).

Earnings vs Market: NEL's earnings are forecast to decline over the next 3 years (-20.8% per year).

High Growth Earnings: NEL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NEL's revenue (38.8% per year) is forecast to grow faster than the Norwegian market (5.1% per year).

High Growth Revenue: NEL's revenue (38.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEL's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Nel performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEL has a high level of non-cash earnings.

Growing Profit Margin: NEL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NEL has become profitable over the past 5 years, growing earnings by -14.6% per year.

Accelerating Growth: NEL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NEL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (-11%).


Return on Equity

High ROE: NEL's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Nel's financial position?


Financial Position Analysis

Short Term Liabilities: NEL's short term assets (NOK3.9B) exceed its short term liabilities (NOK422.5M).

Long Term Liabilities: NEL's short term assets (NOK3.9B) exceed its long term liabilities (NOK279.7M).


Debt to Equity History and Analysis

Debt Level: NEL's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: NEL's debt to equity ratio has reduced from 3.3% to 0.7% over the past 5 years.

Debt Coverage: NEL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if NEL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Nel current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if NEL'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 NEL's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

1.5yrs

Average management tenure


CEO

Jon Løkke (49 yo)

4.67yrs

Tenure

kr4,228,000

Compensation

Mr. Jon Andre Løkke has been the Chief Executive Officer at NEL ASA since January 4, 2016. Mr. Løkke serves as an Executive Officer of Norsk Titanium AS. Mr. Løkke served as the Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD465.59K) is about average for companies of similar size in the Norwegian market ($USD583.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jon Løkke
Chief Executive Officer4.67yrskr4.23m0.19%
NOK 50.6m
Anders Søreng
Chief Technology Officer4.33yrskr4.31m0.041%
NOK 10.7m
Bjørn Simonsen
Vice President of Investor Relations & Corporate Communicationno datakr2.12m0.021%
NOK 5.5m
Stein Erdal
VP of Legal & General Counsel1.33yrskr1.00mno data
Jørn Rosenlund
Senior Vice President of NEL Hydrogen Fuelingno datakr3.26m0.038%
NOK 10.1m
David Bow
Senior Vice President of Corporate Business Development1.67yrskr5.40m0.025%
NOK 6.7m
Hans Hide
Senior Vice President of Projects1.5yrskr1.78mno data
Kjell Bjørnsen
Chief Financial Officer0.50yrno datano data
Tomas Tronstad
Managing Director of Hyonno datano datano data
Filip Smeets
Senior Vice President of Nel Electrolyser Division0.58yrno datano data

1.5yrs

Average Tenure

Experienced Management: NEL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ole Enger
Independent Chairman1.33yrskr438.00k0.011%
NOK 2.8m
Finn Jebsen
Independent Director3.67yrskr281.00kno data
Charlotta Falvin
Independent Director0.33yrno datano data
Tom Røtjer
Independent Director0.33yrno datano data
Beatriz de Molina Laborde
Independent Director3.67yrskr281.00kno data
Hanne Blume
Independent Director1.33yrskr281.00kno data

1.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NEL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Nel ASA
  • Ticker: NEL
  • Exchange: OB
  • Founded: 1927
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: kr26.340b
  • Shares outstanding: 1.41b
  • Website: https://nelhydrogen.com

Number of Employees


Location

  • Nel ASA
  • Karenlyst allé 20
  • Oslo
  • Oslo
  • 278
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NELOB (Oslo Bors)YesRegistered SharesNONOKAug 2004
0E4QLSE (London Stock Exchange)YesRegistered SharesGBNOKAug 2004
NLLS.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDAug 2004
NELOBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBNOKAug 2004
D7GDB (Deutsche Boerse AG)YesRegistered SharesDEEURAug 2004
NLLS.YOTCPK (Pink Sheets LLC)UNSPON ADS EACH REP 30 ORD SHSUSUSDNov 2018
D7GADB (Deutsche Boerse AG)UNSPON ADS EACH REP 30 ORD SHSDEEURNov 2018

Biography

Nel ASA, a hydrogen company, delivers various solutions to produce, store, and distribute hydrogen from renewable energy worldwide. It operates through three segments: Nel Hydrogen Fueling, Nel Hydrogen So ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 03:22
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.