OB:NEL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Nel has significant price volatility in the past 3 months.
  • Nel is covered by less than 3 analysts.

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


Market Performance


7 Day Return

0.3%

OB:NEL

5.0%

NO Electrical

2.6%

NO Market


1 Year Return

105.5%

OB:NEL

5.1%

NO Electrical

-9.1%

NO Market

NEL outperformed the Electrical industry which returned 5.1% over the past year.

NEL outperformed the Market in Norway which returned -9.1% over the past year.


Share holder returns

NELIndustryMarket
7 Day0.3%5.0%2.6%
30 Day13.7%12.0%7.7%
90 Day23.6%6.4%3.2%
1 Year105.5%105.5%8.1%5.1%-4.0%-9.1%
3 Year186.1%186.1%18.5%8.3%50.8%31.1%
5 Year718.7%710.6%47.0%-29.6%47.8%13.1%

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 based on future cash flows and its price relative to the stock market?

4.58x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Nel's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Nel's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Nel is loss making, we can't compare its value to the Europe Electrical industry average.

Nel is loss making, we can't compare the value of its earnings to the Norway market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Nel, we can't assess if its growth is good value.


Price Based on Value of Assets

Nel is overvalued based on assets compared to the Europe Electrical industry average.


Next Steps

Future Growth

How is Nel expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

86.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nel's revenue is expected to grow significantly at over 20% yearly.

Nel's earnings are expected to grow significantly at over 20% yearly.

Nel's revenue growth is expected to exceed the Norway market average.

Nel's earnings growth is expected to exceed the Norway market average.

Nel's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Nel is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Nel performed over the past 5 years?

-55.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nel does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Nel's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Nel's 1-year growth to the Europe Electrical industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Nel has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Nel has efficiently used its assets last year compared to the Europe Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Nel improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Nel's financial position?


Financial Position Analysis

Nel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nel's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nel's level of debt (1.6%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Nel's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 35.7x 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.

Nel has sufficient cash runway for 2.4 years based on current free cash flow.

Unable to confirm if Nel has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Nel's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Nel's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Nel has not reported any payouts.

Unable to verify if Nel's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Nel has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Nel's dividends in 3 years as they are not expected to pay a notable one for Norway.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Jon Løkke (48yo)

3.7yrs

Tenure

kr4,761,000

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

Jon's remuneration is about average for companies of similar size in Norway.

Jon's compensation has increased whilst company is loss making.


Management Age and Tenure

1.1yrs

Average Tenure

50yo

Average Age

The average tenure for the Nel management team is less than 2 years, this suggests a new team.


Board Age and Tenure

13.2yrs

Average Tenure

The average tenure for the Nel board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Nel individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr2,745,08304 Sep 19
David Bow
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Development
Shares380,000
Max Pricekr7.22
Sellkr1,956,32104 Sep 19
Jørn Rosenlund
EntityIndividual
Role
Senior Key Executive
Senior Vice President of NEL Hydrogen Fueling
Shares271,855
Max Pricekr7.22
Sellkr522,900,04704 Jun 19
F9 Investments, LLC
EntityCompany
Shares70,000,000
Max Pricekr7.47
Sellkr321,210,02904 Jun 19
H2 Holding ApS
EntityCompany
Shares43,000,000
Max Pricekr7.47
Buykr90110 Apr 19
Ole Enger
EntityIndividual
Role
Chairman of the Board
Chairman
Shares4,507
Max Pricekr0.20
Buykr80010 Apr 19
Hanne Kristin Holen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max Pricekr0.20

Ownership Breakdown


Management Team

  • David Bow (55yo)

    Senior Vice President of Business Development

    • Tenure: 0.3yrs
    • Compensation: kr2.84m
  • Bent Skisaker (50yo)

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: kr3.39m
  • Jon Løkke (48yo)

    Chief Executive Officer

    • Tenure: 3.7yrs
    • Compensation: kr4.76m
  • Bjørn Simonsen

    Vice President of Investor Relations & Corporate Communication

    • Tenure: 0yrs
    • Compensation: kr2.37m
  • Jørn Rosenlund

    Senior Vice President of NEL Hydrogen Fueling

    • Tenure: 0yrs
    • Compensation: kr2.96m
  • Raluca Leordeanu

    Head of Business Development

    • Tenure: 1.1yrs
    • Compensation: kr1.33m
  • Anders Søreng

    Chief Technology Officer

    • Tenure: 3.3yrs
    • Compensation: kr3.83m
  • Hans Hide

    Senior Vice President of Projects

    • Tenure: 0.5yrs
  • Stein Erdal

    VP of Legal & General Counsel

    • Tenure: 0.7yrs

Board Members

  • Ole Enger (71yo)

    Chairman

    • Tenure: 0.3yrs
  • Alan Hollingsworth

    Member of Scientific Advisory Board - Breast Cancer

    • Tenure: 0yrs
  • Anne-Lise Børresen-Dale

    Member of Scientific Advisory Board - Breast Cancer

    • Tenure: 0yrs
  • Khalid Iqbal

    Member of Scientific Advisory Board - Alzheimer’s disease

    • Tenure: 13.2yrs
  • Dag Aarsland

    Member of Scientific Advisory Board - Alzheimer's Disease

    • Tenure: 13.2yrs
  • Bengt Winblad

    Member of Scientific Advisory Board - Alzheimer's disease

    • Tenure: 13.2yrs
  • Christos Sotiriou

    Member of Scientific Advisory Board - Breast Cancer

    • Tenure: 0yrs
  • Martine Piccart

    Member of Scientific Advisory Board - Breast Cancer

    • Tenure: 0yrs
  • Samuel Gandy

    Member of Scientific Advisory Board - Alzheimer’s disease

    • Tenure: 0yrs
  • Hanne Kristin Holen (55yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: kr450.00k

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: kr8.913b
  • Shares outstanding: 1.22b
  • 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
NELOBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBNOKAug 2004
D7GDB (Deutsche Boerse AG)YesRegistered SharesDEEURAug 2004
NLLS.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDNov 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 Analysis2019/09/15 20:32
End of Day Share Price2019/09/13 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.