OB:NRC

Stock Analysis Report

Executive Summary

NRC Group ASA, together with its subsidiaries, engages in the infrastructure business in Norway, Sweden, and Finland.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

34.3%

NRC

-6.6%

NO Construction

4.8%

NO Market


1 Year Return

-48.4%

NRC

-27.2%

NO Construction

-24.3%

NO Market

Return vs Industry: NRC underperformed the Norwegian Construction industry which returned -26.7% over the past year.

Return vs Market: NRC underperformed the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

NRCIndustryMarket
7 Day34.3%-6.6%4.8%
30 Day11.6%-28.3%-17.0%
90 Day-43.4%-32.4%-25.0%
1 Year-48.4%-48.4%-24.5%-27.2%-20.3%-24.3%
3 Year-45.4%-47.8%-22.4%-29.8%2.0%-10.7%
5 Year186.1%173.5%-7.5%-24.2%16.7%-9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRC (NOK29.8) is trading below our estimate of fair value (NOK41.54)

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


Price To Earnings Ratio

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

PE vs Market: NRC 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 NRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NRC is good value based on its PB Ratio (0.8x) compared to the XE Construction industry average (0.9x).


Next Steps

Future Growth

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

45.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

Earnings vs Market: NRC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NRC's is expected to become profitable in the next 3 years.

Revenue vs Market: NRC's revenue (7.2% per year) is forecast to grow faster than the Norwegian market (2.9% per year).

High Growth Revenue: NRC's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRC's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has NRC Group performed over the past 5 years?

-22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRC is currently unprofitable.

Growing Profit Margin: NRC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NRC is unprofitable, and losses have increased over the past 5 years at a rate of -22.5% per year.

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

Earnings vs Industry: NRC is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (6.3%).


Return on Equity

High ROE: NRC has a negative Return on Equity (-6.9%), as it is currently unprofitable.


Next Steps

Financial Health

How is NRC Group's financial position?


Financial Position Analysis

Short Term Liabilities: NRC's short term assets (NOK1.8B) do not cover its short term liabilities (NOK1.8B).

Long Term Liabilities: NRC's short term assets (NOK1.8B) exceed its long term liabilities (NOK1.5B).


Debt to Equity History and Analysis

Debt Level: NRC's debt to equity ratio (61.7%) is considered high.

Reducing Debt: NRC's debt to equity ratio has increased from 0.5% to 61.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NRC's debt is covered by short term assets (assets are 1.4x 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: NRC has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: NRC has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.29%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Henning Olsen (41yo)

1.08s

Tenure

Mr. Henning Olsen serves as Chief Executive Officer NRC Group ASA since March 19, 2019. Mr. Olsen comes from the position as executive vice president in AF Gruppen, where he has been responsible for the Bu ...


Leadership Team

NamePositionTenureCompensationOwnership
Dag Fladby
Chief Financial Officer4.08yrskr3.01m0.068% NOK1.5m
Hans Storkås
Managing Director of Norway2.08yrskr1.90m0.030% NOK685.0k
Henning Olsen
Chief Executive Officer1.08yrsno data0.057% NOK1.3m
Egil Huseth
Head of Administrationno datano datano data
Alfred Beck
Legal Counselno datakr3.05mno data
Mikko Salonen
Managing Director of Blom Finland7.25yrsno datano data
Paul Evans
Managing Director of Blom UKno datano datano data
Ralf Schroth
Managing Director of Blom Germanyno datano datano data
Anders Gustafsson
Managing Director of Svensk Järnvägsteknik AB6.25yrsno datano data
Henrik Aquist
Managing Director of Blom Swedenno datano datano data

4.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: NRC's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mats Williamson
Board Member1.75yrsno datano data
Harald Arnet
Board Member4.67yrsno data0.14% NOK3.1m
Helge Midttun
Chairman of the Board4.33yrsno data0.15% NOK3.4m
Brita Eilertsen
Board Member4.92yrsno datano data
Kjersti Kanne
Board Member4.58yrsno data0.0021% NOK46.4k
Rolf Jansson
Independent Director1.25yrsno datano data
Eva Nygren
Independent Director1.25yrsno data0.0014% NOK30.8k

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: NRC's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NRC 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 29.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: NRC Group ASA
  • Ticker: NRC
  • Exchange: OB
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr2.252b
  • Shares outstanding: 72.87m
  • Website: https://www.nrcgroup.com

Number of Employees


Location

  • NRC Group ASA
  • Lysaker Torg 25
  • Lysaker
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRCOB (Oslo Bors)YesOrdinary SharesNONOKJun 1992
0DSJLSE (London Stock Exchange)YesOrdinary SharesGBNOKJun 1992
NNRR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1992
NRCOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJun 1992

Biography

NRC Group ASA, together with its subsidiaries, engages in the infrastructure business in Norway, Sweden, and Finland. It provides rail, harbor, and road related infrastructure services, including groundwork, specialized track work, safety, electro, telecom, and signaling systems, as well as project management, maintenance, and environmental services. The company was formerly known as Blom ASA and changed its name to NRC Group ASA in May 2015. NRC Group ASA is headquartered in Lysaker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 20:35
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.