OB:HUNT

Stock Analysis Report

Executive Summary

Hunter Group ASA, an investment company, focuses primarily on shipping and oil services investments.

Rewards

Trading at 62.4% below its fair value

Earnings are forecast to grow 48% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($329K)

Highly volatile share price over past 3 months



Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.4%

HUNT

0.05%

NO Oil and Gas

0.7%

NO Market


1 Year Return

19.1%

HUNT

-18.5%

NO Oil and Gas

-1.3%

NO Market

Return vs Industry: HUNT exceeded the Norwegian Oil and Gas industry which returned -18.5% over the past year.

Return vs Market: HUNT exceeded the Norwegian Market which returned -1.4% over the past year.


Shareholder returns

HUNTIndustryMarket
7 Day4.4%0.05%0.7%
30 Day-25.6%-12.1%-3.0%
90 Day-10.0%-7.7%2.5%
1 Year19.1%19.1%-14.1%-18.5%3.9%-1.3%
3 Year-72.8%-72.8%28.8%13.1%32.2%15.8%
5 Year-92.9%-92.9%43.3%16.3%56.5%21.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hunter 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: HUNT (NOK4.24) is trading below our estimate of fair value (NOK11.27)

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


Price To Earnings Ratio

PE vs Industry: HUNT is poor value based on its PE Ratio (222.5x) compared to the Oil and Gas industry average (18.1x).

PE vs Market: HUNT is poor value based on its PE Ratio (222.5x) compared to the Norwegian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: HUNT is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: HUNT is overvalued based on its PB Ratio (1.4x) compared to the NO Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUNT's forecast earnings growth (48% per year) is above the savings rate (0.7%).

Earnings vs Market: HUNT's earnings (48% per year) are forecast to grow faster than the Norwegian market (18.6% per year).

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

Revenue vs Market: HUNT's revenue (55.3% per year) is forecast to grow faster than the Norwegian market (3.1% per year).

High Growth Revenue: HUNT's revenue (55.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUNT's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Hunter Group performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: HUNT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HUNT has become profitable over the past 5 years, growing earnings by 6.6% per year.

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

Earnings vs Industry: HUNT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18%).


Return on Equity

High ROE: HUNT's Return on Equity (0.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hunter Group's financial position?


Financial Position Analysis

Short Term Liabilities: HUNT's short term assets ($10.9M) exceed its short term liabilities ($4.5M).

Long Term Liabilities: HUNT's short term assets ($10.9M) do not cover its long term liabilities ($58.7M).


Debt to Equity History and Analysis

Debt Level: HUNT's debt to equity ratio (30.8%) is considered satisfactory.

Reducing Debt: HUNT's debt to equity ratio has increased from 3.3% to 30.8% over the past 5 years.


Balance Sheet

Inventory Level: HUNT has a high level of physical assets or inventory.

Debt Coverage by Assets: HUNT's debt is not covered by short term assets (assets are 0.2x 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: HUNT is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HUNT is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

17.92%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.9%markettop25%6.1%industryaverage6.7%forecastin3Years17.9%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if HUNT'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 HUNT'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?

1.8yrs

Average management tenure


CEO

Erik A. Frydendal 0

1.9yrs

Tenure

US$632,832

Compensation

Mr. Erik A.S. Frydendal has been CEO of Hunter Group ASA since March 19, 2018 and served as its CFO until August 12, 2019. Mr. Frydendal has capital markets experience, most recently as a Partner in Fearnl ...


CEO Compensation Analysis

Compensation vs Market: Erik A.'s total compensation ($USD68.42K) is below average for companies of similar size in the Norwegian market ($USD467.08K).

Compensation vs Earnings: Insufficient data to compare Erik A.'s compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Erik A. Frydendal
Chief Executive Officer1.9yrsUS$632.83kno data
Eirik Bergsvik
Senior Vice President of Business Development0yrsno datano data
Helge Hustoft
Chief Executive Officer of Dwellop AS0yrsno datano data
Lars Brynildsrud
Chief Financial Officer0.5yrsno data0.0027% $65.4k
Sujoy Seal
Chief Operating Officer1.8yrsno data0.022% $530.1k

1.8yrs

Average Tenure

Experienced Management: HUNT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


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 substantially diluted in the past year, with total shares outstanding growing by 491.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Hunter Group ASA
  • Ticker: HUNT
  • Exchange: OB
  • Founded: 2003
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr2.440b
  • Shares outstanding: 575.36m
  • Website: https://www.huntergroup.no

Number of Employees


Location

  • Hunter Group ASA
  • Dronningen 1
  • Oslo
  • Oslo
  • 287
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUNTOB (Oslo Bors)YesOrdinary SharesNONOKJan 2006
0JI3LSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 2006
HUNTOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 2006

Biography

Hunter Group ASA, an investment company, focuses primarily on shipping and oil services investments. Its fleet consist of eight identical VLCC newbuilding contracts. The company was formerly known as Badger Explorer ASA and changed its name to Hunter Group ASA in May 2017. Hunter Group ASA was founded in 2003 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:13
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.