Magnora (OB:MGN) - Share price, News & Analysis

MGN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

MGN Stock Overview

Magnora ASA operates as a renewable energy development company.

Rewards

Trading at 94.3% below our estimate of its fair value

Earnings are forecast to grow 104.09% per year

Risk Analysis

Does not have meaningful revenue (NOK14M)

Magnora Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magnora
Historical stock prices
Current Share Price	kr17.92
52 Week High	kr25.50
52 Week Low	kr14.54
Beta	1.91
1 Month Change	-18.17%
3 Month Change	-7.44%
1 Year Change	-17.61%
3 Year Change	125.41%
5 Year Change	27.09%
Change since IPO	-96.02%

Shareholder Returns

	MGN	NO Energy Services	NO Market
7D	-3.4%	4.2%	-1.2%
1Y	-17.6%	16.3%	12.6%

Return vs Industry: MGN underperformed the Norwegian Energy Services industry which returned 16.3% over the past year.

Return vs Market: MGN underperformed the Norwegian Market which returned 12.6% over the past year.

Price Volatility

Is MGN's price volatile compared to industry and market?
MGN volatility
MGN Average Weekly Movement	7.9%
Energy Services Industry Average Movement	8.4%
Market Average Movement	7.4%
10% most volatile stocks in NO Market	12.4%
10% least volatile stocks in NO Market	4.2%

Stable Share Price: MGN is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MGN's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	2	Erik Sneve	https://www.magnoraasa.com

Magnora ASA operates as a renewable energy development company. It primarily focuses on developing wind and solar PV projects. The company also hold license agreements with the Dana Western Isles and Shell Penguins FPSO.

Magnora Fundamentals Summary

How do Magnora's earnings and revenue compare to its market cap?
MGN fundamental statistics
Market Cap	kr1.02b
Earnings (TTM)	-kr72.80m
Revenue (TTM)	kr13.50m

75.7x

P/S Ratio

-14.0x

P/E Ratio

Is MGN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGN income statement (TTM)
Revenue	kr13.50m
Cost of Revenue	kr1.70m
Gross Profit	kr11.80m
Other Expenses	kr84.60m
Earnings	-kr72.80m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)	-1.28
Gross Margin	87.41%
Net Profit Margin	-539.26%
Debt/Equity Ratio	0.0%

How did MGN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MGN (NOK17.92) is trading below our estimate of fair value (NOK315.95)

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

Price To Earnings Ratio

PE vs Industry: MGN is unprofitable, so we can't compare its PE Ratio to the Norwegian Energy Services industry average.

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

Price to Book Ratio

PB vs Industry: MGN is overvalued based on its PB Ratio (6.7x) compared to the NO Energy Services industry average (0.8x).

Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

104.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

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

Revenue vs Market: MGN's revenue (30.6% per year) is forecast to grow faster than the Norwegian market (1.7% per year).

High Growth Revenue: MGN's revenue (30.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MGN's Return on Equity is forecast to be high in 3 years time (24.5%)

Past Performance

How has Magnora performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MGN is currently unprofitable.

Growing Profit Margin: MGN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MGN is unprofitable, and losses have increased over the past 5 years at a rate of 7.4% per year.

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

Earnings vs Industry: MGN is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-29.4%).

Return on Equity

High ROE: MGN has a negative Return on Equity (-40.89%), as it is currently unprofitable.

Financial Health

How is Magnora's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MGN's short term assets (NOK95.6M) exceed its short term liabilities (NOK9.1M).

Long Term Liabilities: MGN's short term assets (NOK95.6M) exceed its long term liabilities (NOK2.8M).

Debt to Equity History and Analysis

Debt Level: MGN is debt free.

Reducing Debt: MGN had no debt 5 years ago.

Balance Sheet

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: Insufficient data to determine if MGN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MGN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: MGN is not paying a notable dividend for the Norwegian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MGN has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

1.3yrs

Average management tenure

CEO

Erik Sneve

3.08yrs

Tenure

kr4,779,000

Compensation

Mr. Erik Sneve serves as Chief Executive Officer of Magnora ASA and served as its Acting Chief Executive Officer since April 16, 2019.

CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD488.75K) is above average for companies of similar size in the Norwegian market ($USD357.74K).

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

Leadership Team

Experienced Management: MGN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: MGN's board of directors are considered experienced (4 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/14 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31