OB:MGN

Stock Analysis Report

Executive Summary

Magnora ASA focuses on providing products and services to the energy, offshore, and oil services industries.


Snowflake Analysis

Excellent balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MGN

-9.0%

NO Energy Services

-5.1%

NO Market


1 Year Return

22.3%

MGN

-32.2%

NO Energy Services

-5.6%

NO Market

Return vs Industry: MGN exceeded the Norwegian Energy Services industry which returned -32.2% over the past year.

Return vs Market: MGN exceeded the Norwegian Market which returned -5.6% over the past year.


Shareholder returns

MGNIndustryMarket
7 Day0%-9.0%-5.1%
30 Day9.0%-17.6%-5.3%
90 Day14.9%-19.6%-3.2%
1 Year41.3%22.3%-30.2%-32.2%-0.7%-5.6%
3 Year30.8%-43.7%-28.1%-33.0%25.1%9.4%
5 Year-0.7%-57.3%-18.1%-48.5%52.3%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGN (NOK8.5) is trading above our estimate of fair value (NOK1.02)

Significantly Below Fair Value: MGN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGN is poor value based on its PE Ratio (21x) compared to the Energy Services industry average (9.8x).

PE vs Market: MGN is poor value based on its PE Ratio (21x) compared to the Norwegian market (14.4x).


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 (4.2x) compared to the NO Energy Services industry average (0.5x).


Next Steps

Future Growth

How is Magnora forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.0%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magnora has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Magnora performed over the past 5 years?

61.4%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: MGN's current net profit margins (51.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: MGN has become profitable over the past 5 years, growing earnings by 61.4% per year.

Accelerating Growth: MGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGN had negative earnings growth (-75.6%) over the past year, making it difficult to compare to the Energy Services industry average (-44.4%).


Return on Equity

High ROE: MGN's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Magnora's financial position?


Financial Position Analysis

Short Term Liabilities: MGN's short term assets (NOK73.4M) exceed its short term liabilities (NOK7.8M).

Long Term Liabilities: MGN's short term assets (NOK73.4M) do not cover its long term liabilities (NOK-100.0K).


Debt to Equity History and Analysis

Debt Level: MGN is debt free.

Reducing Debt: MGN had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MGN's debt is covered by short term assets.


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: MGN is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%3.0%markettop25%6.4%industryaverage5.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MGN'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 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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGN'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?

1.3yrs

Average board tenure


CEO

Erik Sneve 0

0.8yrs

Tenure

0

Erik Sneve serves as Chief Executive Officer of Magnora ASA and served as its Acting Chief Executive Officer since April 17, 2019. 


Board Members

NamePositionTenureCompensationOwnership
Torstein Sanness
Executive Chairman1.3yrsno datano data
John Hamilton
Director1.2yrsno datano data
Hilde Ådland
Director1.8yrsno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: MGN'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: MGN 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Magnora ASA
  • Ticker: MGN
  • Exchange: OB
  • Founded: 2001
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr446.895m
  • Shares outstanding: 52.58m
  • Website: https://magnoraasa.com

Number of Employees


Location

  • Magnora ASA
  • Lysaker Torg 12
  • Lysaker
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGNOB (Oslo Bors)YesOrdinary SharesNONOKJul 2004
SVMR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
0MHQLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2004
4SMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
MGNOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2004

Biography

Magnora ASA focuses on providing products and services to the energy, offshore, and oil services industries. It primarily focuses on managing the Dana Western Isles and Shell Penguins FPSO license agreements. The company was formerly known as Sevan Marine ASA and changed its name to Magnora ASA in October 2018. Magnora ASA was founded in 2001 and is based in Lysaker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:32
End of Day Share Price2020/02/26 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.