Northern Ocean Ltd.

OB:NOL Stock Report

Market Cap: NOK 2.5b

Northern Ocean Valuation

Is NOL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NOL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOL (NOK8.25) is trading below our estimate of fair value (NOK264.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOL?

Key metric: As NOL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NOL. This is calculated by dividing NOL's market cap by their current revenue.
What is NOL's PS Ratio?
PS Ratio0.9x
SalesUS$258.62m
Market CapUS$225.83m

Price to Sales Ratio vs Peers

How does NOL's PS Ratio compare to its peers?

The above table shows the PS ratio for NOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
SHLF Shelf Drilling
0.2x2.7%NOK 2.6b
OTL Odfjell Technology
0.3x2.7%NOK 1.9b
ARCH Archer
0.2x8.9%NOK 2.0b
SDNS Shelf Drilling (North Sea)
1.7x34.5%NOK 2.9b
NOL Northern Ocean
0.9x10.5%NOK 2.5b

Price-To-Sales vs Peers: NOL is expensive based on its Price-To-Sales Ratio (0.9x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does NOL's PS Ratio compare vs other companies in the NO Energy Services Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
PRS Prosafe
0.1x24.4%US$13.55m
HAVI Havila Shipping
0.1xn/aUS$5.40m
DWELLOP Dwellop
0.09xn/aUS$1.28m
No more companies available in this PS range
NOL 0.9xIndustry Avg. 1.0xNo. of Companies4PS00.61.21.82.43+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NOL is good value based on its Price-To-Sales Ratio (0.9x) compared to the Norwegian Energy Services industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is NOL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: NOL is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNOK 8.25
NOK 10.50
+27.3%
4.8%NOK 11.00NOK 10.00n/a2
Nov ’25NOK 7.30
NOK 10.50
+43.8%
4.8%NOK 11.00NOK 10.00n/a2
Sep ’25NOK 7.08
NOK 12.00
+69.5%
8.3%NOK 13.00NOK 11.00n/a2
Aug ’25NOK 7.38
NOK 12.00
+62.6%
8.3%NOK 13.00NOK 11.00n/a2
Jul ’25NOK 7.37
NOK 12.00
+62.8%
8.3%NOK 13.00NOK 11.00n/a2
Jun ’25NOK 9.37
NOK 14.00
+49.4%
7.1%NOK 15.00NOK 13.00n/a2
May ’25NOK 8.44
NOK 14.00
+65.9%
7.1%NOK 15.00NOK 13.00n/a2
Apr ’25NOK 9.97
NOK 14.00
+40.4%
7.1%NOK 15.00NOK 13.00n/a2
Mar ’25NOK 8.92
NOK 14.00
+57.0%
7.1%NOK 15.00NOK 13.00n/a2
Feb ’25NOK 8.15
NOK 14.00
+71.8%
7.1%NOK 15.00NOK 13.00n/a2
Jan ’25NOK 10.94
NOK 14.00
+28.0%
7.1%NOK 15.00NOK 13.00n/a2
Dec ’24NOK 12.04
NOK 20.50
+70.3%
12.2%NOK 23.00NOK 18.00n/a2
Nov ’24NOK 13.78
NOK 20.50
+48.8%
12.2%NOK 23.00NOK 18.00NOK 7.302
Oct ’24NOK 15.00
NOK 20.50
+36.7%
12.2%NOK 23.00NOK 18.00NOK 6.442
Sep ’24NOK 13.92
NOK 19.00
+36.5%
5.3%NOK 20.00NOK 18.00NOK 7.082
Aug ’24NOK 13.60
NOK 19.00
+39.7%
5.3%NOK 20.00NOK 18.00NOK 7.382

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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