OB:NORTH

Stock Analysis Report

Executive Summary

North Energy ASA does not have significant operations.

Snowflake

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

NORTH

1.0%

NO Energy Services

0.5%

NO Market


1 Year Return

-40.3%

NORTH

-60.6%

NO Energy Services

-8.2%

NO Market

Return vs Industry: NORTH underperformed the Norwegian Energy Services industry which returned -60.6% over the past year.

Return vs Market: NORTH underperformed the Norwegian Market which returned -8.2% over the past year.


Shareholder returns

NORTHIndustryMarket
7 Day-1.6%1.0%0.5%
30 Day-6.3%-44.6%-1.4%
90 Day-13.1%-43.8%5.3%
1 Year-28.5%-40.3%-60.2%-60.6%-3.6%-8.2%
3 Year-29.5%-46.4%11.0%2.6%42.9%25.0%
5 Year-49.9%-61.9%-29.5%-52.1%58.5%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is North Energy 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: NORTH (NOK1.2) is trading below our estimate of fair value (NOK34.85)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NORTH is good value based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

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

43.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NORTH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NORTH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NORTH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if NORTH's revenue is forecast to grow faster than the Norwegian market.

High Growth Revenue: Insufficient data to determine if NORTH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NORTH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has North Energy performed over the past 5 years?

51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NORTH has large one-off items impacting its financial results.

Growing Profit Margin: NORTH's current net profit margins (-3776.3%) are lower than last year (-379.4%).


Past Earnings Growth Analysis

Earnings Trend: NORTH is unprofitable, but has reduced losses over the past 5 years at a rate of 51.1% per year.

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

Earnings vs Industry: NORTH is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (14%).


Return on Equity

High ROE: NORTH has a negative Return on Equity (-12.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is North Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NORTH's short term assets (NOK211.7M) exceeds its short term liabilities (NOK4.5M)

Long Term Liabilities: NORTH's short term assets (211.7M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: NORTH is debt free.

Reducing Debt: NORTH has no debt compared to 5 years ago when its debt to equity ratio was 49.9%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NORTH'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: Whilst unprofitable NORTH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NORTH is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -33.7% per year.


Next Steps

Dividend

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

25.10%

Current Dividend Yield


Dividend Yield vs Market

company25.1%marketbottom25%2.5%markettop25%6.1%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NORTH's dividend (25.1%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.51%).

High Dividend: NORTH's dividend (25.1%) is in the top 25% of dividend payers in the Norwegian market (6.09%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NORTH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NORTH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: NORTH is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of North Energy's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average board tenure


CEO

Knut Sæberg (60yo)

5.1yrs

Tenure

kr2,144,000

Compensation

Mr. Knut Sæberg has been the Chief Executive Officer of North Energy AS since October 2014. Mr. Sæberg served as the Acting Chief Executive Officer and Chief Financial Officer of North Energy AS until Octo ...


CEO Compensation Analysis

Compensation vs Market: Knut's total compensation ($USD234.34K) is below average for companies of similar size in the Norwegian market ($USD347.35K).

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


Board Age and Tenure

5.6yrs

Average Tenure

58yo

Average Age

Experienced Board: NORTH's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr288,29003 Jun 19
Anders Onarheim
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares202,309
Max Pricekr1.42

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Knut Sæberg (60yo)

    Chief Executive Officer

    • Tenure: 5.1yrs
    • Compensation: kr2.14m
  • Rune Damm

    Finance Manager

    • Tenure: 0yrs

Board Members

  • Anders Onarheim (60yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: kr225.00k
  • Jogeir Romestrand (58yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: kr225.00k
  • Elin Karfjell (54yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: kr225.00k

Company Information

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


Key Information

  • Name: North Energy ASA
  • Ticker: NORTH
  • Exchange: OB
  • Founded: 2007
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr140.116m
  • Shares outstanding: 117.25m
  • Website: https://www.northenergy.no

Number of Employees


Location

  • North Energy ASA
  • Tjuvholmen allé 3
  • Oslo
  • Oslo
  • 252
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NORTHOB (Oslo Bors)YesOrdinary SharesNONOKFeb 2010

Biography

North Energy ASA does not have significant operations. Previously, it was engaged in the exploration, development, and production of oil and gas in the Norwegian continental shelf. The company was founded  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:09
End of Day Share Price2019/11/12 00:00
Earnings2019/06/30
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.