OB:BAKKA

Stock Analysis Report

Executive Summary

P/F Bakkafrost, together with its subsidiaries, produces and sells salmon products under the Bakkafrost and Havsbrún brands in the United States, Europe, China, and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has P/F Bakkafrost's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.3%

BAKKA

5.5%

NO Food

8.2%

NO Market


1 Year Return

15.2%

BAKKA

-1.1%

NO Food

-24.8%

NO Market

Return vs Industry: BAKKA exceeded the Norwegian Food industry which returned -1.7% over the past year.

Return vs Market: BAKKA exceeded the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

BAKKAIndustryMarket
7 Day5.3%5.5%8.2%
30 Day-15.2%-11.2%-16.8%
90 Day-25.9%-18.1%-25.0%
1 Year18.1%15.2%3.1%-1.1%-20.8%-24.8%
3 Year98.4%80.4%56.1%34.6%2.1%-10.7%
5 Year225.8%175.7%140.1%88.0%14.8%-11.1%

Price Volatility Vs. Market

How volatile is P/F Bakkafrost's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is P/F Bakkafrost 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: BAKKA (NOK496.2) is trading below our estimate of fair value (NOK1346.93)

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


Price To Earnings Ratio

PE vs Industry: BAKKA is poor value based on its PE Ratio (20.8x) compared to the Food industry average (16.7x).

PE vs Market: BAKKA is poor value based on its PE Ratio (20.8x) compared to the Norwegian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: BAKKA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BAKKA is good value based on its PB Ratio (2.3x) compared to the NO Food industry average (2.6x).


Next Steps

Future Growth

How is P/F Bakkafrost forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAKKA's forecast earnings growth (19.3% per year) is above the savings rate (0.7%).

Earnings vs Market: BAKKA's earnings (19.3% per year) are forecast to grow slower than the Norwegian market (19.9% per year).

High Growth Earnings: BAKKA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAKKA's revenue (10.8% per year) is forecast to grow faster than the Norwegian market (2.9% per year).

High Growth Revenue: BAKKA's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAKKA's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has P/F Bakkafrost performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAKKA has high quality earnings.

Growing Profit Margin: BAKKA's current net profit margins (18%) are lower than last year (30.2%).


Past Earnings Growth Analysis

Earnings Trend: BAKKA's earnings have declined by -0.6% per year over the past 5 years.

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

Earnings vs Industry: BAKKA had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Food industry average (-30.3%).


Return on Equity

High ROE: BAKKA's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is P/F Bakkafrost's financial position?


Financial Position Analysis

Short Term Liabilities: BAKKA's short term assets (DKK4.4B) exceed its short term liabilities (DKK925.0M).

Long Term Liabilities: BAKKA's short term assets (DKK4.4B) exceed its long term liabilities (DKK3.7B).


Debt to Equity History and Analysis

Debt Level: BAKKA's debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: BAKKA's debt to equity ratio has reduced from 34.5% to 27.4% over the past 5 years.

Debt Coverage: BAKKA's debt is well covered by operating cash flow (44.5%).

Interest Coverage: BAKKA's interest payments on its debt are well covered by EBIT (83x coverage).


Balance Sheet

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

Debt Coverage by Assets: BAKKA's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is P/F Bakkafrost's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAKKA's dividend (2.55%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (3.78%).

High Dividend: BAKKA's dividend (2.55%) is low compared to the top 25% of dividend payers in the Norwegian market (8.06%).


Stability and Growth of Payments

Stable Dividend: BAKKA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BAKKA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.9%), BAKKA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAKKA's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Reja Jacobsen (53yo)

31.25s

Tenure

Mr. Johan Regin Jacobsen, also known as Reja, has been the Chief Executive Officer of P/F Bakkafrost Holding (Bakkafrost) since 1989. From 1982 to 1988, Mr. Jacobsen served as an Accounting Manager of the  ...


Leadership Team

NamePositionTenureCompensationOwnership
Johan Jacobsen
Chief Executive Officer31.25yrsno data7.81% DKK2.3b
Høgni Jakobsen
Chief Financial Officer1yrno data0.00033% DKK96.8k
Sverri Kjærbæk
Operations Manager3.58yrsno datano data
Símun Jacobsen
Senior Sales Manager7.33yrsno datano data
Heini Kristiansen
Group Human Resource Manager1.42yrsno datano data
Odd Eliasen
Managing Director of Havsbrún7.5yrsno data0.31% DKK91.4m

5.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BAKKA's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Einar Wathne
Independent Director1.25yrsø161.00kno data
Teitur Samuelsen
Independent Director4yrsø252.00k0.00017% DKK49.8k
Rúni Hansen
Independent Chairman of the Board10.33yrsø461.00k0.018% DKK5.3m
Annika Frederiksberg
Director12.17yrsø209.00k0.027% DKK7.9m
Johannes Jensen
Independent Deputy Chairman of the Board11.25yrsø261.00kno data
Øystein Sandvik
Independent Director7yrsø265.00kno data

8.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: BAKKA's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BAKKA 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 diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

Company Information

P/F Bakkafrost's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: P/F Bakkafrost
  • Ticker: BAKKA
  • Exchange: OB
  • Founded: 1968
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr29.322b
  • Shares outstanding: 59.09m
  • Website: https://www.bakkafrost.com

Number of Employees


Location

  • P/F Bakkafrost
  • Bakkavegur 9
  • PO Box 221
  • Glyvrar
  • The Faroe Islands
  • 625
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAKKAOB (Oslo Bors)YesOrdinary SharesNONOKMar 2010
0MQ2LSE (London Stock Exchange)YesOrdinary SharesGBNOKMar 2010
BKFK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2010
6BFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
BAKKAOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMar 2010

Biography

P/F Bakkafrost, together with its subsidiaries, produces and sells salmon products under the Bakkafrost and Havsbrún brands in the United States, Europe, China, and internationally. The company operates through four segments: Fish Farming FO; Fish Farming SCT; Value Added Products; and Fishmeal, Fish Oil, and Fish Feed. It is involved in the breeding and on-growing of salmon; harvesting, sale, and distribution of salmon; and production of skinless and boneless portions of salmon. The company also produces and sells fishmeal, fish oil, and fish feed. The company also exports its products. P/F Bakkafrost was founded in 1968 and is headquartered in Glyvrar, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 22:57
End of Day Share Price2020/04/03 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.