OB:GSF

Stock Analysis Report

Executive Summary

Grieg Seafood ASA, through its subsidiaries, operates as a fish farming company.

Rewards

Trading at 59.1% below its fair value

Earnings are forecast to grow 43.87% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (6.1%) are lower than last year (11.6%)



Snowflake Analysis

High growth potential with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

GSF

-0.7%

NO Food

0.5%

NO Market


1 Year Return

39.1%

GSF

17.4%

NO Food

1.5%

NO Market

Return vs Industry: GSF exceeded the Norwegian Food industry which returned 17.4% over the past year.

Return vs Market: GSF exceeded the Norwegian Market which returned 1.5% over the past year.


Shareholder returns

GSFIndustryMarket
7 Day-0.6%-0.7%0.5%
30 Day1.8%1.5%0.06%
90 Day29.7%14.3%1.2%
1 Year43.5%39.1%22.4%17.4%7.1%1.5%
3 Year103.5%79.0%64.5%41.8%33.0%16.3%
5 Year495.5%403.6%207.7%140.3%65.6%27.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Grieg Seafood 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: GSF (NOK141) is trading below our estimate of fair value (NOK344.4)

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


Price To Earnings Ratio

PE vs Industry: GSF is poor value based on its PE Ratio (31.7x) compared to the Food industry average (26x).

PE vs Market: GSF is poor value based on its PE Ratio (31.7x) compared to the Norwegian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: GSF is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GSF is overvalued based on its PB Ratio (4.1x) compared to the NO Food industry average (4x).


Next Steps

Future Growth

How is Grieg Seafood forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

43.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSF's forecast earnings growth (43.9% per year) is above the savings rate (0.7%).

Earnings vs Market: GSF's earnings (43.9% per year) are forecast to grow faster than the Norwegian market (20.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GSF's revenue (8.9% per year) is forecast to grow faster than the Norwegian market (4.3% per year).

High Growth Revenue: GSF's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSF's Return on Equity is forecast to be high in 3 years time (33.5%)


Next Steps

Past Performance

How has Grieg Seafood performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSF has high quality earnings.

Growing Profit Margin: GSF's current net profit margins (6.1%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: GSF's earnings have grown significantly by 32.2% per year over the past 5 years.

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

Earnings vs Industry: GSF had negative earnings growth (-39.9%) over the past year, making it difficult to compare to the Food industry average (-5.9%).


Return on Equity

High ROE: GSF's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grieg Seafood's financial position?


Financial Position Analysis

Short Term Liabilities: GSF's short term assets (NOK3.9B) exceed its short term liabilities (NOK1.4B).

Long Term Liabilities: GSF's short term assets (NOK3.9B) exceed its long term liabilities (NOK2.8B).


Debt to Equity History and Analysis

Debt Level: GSF's debt to equity ratio (48.7%) is considered high.

Reducing Debt: GSF's debt to equity ratio has reduced from 63.8% to 48.7% over the past 5 years.

Debt Coverage: GSF's debt is well covered by operating cash flow (57.6%).

Interest Coverage: GSF's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: GSF's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.5%markettop25%5.9%industryaverage3.6%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: GSF's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: GSF's dividend (2.84%) is low compared to the top 25% of dividend payers in the Norwegian market (5.91%).


Stability and Growth of Payments

Stable Dividend: GSF's dividend payments have been volatile in the past 10 years.

Growing Dividend: GSF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.8%), GSF's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GSF's dividends in 3 years are forecast to be covered by earnings (60.3% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Andreas Kvame (56yo)

4.5yrs

Tenure

kr6,316,000

Compensation

Mr. Andreas Kvame has been Chief Executive Officer at Grieg Seafood ASA since June 1, 2015. Mr. Kvame served as Managing Director for Scanbio AS and knows the salmon farming industry very well after 17 yea ...


CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD696.95K) is about average for companies of similar size in the Norwegian market ($USD563.35K).

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


Management Age and Tenure

5.2yrs

Average Tenure

Experienced Management: GSF's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: GSF's board of directors are considered experienced (4 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

Buykr323,40615 May 19
Marvin Boschman
EntityIndividual
Shares3,029
Max Pricekr106.77
Buykr411,91915 May 19
Grant Cumming
EntityIndividual
Shares3,858
Max Pricekr106.77
Buykr438,84519 Mar 19
Kathleen Mathisen
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares4,080
Max Pricekr107.56

Ownership Breakdown

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


Management Team

  • Kathleen Mathisen

    Chief Human Resources Officer

    • Tenure: 3.6yrs
    • Compensation: kr3.67m
  • Atle Sandtorv (52yo)

    Chief Financial Officer

    • Tenure: 10yrs
    • Compensation: kr3.99m
  • Knut Utheim

    Chief Operating Officer of Farming

    • Tenure: 5.9yrs
    • Compensation: kr3.80m
  • Andreas Kvame (56yo)

    Chief Executive Officer

    • Tenure: 4.5yrs
    • Compensation: kr6.32m
  • Trond Kathenes

    Chief Digital Officer

    • Tenure: 8.9yrs
  • Kristina Furnes

    Group Communication Manager

    • Tenure: 0.9yrs

Board Members

  • Asbjørn Reinkind (59yo)

    Vice Chairman

    • Tenure: 8.9yrs
  • Per Grieg (61yo)

    Chairman of the Board

    • Tenure: 10.9yrs
  • Karin Orgland (60yo)

    Independent Director

    • Tenure: 6.5yrs
  • Sirine Fodstad

    Board Member

    • Tenure: 0.5yrs
  • Solveig Magdelene Nygaard

    Independent Director

    • Tenure: 1.5yrs
  • Tore Holand

    Independent Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: Grieg Seafood ASA
  • Ticker: GSF
  • Exchange: OB
  • Founded: 1884
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr15.573b
  • Shares outstanding: 110.45m
  • Website: https://www.griegseafood.no

Number of Employees


Location

  • Grieg Seafood ASA
  • C. Sundtsgate 17/19
  • Bergen
  • Hordaland
  • 5004
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSFOB (Oslo Bors)YesOrdinary SharesNONOKMay 2007
GR8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
0GW8LSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 2007
GRGS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
GSFOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 2007

Biography

Grieg Seafood ASA, through its subsidiaries, operates as a fish farming company. It engages in the production and sale of farmed salmon. The company supplies its fish products to customers in the European  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:08
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.