OB:MOWI

Stock Analysis Report

Executive Summary

Mowi ASA, a seafood company, produces and supplies farmed salmon products worldwide.

Rewards

Trading at 60.9% below its fair value

Earnings are forecast to grow 21.54% per year

Earnings grew by 0.5% over the past year

Risk Analysis

Has a high level of debt

Dividend of 4.48% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

MOWI

-0.7%

NO Food

0.5%

NO Market


1 Year Return

22.3%

MOWI

17.4%

NO Food

1.5%

NO Market

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

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


Shareholder returns

MOWIIndustryMarket
7 Day-0.7%-0.7%0.5%
30 Day0.7%1.5%0.06%
90 Day12.2%14.3%1.2%
1 Year28.5%22.3%22.4%17.4%7.1%1.5%
3 Year81.0%49.4%64.5%41.8%33.0%16.3%
5 Year202.8%122.4%207.7%140.3%65.6%27.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mowi 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: MOWI (NOK228.6) is trading below our estimate of fair value (NOK585.12)

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


Price To Earnings Ratio

PE vs Industry: MOWI is poor value based on its PE Ratio (26.8x) compared to the Food industry average (26x).

PE vs Market: MOWI is poor value based on its PE Ratio (26.8x) compared to the Norwegian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: MOWI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MOWI is overvalued based on its PB Ratio (4.2x) compared to the NO Food industry average (4x).


Next Steps

Future Growth

How is Mowi forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOWI's forecast earnings growth (21.5% per year) is above the savings rate (0.7%).

Earnings vs Market: MOWI's earnings (21.5% 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: MOWI's revenue (6.2% per year) is forecast to grow faster than the Norwegian market (4.3% per year).

High Growth Revenue: MOWI's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MOWI's Return on Equity is forecast to be high in 3 years time (25.5%)


Next Steps

Past Performance

How has Mowi performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOWI has high quality earnings.

Growing Profit Margin: MOWI's current net profit margins (10.6%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: MOWI's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: MOWI's earnings growth over the past year (0.5%) is below its 5-year average (26.8% per year).

Earnings vs Industry: MOWI earnings growth over the past year (0.5%) exceeded the Food industry -5.9%.


Return on Equity

High ROE: MOWI's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mowi's financial position?


Financial Position Analysis

Short Term Liabilities: MOWI's short term assets (€2.5B) exceed its short term liabilities (€859.9M).

Long Term Liabilities: MOWI's short term assets (€2.5B) exceed its long term liabilities (€2.0B).


Debt to Equity History and Analysis

Debt Level: MOWI's debt to equity ratio (47.2%) is considered high.

Reducing Debt: MOWI's debt to equity ratio has reduced from 56.3% to 47.2% over the past 5 years.

Debt Coverage: MOWI's debt is well covered by operating cash flow (53.8%).

Interest Coverage: MOWI's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.5%markettop25%5.9%industryaverage3.6%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: MOWI's dividend (4.48%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: MOWI's dividend (4.48%) is low compared to the top 25% of dividend payers in the Norwegian market (5.91%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.6%), MOWI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOWI's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Ivan Vindheim (48yo)

0.08yrs

Tenure

€1,384,000

Compensation

Mr. Ivan Vindheim serves as Chief Executive Officer at Mowi ASA (Marine Harvest ASA) since November 12, 2019. He had been the Chief Financial Officer at Mowi ASA (Marine Harvest ASA) since August 1, 2012 u ...


CEO Compensation Analysis

Compensation vs Market: Ivan's total compensation ($USD1.54M) is about average for companies of similar size in the Norwegian market ($USD1.61M).

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


Management Age and Tenure

5.4yrs

Average Tenure

48.5yo

Average Age

Experienced Management: MOWI's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

48yo

Average Age

Experienced Board: MOWI's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: MOWI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr30,13710 Dec 19
Kristian Ellingsen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Catarina Martins
EntityIndividual
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Glenn Flanders
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Ola Brattvoll
EntityIndividual
Role
Head of Sales
Chief Operating Officer of Sales & Marketing
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Benjamin Hadfield
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Fish Feed Business Area
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Anne Riise
EntityIndividual
Role
Head of Human Resources
Global Director of Human Resources
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Øyvind Oaland
EntityIndividual
Role
Chief Technology Officer
CTO and Head of Global R&D
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Ivan Vindheim
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Unni Sværen
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Per-Roar Gjerde
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Farming
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Kim Dosvig
EntityIndividual
Role
Head of Investor Relations
Head of Treasury & Investor Relations Officer
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Jørgen Wengaard
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares131
Max Pricekr230.05
Buykr30,13710 Dec 19
Anders Sæther
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares131
Max Pricekr230.05
Sellkr831,599,99406 Mar 19
Cecilie Fredriksen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000,000
Max Pricekr207.90

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Management Team

  • Charlie Wu

    Managing Director of Marine Harvest Asia

    • Tenure: 18.9yrs
  • Ivan Vindheim (48yo)

    Chief Executive Officer

    • Tenure: 0.08yrs
    • Compensation: €1.38m
  • Glenn Flanders (49yo)

    Chief Strategy Officer

    • Tenure: 3.8yrs
    • Compensation: €367.00k
  • Ola Brattvoll (52yo)

    Chief Operating Officer of Sales & Marketing

    • Tenure: 9yrs
    • Compensation: €890.00k
  • Ben Hadfield (43yo)

    Chief Operating Officer of Fish Feed Business Area

    • Tenure: 6.8yrs
    • Compensation: €921.00k
  • Anne Riise (48yo)

    Global Director of Human Resources

    • Tenure: 7.1yrs
    • Compensation: €233.00k
  • Øyvind Oaland (49yo)

    CTO and Head of Global R&D

    • Tenure: 0yrs
    • Compensation: €285.00k
  • Per-Roar Gjerde (52yo)

    Chief Operating Officer of Farming

    • Tenure: 3.9yrs
    • Compensation: €2.27m
  • Kim Dosvig

    Head of Treasury & Investor Relations Officer

    • Tenure: 0yrs
  • Kristian Ellingsen (39yo)

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Lisbet Nærø (56yo)

    Vice Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: €78.00k
  • Ole-Eirik Lerøy (60yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €120.00k
  • Cecilie Fredriksen (36yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: €47.00k
  • Kristian Melhuus (38yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: €47.00k
  • Birgitte Vartdal (42yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €60.00k
  • Jean-Pierre Bienfait (56yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €47.00k
  • Paul Mulligan (50yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €132.00k
  • Unni Sværen (48yo)

    Employee Representative Director

    • Tenure: 3.4yrs
    • Compensation: €42.00k
  • Jørgen Wengaard (28yo)

    Employee Representative Director

    • Tenure: 1.9yrs
    • Compensation: €21.00k
  • Anders Sæther (48yo)

    Employee Representative Director

    • Tenure: 1.9yrs
    • Compensation: €21.00k

Company Information

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


Key Information

  • Name: Mowi ASA
  • Ticker: MOWI
  • Exchange: OB
  • Founded: 1965
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr118.212b
  • Shares outstanding: 517.11m
  • Website: https://www.mowi.com

Number of Employees


Location

  • Mowi ASA
  • Sandviksboder 77A/B
  • Bergen
  • Hordaland
  • 5035
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOWIOB (Oslo Bors)YesOrdinary SharesNONOKJul 1997
PNDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1997
MNHV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1997
0OAWLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 1997
MHGV.YOTCPK (Pink Sheets LLC)SPON ADS EACH REP 1 ORD SHSUSUSDOct 2008
PNDADB (Deutsche Boerse AG)SPON ADS EACH REP 1 ORD SHSDEEUROct 2008

Biography

Mowi ASA, a seafood company, produces and supplies farmed salmon products worldwide. The company operates through three segments: Feed, Farming, and Sales and Marketing. It is involved in the salmon feed p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 20:34
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.