OB:NRS

Stock Analysis Report

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Executive Summary

Norway Royal Salmon ASA produces, harvests, sells, and markets smolt and salmon products in Norway. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Norway Royal Salmon's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.4%

NRS

-4.5%

NO Food

-2.3%

NO Market


1 Year Return

-2.7%

NRS

-9.3%

NO Food

-7.7%

NO Market

Return vs Industry: NRS exceeded the Norwegian Food industry which returned -7.7% over the past year.

Return vs Market: NRS exceeded the Norwegian Market which returned -11.6% over the past year.


Shareholder returns

NRSIndustryMarket
7 Day-4.4%-4.5%-2.3%
30 Day0.3%-1.6%0.8%
90 Day-2.4%1.9%1.6%
1 Year-1.7%-2.7%-7.7%-9.3%-4.5%-7.7%
3 Year43.9%36.6%36.1%20.3%-0.04%-11.3%
5 Year271.4%230.8%112.5%70.1%42.1%13.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Norway Royal Salmon 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: NRS (NOK220) is trading below our estimate of fair value (NOK835.03)

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


Price To Earnings Ratio

PE vs Industry: NRS is poor value based on its PE Ratio (34.2x) compared to the NO Food industry average (28.3x).

PE vs Market: NRS is poor value based on its PE Ratio (34.2x) compared to the Norwegian market (15.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NRS's PB Ratio (3x) is in line with the NO Food industry average.


Next Steps

Future Growth

How is Norway Royal Salmon forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRS's forecast earnings growth (45.7% per year) is above the savings rate (1.6%).

Earnings vs Market: NRS's earnings (45.7% per year) are forecast to grow faster than the Norwegian market (31.2% per year).

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

Revenue vs Market: NRS's revenue (9.1% per year) is forecast to grow faster than the Norwegian market (5.4% per year).

High Growth Revenue: NRS's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRS's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Norway Royal Salmon performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRS has a high level of non-cash earnings.

Growing Profit Margin: NRS's current net profit margins (5.1%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: NRS's earnings have declined by 2.7% per year over the past 5 years.

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

Earnings vs Industry: NRS had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the Food industry average (-35.1%).


Return on Equity

High ROE: NRS's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Norway Royal Salmon's financial position?


Financial Position Analysis

Short Term Liabilities: NRS's short term assets (NOK1.8B) exceed its short term liabilities (NOK989.6M).

Long Term Liabilities: NRS's short term assets (NOK1.8B) exceed its long term liabilities (NOK920.1M).


Debt to Equity History and Analysis

Debt Level: NRS's debt to equity ratio (17.3%) is considered satisfactory.

Reducing Debt: NRS's debt to equity ratio has reduced from 60.3% to 17.3% over the past 5 years.

Debt Coverage: NRS's debt is well covered by operating cash flow (33.4%).

Interest Coverage: NRS's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Norway Royal Salmon current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRS's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: NRS's dividend (1.14%) is low compared to the top 25% of dividend payers in the Norwegian market (6.54%).


Stability and Growth of Payments

Stable Dividend: NRS is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are stable.

Growing Dividend: NRS is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NRS is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NRS's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Charles Høstlund (45 yo)

6yrs

Tenure

kr12,314,000

Compensation

Mr. Charles Høstlund has been the Chief Executive Officer of Norway Royal Salmon AS since 2014. Mr. Høstlund served as Regional Director of Marine Harvest Norway Northern Region. He joined Norway Royal Sal ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD1.34M) is above average for companies of similar size in the Norwegian market ($USD560.22K).

Compensation vs Earnings: Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Høstlund
Chief Executive Officer6yrskr12.31m0.42%
NOK 39.7m
Ola Loe
Chief Financial Officerno datakr3.67m0.55%
NOK 51.9m
Klaus Hatlebrekke
Chief Operating Officer of Business Development8.5yrskr2.99m0.34%
NOK 32.5m
Arve Lervåg
Chief Operating Officer of Farming3.5yrskr2.20m0.0036%
NOK 338.9k
Tore Evjen
Chief Operating Officer of Freshwaterno datakr1.48m0.00024%
NOK 22.8k
Hanne-Guri Haug
Chief HSE Officerno datano data0.0025%
NOK 236.4k
Stein Martinsen
Sales Director of NRS Tradingno datakr1.55mno data
Fredd Wilsgård
General Manager of Nor Seafoodno datano datano data

6.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: NRS's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fredd Wilsgård
General Manager of Nor Seafoodno datano datano data
Tom Rygh
Independent Director1.33yrsno datano data
Marianne Johnsen
Independent Directorno datakr346.00kno data
Helge Gåsø
Chairmanno datakr440.00k0.35%
NOK 33.2m
Trude Olafsen
Director6.42yrskr282.00kno data
Eva Kristoffersen
Vice Chairman of the Board1.75yrsno datano data
Arnfinn Aunsmo
Director0.33yrno datano data
Karl-Johan Bakken
Director0.33yrno datano data

1.3yrs

Average Tenure

57yo

Average Age

Experienced Board: NRS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Norway Royal Salmon AS's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norway Royal Salmon AS
  • Ticker: NRS
  • Exchange: OB
  • Founded: 1992
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr9.494b
  • Shares outstanding: 42.92m
  • Website: https://www.norwayroyalsalmon.com

Number of Employees


Location

  • Norway Royal Salmon AS
  • Ferjemannsveien 10
  • PO Box 2608
  • Trondheim
  • Sør-Trøndelag
  • 7414
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRSOB (Oslo Bors)YesOrdinary SharesNONOKMar 2011
0P3NLSE (London Stock Exchange)YesOrdinary SharesGBNOKMar 2011
NRSOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMar 2011
NRYY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2011
9NRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2011
NRYY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDApr 2019

Biography

Norway Royal Salmon ASA produces, harvests, sells, and markets smolt and salmon products in Norway. The company offers fresh and frozen fish, round fish, fillet, portions, and smoked and marinated products ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:48
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.