OB:NRS

Stock Analysis Report

Executive Summary

Norway Royal Salmon ASA, a fish farming company, produces, harvests, sells, and markets smolt and salmon products in Norway.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


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

-0.7%

NRS

0.3%

NO Food

-1.1%

NO Market


1 Year Return

7.2%

NRS

8.5%

NO Food

-2.5%

NO Market

Return vs Industry: NRS exceeded the Norwegian Food industry which returned 8.5% over the past year.

Return vs Market: NRS exceeded the Norwegian Market which returned -2.5% over the past year.


Shareholder returns

NRSIndustryMarket
7 Day-0.7%0.3%-1.1%
30 Day2.2%6.7%2.6%
90 Day12.3%3.4%9.1%
1 Year9.5%7.2%13.1%8.5%2.7%-2.5%
3 Year22.2%11.3%65.3%42.4%41.1%23.4%
5 Year342.5%293.6%198.3%133.1%57.0%21.2%

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 (NOK221.4) is trading below our estimate of fair value (NOK1451.73)

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 (23.9x) compared to the Food industry average (24.7x).

PE vs Market: NRS is poor value based on its PE Ratio (23.9x) compared to the Norwegian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: NRS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NRS is overvalued based on its PB Ratio (4.3x) compared to the NO Food industry average (3.9x).


Next Steps

Future Growth

How is Norway Royal Salmon forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRS's forecast earnings growth (16.4% per year) is above the savings rate (1.8%).

Earnings vs Market: NRS's earnings (16.4% per year) are forecast to grow slower than the Norwegian market (20.5% per year).

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

Revenue vs Market: NRS's revenue (3.8% per year) is forecast to grow slower than the Norwegian market (4.2% per year).

High Growth Revenue: NRS's revenue (3.8% 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 high in 3 years time (29%)


Next Steps

Past Performance

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

13.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: NRS's current net profit margins (7.1%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: NRS's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: NRS's earnings growth over the past year (1.3%) is below its 5-year average (13.6% per year).

Earnings vs Industry: NRS earnings growth over the past year (1.3%) exceeded the Food industry -5.9%.


Return on Equity

High ROE: NRS's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Norway Royal Salmon's financial position?


Financial Position Analysis

Short Term Liabilities: NRS's short term assets (NOK2.1B) exceeds its short term liabilities (NOK974.3M)

Long Term Liabilities: NRS's short term assets (2.1B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: NRS's debt to equity ratio (29.7%) is considered satisfactory

Reducing Debt: NRS's debt to equity ratio has reduced from 52.3% to 29.7% over the past 5 years.

Debt Coverage: NRS's debt is well covered by operating cash flow (59.2%).

Interest Coverage: NRS's interest payments on its debt are well covered by EBIT (52.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: NRS's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.5%markettop25%6.0%industryaverage3.7%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: NRS's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.49%).

High Dividend: NRS's dividend (2.71%) is low compared to the top 25% of dividend payers in the Norwegian market (5.96%).


Stability and Growth of Payments

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

Growing Dividend: NRS'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 (64.6%), NRS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NRS's dividends in 3 years are forecast to be covered by earnings (47.5% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Charles Høstlund (44yo)

5.8yrs

Tenure

kr9,378,000

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 ($USD1.03M) is above average for companies of similar size in the Norwegian market ($USD543.65K).

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


Management Age and Tenure

5.8yrs

Average Tenure

48yo

Average Age

Experienced Management: NRS's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Board: NRS's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

Buykr20,500,00019 Jul 19
Gåsø Næringsutvikling AS
EntityCompany
Shares100,000
Max Pricekr205.00
Buykr46,342,50018 Jan 19
Gåsø Næringsutvikling AS
EntityCompany
Shares250,000
Max Pricekr185.37

Ownership Breakdown

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


Management Team

  • Klaus Hatlebrekke (45yo)

    Chief Operating Officer of Business Development

    • Tenure: 7.6yrs
    • Compensation: kr1.79m
  • Ola Loe (53yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: kr2.41m
  • Stein Martinsen (58yo)

    Sales Director of NRS Trading

    • Tenure: 0yrs
    • Compensation: kr1.55m
  • Fredd Wilsgård

    General Manager of Nor Seafood

    • Tenure: 0yrs
  • Charles Høstlund (44yo)

    Chief Executive Officer

    • Tenure: 5.8yrs
    • Compensation: kr9.38m
  • Hanne-Guri Haug

    Chief HSE Officer

    • Tenure: 0yrs
  • Arve Lervåg (48yo)

    Chief Operating Officer of Farming

    • Tenure: 2.7yrs
    • Compensation: kr1.54m

Board Members

  • Tom Rygh (61yo)

    Director

    • Tenure: 0.4yrs
  • Marianne Johnsen (56yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: kr329.00k
  • Helge Gåsø (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: kr411.00k
  • Fredd Wilsgård

    General Manager of Nor Seafood

    • Tenure: 0yrs
  • Trude Olafsen (56yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: kr276.00k
  • Eva Kristoffersen

    Vice Chairman of the Board

    • Tenure: 0.8yrs
  • Lars Måsøval (40yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: kr313.00k

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: kr9.616b
  • Shares outstanding: 43.43m
  • 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, a fish farming company, produces, harvests, sells, and markets smolt and salmon products in Norway. It operates in two segments, Salmon Farming and Sales. The company offers fresh  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 21:16
End of Day Share Price2019/11/15 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.