OB:SALM

Stock Analysis Report

Executive Summary

SalMar ASA, an aquaculture company, produces and sells farmed salmon in Asia, the United States, Canada, Norway, rest of Europe, and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.3%

SALM

3.1%

NO Food

3.3%

NO Market


1 Year Return

-6.9%

SALM

3.3%

NO Food

-21.8%

NO Market

Return vs Industry: SALM underperformed the Norwegian Food industry which returned 2.9% over the past year.

Return vs Market: SALM exceeded the Norwegian Market which returned -21.8% over the past year.


Shareholder returns

SALMIndustryMarket
7 Day3.3%3.1%3.3%
30 Day-11.5%-2.6%1.9%
90 Day-16.7%-15.2%-22.7%
1 Year-1.1%-6.9%7.4%3.3%-18.6%-21.8%
3 Year139.8%102.4%61.2%39.3%3.9%-8.8%
5 Year331.0%221.4%147.7%94.4%16.8%-9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SalMar undervalued compared to its fair value and its price relative to the market?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SALM (NOK380.9) is trading below our estimate of fair value (NOK705.38)

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


Price To Earnings Ratio

PE vs Industry: SALM is good value based on its PE Ratio (17.3x) compared to the Food industry average (17.3x).

PE vs Market: SALM is poor value based on its PE Ratio (17.3x) compared to the Norwegian market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: SALM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SALM is overvalued based on its PB Ratio (4.8x) compared to the NO Food industry average (2.8x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALM's forecast earnings growth (9.8% per year) is above the savings rate (0.7%).

Earnings vs Market: SALM's earnings (9.8% per year) are forecast to grow slower than the Norwegian market (21.5% per year).

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

Revenue vs Market: SALM's revenue (5.5% per year) is forecast to grow faster than the Norwegian market (2.3% per year).

High Growth Revenue: SALM's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SALM's Return on Equity is forecast to be high in 3 years time (26.9%)


Next Steps

Past Performance

How has SalMar performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALM has high quality earnings.

Growing Profit Margin: SALM's current net profit margins (20.3%) are lower than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: SALM's earnings have grown significantly by 21.3% per year over the past 5 years.

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

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


Return on Equity

High ROE: SALM's Return on Equity (26.1%) is considered high.


Next Steps

Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALM's short term assets (NOK7.5B) exceed its short term liabilities (NOK3.2B).

Long Term Liabilities: SALM's short term assets (NOK7.5B) exceed its long term liabilities (NOK5.0B).


Debt to Equity History and Analysis

Debt Level: SALM's debt to equity ratio (32.2%) is considered satisfactory.

Reducing Debt: SALM's debt to equity ratio has reduced from 39.9% to 32.2% over the past 5 years.

Debt Coverage: SALM's debt is well covered by operating cash flow (96.7%).

Interest Coverage: SALM's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.36%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SALM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SALM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SALM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SALM's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SALM'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?

2.1yrs

Average management tenure


CEO

Gustav Witzoe (66yo)

3.25s

Tenure

kr1,406,000

Compensation

Mr. Gustav Magnar Witzøe co-founded SalMar ASA in 1991 and has been its Chief Executive Officer since October 21, 2019. Mr. Witzøe served as Director of Strategic Projects at SalMar ASA since December 1, 2 ...


CEO Compensation Analysis

Compensation vs Market: Gustav's total compensation ($USD137.90K) is below average for companies of similar size in the Norwegian market ($USD463.84K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gustav Witzoe
Co-Founder3.25yrskr1.41mno data
Frode Arntsen
Director of Processing & Sales2.33yrskr3.49m0.0017% NOK731.2k
Roger Bekken
Chief Operating Officer of Farming1.83yrskr4.46m0.011% NOK4.9m
Trine Romuld
COO & CFO0.75yrno data0.0031% NOK1.4m
Tonette Bjørgård
Head of Accountingno datano data0.0047% NOK2.0m
Hakon Husby
Head of Investor Relations0.083yrno datano data
Karl Aag
Manager of Freshwater25.25yrskr3.53mno data

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SALM's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gustav Witzoe
Co-Founder3.25yrskr1.41mno data
Atle Eide
Chairman of the Board2.83yrskr400.00kno data
Margrethe Hauge
Independent Director2.83yrskr215.00kno data
Kjell Storeide
Deputy Chairno datakr285.00kno data
Helge Moen
Director2.83yrskr263.00kno data
Brit Soleng
Employee Representative Director2.83yrskr108.00kno data
Jon Rosvoll
Employee Representative Director1.25yrsno datano data

2.8yrs

Average Tenure

64yo

Average Age

Experienced Board: SALM's board of directors are not considered experienced ( 2.8 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: SALM 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

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


Key Information

  • Name: SalMar ASA
  • Ticker: SALM
  • Exchange: OB
  • Founded: 1991
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr43.012b
  • Shares outstanding: 112.92m
  • Website: https://www.salmar.no

Number of Employees


Location

  • SalMar ASA
  • Industriveien 51
  • Kverva
  • Sør-Trøndelag
  • 7266
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SALMOB (Oslo Bors)YesOrdinary SharesNONOKMay 2007
JEPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
0FWYLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 2007
SALMoBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 2007
SALR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
JEPBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFMay 2007
SALR.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDDec 2018

Biography

SalMar ASA, an aquaculture company, produces and sells farmed salmon in Asia, the United States, Canada, Norway, rest of Europe, and internationally. It is involved in the broodfish and smolt production; and marine-phase farming, harvesting, processing, and sale of farmed salmon and white fish. The company sells its products to importers/exporters, processing companies, and retail chains through in-house sales force and/or through partners. The company was founded in 1991 and is headquartered in Kverva, Norway. SalMar ASA is a subsidiary of Kverva Industrier AS. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:02
End of Day Share Price2020/04/08 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.