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.

Rewards

Trading at 41.7% below its fair value

Earnings are forecast to grow 13.13% per year

Earnings grew by 10.6% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.07%

SALM

-0.7%

NO Food

0.5%

NO Market


1 Year Return

0.4%

SALM

17.4%

NO Food

1.5%

NO Market

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

Return vs Market: SALM matched the Norwegian Market which returned 1.5% over the past year.


Shareholder returns

SALMIndustryMarket
7 Day-0.07%-0.7%0.5%
30 Day3.1%1.5%0.06%
90 Day12.6%14.3%1.2%
1 Year6.7%0.4%22.4%17.4%7.1%1.5%
3 Year103.3%71.6%64.5%41.8%33.0%16.3%
5 Year407.8%278.7%207.7%140.3%65.6%27.5%

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?

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SALM (NOK448.8) is trading below our estimate of fair value (NOK770.46)

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 (16.9x) compared to the Food industry average (26x).

PE vs Market: SALM is poor value based on its PE Ratio (16.9x) compared to the Norwegian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: SALM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SALM is overvalued based on its PB Ratio (6.1x) compared to the NO Food industry average (4x).


Next Steps

Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALM's forecast earnings growth (13.1% per year) is above the savings rate (0.7%).

Earnings vs Market: SALM's earnings (13.1% per year) are forecast to grow slower than the Norwegian market (20.9% per year).

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

Revenue vs Market: SALM's revenue (4.4% per year) is forecast to grow faster than the Norwegian market (4.3% per year).

High Growth Revenue: SALM's revenue (4.4% 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 (36.5%)


Next Steps

Past Performance

How has SalMar performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALM has high quality earnings.

Growing Profit Margin: SALM's current net profit margins (24.6%) are higher than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: SALM's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: SALM's earnings growth over the past year (10.6%) is below its 5-year average (23.1% per year).

Earnings vs Industry: SALM earnings growth over the past year (10.6%) exceeded the Food industry -5.9%.


Return on Equity

High ROE: SALM's Return on Equity (33.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALM's short term assets (NOK7.3B) exceed its short term liabilities (NOK3.8B).

Long Term Liabilities: SALM's short term assets (NOK7.3B) exceed its long term liabilities (NOK4.5B).


Debt to Equity History and Analysis

Debt Level: SALM's debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: SALM's debt to equity ratio has reduced from 50.3% to 32.5% over the past 5 years.

Debt Coverage: SALM's debt is well covered by operating cash flow (91.7%).

Interest Coverage: SALM's interest payments on its debt are well covered by EBIT (25.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SALM's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

5.12%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.5%markettop25%5.9%industryaverage3.6%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: SALM's dividend (5.12%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: SALM's dividend (5.12%) is low compared to the top 25% of dividend payers in the Norwegian market (5.91%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.8%), SALM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SALM's dividends in 3 years are forecast to be covered by earnings (78.7% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Gustav Witzøe (66yo)

2.9yrs

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 ($USD155.15K) is below average for companies of similar size in the Norwegian market ($USD1.03M).

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


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: SALM's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

64yo

Average Age

Experienced Board: SALM's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SALM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr463,92215 Nov 19
Frode Arntsen
EntityIndividual
Role
Head of Sales
Director of Processing & Sales
Shares1,146
Max Pricekr404.82
Sellkr211,72015 Nov 19
Runar Sivertsen
EntityIndividual
Role
Head of Investor Relations
Head of Investor Relations
Shares523
Max Pricekr404.82
Sellkr443,27715 Nov 19
Tonette Bjørgård
EntityIndividual
Role
Chief Accounting Officer
Head of Accounting
Shares1,095
Max Pricekr404.82
Sellkr650,13915 Nov 19
Ulrik Steinvik
EntityIndividual
Shares1,606
Max Pricekr404.82
Buykr1,002,80028 Aug 19
Trine Romuld
EntityIndividual
Role
Chief Financial Officer
COO & CFO
Shares2,300
Max Pricekr436.00
Buykr2,383,46123 May 19
Roger Bekken
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Farming
Shares6,000
Max Pricekr397.24

Ownership Breakdown

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


Management Team

  • Trine Romuld (51yo)

    COO & CFO

    • Tenure: 0.4yrs
  • Gustav Witzøe (66yo)

    Co-Founder

    • Tenure: 2.9yrs
    • Compensation: kr1.41m
  • Karl Aag (60yo)

    Manager of Freshwater

    • Tenure: 24.9yrs
    • Compensation: kr3.53m
  • Roger Bekken (52yo)

    Chief Operating Officer of Farming

    • Tenure: 1.5yrs
    • Compensation: kr4.46m
  • Tonette Bjørgård

    Head of Accounting

    • Tenure: 0yrs
  • Runar Sivertsen

    Head of Investor Relations

    • Tenure: 0yrs
  • Frode Arntsen (49yo)

    Director of Processing & Sales

    • Tenure: 2yrs
    • Compensation: kr3.49m

Board Members

  • Atle Eide (62yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: kr400.00k
  • Margrethe Hauge (48yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: kr215.00k
  • Kjell Storeide (67yo)

    Deputy Chair

    • Tenure: 0yrs
    • Compensation: kr285.00k
  • Gustav Witzøe (66yo)

    Co-Founder

    • Tenure: 2.9yrs
    • Compensation: kr1.41m
  • Helge Moen

    Director

    • Tenure: 2.5yrs
    • Compensation: kr263.00k
  • Brit Soleng

    Employee Representative Director

    • Tenure: 2.5yrs
    • Compensation: kr108.00k
  • Trine Danielsen

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: kr108.00k
  • Jon Rosvoll

    Employee Representative Director

    • Tenure: 0.9yrs

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: kr50.680b
  • 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
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; a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:06
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.