SALM

SalMarOB:SALM Stock Report

Market Cap

kr69.1b

7D

4.1%

1Y

16.9%

Updated

17 Sep, 2021

Data

Company Financials +
SALM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends3/6

SALM Overview

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

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 is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SALM's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.1%

SALM

1.0%

NO Food

-0.5%

NO Market


1 Year Return

16.9%

SALM

10.5%

NO Food

20.4%

NO Market

Return vs Industry: SALM exceeded the Norwegian Food industry which returned 9.6% over the past year.

Return vs Market: SALM underperformed the Norwegian Market which returned 21.3% over the past year.


Shareholder returns

SALMIndustryMarket
7 Day4.1%1.0%-0.5%
30 Day2.6%-1.3%1.4%
90 Day-3.5%-5.3%3.3%
1 Year23.9%16.9%13.3%10.5%27.2%20.4%
3 Year63.9%45.5%31.1%20.4%17.4%4.0%
5 Year199.1%138.2%92.1%57.0%80.5%47.8%

Long-Term 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

SalMar Fundamentals Summary

How do SalMar's earnings and revenue compare to its market cap?
SALM fundamental statistics
Market Capkr69.11b
Earnings (TTM)kr1.91b
Revenue (TTM)kr12.29b

36.2x

P/E Ratio

5.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SALM income statement (TTM)
Revenuekr12.29b
Cost of Revenuekr5.82b
Gross Profitkr6.46b
Expenseskr4.55b
Earningskr1.91b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 17, 2021

Earnings per share (EPS)16.85
Gross Margin52.61%
Net Profit Margin15.55%
Debt/Equity Ratio38.1%

How did SALM perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

119%

Payout Ratio

Valuation

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

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SALM (NOK587.8) is trading below our estimate of fair value (NOK1157.71)

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


Price To Earnings Ratio

PE vs Industry: SALM is poor value based on its PE Ratio (36.2x) compared to the Norwegian Food industry average (33.1x).

PE vs Market: SALM is poor value based on its PE Ratio (36.2x) compared to the Norwegian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: SALM is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: SALM is overvalued based on its PB Ratio (5.9x) compared to the NO Food industry average (2.3x).


Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALM's forecast earnings growth (12.4% per year) is above the savings rate (1.2%).

Earnings vs Market: SALM's earnings (12.4% per year) are forecast to grow faster than the Norwegian market (10.2% per year).

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

Revenue vs Market: SALM's revenue (9.9% per year) is forecast to grow faster than the Norwegian market (5.8% per year).

High Growth Revenue: SALM's revenue (9.9% 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 (25.7%)


Past Performance

How has SalMar performed over the past 5 years?

0.02%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SALM's current net profit margins (15.6%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: SALM's earnings have grown by 0.02% 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 (-22.2%) over the past year, making it difficult to compare to the Food industry average (33.1%).


Return on Equity

High ROE: SALM's Return on Equity (15.8%) is considered low.


Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALM's short term assets (NOK9.0B) exceed its short term liabilities (NOK3.5B).

Long Term Liabilities: SALM's short term assets (NOK9.0B) exceed its long term liabilities (NOK7.5B).


Debt to Equity History and Analysis

Debt Level: SALM's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: SALM's debt to equity ratio has reduced from 48.1% to 38.1% over the past 5 years.

Debt Coverage: SALM's debt is well covered by operating cash flow (41%).

Interest Coverage: SALM's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet


Dividend

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

3.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SALM's dividend (3.4%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.84%).

High Dividend: SALM's dividend (3.4%) is low compared to the top 25% of dividend payers in the Norwegian market (5.1%).


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: With its high payout ratio (118.7%), SALM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SALM's dividends in 3 years are forecast to be covered by earnings (77.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Gustav Witzoe (68 yo)

4.67yrs

Tenure

kr2,112,000

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 ($USD243.25K) is below average for companies of similar size in the Norwegian market ($USD1.17M).

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


Leadership Team

Experienced Management: SALM's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: SALM's board of directors are not considered experienced ( 0.5 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 been diluted in the past year, with total shares outstanding growing by 4.1%.


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: kr69.106b
  • Shares outstanding: 117.57m
  • Website: https://www.salmar.no

Number of Employees


Location

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

Listings


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, lumpfish, and smolt pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 22:29
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.