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

Fundamentals

Outstanding track record with flawless balance sheet 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


Market Performance


7 Day Return

5.5%

SALM

3.4%

NO Food

1.3%

NO Market


1 Year Return

-2.0%

SALM

5.9%

NO Food

-9.3%

NO Market

Return vs Industry: SALM underperformed the Norwegian Food industry which returned 5.9% over the past year.

Return vs Market: SALM exceeded the Norwegian Market which returned -9.3% over the past year.


Shareholder returns

SALMIndustryMarket
7 Day5.5%3.4%1.3%
30 Day5.1%7.7%-2.4%
90 Day-2.9%3.1%1.9%
1 Year4.1%-2.0%10.4%5.9%-4.4%-9.3%
3 Year95.4%64.9%60.1%37.5%40.6%22.3%
5 Year372.6%252.5%204.5%138.0%58.5%22.1%

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?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SALM (NOK426.5) is trading below our estimate of fair value (NOK527.16)

Significantly Undervalued: SALM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SALM is good value based on its PE Ratio (13x) compared to the Food industry average (17.6x).

PE vs Market: SALM is good value based on its PE Ratio (13x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SALM is overvalued based on its PB Ratio (6x) compared to the NO Food industry average (3.7x).


Next Steps

Future Growth

How is SalMar forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALM's forecast earnings growth (8.6% per year) is above the savings rate (1.8%).

Earnings vs Market: SALM's earnings (8.6% per year) are forecast to grow slower than the Norwegian market (14.9% per year).

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

Revenue vs Market: SALM's revenue (5.6% per year) is forecast to grow faster than the Norwegian market (4.8% per year).

High Growth Revenue: SALM's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SALM's Return on Equity is forecast to be high in 3 years time (35.8%)


Next Steps

Past Performance

How has SalMar performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SALM's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: SALM's earnings growth over the past year (34.3%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: SALM earnings growth over the past year (34.3%) exceeded the Food industry 3.8%.


Return on Equity

High ROE: SALM's Return on Equity (42.8%) is considered outstanding.


Return on Assets

ROA vs Industry: SALM has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: SALM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALM's short term assets (NOK7.3B) exceeds its short term liabilities (NOK3.1B)

Long Term Liabilities: SALM's short term assets (7.3B) exceeds its long term liabilities (5.3B)


Debt to Equity History and Analysis

Debt Level: SALM's debt to equity ratio (37.6%) is considered satisfactory

Reducing Debt: SALM's debt to equity ratio has reduced from 47.8% to 37.6% over the past 5 years.

Debt Coverage: SALM's debt is well covered by operating cash flow (105.3%).

Interest Coverage: SALM's interest payments on its debt are well covered by EBIT (33.8x 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 2.221410x debt).


Next Steps

Dividend

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

5.39%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.6%markettop25%6.3%industryaverage3.9%forecastin3Years5.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SALM's dividend (5.39%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.62%).

High Dividend: SALM's dividend (5.39%) is low compared to the top 25% of dividend payers in the Norwegian market (6.31%).

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 reasonable payout ratio (69.9%), SALM's dividend 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 (75.3% 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?

1.7yrs

Average management tenure


CEO

Olav-Andreas Ervik (43yo)

1.5yrs

Tenure

kr6,155,000

Compensation

Mr. Olav-Andreas Ervik has been Chief Executive Officer of SalMar ASA since April 10, 2018 and has been its President since April 2018. Mr. Ervik served as Director of Farming at SalMar ASA from August 201 ...


CEO Compensation Analysis

Compensation vs. Market: Olav-Andreas has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Norwegian market.

Compensation vs Earnings: Olav-Andreas's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: SALM's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: SALM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SALM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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
Sellkr381,71416 Nov 18
Geir Berg
EntityIndividual
Shares764
Max Pricekr499.63
Sellkr721,33715 Nov 18
Tonette Bjørgård
EntityIndividual
Role
Chief Accounting Officer
Head of Accounting
Shares1,413
Max Pricekr510.50
Sellkr336,67012 Nov 18
Geir Berg
EntityIndividual
Shares684
Max Pricekr492.21
Sellkr1,200,98512 Nov 18
Olav-Andreas Ervik
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares2,440
Max Pricekr492.21
Sellkr906,15312 Nov 18
Ulrik Steinvik
EntityIndividual
Shares1,841
Max Pricekr492.21
Sellkr324,85712 Nov 18
Frode Arntsen
EntityIndividual
Role
Head of Sales
Director of Processing & Sales
Shares660
Max Pricekr492.21
Sellkr1,097,12912 Nov 18
Trond Tuvstein
EntityIndividual
Shares2,229
Max Pricekr492.21
Sellkr311,56712 Nov 18
Runar Sivertsen
EntityIndividual
Role
Head of Investor Relations
Head of Investor Relations
Shares633
Max Pricekr492.21
Sellkr580,80412 Nov 18
Tonette Bjørgård
EntityIndividual
Role
Chief Accounting Officer
Head of Accounting
Shares1,180
Max Pricekr492.21

Ownership Breakdown


Management Team

  • Trine Romuld (51yo)

    COO & CFO

    • Tenure: 0.3yrs
  • Gustav Witzøe (66yo)

    Co-Founder & Director of Strategic Projects

    • Tenure: 1.3yrs
    • Compensation: kr1.41m
  • Karl Aag (60yo)

    Manager of Freshwater

    • Tenure: 24.8yrs
    • Compensation: kr3.53m
  • Roger Bekken (52yo)

    Chief Operating Officer of Farming

    • Tenure: 1.3yrs
    • Compensation: kr4.46m
  • Olav-Andreas Ervik (43yo)

    President & CEO

    • Tenure: 1.5yrs
    • Compensation: kr6.16m
  • Tonette Bjørgård

    Head of Accounting

    • Tenure: 0yrs
  • Runar Sivertsen

    Head of Investor Relations

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

    Director of Processing & Sales

    • Tenure: 1.8yrs
    • Compensation: kr3.49m

Board Members

  • Atle Eide (62yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: kr400.00k
  • Margrethe Hauge (48yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: kr215.00k
  • Kjell Storeide (67yo)

    Deputy Chair

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

    Co-Founder & Director of Strategic Projects

    • Tenure: 1.3yrs
    • Compensation: kr1.41m
  • Helge Moen

    Director

    • Tenure: 2.3yrs
    • Compensation: kr263.00k
  • Brit Soleng

    Employee Representative Director

    • Tenure: 2.3yrs
    • Compensation: kr108.00k
  • Trine Danielsen

    Director

    • Tenure: 1.3yrs
    • Compensation: kr108.00k
  • Jon Rosvoll

    Employee Representative Director

    • Tenure: 0.8yrs

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: kr48.083b
  • Shares outstanding: 112.74m
  • 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 Analysis2019/10/16 20:57
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.