Bergen Carbon Solutions (OB:BCS) - Share price, News & Analysis

Q: What is the Fair Price of BCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BCS (NOK46.15) is trading below our estimate of [[fair value]] (NOK408.32)

BCS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

BCS Stock Overview

Bergen Carbon Solutions AS develops, manufactures, and sells carbon nanofibers using carbon dioxide and hydropower.

Rewards

Trading at 88.7% below our estimate of its fair value

Earnings are forecast to grow 55.78% per year

Revenue grew by 83152.9% over the past year

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (NOK874K)

Volatile share price over the past 3 months

Less than 3 years of financial data is available

+ 1 more risk

Bergen Carbon Solutions Competitors

BEWi

OB:BEWI

kr10.5b

Tekna Holding

OB:TEKNA

kr2.2b

Desert Control

OB:DSRT

kr1.1b

Circa Group

OB:CIRCA

kr1.0b

Price History & Performance

Summary of all time highs, changes and price drops for Bergen Carbon Solutions
Historical stock prices
Current Share Price	kr46.15
52 Week High	kr83.98
52 Week Low	kr28.40
Beta	0
1 Month Change	24.06%
3 Month Change	25.41%
1 Year Change	17.15%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	166.55%

Shareholder Returns

	BCS	NO Chemicals	NO Market
7D	3.2%	0.2%	-1.1%
1Y	17.1%	-4.6%	9.2%

Return vs Industry: BCS exceeded the Norwegian Chemicals industry which returned -4.6% over the past year.

Return vs Market: BCS exceeded the Norwegian Market which returned 9.2% over the past year.

Price Volatility

Is BCS's price volatile compared to industry and market?
BCS volatility
BCS Average Weekly Movement	10.7%
Chemicals Industry Average Movement	7.3%
Market Average Movement	6.8%
10% most volatile stocks in NO Market	12.6%
10% least volatile stocks in NO Market	3.8%

Stable Share Price: BCS is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BCS's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Norwegian stocks.

About the Company

Founded	Employees	CEO	Website
2016	34	Finn Blydt-Svendsen	https://bergencarbonsolutions.com

Bergen Carbon Solutions AS develops, manufactures, and sells carbon nanofibers using carbon dioxide and hydropower. The company was incorporated in 2016 and is headquartered in Bergen, Norway.

Bergen Carbon Solutions Fundamentals Summary

How do Bergen Carbon Solutions's earnings and revenue compare to its market cap?
BCS fundamental statistics
Market Cap	kr1.94b
Earnings (TTM)	-kr29.91m
Revenue (TTM)	kr874.16k

2,217x

P/S Ratio

-64.8x

P/E Ratio

Is BCS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCS income statement (TTM)
Revenue	kr874.16k
Cost of Revenue	-kr34.22k
Gross Profit	kr908.37k
Other Expenses	kr30.81m
Earnings	-kr29.91m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	-0.71
Gross Margin	103.91%
Net Profit Margin	-3,421.03%
Debt/Equity Ratio	0.0%

How did BCS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BCS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BCS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BCS. This is calculated by dividing BCS's market cap by their current preferred multiple.
What is BCS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr1.94b

BCS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2093x
Enterprise Value/EBITDA	-63.4x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does BCS's PB Ratio compare to its peers?

BCS PB Ratio vs Peers

The above table shows the PB ratio for BCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	4.2x
BEWI BEWi	4x	14.8%	kr10.5b
TEKNA Tekna Holding	4x	91.3%	kr2.2b
DSRT Desert Control	6.5x	109.5%	kr1.1b
CIRCA Circa Group	2.4x	6.3%	kr1.0b
BCS Bergen Carbon Solutions	16.3x	55.8%	kr1.9b

Price-To-Book vs Peers: BCS is expensive based on its Price-To-Book Ratio (16.3x) compared to the peer average (4.2x).

Price to Earnings Ratio vs Industry

How does BCS's PE Ratio compare vs other companies in the European Chemicals Industry?

Price-To-Book vs Industry: BCS is expensive based on its Price-To-Book Ratio (16.3x) compared to the Norwegian Chemicals industry average (4x)

Price to Book Ratio vs Fair Ratio

What is BCS's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BCS PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	16.3x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate BCS's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BCS (NOK46.15) is trading below our estimate of fair value (NOK408.32)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Bergen Carbon Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

55.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: BCS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BCS is expected to become profitable in the next 3 years.

Revenue vs Market: BCS's revenue (52.7% per year) is forecast to grow faster than the Norwegian market (-1% per year).

High Growth Revenue: BCS's revenue (52.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BCS's Return on Equity is forecast to be very high in 3 years time (45%).

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Past Performance

How has Bergen Carbon Solutions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-542.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: BCS is currently unprofitable.

Growing Profit Margin: BCS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Unable to establish if BCS's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare BCS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BCS is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (27.6%).

Return on Equity

High ROE: BCS has a negative Return on Equity (-25.17%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Bergen Carbon Solutions's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BCS's short term assets (NOK110.3M) exceed its short term liabilities (NOK5.7M).

Long Term Liabilities: BCS has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: BCS is debt free.

Reducing Debt: BCS has not had any debt for past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BCS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: BCS has less than a year of cash runway if free cash flow continues to reduce at historical rates of 116.2% each year

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Dividend

What is Bergen Carbon Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BCS has not reported any payouts.

Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure

CEO

Finn Blydt-Svendsen

0.25

Tenure

Mr. Finn Blydt-Svendsen is Co-Founder of Bergen Carbon Solutions AS and serves as its Chief Operating Officer, Director and Co-owner and also was its Chairman of the Board since June 2016 and since May 3,...

Leadership Team

Experienced Management: BCS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: BCS's board of directors are not considered experienced ( 0.6 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 12.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31