OB:BOR

Stock Analysis Report

Executive Summary

Borgestad ASA develops, manufactures, distributes, and installs refractory products in Norway.


Snowflake Analysis

Reasonable growth potential with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.2%

BOR

-6.7%

NO Basic Materials

-3.6%

NO Market


1 Year Return

2.3%

BOR

0.7%

NO Basic Materials

-5.1%

NO Market

Return vs Industry: BOR exceeded the Norwegian Basic Materials industry which returned 0.7% over the past year.

Return vs Market: BOR exceeded the Norwegian Market which returned -5.1% over the past year.


Shareholder returns

BORIndustryMarket
7 Day-7.2%-6.7%-3.6%
30 Day-2.7%-8.3%-6.3%
90 Day-10.9%-8.4%-2.9%
1 Year2.3%2.3%3.9%0.7%-0.1%-5.1%
3 Year-58.6%-69.0%-6.0%-13.6%27.2%11.2%
5 Year-63.6%-72.7%4.3%-8.9%52.1%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BOR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BOR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BOR is poor value based on its PE Ratio (20.1x) compared to the Basic Materials industry average (12.4x).

PE vs Market: BOR is poor value based on its PE Ratio (20.1x) compared to the Norwegian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: BOR is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: BOR is good value based on its PB Ratio (0.3x) compared to the XE Basic Materials industry average (1.2x).


Next Steps

Future Growth

How is Borgestad forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

82.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOR's forecast earnings growth (82.5% per year) is above the savings rate (0.7%).

Earnings vs Market: BOR's earnings (82.5% per year) are forecast to grow faster than the Norwegian market (18.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BOR's revenue (6% per year) is forecast to grow faster than the Norwegian market (3.4% per year).

High Growth Revenue: BOR's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOR's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Borgestad performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOR has high quality earnings.

Growing Profit Margin: BOR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BOR has become profitable over the past 5 years, growing earnings by 20.7% per year.

Accelerating Growth: BOR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BOR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (25.3%).


Return on Equity

High ROE: BOR's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Borgestad's financial position?


Financial Position Analysis

Short Term Liabilities: BOR's short term assets (NOK424.4M) exceed its short term liabilities (NOK322.5M).

Long Term Liabilities: BOR's short term assets (NOK424.4M) do not cover its long term liabilities (NOK873.7M).


Debt to Equity History and Analysis

Debt Level: BOR's debt to equity ratio (220.1%) is considered high.

Reducing Debt: BOR's debt to equity ratio has increased from 183.7% to 220.1% over the past 5 years.


Balance Sheet

Inventory Level: BOR has a low level of unsold assets or inventory.

Debt Coverage by Assets: BOR's debt is not covered by short term assets (assets are 0.4x debt).


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: BOR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: BOR is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%3.0%markettop25%6.4%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BOR'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 BOR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.0yrs

Average management tenure


CEO

Pål Larsen (36yo)

1.1yrs

Tenure

kr1,602,000

Compensation

Mr. Pål Feen Larsen serves as Chief Executive Officer and Chief Financial Officer at Borgestad ASA since 2019. Mr. Larsen served as Chief Operating Officer at Borgestad ASA and served as its Consolidated C ...


CEO Compensation Analysis

Compensation vs Market: Pål's total compensation ($USD0.00) is below average for companies of similar size in the Norwegian market ($USD406.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pål Larsen
CEO & CFO1.1yrskr1.60m0.10% NOK234.3k
Egil Friestad
Group President and Segment Manager0yrskr2.80mno data
Astrid Fjeld
Administration Manager0.8yrsno datano data
Eirik Hansen
Chief Financial Officer of Höganäs Borgestad Holding AB0.4yrsno datano data
Niclas Sjöberg
Chief Executive Officer of Borgestad Industries3.4yrsno data0.068% NOK155.8k
Eldar Myren
Group Controller0yrsno datano data

1.0yrs

Average Tenure

Experienced Management: BOR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gudmund Bratrud
Director23.1yrskr230.00k12.4% NOK28.4m
Christen Knudsen
Chairman of the Board1.1yrskr2.70m33.02% NOK75.6m
Jacob Møller
Deputy Chairman of the Board3.1yrskr165.00kno data
Anita Ballestad
Director1.1yrsno datano data

2.1yrs

Average Tenure

61yo

Average Age

Experienced Board: BOR's board of directors are not considered experienced ( 2.1 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 substantially diluted in the past year, with total shares outstanding growing by 77.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Borgestad ASA
  • Ticker: BOR
  • Exchange: OB
  • Founded: 1904
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: kr228.903m
  • Shares outstanding: 12.72m
  • Website: https://borgestad.no

Location

  • Borgestad ASA
  • Gunnar Knudsensveg 144
  • Skien
  • Telemark
  • 3712
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOROB (Oslo Bors)YesOrdinary SharesNONOKMay 1992
0DTOLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 1992
BOROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 1992

Biography

Borgestad ASA develops, manufactures, distributes, and installs refractory products in Norway. The company also develops and manages real estate properties. Its properties include Agora Bytom, a shopping center with a gross area of 52,000 square meters and a rental area of approximately 30,000 square meters, as well as a parking garage with 820 parking spaces in Poland; and Borgestad Business Park, a rented commercial premises used for the storage, production, and offices. Borgestad ASA was founded in 1904 and is headquartered in Skien, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:48
End of Day Share Price2020/02/26 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.