OB:ELE

Stock Analysis Report

Executive Summary

Element ASA engages in the acquisition and development of mineral resources.

Risk Analysis

Earnings have declined by -33.67% per year over past 5 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.0%

ELE

3.5%

NO Metals and Mining

0.8%

NO Market


1 Year Return

-58.5%

ELE

8.5%

NO Metals and Mining

3.7%

NO Market

Return vs Industry: ELE underperformed the Norwegian Metals and Mining industry which returned 7.5% over the past year.

Return vs Market: ELE underperformed the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

ELEIndustryMarket
7 Day-4.0%3.5%0.8%
30 Day-9.4%4.7%2.7%
90 Day47.4%14.6%6.0%
1 Year-58.5%-58.5%16.2%8.5%9.3%3.7%
3 Year-85.7%-85.7%25.3%8.3%33.6%17.0%
5 Year-96.3%-96.3%70.9%35.5%66.0%27.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ELE is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: ELE is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ELE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ELE is good value based on its PB Ratio (0.9x) compared to the XE Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Element forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Element has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Element performed over the past 5 years?

-33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELE is currently unprofitable.

Growing Profit Margin: ELE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELE is unprofitable, and losses have increased over the past 5 years at a rate of -33.7% per year.

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

Earnings vs Industry: ELE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-9.2%).


Return on Equity

High ROE: ELE has a negative Return on Equity (-86.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Element's financial position?


Financial Position Analysis

Short Term Liabilities: ELE's short term assets ($12.6M) exceed its short term liabilities ($3.4M).

Long Term Liabilities: ELE's short term assets ($12.6M) do not cover its long term liabilities ($-1,000.0).


Debt to Equity History and Analysis

Debt Level: ELE's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ELE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ELE's debt is covered by short term assets (assets are 47.6x 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: ELE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ELE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.7%industryaverage6.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELE's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Geir Johansen 0

0.6yrs

Tenure

0

Mr. Geir Johansen serves as the Chief Financial Officer of Element ASA since December 7, 2018 and its CEO since June 6, 2019. He served as Chief Financial Officer at Nickel Mountain Group AB (publ) from Ja ...


Management Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

Experienced Management: ELE's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: ELE's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr1,132,72025 Jun 19
Thomas Christensen
EntityIndividual
Role
Chairman of the Board
Chairman
Shares400,000
Max Pricekr2.83
Buykr100,36006 Jun 19
Kari Toverud
EntityIndividual
Role
Member of the Board of Directors
Member of the Board of Directors
Shares26,000
Max Pricekr3.86
Sellkr543,01115 Mar 19
Nobelsystem Scandinavia AS
EntityCompany
Shares65,000
Max Pricekr8.35

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 301.7%.


Management Team

  • Leo Gamolo (58yo)

    Head of The Philippine Operations and Country Manager

    • Tenure: 6.5yrs
  • David Attewill (58yo)

    Chief Project Manager and Vice President of Projects

    • Andreas Qvale (75yo)

      Vice President of Communication & Corporate Affairs

      • Compensation: US$72.00k
    • Geir Johansen

      CEO & CFO

      • Tenure: 0.6yrs
    • Joselito Bacani (61yo)

      President of Intex Resources Philippines Inc

      • Lars Beitnes (47yo)

        Consultant

        • Tenure: 1.1yrs
      • Hans Haavelsrud

        Chief Operating Officer

        • Tenure: 1.3yrs
        • Compensation: US$1.39m

      Board Members

      • Thomas Christensen

        Chairman

        • Tenure: 1yrs
      • Kari Toverud

        Member of the Board of Directors

        • Tenure: 1.6yrs
      • Kris Gram

        Member of the Board

        • Tenure: 0.5yrs

      Company Information

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


      Key Information

      • Name: Element ASA
      • Ticker: ELE
      • Exchange: OB
      • Founded: 1996
      • Industry: Diversified Metals and Mining
      • Sector: Materials
      • Market Cap: kr109.507m
      • Shares outstanding: 18.58m
      • Website: https://www.elementasa.com

      Number of Employees


      Location

      • Element ASA
      • Karenslyst Allé 53
      • Oslo
      • Oslo
      • 279
      • Norway

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ELEOB (Oslo Bors)YesOrdinary SharesNONOKOct 1996
      XENDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1996
      0HTSLSE (London Stock Exchange)YesOrdinary SharesGBNOKOct 1996
      XENBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 1996

      Biography

      Element ASA engages in the acquisition and development of mineral resources. It holds interests in the Bending Lake iron deposit in Ontario, Canada. The company was formerly known as Intex Resources ASA and changed its name to Element ASA in October 2017. Element ASA was incorporated in 1996 and is headquartered in Oslo, Norway. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 20:59
      End of Day Share Price2020/01/20 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.