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ELK

Elkem OB:ELK Stock Report

Last Price

kr37.90

Market Cap

kr24.0b

7D

-0.6%

1Y

29.1%

Updated

25 May, 2022

Data

Company Financials +
ELK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends4/6

ELK Stock Overview

Elkem ASA manufactures and sells metals and materials in Norway, the United Kingdom, Germany, France, Italy, Poland, Spain, the Netherlands, and othe European countries.

Elkem Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Elkem
Historical stock prices
Current Share Pricekr37.90
52 Week Highkr44.14
52 Week Lowkr27.10
Beta1.83
1 Month Change-8.59%
3 Month Change17.41%
1 Year Change29.09%
3 Year Change48.16%
5 Year Changen/a
Change since IPO36.33%

Recent News & Updates

May 06
Is There Now An Opportunity In Elkem ASA (OB:ELK)?

Is There Now An Opportunity In Elkem ASA (OB:ELK)?

While Elkem ASA ( OB:ELK ) might not be the most widely known stock at the moment, it saw a significant share price...

Shareholder Returns

ELKNO ChemicalsNO Market
7D-0.6%2.3%1.9%
1Y29.1%13.0%15.0%

Return vs Industry: ELK exceeded the Norwegian Chemicals industry which returned 10.9% over the past year.

Return vs Market: ELK exceeded the Norwegian Market which returned 13% over the past year.

Price Volatility

Is ELK's price volatile compared to industry and market?
ELK volatility
ELK Average Weekly Movement6.1%
Chemicals Industry Average Movement7.8%
Market Average Movement7.4%
10% most volatile stocks in NO Market13.1%
10% least volatile stocks in NO Market4.1%

Stable Share Price: ELK is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ELK's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19047,000Helge Aasenhttps://www.elkem.com

Elkem ASA manufactures and sells metals and materials in Norway, the United Kingdom, Germany, France, Italy, Poland, Spain, the Netherlands, and othe European countries. It operates through three segments: Silicones, Silicon Products, and Carbon Solutions. The Silicones segment produces and sells various silicone-based products across various sub-sectors, including release coatings, engineering elastomers, healthcare products, specialty fluids, emulsions, and resins.

Elkem Fundamentals Summary

How do Elkem's earnings and revenue compare to its market cap?
ELK fundamental statistics
Market Capkr24.01b
Earnings (TTM)kr6.60b
Revenue (TTM)kr37.73b

3.6x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELK income statement (TTM)
Revenuekr37.73b
Cost of Revenuekr17.74b
Gross Profitkr20.00b
Other Expenseskr13.39b
Earningskr6.60b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)10.42
Gross Margin52.99%
Net Profit Margin17.50%
Debt/Equity Ratio51.4%

How did ELK perform over the long term?

See historical performance and comparison

Dividends

7.9%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ELK (NOK37.9) is trading below our estimate of fair value (NOK86.02)

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


Price To Earnings Ratio

PE vs Industry: ELK is good value based on its Price-To-Earnings Ratio (3.6x) compared to the European Chemicals industry average (12.8x).

PE vs Market: ELK is good value based on its Price-To-Earnings Ratio (3.6x) compared to the Norwegian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: ELK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ELK is good value based on its Price-To-Book Ratio (1.1x) compared to the NO Chemicals industry average (3.3x).


Future Growth

How is Elkem forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-19.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELK's earnings are forecast to decline over the next 3 years (-19% per year).

Earnings vs Market: ELK's earnings are forecast to decline over the next 3 years (-19% per year).

High Growth Earnings: ELK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ELK's revenue is expected to decline over the next 3 years (-3.5% per year).

High Growth Revenue: ELK's revenue is forecast to decline over the next 3 years (-3.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELK's Return on Equity is forecast to be low in 3 years time (12.1%).


Past Performance

How has Elkem performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELK has high quality earnings.

Growing Profit Margin: ELK's current net profit margins (17.5%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: ELK's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: ELK's earnings growth over the past year (882.4%) exceeds its 5-year average (9% per year).

Earnings vs Industry: ELK earnings growth over the past year (882.4%) exceeded the Chemicals industry 53.1%.


Return on Equity

High ROE: ELK's Return on Equity (29.1%) is considered high.


Financial Health

How is Elkem's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELK's short term assets (NOK23.5B) exceed its short term liabilities (NOK12.2B).

Long Term Liabilities: ELK's short term assets (NOK23.5B) exceed its long term liabilities (NOK10.0B).


Debt to Equity History and Analysis

Debt Level: ELK's net debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: ELK's debt to equity ratio has reduced from 65.2% to 51.4% over the past 5 years.

Debt Coverage: ELK's debt is well covered by operating cash flow (56.9%).

Interest Coverage: ELK's interest payments on its debt are well covered by EBIT (42.1x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELK's dividend (7.92%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.75%).

High Dividend: ELK's dividend (7.92%) is in the top 25% of dividend payers in the Norwegian market (6.73%)


Stability and Growth of Payments

Stable Dividend: ELK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ELK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.7%), ELK's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61%), ELK's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

11.3yrs

Average management tenure


CEO

Helge Aasen (58 yo)

0.92

Tenure

kr10,369,000

Compensation

Mr. Helge Aasen serves as Chief Executive Officer at Elkem ASA since October 18, 2021 and served as its Director since December 1, 2019 until June 2021 and has been its Interim Chief Executive Officer sinc...


CEO Compensation Analysis

Compensation vs Market: Helge's total compensation ($USD1.08M) is about average for companies of similar size in the Norwegian market ($USD973.61K).

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


Leadership Team

Experienced Management: ELK's management team is seasoned and experienced (11.3 years average tenure).


Board Members

Experienced Board: ELK's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ELK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Elkem ASA's employee growth, exchange listings and data sources


Key Information

  • Name: Elkem ASA
  • Ticker: ELK
  • Exchange: OB
  • Founded: 1904
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: kr24.007b
  • Shares outstanding: 633.44m
  • Website: https://www.elkem.com

Number of Employees


Location

  • Elkem ASA
  • Drammensveien 169
  • Oslo
  • Oslo
  • 277
  • Norway

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.