OB:ELK

Stock Analysis Report

Executive Summary

Elkem ASA manufactures and sells metals and materials in Norway and internationally.


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ELK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

ELK

-0.6%

NO Chemicals

0.2%

NO Market


1 Year Return

-22.2%

ELK

9.5%

NO Chemicals

-0.7%

NO Market

Return vs Industry: ELK underperformed the Norwegian Chemicals industry which returned 9.5% over the past year.

Return vs Market: ELK underperformed the Norwegian Market which returned -0.7% over the past year.


Shareholder returns

ELKIndustryMarket
7 Day-1.1%-0.6%0.2%
30 Day-9.7%2.9%-1.3%
90 Day3.2%2.9%1.7%
1 Year-16.1%-22.2%12.9%9.5%4.5%-0.7%
3 Yearn/a18.6%7.9%33.3%16.6%
5 Yearn/a30.4%10.9%58.2%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELK (NOK22.34) is trading below our estimate of fair value (NOK35.17)

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 PE Ratio (15.2x) compared to the Chemicals industry average (16.3x).

PE vs Market: ELK is good value based on its PE Ratio (15.2x) compared to the Norwegian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: ELK is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ELK is good value based on its PB Ratio (1x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Elkem forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELK's forecast earnings growth (23% per year) is above the savings rate (0.7%).

Earnings vs Market: ELK's earnings (23% per year) are forecast to grow faster than the Norwegian market (18.7% per year).

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

Revenue vs Market: ELK's revenue (6.1% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: ELK's revenue (6.1% per year) is forecast to grow slower than 20% 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 (12.7%).


Next Steps

Past Performance

How has Elkem performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELK has high quality earnings.

Growing Profit Margin: ELK's current net profit margins (3.8%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: ELK's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: ELK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELK had negative earnings growth (-74.4%) over the past year, making it difficult to compare to the Chemicals industry average (2.5%).


Return on Equity

High ROE: ELK's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elkem's financial position?


Financial Position Analysis

Short Term Liabilities: ELK's short term assets (NOK13.3B) exceed its short term liabilities (NOK6.5B).

Long Term Liabilities: ELK's short term assets (NOK13.3B) exceed its long term liabilities (NOK9.5B).


Debt to Equity History and Analysis

Debt Level: ELK's debt to equity ratio (77.8%) is considered high.

Reducing Debt: ELK's debt to equity ratio has reduced from 105.1% to 77.8% over the past 5 years.

Debt Coverage: ELK's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: ELK's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: ELK has a high level of physical assets or inventory.

Debt Coverage by Assets: ELK's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.69%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Elkem before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%2.8%markettop25%6.2%industryaverage3.0%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: ELK's dividend (2.69%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.83%).

High Dividend: ELK's dividend (2.69%) is low compared to the top 25% of dividend payers in the Norwegian market (6.18%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ELK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ELK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), ELK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELK's dividends in 3 years are forecast to be well covered by earnings (42.9% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Michael Koenig (56yo)

0.2yrs

Tenure

0

Mr. Michael Koenig has been the Chief Executive Officer at Elkem ASA since December 1, 2019. Mr. Koenig has been the Chief Executive Officer at China National Bluestar (Group) Co., Ltd. since January 2016  ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Koenig
Chief Executive Officer0.2yrsno data0.016% NOK2.0m
Morten Viga
Chief Financial Officer13.5yrskr8.96m0.0081% NOK1.0m
Håvard Moe
Senior Vice President of Technology12.1yrskr3.73m0.0030% NOK385.7k
Katja Lehland
Senior Vice President of Human Resources9.1yrskr4.20mno data
Asbjørn Søvik
Senior Vice President Business development13.1yrskr4.62m0.0017% NOK223.4k
Inge Grubben-Strømnes
Senior Vice President Carbon11.5yrskr7.84m0.0060% NOK785.7k
Trond Sæterstad
Senior Vice President of Silicon Materials8.1yrskr4.21mno data
Jean Villeneuve
Senior Vice President of Foundry Products9.1yrskr4.69mno data
Frederic Jacquin
Senior Vice President of Silicones5.1yrskr8.81m0.0011% NOK146.7k
Louis Vovelle
Senior Vice President of Innovation and Research & Development5.1yrskr3.32m0.0012% NOK154.5k

9.1yrs

Average Tenure

55yo

Average Age

Experienced Management: ELK's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dag Opedal
Independent Director1.9yrskr369.00k0.0069% NOK893.5k
Olivier Louis Gerard de Clermont-Tonnerre
Director9.1yrsno data0.0027% NOK346.7k
Helge Aasen
Director0.2yrskr19.09m0.015% NOK1.9m
Per Tronvoll
Employee Representative Director1.1yrskr85.00kno data
Terje Hanssen
Employee Representative Director1.5yrskr128.00kno data
Knut Sande
Board Observer0yrskr43.00kno data
Caroline Sainte Marie
Independent Director0yrskr337.00k0.00040% NOK51.9k
Yougen Ge
Director0.8yrsno datano data
Marianne Færøyvik
Employee Representative Director3.4yrskr169.00k0.00085% NOK110.4k
Zhigang Hao
Chairman0.2yrsno datano data

1.3yrs

Average Tenure

60yo

Average Age

Experienced Board: ELK's board of directors are not considered experienced ( 1.3 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: ELK insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elkem ASA
  • Ticker: ELK
  • Exchange: OB
  • Founded: 1904
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: kr12.986b
  • Shares outstanding: 581.31m
  • Website: https://www.elkem.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELKOB (Oslo Bors)YesCommon StockNONOKMar 2018
0SFNLSE (London Stock Exchange)YesCommon StockGBNOKMar 2018
1DPDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2018
ELKOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBNOKMar 2018
ELKE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 2018

Biography

Elkem ASA manufactures and sells metals and materials in Norway and internationally. Its products include silicones, ferrosilicones, foundry alloys, carbon materials, and microsilica products. The company also engages in sale of electric power, as well as supplies heat in the form of steam and hot water. Its products are used in chemical applications, as well as construction, refractory, and oilfield industries. The company was founded in 1904 and is headquartered in Oslo, Norway. Elkem ASA is a subsidiary of Bluestar Elkem International Co., Ltd. S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:21
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.