Executive Summary
Elkem ASA manufactures and sells metals and materials in Norway and internationally.
Rewards
Risk Analysis
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
| ELK | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -0.6% | 0.2% |
| 30 Day | -9.7% | 2.9% | -1.3% |
| 90 Day | 3.2% | 2.9% | 1.7% |
| 1 Year | -16.1%-22.2% | 12.9%9.5% | 4.5%-0.7% |
| 3 Year | n/a | 18.6%7.9% | 33.3%16.6% |
| 5 Year | n/a | 30.4%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
1 week ago | Simply Wall St
The Chief Executive Officer of Elkem ASA (OB:ELK), Michael Koenig, Just Bought 32% More Shares1 month ago | Simply Wall St
Elkem (OB:ELK) Takes On Some Risk With Its Use Of Debt1 month ago | Simply Wall St
Is Elkem ASA's (OB:ELK) 9.6% ROE Better Than Average?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
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.2yrs | no data | 0.016% NOK2.0m | |
| Chief Financial Officer | 13.5yrs | kr8.96m | 0.0081% NOK1.0m | |
| Senior Vice President of Technology | 12.1yrs | kr3.73m | 0.0030% NOK385.7k | |
| Senior Vice President of Human Resources | 9.1yrs | kr4.20m | no data | |
| Senior Vice President Business development | 13.1yrs | kr4.62m | 0.0017% NOK223.4k | |
| Senior Vice President Carbon | 11.5yrs | kr7.84m | 0.0060% NOK785.7k | |
| Senior Vice President of Silicon Materials | 8.1yrs | kr4.21m | no data | |
| Senior Vice President of Foundry Products | 9.1yrs | kr4.69m | no data | |
| Senior Vice President of Silicones | 5.1yrs | kr8.81m | 0.0011% NOK146.7k | |
| Senior Vice President of Innovation and Research & Development | 5.1yrs | kr3.32m | 0.0012% 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 1.9yrs | kr369.00k | 0.0069% NOK893.5k | |
| Director | 9.1yrs | no data | 0.0027% NOK346.7k | |
| Director | 0.2yrs | kr19.09m | 0.015% NOK1.9m | |
| Employee Representative Director | 1.1yrs | kr85.00k | no data | |
| Employee Representative Director | 1.5yrs | kr128.00k | no data | |
| Board Observer | 0yrs | kr43.00k | no data | |
| Independent Director | 0yrs | kr337.00k | 0.00040% NOK51.9k | |
| Director | 0.8yrs | no data | no data | |
| Employee Representative Director | 3.4yrs | kr169.00k | 0.00085% NOK110.4k | |
| Chairman | 0.2yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ELK | OB (Oslo Bors) | Yes | Common Stock | NO | NOK | Mar 2018 |
| 0SFN | LSE (London Stock Exchange) | Yes | Common Stock | GB | NOK | Mar 2018 |
| 1DP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 2018 |
| ELKO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | NOK | Mar 2018 |
| ELKE.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:21 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.