OB:ELK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with adequate balance sheet and pays a dividend.

Risks

  • Elkem has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-9.7%

OB:ELK

-5.6%

NO Chemicals

-1.6%

NO Market


1 Year Return

-49.3%

OB:ELK

-7.6%

NO Chemicals

-14.3%

NO Market

ELK underperformed the Chemicals industry which returned -11.8% over the past year.

ELK underperformed the Market in Norway which returned -13.8% over the past year.


Share holder returns

ELKIndustryMarket
7 Day-9.7%-5.6%-1.6%
30 Day-10.8%-10.3%-5.5%
90 Day-27.7%-4.2%-8.1%
1 Year-45.3%-49.3%-5.0%-7.6%-9.6%-14.3%
3 Yearn/a36.9%27.6%36.7%19.1%
5 Yearn/a43.3%23.4%37.0%6.3%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Elkem's share price is below the future cash flow value, and at a moderate discount (> 20%).

Elkem's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Elkem is good value based on earnings compared to the Europe Chemicals industry average.

Elkem is good value based on earnings compared to the Norway market.


Price Based on Expected Growth

Elkem is good value based on expected growth next year.


Price Based on Value of Assets

Elkem is good value based on assets compared to the Europe Chemicals industry average.


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Elkem's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Elkem's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

Elkem's revenue growth is expected to exceed the Norway market average.

Elkem's earnings growth is positive but not above the Norway market average.

Elkem's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Elkem is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Elkem performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Elkem has delivered over 20% year on year earnings growth in the past 5 years.

Elkem's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Elkem's 1-year earnings growth is negative, it can't be compared to the Europe Chemicals industry average.


Return on Equity

Elkem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Elkem used its assets more efficiently than the Europe Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Elkem has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Elkem's financial position?


Financial Position Analysis

Elkem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Elkem's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Elkem's level of debt (82.7%) compared to net worth is high (greater than 40%).

Unable to establish if Elkem's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (30.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

6.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Elkem's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.79%).

Elkem's dividend is above the markets top 25% of dividend payers in Norway (6.49%).

It is too early to tell whether Elkem has stable dividend payments.

Elkem only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Helge Aasen (56yo)

10.6yrs

Tenure

kr19,086,000

Compensation

Mr. Helge Aasen serves as Senior Vice President at Elkem Solar AS. Mr. Aasen has been Chief Executive Officer at Elkem AS since 2009 and served as its Director until April 30, 2019. He serves as a Director ...


CEO Compensation Analysis

Helge's remuneration is higher than average for companies of similar size in Norway.

Helge's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Elkem management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.2yrs

Average Tenure

60yo

Average Age

The average tenure for the Elkem board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr23,86030 Oct 18
Caroline Sainte Marie
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max Pricekr23.86
Buykr249,60025 Oct 18
Asbjørn Søvik
EntityIndividual
Role
Senior Vice President Business development
Shares10,000
Max Pricekr24.96
Buykr30,60024 Oct 18
Odd-Geir Lyngstad
EntityIndividual
Shares1,200
Max Pricekr25.50
Buykr74,94820 Aug 18
Odd-Geir Lyngstad
EntityIndividual
Shares1,828
Max Pricekr41.00

Ownership Breakdown


Management Team

  • Louis Vovelle

    Senior Vice President of Innovation and Research & Development

    • Tenure: 4.6yrs
    • Compensation: NOK3.32m
  • Frederic Jacquin

    Senior Vice President of Silicones

    • Tenure: 4.6yrs
    • Compensation: NOK8.81m
  • Katja Lehland

    Senior Vice President of Human Resources

    • Tenure: 8.6yrs
    • Compensation: NOK4.20m
  • Inge Grubben-Strømnes (45yo)

    Senior Vice President Carbon

    • Tenure: 11.0yrs
    • Compensation: NOK7.84m
  • Jean Villeneuve

    Senior Vice President of Foundry Products

    • Tenure: 8.6yrs
    • Compensation: NOK4.69m
  • Helge Aasen (56yo)

    Chief Executive Officer

    • Tenure: 10.6yrs
    • Compensation: NOK19.09m
  • Asbjørn Søvik (56yo)

    Senior Vice President Business development

    • Tenure: 12.6yrs
    • Compensation: NOK4.62m
  • Morten Viga (55yo)

    Chief Financial Officer

    • Tenure: 13.0yrs
    • Compensation: NOK8.96m
  • Håvard Moe (53yo)

    Senior Vice President of Technology

    • Tenure: 11.6yrs
    • Compensation: NOK3.73m
  • Trond Sæterstad

    Senior Vice President of Silicon Materials

    • Tenure: 7.6yrs
    • Compensation: NOK4.21m

Board Members

  • Per Tronvoll

    Observer

    • Compensation: NOK85.00k
  • Marianne Færøyvik

    Employee Representative Director

    • Tenure: 2.9yrs
    • Compensation: NOK169.00k
  • Caroline Sainte Marie (62yo)

    Member of the Board of Directors

    • Compensation: NOK337.00k
  • Olivier Louis Gerard de Clermont-Tonnerre (68yo)

    Director

  • Dag Opedal (60yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: NOK369.00k
  • Zhigang Hao (41yo)

    Director

    • Tenure: 0.3yrs
  • Yougen Ge

    Director

    • Tenure: 0.3yrs
  • Michael Koenig (55yo)

    Chair of the Board

    • Tenure: 2.9yrs
  • Knut Sande

    Board Observer

    • Compensation: NOK43.00k
  • Terje Hanssen

    Employee Representative Director

    • Tenure: 1.0yrs
    • Compensation: NOK128.00k

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: kr11.882b
  • Shares outstanding: 581.31m
  • Website: Click here

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/15 22:13
End of Day Share Price2019/08/15 00:00
Earnings2019/06/30
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.