Executive Summary
Elkem ASA manufactures and sells metals and materials in Norway and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
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 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.
Market Performance
7 Day Return
-2.0%
ELK
2.2%
NO Chemicals
1.7%
NO Market
1 Year Return
104.3%
ELK
34.8%
NO Chemicals
43.7%
NO Market
Return vs Industry: ELK exceeded the Norwegian Chemicals industry which returned 34.8% over the past year.
Return vs Market: ELK exceeded the Norwegian Market which returned 43.7% over the past year.
Shareholder returns
| ELK | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | 2.2% | 1.7% |
| 30 Day | -2.6% | 0.2% | 1.3% |
| 90 Day | 32.1% | 17.6% | 7.9% |
| 1 Year | 111.2%104.3% | 41.0%34.8% | 50.0%43.7% |
| 3 Year | 27.2%14.1% | 24.5%11.6% | 23.1%8.0% |
| 5 Year | n/a | 66.9%40.7% | 86.8%48.8% |
Long-Term 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
3 days ago | Simply Wall St
Elkem ASA's (OB:ELK) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?3 weeks ago | Simply Wall St
Director Helge Aasen Just Sold A Bunch Of Shares In Elkem ASA (OB:ELK)3 weeks ago | Simply Wall St
Elkem (OB:ELK) Shareholders Have Enjoyed An Impressive 180% Share Price GainValuation
Is Elkem undervalued compared to its fair value and its price relative to the market?
39.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ELK (NOK35.46) is trading below our estimate of fair value (NOK58.64)
Significantly Below Fair Value: ELK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ELK is poor value based on its PE Ratio (86.2x) compared to the XE Chemicals industry average (26x).
PE vs Market: ELK is poor value based on its PE Ratio (86.2x) compared to the Norwegian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: ELK is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: ELK is good value based on its PB Ratio (1.6x) compared to the NO Chemicals industry average (2x).
Future Growth
How is Elkem forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
32.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ELK's forecast earnings growth (32.4% per year) is above the savings rate (1.4%).
Earnings vs Market: ELK's earnings (32.4% per year) are forecast to grow faster than the Norwegian market (25.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ELK's revenue (6.4% per year) is forecast to grow faster than the Norwegian market (1.6% per year).
High Growth Revenue: ELK's revenue (6.4% 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 (14%).
Past Performance
How has Elkem performed over the past 5 years?
-13.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ELK has a large one-off loss of NOK157.0M impacting its December 31 2020 financial results.
Growing Profit Margin: ELK's current net profit margins (1%) are lower than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: ELK's earnings have declined by 13.3% 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 (-72%) over the past year, making it difficult to compare to the Chemicals industry average (-1.4%).
Return on Equity
High ROE: ELK's Return on Equity (2.2%) is considered low.
Financial Health
How is Elkem's financial position?
Financial Position Analysis
Short Term Liabilities: ELK's short term assets (NOK12.9B) exceed its short term liabilities (NOK9.5B).
Long Term Liabilities: ELK's short term assets (NOK12.9B) exceed its long term liabilities (NOK8.8B).
Debt to Equity History and Analysis
Debt Level: ELK's debt to equity ratio (86.4%) is considered high.
Reducing Debt: ELK's debt to equity ratio has increased from 54.1% to 86.4% over the past 5 years.
Debt Coverage: ELK's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: ELK's interest payments on its debt are well covered by EBIT (4.3x coverage).
Balance Sheet
Dividend
What is Elkem current dividend yield, its reliability and sustainability?
0.42%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ELK's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (1.9%).
High Dividend: ELK's dividend (0.42%) is low compared to the top 25% of dividend payers in the Norwegian market (5.02%).
Stability and Growth of Payments
Stable Dividend: ELK is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are stable.
Growing Dividend: ELK is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ELK is not paying a notable dividend for the Norwegian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ELK's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.3yrs
Average management tenure
CEO
Michael Koenig (57 yo)
1.33yrs
Tenure
kr13,458,000
Compensation
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 ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD1.61M) is above average for companies of similar size in the Norwegian market ($USD678.83K).
Compensation vs Earnings: Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ELK's management team is seasoned and experienced (10.3 years average tenure).
Board Members
Experienced Board: ELK's board of directors are not considered experienced ( 2 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 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 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: kr20.613b
- Shares outstanding: 581.99m
- Website: https://www.elkem.com
Number of Employees
Location
- Elkem ASA
- Drammensveien 169
- Oslo
- Oslo
- 277
- Norway
Listings
Biography
Elkem ASA manufactures and sells metals and materials in Norway and internationally. It operates through three segments: Silicones, Silicon Products, and Carbon Solutions. The Silicones segment produces an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/18 16:21 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.