Elkem (OB:ELK) - Share price, News & Analysis

ELK fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	4/6

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.

Rewards

Trading at 55.9% below our estimate of its fair value

Earnings grew by 882.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 19% per year for the next 3 years

Unstable dividend track record

Significant insider selling over the past 3 months

Elkem Competitors

Vale

BOVESPA:VALE3

R$399.6b

Dow

NYSE:DOW

US$49.0b

South32

ASX:S32

AU$21.6b

Wacker Chemie

XTRA:WCH

€8.2b

Price History & Performance

Summary of all time highs, changes and price drops for Elkem
Historical stock prices
Current Share Price	kr37.90
52 Week High	kr44.14
52 Week Low	kr27.10
Beta	1.83
1 Month Change	-8.59%
3 Month Change	17.41%
1 Year Change	29.09%
3 Year Change	48.16%
5 Year Change	n/a
Change since IPO	36.33%

Recent News & Updates

May 06

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

	ELK	NO Chemicals	NO Market
7D	-0.6%	2.3%	1.9%
1Y	29.1%	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 Movement	6.1%
Chemicals Industry Average Movement	7.8%
Market Average Movement	7.4%
10% most volatile stocks in NO Market	13.1%
10% least volatile stocks in NO Market	4.1%

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

Founded	Employees	CEO	Website
1904	7,000	Helge Aasen	https://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 Cap	kr24.01b
Earnings (TTM)	kr6.60b
Revenue (TTM)	kr37.73b

3.6x

P/E Ratio

0.6x

P/S Ratio

Is ELK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELK income statement (TTM)
Revenue	kr37.73b
Cost of Revenue	kr17.74b
Gross Profit	kr20.00b
Other Expenses	kr13.39b
Earnings	kr6.60b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	10.42
Gross Margin	52.99%
Net Profit Margin	17.50%
Debt/Equity Ratio	51.4%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31