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
| ELK | Industry | Market | |
|---|---|---|---|
| 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 Year | n/a | 36.9%27.6% | 36.7%19.1% |
| 5 Year | n/a | 43.3%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
3 days ago | Simply Wall St
Are Investors Undervaluing Elkem ASA (OB:ELK) By 50%?2 weeks ago | Simply Wall St
What Can We Make Of Elkem ASA’s (OB:ELK) High Return On Capital?1 month ago | Simply Wall St
Elkem (OB:ELK) Has A Pretty Healthy Balance SheetValuation
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
| Entity | Individual |
| Role | Member of the Board of Directors |
| Shares | 1,000 |
| Max Price | kr23.86 |
| Entity | Individual |
| Role | Senior Vice President Business development |
| Shares | 10,000 |
| Max Price | kr24.96 |
| Entity | Individual |
| Shares | 1,200 |
| Max Price | kr25.50 |
| Entity | Individual |
| Shares | 1,828 |
| Max Price | kr41.00 |
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
| 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/15 22:13 |
| End of Day Share Price | 2019/08/15 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.