Elopak (OB:ELO) - Share price, News & Analysis

ELO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

ELO Stock Overview

Elopak ASA manufactures and supplies paper-based packaging solutions for liquid food in Norway and internationally.

Rewards

Trading at 67.3% below our estimate of its fair value

Earnings are forecast to grow 73.55% per year

Risk Analysis

Has a high level of debt

Dividend of 4.72% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.6%) are lower than last year (4.8%)

Elopak Competitors

Amcor

ASX:AMC

AU$27.5b

Stora Enso Oyj

HLSE:STERV

€14.1b

Sealed Air

NYSE:SEE

US$8.7b

Berry Global Group

NYSE:BERY

US$7.1b

Price History & Performance

Summary of all time highs, changes and price drops for Elopak
Historical stock prices
Current Share Price	kr15.90
52 Week High	kr29.30
52 Week Low	kr13.42
Beta	0
1 Month Change	7.58%
3 Month Change	-22.14%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-43.21%

Shareholder Returns

	ELO	NO Packaging	NO Market
7D	4.6%	-1.8%	2.1%
1Y	n/a	-17.5%	12.3%

Return vs Industry: Insufficient data to determine how ELO performed against the Norwegian Packaging industry.

Return vs Market: Insufficient data to determine how ELO performed against the Norwegian Market.

Price Volatility

Is ELO's price volatile compared to industry and market?
ELO volatility
ELO Average Weekly Movement	6.7%
Packaging Industry Average Movement	5.9%
Market Average Movement	7.5%
10% most volatile stocks in NO Market	13.1%
10% least volatile stocks in NO Market	4.2%

Stable Share Price: ELO is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ELO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1957	2,700	Thomas Kormendi	https://www.elopak.com

Elopak ASA manufactures and supplies paper-based packaging solutions for liquid food in Norway and internationally. It offers Pure-Pak cartons for chilled and ambient applications; chilled and ambient beverages; filling chilled and ambient equipment, and distribution packaging products. It also provides packaging solutions for detergent, fabric softener, and hand wash products.

Elopak Fundamentals Summary

How do Elopak's earnings and revenue compare to its market cap?
ELO fundamental statistics
Market Cap	€415.43m
Earnings (TTM)	€5.51m
Revenue (TTM)	€960.81m

75.4x

P/E Ratio

0.4x

P/S Ratio

Is ELO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELO income statement (TTM)
Revenue	€960.81m
Cost of Revenue	€634.28m
Gross Profit	€326.53m
Other Expenses	€321.02m
Earnings	€5.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	0.02
Gross Margin	33.98%
Net Profit Margin	0.57%
Debt/Equity Ratio	112.4%

How did ELO perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

361%

Payout Ratio

Valuation

Is Elopak undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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: ELO (NOK15.9) is trading below our estimate of fair value (NOK48.57)

Significantly Below Fair Value: ELO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ELO is poor value based on its PE Ratio (75.4x) compared to the European Packaging industry average (17x).

PE vs Market: ELO is poor value based on its PE Ratio (75.4x) compared to the Norwegian market (13.4x).

Price to Earnings Growth Ratio

PEG Ratio: ELO is poor value based on its PEG Ratio (1x)

Price to Book Ratio

PB vs Industry: ELO is good value based on its PB Ratio (1.6x) compared to the XE Packaging industry average (1.8x).

Future Growth

How is Elopak forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

73.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELO's forecast earnings growth (73.5% per year) is above the savings rate (1.1%).

Earnings vs Market: ELO's earnings (73.5% per year) are forecast to grow faster than the Norwegian market (1.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ELO's revenue (2.1% per year) is forecast to grow faster than the Norwegian market (1% per year).

High Growth Revenue: ELO's revenue (2.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ELO's Return on Equity is forecast to be low in 3 years time (15.4%).

Past Performance

How has Elopak performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELO has a large one-off loss of €21.0M impacting its March 31 2022 financial results.

Growing Profit Margin: ELO's current net profit margins (0.6%) are lower than last year (4.8%).

Past Earnings Growth Analysis

Earnings Trend: ELO's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: ELO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELO had negative earnings growth (-87.2%) over the past year, making it difficult to compare to the Packaging industry average (20.2%).

Return on Equity

High ROE: ELO's Return on Equity (2.2%) is considered low.

Financial Health

How is Elopak's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELO's short term assets (€375.6M) exceed its short term liabilities (€285.6M).

Long Term Liabilities: ELO's short term assets (€375.6M) exceed its long term liabilities (€338.4M).

Debt to Equity History and Analysis

Debt Level: ELO's net debt to equity ratio (103.5%) is considered high.

Reducing Debt: Insufficient data to determine if ELO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ELO's debt is well covered by operating cash flow (26.1%).

Interest Coverage: ELO's interest payments on its debt are well covered by EBIT (16.3x coverage).

Balance Sheet

Dividend

What is Elopak current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELO's dividend (4.72%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.86%).

High Dividend: ELO's dividend (4.72%) is low compared to the top 25% of dividend payers in the Norwegian market (6.53%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether ELO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ELO's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (360.6%), ELO's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64.5%), ELO'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?

3.7yrs

Average management tenure

CEO

Thomas Kormendi

4.08yrs

Tenure

€594,000

Compensation

Mr. Thomas Ralph Kormendi serves as Chief Executive Officer of Elopak ASA since April 03, 2018 and has been its President. He joined the Group in 2018. He served as Chief Executive Officer of Kezzler AS un...

CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD626.65K) is about average for companies of similar size in the Norwegian market ($USD603.24K).

Compensation vs Earnings: Insufficient data to compare Thomas's compensation with company performance.

Leadership Team

Experienced Management: ELO's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: ELO'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: ELO only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31