Norske Skog (OB:NSKOG) - Share price, News & Analysis

NSKOG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

NSKOG Stock Overview

Norske Skog ASA produces and sells newsprint and magazine papers.

Rewards

Trading at 27.3% below our estimate of its fair value

Earnings are forecast to grow 2.18% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Norske Skog Competitors

Sappi

JSE:SAP

R31.3b

Price History & Performance

Summary of all time highs, changes and price drops for Norske Skog
Historical stock prices
Current Share Price	kr58.25
52 Week High	kr58.30
52 Week Low	kr29.15
Beta	0.38
1 Month Change	20.10%
3 Month Change	16.97%
1 Year Change	67.87%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	53.29%

Shareholder Returns

	NSKOG	NO Forestry	NO Market
7D	12.0%	3.3%	3.1%
1Y	67.9%	13.7%	14.8%

Return vs Industry: NSKOG exceeded the Norwegian Forestry industry which returned 13.7% over the past year.

Return vs Market: NSKOG exceeded the Norwegian Market which returned 14.8% over the past year.

Price Volatility

Is NSKOG's price volatile compared to industry and market?
NSKOG volatility
NSKOG Average Weekly Movement	6.3%
Forestry Industry Average Movement	5.7%
Market Average Movement	7.4%
10% most volatile stocks in NO Market	13.0%
10% least volatile stocks in NO Market	4.1%

Stable Share Price: NSKOG is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NSKOG's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1962	2,100	Sven Ombudstvedt	https://www.norskeskog.com

Norske Skog ASA produces and sells newsprint and magazine papers. It operates in two segments, Publication Paper Europe, and Publication Paper Australasia. The company offers standard newsprint and other paper qualities; and magazine paper comprising super calendared and lightweight coated paper.

Norske Skog Fundamentals Summary

How do Norske Skog's earnings and revenue compare to its market cap?
NSKOG fundamental statistics
Market Cap	kr5.49b
Earnings (TTM)	kr26.00m
Revenue (TTM)	kr11.02b

211.2x

P/E Ratio

0.5x

P/S Ratio

Is NSKOG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSKOG income statement (TTM)
Revenue	kr11.02b
Cost of Revenue	kr7.25b
Gross Profit	kr3.78b
Other Expenses	kr3.75b
Earnings	kr26.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 15, 2022

Earnings per share (EPS)	0.28
Gross Margin	34.25%
Net Profit Margin	0.24%
Debt/Equity Ratio	71.0%

How did NSKOG perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

27.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NSKOG (NOK58.25) is trading below our estimate of fair value (NOK80.07)

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

Price To Earnings Ratio

PE vs Industry: NSKOG is poor value based on its Price-To-Earnings Ratio (211.2x) compared to the European Forestry industry average (11x).

PE vs Market: NSKOG is poor value based on its Price-To-Earnings Ratio (211.2x) compared to the Norwegian market (13.1x).

Price to Earnings Growth Ratio

PEG Ratio: NSKOG is poor value based on its PEG Ratio (96.9x)

Price to Book Ratio

PB vs Industry: NSKOG's Price-To-Book Ratio (1.5x) is in line with the XE Forestry industry average.

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

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

2.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSKOG's forecast earnings growth (2.2% per year) is above the savings rate (1.1%).

Earnings vs Market: NSKOG's earnings (2.2% per year) are forecast to grow faster than the Norwegian market (-0.2% per year).

High Growth Earnings: NSKOG's earnings are forecast to grow, but not significantly.

Revenue vs Market: NSKOG's revenue (0.4% per year) is forecast to grow slower than the Norwegian market (0.8% per year).

High Growth Revenue: NSKOG's revenue (0.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NSKOG's Return on Equity is forecast to be low in 3 years time (12.7%).

Past Performance

How has Norske Skog performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NSKOG has a high level of non-cash earnings.

Growing Profit Margin: NSKOG became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NSKOG has become profitable over the past 5 years, growing earnings by -24.6% per year.

Accelerating Growth: NSKOG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NSKOG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (94.4%).

Return on Equity

High ROE: NSKOG's Return on Equity (0.7%) is considered low.

Financial Health

How is Norske Skog's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: NSKOG's short term assets (NOK5.5B) exceed its short term liabilities (NOK2.8B).

Long Term Liabilities: NSKOG's short term assets (NOK5.5B) exceed its long term liabilities (NOK3.5B).

Debt to Equity History and Analysis

Debt Level: NSKOG's net debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: NSKOG's debt to equity ratio has reduced from 461.1% to 71% over the past 5 years.

Debt Coverage: NSKOG's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: NSKOG's interest payments on its debt are well covered by EBIT (6.3x coverage).

Balance Sheet

Dividend

What is Norske Skog current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NSKOG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NSKOG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NSKOG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NSKOG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: NSKOG is not paying a notable dividend for the Norwegian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NSKOG has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure

CEO

Sven Ombudstvedt (55 yo)

3.17yrs

Tenure

kr7,240,000

Compensation

Mr. Sven Ombudstvedt serves as Chief Executive Officer of Norske Skog ASA since July 1, 2019 and serves as its President. He served as an Acting CEO at Norske Skog ASA from March 28, 2019 to July 1, 2019....

CEO Compensation Analysis

Compensation vs Market: Sven's total compensation ($USD763.32K) is about average for companies of similar size in the Norwegian market ($USD606.90K).

Compensation vs Earnings: Sven's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NSKOG's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: NSKOG'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: NSKOG insiders have bought more shares than they have sold 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	2022/05/28 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31