Hofseth BioCare (OB:HBC) - Share price, News & Analysis

HBC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

HBC Stock Overview

Hofseth BioCare ASA engages in providing value added biomarine ingredients for human and animal applications in Norway and internationally.

Risk Analysis

Earnings have declined by 18.4% per year over past 5 years

Has less than 1 year of cash runway

Hofseth BioCare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hofseth BioCare
Historical stock prices
Current Share Price	kr3.89
52 Week High	kr8.28
52 Week Low	kr3.55
Beta	0.91
1 Month Change	-9.11%
3 Month Change	-27.96%
1 Year Change	-48.13%
3 Year Change	49.61%
5 Year Change	128.82%
Change since IPO	-22.20%

Recent News & Updates

Apr 28

Health Check: How Prudently Does Hofseth BioCare (OB:HBC) Use Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	HBC	NO Biotechs	NO Market
7D	1.0%	8.9%	2.3%
1Y	-48.1%	-48.6%	13.2%

Return vs Industry: HBC matched the Norwegian Biotechs industry which returned -47.8% over the past year.

Return vs Market: HBC underperformed the Norwegian Market which returned 12.3% over the past year.

Price Volatility

Is HBC's price volatile compared to industry and market?
HBC volatility
HBC Average Weekly Movement	7.6%
Biotechs Industry Average Movement	8.3%
Market Average Movement	7.3%
10% most volatile stocks in NO Market	13.0%
10% least volatile stocks in NO Market	4.1%

Stable Share Price: HBC is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HBC's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	63	Roger Hofseth	https://www.hofsethbiocare.no

Hofseth BioCare ASA engages in providing value added biomarine ingredients for human and animal applications in Norway and internationally. Its products include Brilliant salmon oil; OmeGo salmon oil for the maintenance of healthy cholesterol and cardiovascular function; ProGo, a salmon protein hydrolysate powder used as a fast absorbing protein supplement; CalGo, a marine calcium powder produced to support cartilage function and joint health; CollaGo, a collagen peptide powder to enhance the beauty of hair, skin, and nails; and PetGo, a non-soluble protein. The company distributes its products through distributors, agents, and its own sales force.

Hofseth BioCare Fundamentals Summary

How do Hofseth BioCare's earnings and revenue compare to its market cap?
HBC fundamental statistics
Market Cap	kr1.39b
Earnings (TTM)	-kr135.28m
Revenue (TTM)	kr101.56m

13.7x

P/S Ratio

-10.3x

P/E Ratio

Is HBC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBC income statement (TTM)
Revenue	kr101.56m
Cost of Revenue	kr87.53m
Gross Profit	kr14.03m
Other Expenses	kr149.32m
Earnings	-kr135.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)	-0.38
Gross Margin	13.81%
Net Profit Margin	-133.20%
Debt/Equity Ratio	125.5%

How did HBC perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

12.81x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HBC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate HBC's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: HBC is unprofitable, so we can't compare its PE Ratio to the European Biotechs industry average.

PE vs Market: HBC is unprofitable, so we can't compare its PE Ratio to the Norwegian market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HBC's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: HBC is overvalued based on its PB Ratio (12.8x) compared to the NO Biotechs industry average (4x).

Future Growth

How is Hofseth BioCare forecast to perform in the next 1 to 3 years based on estimates from 0 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

77.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hofseth BioCare has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Hofseth BioCare performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-18.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HBC is currently unprofitable.

Growing Profit Margin: HBC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: HBC is unprofitable, and losses have increased over the past 5 years at a rate of 18.4% per year.

Accelerating Growth: Unable to compare HBC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HBC is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-6.2%).

Return on Equity

High ROE: HBC has a negative Return on Equity (-125.25%), as it is currently unprofitable.

Financial Health

How is Hofseth BioCare's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HBC's short term assets (NOK154.9M) do not cover its short term liabilities (NOK168.9M).

Long Term Liabilities: HBC's short term assets (NOK154.9M) exceed its long term liabilities (NOK121.0M).

Debt to Equity History and Analysis

Debt Level: HBC's net debt to equity ratio (97.2%) is considered high.

Reducing Debt: HBC's debt to equity ratio has increased from 60.6% to 125.5% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HBC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HBC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 14% each year

Dividend

What is Hofseth BioCare 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 HBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HBC'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 HBC's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

4.9yrs

Average management tenure

CEO

Roger Hofseth (47 yo)

4.75yrs

Tenure

Mr. Roger Hofseth has been the Chief Executive Officer of Hofseth BioCare ASA since August 14, 2017. He is Director at Aqua Bio Technology ASA since January 9, 2019. Mr. Hofseth serves as the Chief Executi...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Roger's total compensation is reasonable compared to companies of similar size in the Norwegian market.

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

Leadership Team

Experienced Management: HBC's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: HBC's board of directors are considered experienced (5.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: HBC 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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31