OB:NPRO

Stock Analysis Report

Norwegian Property

Executive Summary

Norwegian Property ASA, a real estate investment company, acquires, develops, manages, and sells commercial real estate properties in Norway.

Snowflake

Fundamentals

Slightly overvalued with questionable track record.

Share Price & News

How has Norwegian Property's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

NPRO

-0.3%

NO Real Estate

0.07%

NO Market


1 Year Return

10.5%

NPRO

11.6%

NO Real Estate

-8.7%

NO Market

Return vs Industry: NPRO exceeded the Norwegian Real Estate industry which returned 11.6% over the past year.

Return vs Market: NPRO exceeded the Norwegian Market which returned -8.7% over the past year.


Shareholder returns

NPROIndustryMarket
7 Day3.8%-0.3%0.07%
30 Day2.5%-0.3%-1.9%
90 Day6.6%4.4%2.1%
1 Year13.3%10.5%15.1%11.6%-3.9%-8.7%
3 Year25.2%15.7%30.8%20.3%40.2%21.9%
5 Year36.0%24.4%108.2%71.6%59.2%22.5%

Price Volatility Vs. Market

How volatile is Norwegian Property's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

8.53x

Price to Earnings (PE) ratio


In this section, we usually try to help investors determine whether Norwegian Property is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Norwegian Property has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of NPRO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Norwegian Property regulatory filings.
  • Explore potentially undervalued companies in the Real Estate industry.

Future Growth

How is Norwegian Property forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPRO's earnings are forecast to decline over the next 3 years (-31.6% per year).

Earnings vs Market: NPRO's earnings are forecast to decline over the next 3 years (-31.6% per year).

High Growth Earnings: NPRO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NPRO's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: NPRO's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NPRO's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Norwegian Property performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NPRO has become profitable over the past 5 years, growing earnings by 22.5% per year.

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

Earnings vs Industry: NPRO had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the Real Estate industry average (-13.7%).


Return on Equity

High ROE: NPRO's Return on Equity (10.1%) is considered low.


Return on Assets

ROA vs Industry: NPRO has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: NPRO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Norwegian Property's financial position?


Financial Position Analysis

Short Term Liabilities: NPRO's short term assets (NOK1.2B) do not cover its short term liabilities (NOK1.3B)

Long Term Liabilities: NPRO's short term assets (1.2B) do not cover its long term liabilities (7.5B)


Debt to Equity History and Analysis

Debt Level: NPRO's debt to equity ratio (97.8%) is considered high

Reducing Debt: NPRO's debt to equity ratio has reduced from 192.1% to 97.8% over the past 5 years.

Debt Coverage: NPRO's debt is not well covered by operating cash flow (2.4%).

Interest Coverage: NPRO's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: NPRO has a high level of physical assets or inventory.

Debt Coverage by Assets: NPRO's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Norwegian Property's current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.6%markettop25%6.2%industryaverage3.0%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NPRO's dividend (2.3%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.62%).

High Dividend: NPRO's dividend (2.3%) is low compared to the top 25% of dividend payers in the Norwegian market (6.23%).

Stable Dividend: NPRO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NPRO's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), NPRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NPRO's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).


Next Steps

Management

What is the CEO of Norwegian Property's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Bent Oustad 0

1.6yrs

Tenure

kr3,302,053

Compensation

Mr. Bent Oustad has been the Chief Executive Officer at Norwegian Property ASA since January 1, 2018. Mr. Oustad has for the last 15 years worked at ABG Sundal Collier (“ABGSC”) in different positions. Bef ...


CEO Compensation Analysis

Compensation vs. Market: Bent has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Norwegian market.

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


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: NPRO's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: NPRO's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr5,699,14619 Sep 19
Greenwich Holdings Ltd.
EntityCompany
Shares447,870
Max Pricekr12.73
Sellkr876,686,44628 Aug 19
Niam V Prosjekt AS
EntityCompany
Shares67,437,425
Max Pricekr13.00
Buykr876,686,44628 Aug 19
Greenwich Holdings Ltd.
EntityCompany
Shares67,437,425
Max Pricekr13.00
Sellkr9,188,00704 Jun 19
Carucel Holding AS
EntityCompany
Shares781,958
Max Pricekr11.75
Buykr9,467,34127 May 19
Carucel Holding AS
EntityCompany
Shares826,842
Max Pricekr11.45
Buykr19,576,80807 Feb 19
Greenwich Holdings Ltd.
EntityCompany
Shares1,812,668
Max Pricekr10.80
Buykr19,076,73911 Jan 19
Greenwich Holdings Ltd.
EntityCompany
Shares1,766,365
Max Pricekr10.80
Buykr10,932,62831 Oct 18
Greenwich Holdings Ltd.
EntityCompany
Shares1,057,723
Max Pricekr10.34

Ownership Breakdown


Management Team

  • Bjorge Aarvold (53yo)

    Executive Vice President of Property Management

    • Tenure: 1.2yrs
    • Compensation: kr2.38m
  • Asmund Ytreeide

    Business Controller

    • Tenure: 0yrs
  • Haavard Rønning (46yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: kr2.63m
  • Linda Wessel

    Head of Administration

    • Tenure: 0yrs
  • Lizell Buenaventura

    Accounting Controller

    • Tenure: 3.5yrs
  • Britt Knudsen

    Accounting Controller

    • Tenure: 0yrs
  • Ida Berg

    Controller (Maternity leave)

    • Tenure: 0.3yrs
  • Bent Oustad

    Chief Executive Officer

    • Tenure: 1.6yrs
    • Compensation: kr3.30m
  • Ellen Kobro

    Executive Vice President of Sales & Marketing

    • Tenure: 1.2yrs
    • Compensation: kr3.12m
  • Haakon Løyning

    Controller (Temporary)

    • Tenure: 0.3yrs

Board Members

  • Carl Krefting (65yo)

    Director

    • Tenure: 1.3yrs
  • Kjell Sagstad (71yo)

    Director

    • Tenure: 3.3yrs
  • Merete Haugli (55yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Cecilie Fredriksen (36yo)

    Director

    • Tenure: 4.8yrs
  • Kate Fredriksen (36yo)

    Director

    • Tenure: 3.3yrs
  • Bjørn Henningsen (57yo)

    Deputy Chairman

    • Tenure: 5.6yrs
  • Lars Nilsen (38yo)

    Director

    • Tenure: 2.3yrs

Company Information

Norwegian Property ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norwegian Property ASA
  • Ticker: NPRO
  • Exchange: OB
  • Founded: 2005
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: kr5.998b
  • Shares outstanding: 493.63m
  • Website: https://www.norwegianproperty.no

Number of Employees


Location

  • Norwegian Property ASA
  • Støperigata 2
  • Oslo
  • Oslo
  • 250
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPROOB (Oslo Bors)YesOrdinary SharesNONOKJun 2006
0MHSLSE (London Stock Exchange)YesOrdinary SharesGBNOKJun 2006
NPROOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJun 2006
H2DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2006

Biography

Norwegian Property ASA, a real estate investment company, acquires, develops, manages, and sells commercial real estate properties in Norway. Its properties primarily comprise office premises with associat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/28 21:05
End of Day Share Price2019/08/28 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.