OB:SOLON

Stock Analysis Report

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Executive Summary

Solon Eiendom ASA acquires, develops, and sells residential real estate properties in Norway.


Snowflake Analysis

Proven track record with moderate growth potential.

Share Price & News

How has Solon Eiendom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOLON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

SOLON

-0.4%

NO Real Estate

-0.06%

NO Market


1 Year Return

-16.1%

SOLON

-1.8%

NO Real Estate

-18.3%

NO Market

Return vs Industry: SOLON underperformed the Norwegian Real Estate industry which returned -1.8% over the past year.

Return vs Market: SOLON exceeded the Norwegian Market which returned -18.1% over the past year.


Shareholder returns

SOLONIndustryMarket
7 Day-3.9%-0.4%-0.06%
30 Day2.8%-0.4%-1.6%
90 Day14.6%13.2%6.5%
1 Year-16.1%-16.1%1.8%-1.8%-15.8%-18.3%
3 Year74.3%59.4%21.9%11.7%-4.3%-0.9%
5 Yearn/a62.7%36.9%29.4%3.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOLON (NOK29.8) is trading above our estimate of fair value (NOK12.42)

Significantly Below Fair Value: SOLON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOLON is poor value based on its PE Ratio (28x) compared to the NO Real Estate industry average (10.6x).

PE vs Market: SOLON is poor value based on its PE Ratio (28x) compared to the Norwegian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: SOLON is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SOLON is overvalued based on its PB Ratio (1.8x) compared to the NO Real Estate industry average (0.9x).


Next Steps

Future Growth

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

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLON's forecast earnings growth (30.9% per year) is above the savings rate (1.6%).

Earnings vs Market: SOLON's earnings (30.9% per year) are forecast to grow slower than the Norwegian market (35.8% per year).

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

Revenue vs Market: SOLON's revenue (13.4% per year) is forecast to grow faster than the Norwegian market (5.7% per year).

High Growth Revenue: SOLON's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLON's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Solon Eiendom performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SOLON's current net profit margins (5.3%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: SOLON's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: SOLON's earnings growth over the past year (72.2%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: SOLON earnings growth over the past year (72.2%) exceeded the Real Estate industry 12.7%.


Return on Equity

High ROE: SOLON's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Solon Eiendom's financial position?


Financial Position Analysis

Short Term Liabilities: SOLON's short term assets (NOK4.9B) exceed its short term liabilities (NOK1.2B).

Long Term Liabilities: SOLON's short term assets (NOK4.9B) exceed its long term liabilities (NOK2.8B).


Debt to Equity History and Analysis

Debt Level: SOLON's debt to equity ratio (266%) is considered high.

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

Debt Coverage: SOLON's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SOLON's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Solon Eiendom current dividend yield, its reliability and sustainability?

3.82%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: SOLON is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOLON's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Stig Bech

1.42yrs

Tenure

Mr. Stig L. Bech has been Chief Executive Officer of Solon Eiendom ASA since February 1, 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Scott Danielsen
Chief Financial Officer3.42yrskr2.51m0.037% NOK803.9k
Stig Bech
Chief Executive Officer1.42yrsno datano data
Arne Post
Head of Group Accounting0.33yrno data0.0059% NOK128.6k
Jannike Nilsen
Legal Director & Director0.17yrno datano data
Tom Svenning- Gultvedt
Director of Development & C.D.O0.50yrno datano data
Rune Hognestad
Chief Executive Officer of Western Norway0.17yrno datano data
Erik Forseth Helgesen
Financial controllerno datano data0.0014% NOK29.7k

1.0yrs

Average Tenure

Experienced Management: SOLON's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jannike Nilsen
Legal Director & Director0.17yrno datano data
Runar Vatne
Directorno datano data7.29% NOK159.4m
Øystein Landvik
Directorno datano datano data
Simen Thorsen
Chairman of the Boardno datano data19.32% NOK422.5m
Heidi Austbø
Directorno datano datano data
Tore Voldberg
Director3.58yrsno data18.58% NOK406.2m
Sofia Finneng
Director3.58yrsno datano data

3.6yrs

Average Tenure

Experienced Board: SOLON's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SOLON insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Solon Eiendom ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solon Eiendom ASA
  • Ticker: SOLON
  • Exchange: OB
  • Founded: 2006
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: kr2.186b
  • Shares outstanding: 73.37m
  • Website: https://www.soloneiendom.no

Number of Employees


Location

  • Solon Eiendom ASA
  • Olav Vs gate 5
  • Oslo
  • Oslo
  • 161
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NU5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2016
SOLONOB (Oslo Bors)YesOrdinary SharesNONOKDec 2016
0MSGLSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2016
BNRP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2016

Biography

Solon Eiendom ASA acquires, develops, and sells residential real estate properties in Norway. The company was formerly known as Bionor Pharma ASA and changed its name to Solon Eiendom ASA. The company was founded in 2006 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 20:57
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.