RECS

REC SiliconOB:RECSI Stock Report

Market Cap

kr5.0b

7D

-15.0%

1Y

252.2%

Updated

18 Sep, 2021

Data

Company Financials +
RECSI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RECSI Overview

REC Silicon ASA, together with its subsidiaries, produces and sells silicon materials for the solar and electronics industries worldwide.

REC Silicon Competitors

Price History & Performance

Summary of all time highs, changes and price drops for REC Silicon
Historical stock prices
Current Share Pricekr13.56
52 Week Highkr3.56
52 Week Lowkr24.66
Beta0.16
1 Month Change-10.55%
3 Month Change-25.98%
1 Year Change252.21%
3 Year Change93.71%
5 Year Change41.92%
Change since IPO-98.84%

Recent News & Updates

Aug 01
Here's Why REC Silicon (OB:RECSI) Can Afford Some Debt

Here's Why REC Silicon (OB:RECSI) Can Afford Some Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

RECSINO SemiconductorNO Market
7D-15.0%-7.2%-0.5%
1Y252.2%107.4%20.4%

Return vs Industry: RECSI exceeded the Norwegian Semiconductor industry which returned 107.4% over the past year.

Return vs Market: RECSI exceeded the Norwegian Market which returned 20.4% over the past year.

Price Volatility

Is RECSI's price volatile compared to industry and market?
RECSI volatility
RECSI Beta0.16
Industry Beta1.09
Market Beta1

Stable Share Price: RECSI is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RECSI's weekly volatility has decreased from 15% to 9% over the past year, but is still higher than 75% of Norwegian stocks.

About the Company

FoundedEmployeesCEOWebsite
1996281Tore Torvundhttps://www.recsilicon.com

REC Silicon ASA, together with its subsidiaries, produces and sells silicon materials for the solar and electronics industries worldwide. It offers various solar grade polysilicon for solar applications, including granular polysilicon, siemens rod sections, chunks, chips, and fines. The company also provides electronic grade polysilicon comprising TearDrop, as-grown siemens rods, rod sections, chunks, and chips for use in Czochralski monocrystalline ingot/wafer manufacturing for the semiconductor industry, as well as other electronic market segments, such as optics and microelectromechanical systems; and float zone polysilicon.

REC Silicon Fundamentals Summary

How do REC Silicon's earnings and revenue compare to its market cap?
RECSI fundamental statistics
Market CapUS$584.28m
Earnings (TTM)-US$10.00m
Revenue (TTM)US$130.10m

4.5x

P/S Ratio

-58.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RECSI income statement (TTM)
RevenueUS$130.10m
Cost of RevenueUS$20.70m
Gross ProfitUS$109.40m
ExpensesUS$119.40m
Earnings-US$10.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 20, 2021

Earnings per share (EPS)-0.031
Gross Margin84.09%
Net Profit Margin-7.69%
Debt/Equity Ratio310.4%

How did RECSI perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RECSI (NOK13.56) is trading below our estimate of fair value (NOK60.17)

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


Price To Earnings Ratio

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

PE vs Market: RECSI 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 RECSI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RECSI is overvalued based on its PB Ratio (13x) compared to the XE Semiconductor industry average (5x).


Future Growth

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

82.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RECSI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: RECSI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RECSI's is expected to become profitable in the next 3 years.

Revenue vs Market: RECSI's revenue (49.2% per year) is forecast to grow faster than the Norwegian market (5.8% per year).

High Growth Revenue: RECSI's revenue (49.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RECSI's Return on Equity is forecast to be very high in 3 years time (60.8%).


Past Performance

How has REC Silicon performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RECSI is currently unprofitable.

Growing Profit Margin: RECSI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RECSI is unprofitable, but has reduced losses over the past 5 years at a rate of 20.2% per year.

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

Earnings vs Industry: RECSI is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (64.3%).


Return on Equity

High ROE: RECSI has a negative Return on Equity (-22.22%), as it is currently unprofitable.


Financial Health

How is REC Silicon's financial position?


Financial Position Analysis

Short Term Liabilities: RECSI's short term assets ($199.7M) exceed its short term liabilities ($55.3M).

Long Term Liabilities: RECSI's short term assets ($199.7M) do not cover its long term liabilities ($220.2M).


Debt to Equity History and Analysis

Debt Level: RECSI's debt to equity ratio (310.4%) is considered high.

Reducing Debt: RECSI's debt to equity ratio has increased from 19.4% to 310.4% 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: RECSI has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RECSI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is REC Silicon current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RECSI'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?

5.1yrs

Average management tenure


CEO

Tore Torvund (69 yo)

7.75yrs

Tenure

US$1,955,839

Compensation

Mr. Tore Torvund has been the Chief Executive Officer and President at REC Silicon ASA since December 1, 2013. Mr. Torvund served as an Executive Vice President of REC Silicon at Renewable Energy Corporati...


CEO Compensation Analysis

Compensation vs Market: Tore's total compensation ($USD1.96M) is above average for companies of similar size in the Norwegian market ($USD615.10K).

Compensation vs Earnings: Tore's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RECSI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: RECSI's board of directors are not considered experienced ( 0.5 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.1%.


Top Shareholders

Company Information

REC Silicon ASA's employee growth, exchange listings and data sources


Key Information

  • Name: REC Silicon ASA
  • Ticker: RECSI
  • Exchange: OB
  • Founded: 1996
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: kr5.050b
  • Shares outstanding: 372.41m
  • Website: https://www.recsilicon.com

Number of Employees


Location

  • REC Silicon ASA
  • Lysaker Torg 5, 3. etg
  • PO Box 63
  • Lysaker
  • Akershus
  • 1324
  • Norway

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 16:21
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.