OB:NAS

Stock Analysis Report

Norwegian Air Shuttle

Executive Summary

Norwegian Air Shuttle ASA, together with its subsidiaries, provides scheduled and charter airline services in Norway and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NAS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.9%

NAS

-7.7%

NO Airlines

8.2%

NO Market


1 Year Return

-79.8%

NAS

-49.0%

NO Airlines

-24.8%

NO Market

Return vs Industry: NAS underperformed the Norwegian Airlines industry which returned -49% over the past year.

Return vs Market: NAS underperformed the Norwegian Market which returned -24.8% over the past year.


Shareholder returns

NASIndustryMarket
7 Day-12.9%-7.7%8.2%
30 Day-47.6%-38.4%-16.8%
90 Day-79.2%-53.9%-25.0%
1 Year-79.8%-79.8%-47.1%-49.0%-20.8%-24.8%
3 Year-93.9%-96.5%-44.8%-50.1%2.1%-10.7%
5 Year-95.0%-97.1%-42.8%-50.5%14.8%-11.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Norwegian Air Shuttle 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: NAS (NOK8.3) is trading below our estimate of fair value (NOK306.51)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NAS is good value based on its PB Ratio (0.3x) compared to the XE Airlines industry average (0.7x).


Next Steps

Future Growth

How is Norwegian Air Shuttle forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

67.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

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

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

Revenue vs Market: NAS's revenue (1.6% per year) is forecast to grow slower than the Norwegian market (2.8% per year).

High Growth Revenue: NAS's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAS's Return on Equity is forecast to be high in 3 years time (30.9%)


Next Steps

Past Performance

How has Norwegian Air Shuttle performed over the past 5 years?

-33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAS is currently unprofitable.

Growing Profit Margin: NAS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NAS is unprofitable, and losses have increased over the past 5 years at a rate of -33.7% per year.

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

Earnings vs Industry: NAS is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-17%).


Return on Equity

High ROE: NAS has a negative Return on Equity (-39.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is Norwegian Air Shuttle's financial position?


Financial Position Analysis

Short Term Liabilities: NAS's short term assets (NOK14.6B) do not cover its short term liabilities (NOK24.0B).

Long Term Liabilities: NAS's short term assets (NOK14.6B) do not cover its long term liabilities (NOK57.2B).


Debt to Equity History and Analysis

Debt Level: NAS's debt to equity ratio (657.1%) is considered high.

Reducing Debt: NAS's debt to equity ratio has increased from 631.1% to 657.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NAS's debt is not covered by short term assets (assets are 0.5x debt).


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: Whilst unprofitable NAS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NAS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -15.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if NAS'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 NAS'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?

1.3yrs

Average management tenure


CEO

Jacob Schram (57yo)

0.25

Tenure

Mr. Jacob Schram is the Chief Executive Officer of Norwegian Air Shuttle ASA since January 1, 2020. He has previously held managing roles in Circle K, Statoil Fuel & Retail, McDonald's Corp. (MCD) and McKi ...


Leadership Team

NamePositionTenureCompensationOwnership
Geir Karlsen
Deputy CEO & CFO2yrskr2.61mno data
Tore Jenssen
Chief Operating Officer1.25yrskr2.33mno data
Frode Berg
Chief Legal Officer7.17yrskr2.23mno data
Anne-Sissel Skånvik
Chief Communications Officer11.25yrskr2.21m0.00061% NOK8.3k
Bjorn Kjos
Advisor To Chairman0.75yrkr3.02m12.74% NOK172.9m
Bjørn Barman-Jenssen
Executive Vice President for Operational Developmentno datakr3.30mno data
Kurt Simonsen
Chief Customer & Digital Officer1.17yrsno datano data
Brede Huser
Executive VP of Loyalty & MD of Norwegian Rewardno datakr2.20m0.00086% NOK11.7k
Jacob Schram
Chief Executive Officer0.25yrno datano data
Martine Bekkelund
Investor Relations Officerno datano datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: NAS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Niels Smedegaard
Chair of the Board0.92yrno data0.031% NOK415.0k
Liv Berstad
Deputy Chairno datakr300.00k0.0046% NOK62.3k
Ingrid Leisner
Independent Director0.92yrno data0.0042% NOK57.0k
Sondre Gravir
Independent Director1.92yrsno data0.0095% NOK129.2k
Christian Stray
Independent Director5.25yrskr275.00k0.0046% NOK62.4k
Geir Øien
Employee Representative Independent Director3.58yrskr88.00kno data
Qaisar Khan
Deputy Board Member3.58yrsno data0.00031% NOK4.2k
Hans Strøm
Deputy Board Member3.58yrsno datano data
Katrine Gundersen
Employee Representative Director1.17yrskr12.00kno data
Eric Holm
Employee Representative Director1.17yrsno data0.00066% NOK9.0k

1.9yrs

Average Tenure

49yo

Average Age

Experienced Board: NAS's board of directors are not considered experienced ( 1.9 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: NAS 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 substantially diluted in the past year, with total shares outstanding growing by 201%.


Top Shareholders

Company Information

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


Key Information

  • Name: Norwegian Air Shuttle ASA
  • Ticker: NAS
  • Exchange: OB
  • Founded: 1993
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: kr1.358b
  • Shares outstanding: 163.56m
  • Website: https://www.norwegian.com

Number of Employees


Location

  • Norwegian Air Shuttle ASA
  • Oksenøyveien 3
  • Bærum
  • Akershus
  • 1330
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NASOB (Oslo Bors)YesClass A Common SharesNONOKDec 2003
NWCDB (Deutsche Boerse AG)YesClass A Common SharesDEEURDec 2003
0FGHLSE (London Stock Exchange)YesClass A Common SharesGBNOKDec 2003
NWAR.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDDec 2003
NASOBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Common SharesGBNOKDec 2003

Biography

Norwegian Air Shuttle ASA, together with its subsidiaries, provides scheduled and charter airline services in Norway and internationally. As of December 31, 2018, the company operated a fleet of 195 owned and leased aircrafts in approximately 500 routes to 150 destinations across Europe into North Africa, the Middle East, North America, the Caribbean, South America, and South-East Asia. It is also involved in aircraft financing, leasing, and ownership activities; the commercial cargo activities; and provision of crew, airline operative support, administrative, and ground handling services, as well as holiday packages through Web booking portal. The company was founded in 1993 and is headquartered in Bærum, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 23:17
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.