Scatec (OB:SCATC) - Share price, News & Analysis

Q: What is the Fair Price of SCATC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SCATC (NOK92.5) is trading above our estimate of [[fair value]] (NOK71.52)

SCATC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	2/6
Dividends	2/6

SCATC Stock Overview

Scatec ASA, together with its subsidiaries, operates as a renewable power producer worldwide.

Rewards

Earnings are forecast to grow 66.03% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 2.75% is not well covered by earnings

Scatec Competitors

Cloudberry Clean Energy

OB:CLOUD

kr3.6b

Alternus Energy Group

OB:ALT

kr577.0m

MPC Energy Solutions

OB:MPCES

kr417.9m

Norsk Solar

OB:NSOL

kr302.1m

Price History & Performance

Summary of all time highs, changes and price drops for Scatec
Historical stock prices
Current Share Price	kr92.50
52 Week High	kr246.70
52 Week Low	kr79.40
Beta	0.91
1 Month Change	-2.41%
3 Month Change	-27.57%
1 Year Change	-60.08%
3 Year Change	8.50%
5 Year Change	95.56%
Change since IPO	389.42%

Recent News & Updates

Jun 26

These 4 Measures Indicate That Scatec (OB:SCATC) Is Using Debt In A Risky Way

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

May 11

Downgrade: Here's How Analysts See Scatec ASA (OB:SCATC) Performing In The Near Term

One thing we could say about the analysts on Scatec ASA ( OB:SCATC ) - they aren't optimistic, having just made a major...

Shareholder Returns

	SCATC	NO Renewable Energy	NO Market
7D	7.6%	4.4%	-3.4%
1Y	-60.1%	-53.9%	3.2%

Return vs Industry: SCATC underperformed the Norwegian Renewable Energy industry which returned -53.9% over the past year.

Return vs Market: SCATC underperformed the Norwegian Market which returned 3.2% over the past year.

Price Volatility

Is SCATC's price volatile compared to industry and market?
SCATC volatility
SCATC Average Weekly Movement	7.8%
Renewable Energy Industry Average Movement	7.8%
Market Average Movement	7.2%
10% most volatile stocks in NO Market	12.7%
10% least volatile stocks in NO Market	4.0%

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

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

About the Company

Founded	Employees	CEO	Website
2007	600	Terje Pilskog	https://scatec.com

Scatec ASA, together with its subsidiaries, operates as a renewable power producer worldwide. The company operates through Power Production; Services; and Development and Construction segments. It develops, builds, owns, and operates solar, wind, and hydro power plants and storage solutions.

Scatec Fundamentals Summary

How do Scatec's earnings and revenue compare to its market cap?
SCATC fundamental statistics
Market Cap	kr14.68b
Earnings (TTM)	-kr763.00m
Revenue (TTM)	kr3.07b

4.8x

P/S Ratio

-19.2x

P/E Ratio

Is SCATC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCATC income statement (TTM)
Revenue	kr3.07b
Cost of Revenue	kr0
Gross Profit	kr3.07b
Other Expenses	kr3.83b
Earnings	-kr763.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)	-4.81
Gross Margin	100.00%
Net Profit Margin	-24.86%
Debt/Equity Ratio	237.0%

How did SCATC perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

-52%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SCATC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCATC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SCATC. This is calculated by dividing SCATC's market cap by their current preferred multiple.
What is SCATC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr14.68b

SCATC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.2x
Enterprise Value/EBITDA	15.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SCATC's PS Ratio compare to its peers?

SCATC PS Ratio vs Peers

The above table shows the PS ratio for SCATC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	40.1x
CLOUD Cloudberry Clean Energy	57.3x	48.7%	kr3.6b
ALT Alternus Energy Group	2.1x	n/a	kr577.0m
MPCES MPC Energy Solutions	77.8x	136.1%	kr417.9m
NSOL Norsk Solar	23.4x	84.1%	kr302.1m
SCATC Scatec	4.8x	25.4%	kr14.7b

Forward PS

Price-To-Sales vs Peers: SCATC is good value based on its Price-To-Sales Ratio (4.8x) compared to the peer average (40.1x).

Price to Earnings Ratio vs Industry

How does SCATC's PE Ratio compare vs other companies in the European Renewable Energy Industry?

Price-To-Sales vs Industry: SCATC is expensive based on its Price-To-Sales Ratio (4.8x) compared to the Norwegian Renewable Energy industry average (4.8x)

Price to Sales Ratio vs Fair Ratio

What is SCATC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCATC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.8x
Fair PS Ratio	14.3x

Price-To-Sales vs Fair Ratio: SCATC is good value based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (14.3x).

Share Price vs Fair Value

What is the Fair Price of SCATC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCATC (NOK92.5) is trading above our estimate of fair value (NOK71.52)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Scatec forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

66.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCATC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

High Growth Earnings: SCATC is expected to become profitable in the next 3 years.

Revenue vs Market: SCATC's revenue (25.4% per year) is forecast to grow faster than the Norwegian market (0.3% per year).

High Growth Revenue: SCATC's revenue (25.4% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SCATC's Return on Equity is forecast to be low in 3 years time (6.1%).

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Past Performance

How has Scatec 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

-53.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCATC is currently unprofitable.

Growing Profit Margin: SCATC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SCATC is unprofitable, and losses have increased over the past 5 years at a rate of 53.1% per year.

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

Earnings vs Industry: SCATC is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (57.5%).

Return on Equity

High ROE: SCATC has a negative Return on Equity (-7.58%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Scatec's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCATC's short term assets (NOK5.5B) exceed its short term liabilities (NOK3.4B).

Long Term Liabilities: SCATC's short term assets (NOK5.5B) do not cover its long term liabilities (NOK19.8B).

Debt to Equity History and Analysis

Debt Level: SCATC's net debt to equity ratio (188.1%) is considered high.

Reducing Debt: SCATC's debt to equity ratio has reduced from 362.2% to 237% over the past 5 years.

Debt Coverage: SCATC's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: SCATC's interest payments on its debt are not well covered by EBIT (1x coverage).

Balance Sheet

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Dividend

What is Scatec current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SCATC's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.74%).

High Dividend: SCATC's dividend (2.75%) is low compared to the top 25% of dividend payers in the Norwegian market (6.94%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SCATC has been paying a dividend for less than 10 years.

Growing Dividend: SCATC's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: SCATC is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.6%), SCATC's dividend payments are well covered by cash flows.

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Management

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

6.5yrs

Average management tenure

CEO

Terje Pilskog (50 yo)

0.083

Tenure

kr4,568,000

Compensation

Mr. Terje Pilskog served as an Executive Vice President of Project Development at Scatec ASA (formerly known as Scatec Solar ASA) since 2022 until May 01, 2022 and serves as its Chief Executive Officer sin...

CEO Compensation Analysis

Compensation vs Market: Terje's total compensation ($USD462.89K) is below average for companies of similar size in the Norwegian market ($USD776.62K).

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

Leadership Team

Experienced Management: SCATC's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: SCATC's board of directors are not considered experienced ( 2.2 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: SCATC 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31