OTCPK:SALR.F

Stock Analysis Report

Executive Summary

SalMar ASA, an aquaculture company, produces and sells farmed salmon in Asia, the United States, Canada, Norway, rest of Europe, and internationally.

Rewards

PE ratio (17.7x) is below the US market (18.4x)

Earnings are forecast to grow 10.24% per year

Earnings grew by 10.6% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

n/a

SALR.F

0.1%

US Food

0.9%

US Market


1 Year Return

n/a

SALR.F

10.1%

US Food

20.0%

US Market

Return vs Industry: Insufficient data to determine how SALR.F performed against the US Food industry.

Return vs Market: Insufficient data to determine how SALR.F performed against the US Market.


Shareholder returns

SALR.FIndustryMarket
7 Dayn/a0.1%0.9%
30 Dayn/a-0.7%1.4%
90 Dayn/a2.9%8.8%
1 Yearn/a13.1%10.1%22.5%20.0%
3 Yearn/a-0.3%-8.3%49.9%40.3%
5 Yearn/a42.8%26.2%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

17.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SALR.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SALR.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SALR.F is good value based on its PE Ratio (17.7x) compared to the Food industry average (25.5x).

PE vs Market: SALR.F is good value based on its PE Ratio (17.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: SALR.F is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SALR.F is overvalued based on its PB Ratio (6.3x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is SalMar forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALR.F's forecast earnings growth (10.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SALR.F's earnings (10.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SALR.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: SALR.F's revenue (3.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SALR.F's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SALR.F's Return on Equity is forecast to be high in 3 years time (33.2%)


Next Steps

Past Performance

How has SalMar performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALR.F has high quality earnings.

Growing Profit Margin: SALR.F's current net profit margins (24.6%) are higher than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: SALR.F's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: SALR.F's earnings growth over the past year (10.6%) is below its 5-year average (23.1% per year).

Earnings vs Industry: SALR.F earnings growth over the past year (10.6%) exceeded the Food industry -6.2%.


Return on Equity

High ROE: SALR.F's Return on Equity (33.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALR.F's short term assets (NOK7.3B) exceed its short term liabilities (NOK3.8B).

Long Term Liabilities: SALR.F's short term assets (NOK7.3B) exceed its long term liabilities (NOK4.5B).


Debt to Equity History and Analysis

Debt Level: SALR.F's debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: SALR.F's debt to equity ratio has reduced from 50.3% to 32.5% over the past 5 years.

Debt Coverage: SALR.F's debt is well covered by operating cash flow (91.7%).

Interest Coverage: SALR.F's interest payments on its debt are well covered by EBIT (25.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SALR.F's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

4.91%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: SALR.F's dividend (4.91%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SALR.F's dividend (4.91%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: SALR.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: SALR.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.8%), SALR.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SALR.F's dividends in 3 years are forecast to be covered by earnings (84.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Gustav Witzøe (66yo)

3.1yrs

Tenure

kr1,406,000

Compensation

Mr. Gustav Magnar Witzøe co-founded SalMar ASA in 1991 and has been its Chief Executive Officer since October 21, 2019. Mr. Witzøe served as Director of Strategic Projects at SalMar ASA since December 1, 2 ...


CEO Compensation Analysis

Compensation vs Market: Gustav's total compensation ($USD152.02K) is below average for companies of similar size in the US market ($USD6.26M).

Compensation vs Earnings: Gustav's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gustav Witzøe
Co-Founder3.1yrskr1.41mno data
Frode Arntsen
Director of Processing & Sales2.2yrskr3.49m0.0017% NOK97.3k
Roger Bekken
Chief Operating Officer of Farming1.7yrskr4.46m0.011% NOK652.3k
Trine Romuld
COO & CFO0.6yrsno data0.0020% NOK116.7k
Tonette Bjørgård
Head of Accounting0yrsno data0.0047% NOK267.2k
Runar Sivertsen
Head of Investor Relations0yrsno data0.0017% NOK96.7k
Karl Aag
Manager of Freshwater25.1yrskr3.53mno data

2.2yrs

Average Tenure

52yo

Average Age

Experienced Management: SALR.F's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gustav Witzøe
Co-Founder3.1yrskr1.41mno data
Atle Eide
Chairman of the Board2.7yrskr400.00kno data
Margrethe Hauge
Independent Director2.7yrskr215.00kno data
Kjell Storeide
Deputy Chair0yrskr285.00kno data
Helge Moen
Director2.7yrskr263.00kno data
Brit Soleng
Employee Representative Director2.7yrskr108.00kno data
Jon Rosvoll
Employee Representative Director1.1yrsno datano data

2.7yrs

Average Tenure

64yo

Average Age

Experienced Board: SALR.F's board of directors are not considered experienced ( 2.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: SalMar ASA
  • Ticker: SALR.F
  • Exchange: OTCPK
  • Founded: 1991
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr52.916b
  • Listing Market Cap: kr5.721b
  • Shares outstanding: 112.92m
  • Website: https://www.salmar.no

Number of Employees


Location

  • SalMar ASA
  • Industriveien 51
  • Kverva
  • Sør-Trøndelag
  • 7266
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SALMOB (Oslo Bors)YesOrdinary SharesNONOKMay 2007
JEPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
0FWYLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 2007
SALMoBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 2007
SALR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
SALR.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDDec 2018

Biography

SalMar ASA, an aquaculture company, produces and sells farmed salmon in Asia, the United States, Canada, Norway, rest of Europe, and internationally. It is involved in the broodfish and smolt production; and marine-phase farming, harvesting, processing, and sale of farmed salmon and white fish. The company sells its products to importers/exporters, processing companies, and retail chains through in-house sales force and/or through partners. The company was founded in 1991 and is headquartered in Kverva, Norway. SalMar ASA is a subsidiary of Kverva Industrier AS. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 01:19
End of Day Share Price2020/02/07 00:00
Earnings2019/09/30
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.