OTCPK:SALR.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.


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.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

SALR.Y

1.8%

US Food

2.5%

US Market


1 Year Return

8.7%

SALR.Y

5.6%

US Food

16.3%

US Market

Return vs Industry: SALR.Y exceeded the US Food industry which returned 5.6% over the past year.

Return vs Market: SALR.Y underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

SALR.YIndustryMarket
7 Day3.8%1.8%2.5%
30 Day8.7%7.7%5.3%
90 Day22.8%9.0%16.3%
1 Year8.7%8.7%8.2%5.6%18.8%16.3%
3 Yearn/a5.2%-3.6%45.0%35.7%
5 Yearn/a15.3%-0.004%75.8%56.8%

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?

39.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SALR.Y ($12.25) is trading below our estimate of fair value ($20.07)

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


Price To Earnings Ratio

PE vs Industry: SALR.Y is good value based on its PE Ratio (23.3x) compared to the US Food industry average (26.1x).

PE vs Market: SALR.Y is poor value based on its PE Ratio (23.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SALR.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SALR.Y is overvalued based on its PB Ratio (5.3x) compared to the US Food industry average (1.9x).


Next Steps

Future Growth

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

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALR.Y's forecast earnings growth (19.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SALR.Y's earnings (19.3% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: SALR.Y's revenue (9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SALR.Y's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SALR.Y's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has SalMar performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALR.Y has high quality earnings.

Growing Profit Margin: SALR.Y's current net profit margins (16.9%) are lower than last year (30.4%).


Past Earnings Growth Analysis

Earnings Trend: SALR.Y's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: SALR.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SALR.Y had negative earnings growth (-39.2%) over the past year, making it difficult to compare to the Food industry average (-5.4%).


Return on Equity

High ROE: SALR.Y's Return on Equity (20.6%) is considered high.


Next Steps

Financial Health

How is SalMar's financial position?


Financial Position Analysis

Short Term Liabilities: SALR.Y's short term assets (NOK7.5B) exceed its short term liabilities (NOK4.0B).

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


Debt to Equity History and Analysis

Debt Level: SALR.Y's debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: SALR.Y's debt to equity ratio has reduced from 27.3% to 23.5% over the past 5 years.

Debt Coverage: SALR.Y's debt is well covered by operating cash flow (145%).

Interest Coverage: SALR.Y's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.61%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: SALR.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Gustav Witzoe (67 yo)

3.58yrs

Tenure

kr1,126,000

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 ($USD124.48K) is below average for companies of similar size in the US market ($USD7.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gustav Witzoe
Co-Founder3.58yrskr1.13mno data
Trine Romuld
COO & CFO1.08yrskr2.17m0.0031%
NOK 175.6k
Frode Arntsen
Director of Processing & Sales2.67yrskr3.80m0.0017%
NOK 95.1k
Roger Bekken
Chief Operating Officer of Farming2.17yrskr4.20m0.011%
NOK 637.6k
Tonette Bjørgård
Head of Accountingno datano data0.0047%
NOK 261.2k
Hakon Husby
Head of Investor Relations0.42yrno datano data
Karl Aag
Manager of Freshwater25.58yrskr3.53mno data

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: SALR.Y's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gustav Witzoe
Co-Founder3.58yrskr1.13mno data
Atle Eide
Chairman of the Board3.17yrskr410.00kno data
Margrethe Hauge
Independent Director3.17yrskr220.00kno data
Leif Nordhammer
Director0.17yrkr4.74m1.13%
NOK 63.1m
Brit Soleng
Employee Representative Director3.17yrskr110.00kno data
Linda Aase
Director0.17yrno datano data
Tonje Foss
Director0.17yrno datano data
Jon Rosvoll
Employee Representative Director1.58yrskr56.00kno data

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: SALR.Y'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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.Y
  • Exchange: OTCPK
  • Founded: 1991
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr50.589b
  • Listing Market Cap: kr5.593b
  • 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, lumpfish, and smolt pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:05
End of Day Share Price2020/08/05 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.