OTCPK:NDCV.F

Stock Analysis Report

Executive Summary

Nordic Semiconductor ASA, a fabless semiconductor company, designs, develops, and sells integrated circuits and related solutions for short and long range wireless communication in Europe, the Americas, and the Asia/Pacific.

Rewards

Trading at 61.1% below its fair value

Earnings are forecast to grow 58.5% per year

Risk Analysis

NDCV.F passed our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.2%

NDCV.F

10.5%

US Semiconductor

9.4%

US Market


1 Year Return

2.0%

NDCV.F

8.8%

US Semiconductor

-6.8%

US Market

Return vs Industry: NDCV.F underperformed the US Semiconductor industry which returned 8.4% over the past year.

Return vs Market: NDCV.F exceeded the US Market which returned -8.1% over the past year.


Shareholder returns

NDCV.FIndustryMarket
7 Day10.2%10.5%9.4%
30 Day-1.7%0.8%-3.9%
90 Day-28.1%-10.2%-16.5%
1 Year2.0%2.0%11.0%8.8%-4.8%-6.8%
3 Year27.3%27.3%68.4%59.1%23.4%15.2%
5 Year-39.3%-39.3%119.6%98.5%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nordic Semiconductor 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: NDCV.F ($4.52) is trading below our estimate of fair value ($11.63)

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


Price To Earnings Ratio

PE vs Industry: NDCV.F is poor value based on its PE Ratio (113.2x) compared to the Semiconductor industry average (28.2x).

PE vs Market: NDCV.F is poor value based on its PE Ratio (113.2x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: NDCV.F is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NDCV.F is overvalued based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (2.4x).


Next Steps

Future Growth

How is Nordic Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDCV.F's forecast earnings growth (58.5% per year) is above the savings rate (1.7%).

Earnings vs Market: NDCV.F's earnings (58.5% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NDCV.F's revenue (20.1% per year) is forecast to grow faster than the US market (6.9% per year).

High Growth Revenue: NDCV.F's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NDCV.F's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Nordic Semiconductor performed over the past 5 years?

-34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDCV.F has high quality earnings.

Growing Profit Margin: NDCV.F's current net profit margins (2.5%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: NDCV.F's earnings have declined by -34.5% per year over the past 5 years.

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

Earnings vs Industry: NDCV.F had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: NDCV.F's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Nordic Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: NDCV.F's short term assets ($219.6M) exceed its short term liabilities ($66.0M).

Long Term Liabilities: NDCV.F's short term assets ($219.6M) exceed its long term liabilities ($20.2M).


Debt to Equity History and Analysis

Debt Level: NDCV.F is debt free.

Reducing Debt: NDCV.F had no debt 5 years ago.

Debt Coverage: NDCV.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NDCV.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: NDCV.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NDCV.F'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?

10.3yrs

Average management tenure


CEO

Svenn-Tore Larsen (60yo)

18.17s

Tenure

US$583,000

Compensation

Mr. Svenn-Tore Larsen has been the Chief Executive Officer of Nordic Semiconductor ASA since February 2002. Mr. Larsen has been Director at poLight AS since May 2019. Mr. Larsen has broad Inter-National ex ...


CEO Compensation Analysis

Compensation vs Market: Svenn-Tore's total compensation ($USD583.00K) is below average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Svenn-Tore Larsen
Chief Executive Officer18.17yrsUS$583.00k1.08% $9.0m
Pål Elstad
Chief Financial Officer5.58yrsUS$368.00k0.0050% $41.9k
Svein-Egil Nielsen
CTO & Strategy Directorno dataUS$412.00k0.0096% $80.4k
Ståle Ytterdal
Director of Investor Relation & Strategic Salesno dataUS$389.00k0.14% $1.2m
Marianne Frydenlund
Legal Director & Acting Secretary2.17yrsUS$190.00k0.0011% $9.4k
Geir Langeland
Sales & Marketing Director14.58yrsUS$382.00k0.10% $841.1k
Katarina Finneng
Human Resource Director0.58yrUS$210.00kno data
Ebbe Rømcke
Quality Director18.25yrsUS$253.00k0.039% $326.1k
Ole-Fredrik Morken
Supply Chain Director10.25yrsUS$427.00k0.091% $757.3k
Kjetil Holstad
Director of Project Managementno dataUS$188.00k0.0037% $31.3k

10.3yrs

Average Tenure

49yo

Average Age

Experienced Management: NDCV.F's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Birger Steen
Chair of the Board of Directors1.33yrsUS$104.00k0.096% $802.0k
Jan Frykhammar
Director1yrUS$50.00k0.0057% $47.3k
Anita Huun
Director1yrUS$40.00k0.0057% $47.3k
Jon Nistad
Employee Representative Directorno dataUS$11.00kno data
Inger Ørstavik
Director3yrsUS$50.00kno data
Asbjørn Sæbø
Employee Representative Director3.92yrsUS$11.00k0.0057% $47.3k
Susheel Nuguru
Employee Representative Director2.25yrsUS$11.00kno data
Endre Holen
Director1yrUS$53.00k0.089% $740.7k
Øyvind Birkenes
Director1yrUS$45.00kno data
Annastiina Hintsa
Director1yrUS$37.00kno data

1.0yrs

Average Tenure

48yo

Average Age

Experienced Board: NDCV.F's board of directors are not considered experienced ( 1 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: NDCV.F 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

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


Key Information

  • Name: Nordic Semiconductor ASA
  • Ticker: NDCV.F
  • Exchange: OTCPK
  • Founded: 1983
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: kr8.562b
  • Listing Market Cap: kr834.485m
  • Shares outstanding: 176.31m
  • Website: https://www.nordicsemi.com

Number of Employees


Location

  • Nordic Semiconductor ASA
  • Otto Nielsens veg 12
  • Trondheim
  • Sør-Trøndelag
  • 7052
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NODOB (Oslo Bors)YesRegistered SharesNONOKMay 1996
0FF9LSE (London Stock Exchange)YesRegistered SharesGBNOKMay 1996
NDCV.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDMay 1996
NODoBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBNOKMay 1996

Biography

Nordic Semiconductor ASA, a fabless semiconductor company, designs, develops, and sells integrated circuits and related solutions for short and long range wireless communication in Europe, the Americas, and the Asia/Pacific. The company specializes in ultra-low power components, based on its proprietary 2.4 GHz RF, Bluetooth low energy, and LTE-M and NB- Internet of Things (IoT); and develops long power cellular IoT. It also provides Bluetooth 5 solutions; low power cellular devices for the IoT; and Bluetooth 5.1 solutions for direction finding applications. In addition, the company offers Zigbee 3.0 IoT solutions; Thread solution for low-power IEEE 802.15.4 devices; nRF52 and nRF51 series system-on-chips, and nRF5 software development kits; ANT, a proprietary ultra-low power wireless solution for battery operated products; and application specific integrated circuits and related consulting services. Further, it provides software for system development, communication stacks, and application layer software, as well as development tools for desktops, mobiles, and clouds. The company’s products are used in various applications, such as audio and music, automotives, beacons, computer peripherals, connected health and homes, education, industrial automation, LED lightings, logistics and transport, retail and payment, sports and fitness, toys and gaming, virtual reality and augmented reality products, mobile phone accessories, and consumer electronics, as well as wearables, including connected watches, jewelry, proximity tags, and smart clothes and apparels. Nordic Semiconductor ASA was founded in 1983 and is headquartered in Trondheim, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 03:28
End of Day Share Price2020/04/08 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.