NasdaqGS:OPRA

Stock Analysis Report

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Executive Summary

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OPRA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OPRA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

OPRA

5.2%

US Software

2.6%

US Market


1 Year Return

23.5%

OPRA

48.2%

US Software

26.0%

US Market

Return vs Industry: OPRA underperformed the US Software industry which returned 48.2% over the past year.

Return vs Market: OPRA underperformed the US Market which returned 26% over the past year.


Shareholder returns

OPRAIndustryMarket
7 Day1.0%5.2%2.6%
30 Day11.3%0.6%5.1%
90 Day-1.8%10.2%17.1%
1 Year23.5%23.5%49.2%48.2%28.9%26.0%
3 Yearn/a131.0%123.7%46.3%36.6%
5 Yearn/a281.1%260.0%126.9%101.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPRA ($9.45) is trading below our estimate of fair value ($12.52)

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


Price To Earnings Ratio

PE vs Industry: OPRA is good value based on its PE Ratio (32.9x) compared to the US Software industry average (59.7x).

PE vs Market: OPRA is poor value based on its PE Ratio (32.9x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: OPRA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OPRA is good value based on its PB Ratio (1.1x) compared to the US Software industry average (9.7x).


Next Steps

Future Growth

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

-62.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPRA's earnings are forecast to decline over the next 3 years (-62.1% per year).

Earnings vs Market: OPRA's earnings are forecast to decline over the next 3 years (-62.1% per year).

High Growth Earnings: OPRA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if OPRA's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if OPRA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OPRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Opera performed over the past 5 years?

49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPRA has a large one-off loss of $13.6M impacting its September 30 2020 financial results.

Growing Profit Margin: OPRA's current net profit margins (10.6%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: OPRA's earnings have grown significantly by 49.4% per year over the past 5 years.

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

Earnings vs Industry: OPRA had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Software industry average (13.6%).


Return on Equity

High ROE: OPRA's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Opera's financial position?


Financial Position Analysis

Short Term Liabilities: OPRA's short term assets ($176.3M) exceed its short term liabilities ($43.9M).

Long Term Liabilities: OPRA's short term assets ($176.3M) exceed its long term liabilities ($17.0M).


Debt to Equity History and Analysis

Debt Level: OPRA is debt free.

Reducing Debt: OPRA had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.4yrs

Average management tenure


CEO

Yahui Zhou (43 yo)

1

Tenure

Mr. Yahui Zhou has been the Non-Independent Chairman, Chief Executive and General Manager of Beijing Kunlun Tech Co., Ltd. since June 2011 and serves as its Acting Secretary. Mr. Zhou also serves as Founde...


Leadership Team

NamePositionTenureCompensationOwnership
Yahui Zhou
Chairman & Co-CEO1yrno data8.47%
$ 95.1m
Lin Song
Co-Chief Executive Officer1yrno datano data
Frode Jacobsen
Chief Financial Officer4.75yrsno datano data
Derrick Nueman
Vice President of Investor Relations1.83yrsno datano data
Aaron McParlan
General Counselno datano datano data

1.4yrs

Average Tenure

39yo

Average Age

Experienced Management: OPRA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yahui Zhou
Chairman & Co-CEO1yrno data8.47%
$ 95.1m
Jian Liu
Independent Director1.5yrsno datano data
Hongyi Zhou
Director4.17yrsno datano data
Lori Naess
Independent Director2.5yrsno datano data
Tian Jin
Director1.08yrsno datano data
Trond Knudsen
Independent Director2.5yrsno datano data

2.5yrs

Average Tenure

48yo

Average Age

Experienced Board: OPRA's board of directors are not considered experienced ( 2.5 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

Opera Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Opera Limited
  • Ticker: OPRA
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$1.122b
  • Shares outstanding: 115.07m
  • Website: https://www.opera.com

Number of Employees


Location

  • Opera Limited
  • Vitaminveien 4
  • Oslo
  • Oslo
  • 485
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPRANasdaqGS (Nasdaq Global Select)YesSPON ADS EACH REP 2 ORD SHSUSUSDJul 2018
2V8DB (Deutsche Boerse AG)YesSPON ADS EACH REP 2 ORD SHSDEEURJul 2018

Biography

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers. The company offers mobile browser products, such as Opera Mini, Opera for Android, and Opera Touch; PC browsers, includin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 23:11
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.