NasdaqGS:OPRA

Stock Analysis Report

Executive Summary

Opera Limited, through its subsidiaries, provides mobile and PC web browsers in Ireland, Russia, and internationally.


Snowflake Analysis

Flawless balance sheet and fair 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

OPRA

-2.7%

US Software

-1.1%

US Market


1 Year Return

-23.4%

OPRA

35.5%

US Software

17.9%

US Market

Return vs Industry: OPRA underperformed the US Software industry which returned 35.5% over the past year.

Return vs Market: OPRA underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

OPRAIndustryMarket
7 Day-0.4%-2.7%-1.1%
30 Day-15.8%5.4%1.4%
90 Day-31.5%13.0%6.9%
1 Year-23.4%-23.4%36.9%35.5%20.3%17.9%
3 Yearn/a144.6%134.3%47.8%38.3%
5 Yearn/a213.3%190.8%71.9%53.0%

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?

15.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: OPRA is good value based on its PE Ratio (15.9x) compared to the Software industry average (49.4x).

PE vs Market: OPRA is good value based on its PE Ratio (15.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: OPRA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: OPRA is good value based on its PB Ratio (0.9x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPRA's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).

Earnings vs Market: OPRA's earnings (8.7% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: OPRA's revenue (24.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: OPRA's revenue (24.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPRA's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Opera performed over the past 5 years?

89.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: OPRA has high quality earnings.

Growing Profit Margin: OPRA's current net profit margins (18.5%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if OPRA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare OPRA's past year earnings growth to its 5-year average.

Earnings vs Industry: OPRA earnings growth over the past year (89.4%) exceeded the Software industry 18.4%.


Return on Equity

High ROE: OPRA's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Opera's financial position?


Financial Position Analysis

Short Term Liabilities: OPRA's short term assets ($352.2M) exceed its short term liabilities ($82.3M).

Long Term Liabilities: OPRA's short term assets ($352.2M) exceed its long term liabilities ($23.5M).


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

Inventory Level: OPRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPRA's debt is not covered by short term assets (assets are -4.9562254636701E+16x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OPRA'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 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?

3.3yrs

Average management tenure


CEO

Yahui Zhou (42yo)

3.6yrs

Tenure

0

Mr. Yahui Zhou has been the Chairman, Chief Executive and General Manager of Beijing Kunlun Tech Co., Ltd. since June 2011 and serves as its Acting Secretary. He serves a Chairman and Chief executive Offi ...


Leadership Team

NamePositionTenureCompensationOwnership
Yahui Zhou
Chairman & CEO3.6yrsno data16.4% $133.6m
Frode Jacobsen
Chief Financial Officer3.8yrsno datano data
Lin Song
Chief Operating Officer2.9yrsno datano data
Derrick Nueman
Vice President of Investor Relations0.9yrsno datano data
Aaron McParlan
General Counsel0yrsno datano data

3.3yrs

Average Tenure

38yo

Average Age

Experienced Management: OPRA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yahui Zhou
Chairman & CEO3.6yrsno data16.4% $133.6m
Jian Liu
Independent Director0.6yrsno datano data
Hongyi Zhou
Director3.3yrsno datano data
Lori Naess
Independent Director1.6yrsno datano data
Tian Jin
Director0.2yrsno datano data
Trond Knudsen
Independent Director1.6yrsno datano data

1.6yrs

Average Tenure

47yo

Average Age

Experienced Board: OPRA's board of directors are not considered experienced ( 1.6 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 been diluted in the past year, with total shares outstanding growing by 12.8%.


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$814.555m
  • Shares outstanding: 118.91m
  • Website: https://www.opera.com

Number of Employees


Location

  • Opera Limited
  • Gjerdrums vei 19
  • Oslo
  • Oslo
  • 484
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPRANasdaqGS (Nasdaq Global Select)YesSPONSORED ADSUSUSDJul 2018

Biography

Opera Limited, through its subsidiaries, provides mobile and PC web browsers in Ireland, Russia, and internationally. It offers mobile browser products under the Opera Mini, Opera for Android, and Opera Touch names; PC browser under the Opera for Computers name; Opera News, a personalized news aggregation app; and Okash, a microfinance app. The company was founded in 1996 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:16
End of Day Share Price2020/02/21 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.