BORREGAARD ASA (BRG.OL) Stock Fundamental Analysis
OSL:BRG - Euronext Oslo - NO0010657505 - Common Stock - Currency: NOK
BRG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Chemicals industry. While BRG has a great profitability rating, there are some minor concerns on its financial health. BRG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BRG had positive earnings in the past year.
BRG had a positive operating cash flow in the past year.
BRG had positive earnings in each of the past 5 years.
BRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BRG (8.59%) is better than 91.80% of its industry peers.
BRG has a Return On Equity of 16.33%. This is amongst the best in the industry. BRG outperforms 86.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.72%, BRG belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRG is significantly above the industry average of 6.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 16.33% | ||
| ROIC | 12.72% |
ROA(3y)9.71%
ROA(5y)9%
ROE(3y)18.18%
ROE(5y)16.56%
ROIC(3y)13.82%
ROIC(5y)12.69%
1.3 Margins
Looking at the Profit Margin, with a value of 10.80%, BRG belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
BRG's Profit Margin has improved in the last couple of years.
BRG has a better Operating Margin (16.84%) than 90.16% of its industry peers.
In the last couple of years the Operating Margin of BRG has grown nicely.
BRG's Gross Margin of 55.73% is amongst the best of the industry. BRG outperforms 83.61% of its industry peers.
In the last couple of years the Gross Margin of BRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 10.8% | ||
| GM | 55.73% |
OM growth 3Y1.68%
OM growth 5Y9.36%
PM growth 3Y-3.22%
PM growth 5Y5.58%
GM growth 3Y1.15%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRG is still creating some value.
BRG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BRG has about the same amount of shares outstanding.
The debt/assets ratio for BRG has been reduced compared to a year ago.
2.2 Solvency
BRG has an Altman-Z score of 4.04. This indicates that BRG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.04, BRG belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
The Debt to FCF ratio of BRG is 6.51, which is on the high side as it means it would take BRG, 6.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BRG (6.51) is better than 63.93% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that BRG is not too dependend on debt financing.
BRG's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. BRG outperforms 54.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.57
WACC8.08%
2.3 Liquidity
BRG has a Current Ratio of 1.62. This is a normal value and indicates that BRG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.62, BRG is in line with its industry, outperforming 50.82% of the companies in the same industry.
BRG has a Quick Ratio of 1.62. This is a bad value and indicates that BRG is not financially healthy enough and could expect problems in meeting its short term obligations.
BRG's Quick ratio of 0.81 is on the low side compared to the rest of the industry. BRG is outperformed by 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
BRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.29%.
The Earnings Per Share has been growing by 14.62% on average over the past years. This is quite good.
BRG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.80%.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.29%
EPS 3Y5.89%
EPS 5Y14.62%
EPS Q2Q%9.24%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y9.48%
Revenue growth 5Y8.51%
Sales Q2Q%8.66%
3.2 Future
BRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.08% yearly.
Based on estimates for the next years, BRG will show a small growth in Revenue. The Revenue will grow by 6.72% on average per year.
EPS Next Y17.7%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
EPS Next 5YN/A
Revenue Next Year4.72%
Revenue Next 2Y5.03%
Revenue Next 3Y5.68%
Revenue Next 5Y6.72%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.51, BRG is valued on the expensive side.
BRG's Price/Earnings ratio is a bit cheaper when compared to the industry. BRG is cheaper than 62.30% of the companies in the same industry.
BRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
BRG is valuated rather expensively with a Price/Forward Earnings ratio of 17.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRG indicates a somewhat cheap valuation: BRG is cheaper than 63.93% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. BRG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRG.
BRG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.34 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BRG may justify a higher PE ratio.
A more expensive valuation may be justified as BRG's earnings are expected to grow with 15.08% in the coming years.
PEG (NY)1.16
PEG (5Y)1.4
EPS Next 2Y17.24%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
BRG has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
BRG's Dividend Yield is a higher than the industry average which is at 3.19.
BRG's Dividend Yield is comparable with the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of BRG is nicely growing with an annual growth rate of 10.80%!
Dividend Growth(5Y)10.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRG pays out 45.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BRG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.44%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
OSL:BRG (4/25/2025, 7:00:00 PM)
169
+2 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners58.78%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap16.90B
Analysts80
Price Target218.79 (29.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend3.76
Dividend Growth(5Y)10.8%
DP45.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.79%
Min EPS beat(2)-10.93%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-5.31%
Min EPS beat(4)-10.93%
Max EPS beat(4)1.34%
EPS beat(8)5
Avg EPS beat(8)0.39%
EPS beat(12)9
Avg EPS beat(12)4.94%
EPS beat(16)12
Avg EPS beat(16)6.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-6.3%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)8
Avg Revenue beat(16)1.07%
PT rev (1m)-11%
PT rev (3m)-8.33%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)-17.19%
EPS NY rev (1m)-3.25%
EPS NY rev (3m)-10.15%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.42 | ||
| P/S | 2.22 | ||
| P/FCF | 47.34 | ||
| P/OCF | 15.82 | ||
| P/B | 3.35 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)8.24
EY4.88%
EPS(NY)9.7
Fwd EY5.74%
FCF(TTM)3.57
FCFY2.11%
OCF(TTM)10.68
OCFY6.32%
SpS76.17
BVpS50.41
TBVpS49.53
PEG (NY)1.16
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 16.33% | ||
| ROCE | 16.63% | ||
| ROIC | 12.72% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 13.01% | ||
| OM | 16.84% | ||
| PM (TTM) | 10.8% | ||
| GM | 55.73% | ||
| FCFM | 4.69% |
ROA(3y)9.71%
ROA(5y)9%
ROE(3y)18.18%
ROE(5y)16.56%
ROIC(3y)13.82%
ROIC(5y)12.69%
ROICexc(3y)14.38%
ROICexc(5y)13.15%
ROICexgc(3y)14.56%
ROICexgc(5y)13.34%
ROCE(3y)18.07%
ROCE(5y)16.59%
ROICexcg growth 3Y1.2%
ROICexcg growth 5Y9.02%
ROICexc growth 3Y1.34%
ROICexc growth 5Y9.17%
OM growth 3Y1.68%
OM growth 5Y9.36%
PM growth 3Y-3.22%
PM growth 5Y5.58%
GM growth 3Y1.15%
GM growth 5Y0.7%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 126.74% | ||
| Cap/Sales | 9.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.92% | ||
| Profit Quality | 43.38% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.04 |
F-Score7
WACC8.08%
ROIC/WACC1.57
Cap/Depr(3y)122.07%
Cap/Depr(5y)122.12%
Cap/Sales(3y)8.48%
Cap/Sales(5y)8.89%
Profit Quality(3y)58.92%
Profit Quality(5y)78.21%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.29%
EPS 3Y5.89%
EPS 5Y14.62%
EPS Q2Q%9.24%
EPS Next Y17.7%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
EPS Next 5YN/A
Revenue 1Y (TTM)6.8%
Revenue growth 3Y9.48%
Revenue growth 5Y8.51%
Sales Q2Q%8.66%
Revenue Next Year4.72%
Revenue Next 2Y5.03%
Revenue Next 3Y5.68%
Revenue Next 5Y6.72%
EBIT growth 1Y-0.62%
EBIT growth 3Y11.31%
EBIT growth 5Y18.67%
EBIT Next Year57.19%
EBIT Next 3Y22.12%
EBIT Next 5YN/A
FCF growth 1Y-60.16%
FCF growth 3Y-25.83%
FCF growth 5Y25.65%
OCF growth 1Y-31.67%
OCF growth 3Y-9.29%
OCF growth 5Y8.91%