ELKEM ASA (ELK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ELK - NO0010816093 - Common Stock
29.68 NOK
+0.16 (+0.54%)
We assign a fundamental rating of 4 out of 10 to ELK. ELK was compared to 69 industry peers in the Chemicals industry. ELK has an average financial health and profitability rating. ELK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ELK has reported negative net income.
- In the past year ELK had a positive cash flow from operations.
- Each year in the past 5 years ELK has been profitable.
- ELK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ELK (-1.07%) is worse than 71.01% of its industry peers.
- ELK's Return On Equity of -2.13% is on the low side compared to the rest of the industry. ELK is outperformed by 72.46% of its industry peers.
- The Return On Invested Capital of ELK (2.29%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ELK is above the industry average of 6.70%.
- The last Return On Invested Capital (2.29%) for ELK is well below the 3 year average (8.73%), which needs to be investigated, but indicates that ELK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.07% | ||
| ROE | -2.13% | ||
| ROIC | 2.29% |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.73%
ROIC(5y)8.61%
1.3 Margins
- In the last couple of years the Profit Margin of ELK has declined.
- ELK's Operating Margin of 8.13% is in line compared to the rest of the industry. ELK outperforms 57.97% of its industry peers.
- ELK's Operating Margin has improved in the last couple of years.
- ELK's Gross Margin of 53.81% is amongst the best of the industry. ELK outperforms 81.16% of its industry peers.
- ELK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | N/A | ||
| GM | 53.81% |
OM growth 3Y-7.33%
OM growth 5Y22.64%
PM growth 3Y-41.92%
PM growth 5Y-6.54%
GM growth 3Y0.8%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ELK is creating some value.
- The number of shares outstanding for ELK remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ELK has been increased compared to 5 years ago.
- The debt/assets ratio for ELK has been reduced compared to a year ago.
2.2 Solvency
- ELK has an Altman-Z score of 1.74. This is a bad value and indicates that ELK is not financially healthy and even has some risk of bankruptcy.
- ELK has a Altman-Z score of 1.74. This is in the lower half of the industry: ELK underperforms 72.46% of its industry peers.
- ELK has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.47, ELK perfoms like the industry average, outperforming 46.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.3
WACC7.59%
2.3 Liquidity
- ELK has a Current Ratio of 3.27. This indicates that ELK is financially healthy and has no problem in meeting its short term obligations.
- ELK has a better Current ratio (3.27) than 88.41% of its industry peers.
- A Quick Ratio of 1.67 indicates that ELK should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.67, ELK is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- ELK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1100.00%.
- ELK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.90% yearly.
- The Revenue for ELK has decreased by -46.80% in the past year. This is quite bad
- Measured over the past years, ELK shows a decrease in Revenue. The Revenue has been decreasing by -4.35% on average per year.
EPS 1Y (TTM)-1100%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-46.8%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%-2.63%
3.2 Future
- The Earnings Per Share is expected to grow by 42.92% on average over the next years. This is a very strong growth
- ELK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.27% yearly.
EPS Next Y-179.92%
EPS Next 2Y22.96%
EPS Next 3Y42.92%
EPS Next 5YN/A
Revenue Next Year-8.51%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.27%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ELK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 25.17, ELK can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ELK indicates a slightly more expensive valuation: ELK is more expensive than 63.77% of the companies listed in the same industry.
- ELK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.17 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELK is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
- ELK's earnings are expected to grow with 42.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.96%
EPS Next 3Y42.92%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.98%, ELK is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.33, ELK is paying slightly less dividend.
- With a Dividend Yield of 0.98, ELK pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y22.96%
EPS Next 3Y42.92%
ELKEM ASA / ELK.OL FAQ
What is the ChartMill fundamental rating of ELKEM ASA (ELK.OL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ELK.OL.
What is the valuation status for ELK stock?
ChartMill assigns a valuation rating of 2 / 10 to ELKEM ASA (ELK.OL). This can be considered as Overvalued.
What is the profitability of ELK stock?
ELKEM ASA (ELK.OL) has a profitability rating of 5 / 10.
How financially healthy is ELKEM ASA?
The financial health rating of ELKEM ASA (ELK.OL) is 4 / 10.
Can you provide the expected EPS growth for ELK stock?
The Earnings per Share (EPS) of ELKEM ASA (ELK.OL) is expected to decline by -179.92% in the next year.