ELKEM ASA (ELK.OL) Stock Fundamental Analysis
OSL:ELK - Euronext Oslo - NO0010816093 - Common Stock - Currency: NOK
ELK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Chemicals industry. ELK has only an average score on both its financial health and profitability. ELK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ELK was profitable.
ELK had a positive operating cash flow in the past year.
In the past 5 years ELK has always been profitable.
In the past 5 years ELK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.92%, ELK perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
ELK's Return On Equity of 1.89% is in line compared to the rest of the industry. ELK outperforms 57.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.19%, ELK is in line with its industry, outperforming 53.97% of the companies in the same industry.
ELK had an Average Return On Invested Capital over the past 3 years of 8.97%. This is above the industry average of 6.72%.
The last Return On Invested Capital (2.19%) for ELK is well below the 3 year average (8.97%), which needs to be investigated, but indicates that ELK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.89% | ||
| ROIC | 2.19% |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.97%
ROIC(5y)8.75%
1.3 Margins
ELK has a Profit Margin (1.74%) which is comparable to the rest of the industry.
ELK's Profit Margin has declined in the last couple of years.
ELK's Operating Margin of 5.23% is fine compared to the rest of the industry. ELK outperforms 61.90% of its industry peers.
ELK's Operating Margin has improved in the last couple of years.
ELK has a Gross Margin of 47.74%. This is in the better half of the industry: ELK outperforms 68.25% of its industry peers.
ELK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.23% | ||
| PM (TTM) | 1.74% | ||
| GM | 47.74% |
OM growth 3Y-6.79%
OM growth 5Y23.07%
PM growth 3Y-41.92%
PM growth 5Y-6.54%
GM growth 3Y0.8%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
ELK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ELK remains at a similar level compared to 1 year ago.
ELK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ELK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that ELK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, ELK is doing worse than 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that ELK is not too dependend on debt financing.
ELK has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: ELK outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC0.3
WACC7.21%
2.3 Liquidity
ELK has a Current Ratio of 2.96. This indicates that ELK is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.96, ELK belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that ELK should not have too much problems paying its short term obligations.
ELK has a Quick ratio of 1.68. This is in the better half of the industry: ELK outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 623.28% over the past year.
Measured over the past years, ELK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.37% on average per year.
ELK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.43%.
The Revenue has been decreasing by -4.35% on average over the past years.
EPS 1Y (TTM)623.28%
EPS 3Y-53.25%
EPS 5Y-12.37%
EPS Q2Q%97.23%
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%-49.04%
3.2 Future
ELK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.31% yearly.
Based on estimates for the next years, ELK will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
EPS Next Y49.43%
EPS Next 2Y53.82%
EPS Next 3Y62.31%
EPS Next 5YN/A
Revenue Next Year3.08%
Revenue Next 2Y5.82%
Revenue Next 3Y3.46%
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
A Price/Earnings ratio of 29.74 indicates a quite expensive valuation of ELK.
Compared to the rest of the industry, the Price/Earnings ratio of ELK indicates a somewhat cheap valuation: ELK is cheaper than 60.32% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ELK to the average of the S&P500 Index (29.35), we can say ELK is valued inline with the index average.
ELK is valuated correctly with a Price/Forward Earnings ratio of 13.98.
ELK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ELK is cheaper than 73.02% of the companies in the same industry.
ELK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELK is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ELK may justify a higher PE ratio.
ELK's earnings are expected to grow with 62.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y53.82%
EPS Next 3Y62.31%
5. Dividend
5.1 Amount
ELK has a Yearly Dividend Yield of 1.31%.
ELK's Dividend Yield is comparable with the industry average which is at 2.89.
With a Dividend Yield of 1.31, ELK pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y53.82%
EPS Next 3Y62.31%
OSL:ELK (3/7/2025, 7:00:00 PM)
23.2
+0.26 (+1.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners22.75%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap14.84B
Analysts78
Price Target25.09 (8.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend6.02
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-29.77%
Min Revenue beat(2)-47.43%
Max Revenue beat(2)-12.1%
Revenue beat(4)1
Avg Revenue beat(4)-16.25%
Min Revenue beat(4)-47.43%
Max Revenue beat(4)2.58%
Revenue beat(8)2
Avg Revenue beat(8)-9.97%
Revenue beat(12)5
Avg Revenue beat(12)-5.22%
Revenue beat(16)7
Avg Revenue beat(16)-4.12%
PT rev (1m)2.93%
PT rev (3m)7.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)-15.73%
EPS NY rev (3m)-23.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.3%
Revenue NY rev (3m)-6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 13.98 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | 7.31 | ||
| P/B | 0.57 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)0.78
EY3.36%
EPS(NY)1.66
Fwd EY7.15%
FCF(TTM)-2.04
FCFYN/A
OCF(TTM)3.17
OCFY13.68%
SpS43.84
BVpS40.52
TBVpS39.67
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.89% | ||
| ROCE | 3.01% | ||
| ROIC | 2.19% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.44% | ||
| OM | 5.23% | ||
| PM (TTM) | 1.74% | ||
| GM | 47.74% | ||
| FCFM | N/A |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.97%
ROIC(5y)8.75%
ROICexc(3y)11.05%
ROICexc(5y)10.88%
ROICexgc(3y)11.8%
ROICexgc(5y)11.84%
ROCE(3y)12.75%
ROCE(5y)12.53%
ROICexcg growth 3Y-39.62%
ROICexcg growth 5Y-2.87%
ROICexc growth 3Y-37.64%
ROICexc growth 5Y-1.71%
OM growth 3Y-6.79%
OM growth 5Y23.07%
PM growth 3Y-41.92%
PM growth 5Y-6.54%
GM growth 3Y0.8%
GM growth 5Y2.02%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 116.9% | ||
| Cap/Sales | 11.89% | ||
| Interest Coverage | 1.66 | ||
| Cash Conversion | 47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.73 |
F-Score7
WACC7.21%
ROIC/WACC0.3
Cap/Depr(3y)177.35%
Cap/Depr(5y)168.11%
Cap/Sales(3y)17.23%
Cap/Sales(5y)14.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)623.28%
EPS 3Y-53.25%
EPS 5Y-12.37%
EPS Q2Q%97.23%
EPS Next Y49.43%
EPS Next 2Y53.82%
EPS Next 3Y62.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%-49.04%
Revenue Next Year3.08%
Revenue Next 2Y5.82%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
EBIT growth 1Y21.74%
EBIT growth 3Y-24.17%
EBIT growth 5Y17.72%
EBIT Next Year298.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.47%
OCF growth 3Y-25.52%
OCF growth 5Y2%