ELKEM ASA (ELK.OL) Stock Fundamental Analysis
Europe • Euronext Oslo • OSL:ELK • NO0010816093
28.21 NOK
-0.43 (-1.5%)
Last: Feb 2, 2026, 09:34 AM
ELK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Chemicals industry. ELK has only an average score on both its financial health and profitability. ELK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year ELK has reported negative net income.
- ELK had a positive operating cash flow in the past year.
- ELK had positive earnings in each of the past 5 years.
- ELK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ELK has a worse Return On Assets (-1.07%) than 67.65% 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 69.12% of its industry peers.
- ELK has a Return On Invested Capital (2.29%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for ELK is above the industry average of 6.72%.
- The 3 year average ROIC (8.73%) for ELK is well above the current ROIC(2.29%). The reason for the recent decline needs to be investigated.
| 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 fine compared to the rest of the industry. ELK outperforms 61.76% of its industry peers.
- In the last couple of years the Operating Margin of ELK has grown nicely.
- With a decent Gross Margin value of 53.81%, ELK is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- In the last couple of years the Gross Margin of ELK has grown nicely.
| 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.
- Compared to 1 year ago, ELK has about the same amount of shares outstanding.
- 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
- ELK has an Altman-Z score of 1.73. This is a bad value and indicates that ELK is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of ELK (1.73) is worse than 70.59% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that ELK is not too dependend on debt financing.
- ELK has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: ELK outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC0.3
WACC7.57%
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.
- With an excellent Current ratio value of 3.27, ELK belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- A Quick Ratio of 1.67 indicates that ELK should not have too much problems paying its short term obligations.
- ELK has a Quick ratio of 1.67. This is in the better half of the industry: ELK outperforms 77.94% of its industry peers.
| 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.
- Looking at the last year, ELK shows a very negative growth in Revenue. The Revenue has decreased by -46.80% in the last year.
- The Revenue has been decreasing by -4.35% on average over the past years.
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
- Based on estimates for the next years, ELK will show a very strong growth in Earnings Per Share. The EPS will grow by 49.55% on average per year.
- 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-185.57%
EPS Next 2Y32.5%
EPS Next 3Y49.55%
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings Ratio is negative for ELK. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 20.60, which indicates a rather expensive current valuation of ELK.
- ELK's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. ELK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELK is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
- ELK's earnings are expected to grow with 49.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.5%
EPS Next 3Y49.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, ELK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.28, ELK is paying slightly less dividend.
- With a Dividend Yield of 1.05, ELK pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y32.5%
EPS Next 3Y49.55%
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 -185.57% in the next year.