ELOPAK ASA (ELO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ELO - NO0011002586 - Common Stock
51.7 NOK
-0.3 (-0.58%)
Overall ELO gets a fundamental rating of 5 out of 10. We evaluated ELO against 13 industry peers in the Containers & Packaging industry. While ELO has a great profitability rating, there are some minor concerns on its financial health. ELO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ELO had positive earnings in the past year.
- ELO had a positive operating cash flow in the past year.
- In the past 5 years ELO has always been profitable.
- Each year in the past 5 years ELO had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 5.00%, ELO is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- ELO's Return On Equity of 15.38% is amongst the best of the industry. ELO outperforms 92.31% of its industry peers.
- ELO has a Return On Invested Capital of 10.23%. This is amongst the best in the industry. ELO outperforms 92.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ELO is above the industry average of 6.42%.
- The 3 year average ROIC (9.29%) for ELO is below the current ROIC(10.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 15.38% | ||
| ROIC | 10.23% |
ROA(3y)4.62%
ROA(5y)4.91%
ROE(3y)14.63%
ROE(5y)16.45%
ROIC(3y)9.29%
ROIC(5y)9.23%
1.3 Margins
- ELO has a Profit Margin (4.49%) which is comparable to the rest of the industry.
- ELO's Profit Margin has improved in the last couple of years.
- ELO's Operating Margin of 8.96% is fine compared to the rest of the industry. ELO outperforms 61.54% of its industry peers.
- In the last couple of years the Operating Margin of ELO has grown nicely.
- ELO's Gross Margin of 38.38% is in line compared to the rest of the industry. ELO outperforms 46.15% of its industry peers.
- ELO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.96% | ||
| PM (TTM) | 4.49% | ||
| GM | 38.38% |
OM growth 3Y14.36%
OM growth 5Y17.31%
PM growth 3Y10.04%
PM growth 5Y37.07%
GM growth 3Y0.61%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ELO is creating some value.
- The number of shares outstanding for ELO remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ELO remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, ELO has a worse debt to assets ratio.
2.2 Solvency
- ELO has an Altman-Z score of 2.98. This is not the best score and indicates that ELO is in the grey zone with still only limited risk for bankruptcy at the moment.
- ELO has a better Altman-Z score (2.98) than 84.62% of its industry peers.
- The Debt to FCF ratio of ELO is 8.12, which is on the high side as it means it would take ELO, 8.12 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.12, ELO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- ELO has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
- ELO's Debt to Equity ratio of 1.17 is on the low side compared to the rest of the industry. ELO is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.21
WACC8.42%
2.3 Liquidity
- ELO has a Current Ratio of 1.46. This is a normal value and indicates that ELO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.46, ELO is in line with its industry, outperforming 53.85% of the companies in the same industry.
- ELO has a Quick Ratio of 1.46. This is a bad value and indicates that ELO is not financially healthy enough and could expect problems in meeting its short term obligations.
- ELO has a better Quick ratio (0.86) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- ELO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.00%.
- Measured over the past years, ELO shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.61% on average per year.
- Looking at the last year, ELO shows a small growth in Revenue. The Revenue has grown by 1.09% in the last year.
- The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)-24%
EPS 3Y24.53%
EPS 5Y43.61%
EPS Q2Q%16.67%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y10.58%
Revenue growth 5Y4.99%
Sales Q2Q%-1.08%
3.2 Future
- The Earnings Per Share is expected to grow by 11.76% on average over the next years. This is quite good.
- Based on estimates for the next years, ELO will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y1%
EPS Next 2Y16.67%
EPS Next 3Y18.09%
EPS Next 5Y11.76%
Revenue Next Year2.73%
Revenue Next 2Y5.81%
Revenue Next 3Y6.66%
Revenue Next 5Y5.31%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.61, the valuation of ELO can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ELO is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ELO is valued at the same level.
- A Price/Forward Earnings ratio of 14.33 indicates a correct valuation of ELO.
- Based on the Price/Forward Earnings ratio, ELO is valued a bit cheaper than 69.23% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. ELO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELO is on the same level as its industry peers.
- ELO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.71 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of ELO may justify a higher PE ratio.
- A more expensive valuation may be justified as ELO's earnings are expected to grow with 18.09% in the coming years.
PEG (NY)23.61
PEG (5Y)0.54
EPS Next 2Y16.67%
EPS Next 3Y18.09%
5. Dividend
5.1 Amount
- ELO has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
- ELO's Dividend Yield is comparable with the industry average which is at 2.85.
- Compared to an average S&P500 Dividend Yield of 1.82, ELO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ELO pays out 41.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.05%
EPS Next 2Y16.67%
EPS Next 3Y18.09%
ELOPAK ASA / ELO.OL FAQ
What is the fundamental rating for ELO stock?
ChartMill assigns a fundamental rating of 5 / 10 to ELO.OL.
Can you provide the valuation status for ELOPAK ASA?
ChartMill assigns a valuation rating of 4 / 10 to ELOPAK ASA (ELO.OL). This can be considered as Fairly Valued.
How profitable is ELOPAK ASA (ELO.OL) stock?
ELOPAK ASA (ELO.OL) has a profitability rating of 8 / 10.
Can you provide the financial health for ELO stock?
The financial health rating of ELOPAK ASA (ELO.OL) is 4 / 10.
Is the dividend of ELOPAK ASA sustainable?
The dividend rating of ELOPAK ASA (ELO.OL) is 4 / 10 and the dividend payout ratio is 41.05%.