ELOPAK ASA (ELO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ELO - NO0011002586 - Common Stock
51.2 NOK
-2.7 (-5.01%)
We assign a fundamental rating of 5 out of 10 to ELO. ELO was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ELO was profitable.
- In the past year ELO had a positive cash flow from operations.
- Each year in the past 5 years ELO has been profitable.
- Each year in the past 5 years ELO had a positive operating cash flow.
1.2 Ratios
- ELO has a Return On Assets of 5.00%. This is in the better half of the industry: ELO outperforms 69.23% of its industry peers.
- Looking at the Return On Equity, with a value of 15.38%, ELO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.23%, ELO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- ELO had an Average Return On Invested Capital over the past 3 years of 9.29%. This 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 of 4.49%. This is comparable to the rest of the industry: ELO outperforms 46.15% of its industry peers.
- ELO's Profit Margin has improved in the last couple of years.
- The Operating Margin of ELO (8.96%) is better than 61.54% of its industry peers.
- In the last couple of years the Operating Margin of ELO has grown nicely.
- The Gross Margin of ELO (38.38%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ELO has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ELO is still creating some value.
- Compared to 1 year ago, ELO has about the same amount of shares outstanding.
- Compared to 5 years ago, ELO has about the same amount of shares outstanding.
- The debt/assets ratio for ELO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.02 indicates that ELO is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.02, ELO belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 8.12, ELO is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- A Debt/Equity ratio of 1.17 is on the high side and indicates that ELO has dependencies on debt financing.
- ELO has a worse Debt to Equity ratio (1.17) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 3.02 |
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.
- ELO's Current ratio of 1.46 is in line compared to the rest of the industry. ELO outperforms 53.85% of its industry peers.
- 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.
- The Quick ratio of ELO (0.86) is better 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.
- The Revenue has been growing slightly by 1.09% in the past year.
- Measured over the past years, ELO shows a small growth in Revenue. The Revenue has been growing by 4.99% on average per year.
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
- Based on estimates for the next years, ELO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.76% on average per year.
- ELO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ELO is valuated rather expensively with a Price/Earnings ratio of 23.38.
- The rest of the industry has a similar Price/Earnings ratio as ELO.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ELO is valued at the same level.
- A Price/Forward Earnings ratio of 14.17 indicates a correct valuation of ELO.
- Based on the Price/Forward Earnings ratio, ELO is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
- ELO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 14.17 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ELO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ELO has an outstanding profitability rating, which may justify a higher PE ratio.
- ELO's earnings are expected to grow with 18.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)23.38
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.
- Compared to an average industry Dividend Yield of 2.85, ELO has a dividend in line with its industry peers.
- ELO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- 41.05% of the earnings are spent on dividend by ELO. 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%.