HAFNIA LTD (HAFNI.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:HAFNI - SGXZ53070850 - Common Stock
56.72 NOK
+0.06 (+0.11%)
We assign a fundamental rating of 6 out of 10 to HAFNI. HAFNI was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making HAFNI a very profitable company, without any liquidiy or solvency issues. HAFNI is cheap, but on the other hand it scores bad on growth. These ratings could make HAFNI a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- HAFNI had positive earnings in the past year.
- In the past year HAFNI had a positive cash flow from operations.
- Of the past 5 years HAFNI 4 years were profitable.
- HAFNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HAFNI (8.68%) is better than 90.14% of its industry peers.
- HAFNI's Return On Equity of 13.30% is fine compared to the rest of the industry. HAFNI outperforms 76.06% of its industry peers.
- The Return On Invested Capital of HAFNI (8.62%) is better than 80.28% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HAFNI is significantly above the industry average of 8.91%.
- The 3 year average ROIC (18.77%) for HAFNI is well above the current ROIC(8.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.68% | ||
| ROE | 13.3% | ||
| ROIC | 8.62% |
ROA(3y)20.08%
ROA(5y)12.77%
ROE(3y)35.74%
ROE(5y)23.04%
ROIC(3y)18.77%
ROIC(5y)12.65%
1.3 Margins
- With a decent Profit Margin value of 13.95%, HAFNI is doing good in the industry, outperforming 71.83% of the companies in the same industry.
- In the last couple of years the Profit Margin of HAFNI has grown nicely.
- With a Operating Margin value of 15.12%, HAFNI perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
- HAFNI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.12% | ||
| PM (TTM) | 13.95% | ||
| GM | N/A |
OM growth 3Y1312.43%
OM growth 5Y8.92%
PM growth 3YN/A
PM growth 5Y25.51%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HAFNI is creating value.
- Compared to 1 year ago, HAFNI has about the same amount of shares outstanding.
- The number of shares outstanding for HAFNI has been increased compared to 5 years ago.
- HAFNI has a better debt/assets ratio than last year.
2.2 Solvency
- HAFNI has an Altman-Z score of 2.97. This is not the best score and indicates that HAFNI is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.97, HAFNI is doing good in the industry, outperforming 70.42% of the companies in the same industry.
- HAFNI has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
- The Debt to FCF ratio of HAFNI (1.74) is better than 88.73% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that HAFNI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.29, HAFNI is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.97 |
ROIC/WACC1
WACC8.61%
2.3 Liquidity
- HAFNI has a Current Ratio of 1.52. This is a normal value and indicates that HAFNI is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of HAFNI (1.52) is better than 63.38% of its industry peers.
- A Quick Ratio of 1.38 indicates that HAFNI should not have too much problems paying its short term obligations.
- The Quick ratio of HAFNI (1.38) is better than 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- The earnings per share for HAFNI have decreased strongly by -64.12% in the last year.
- HAFNI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.51% yearly.
- The Revenue for HAFNI has decreased by -36.53% in the past year. This is quite bad
- HAFNI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.22% yearly.
EPS 1Y (TTM)-64.12%
EPS 3YN/A
EPS 5Y49.51%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-36.53%
Revenue growth 3Y52.35%
Revenue growth 5Y28.22%
Sales Q2Q%-31.68%
3.2 Future
- HAFNI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.67% yearly.
- Based on estimates for the next years, HAFNI will show a very negative growth in Revenue. The Revenue will decrease by -13.08% on average per year.
EPS Next Y-53.21%
EPS Next 2Y-30.21%
EPS Next 3Y-23.67%
EPS Next 5YN/A
Revenue Next Year-31.22%
Revenue Next 2Y-16.95%
Revenue Next 3Y-13.08%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- HAFNI is valuated reasonably with a Price/Earnings ratio of 9.48.
- Based on the Price/Earnings ratio, HAFNI is valued cheaper than 83.10% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. HAFNI is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 7.87, the valuation of HAFNI can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HAFNI is valued cheaper than 91.55% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, HAFNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAFNI is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, HAFNI is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
- HAFNI has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as HAFNI's earnings are expected to decrease with -23.67% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-30.21%
EPS Next 3Y-23.67%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.02%, HAFNI is a good candidate for dividend investing.
- HAFNI's Dividend Yield is rather good when compared to the industry average which is at 5.24. HAFNI pays more dividend than 87.32% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HAFNI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
- On average, the dividend of HAFNI grows each year by 141.09%, which is quite nice.
Dividend Growth(5Y)141.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 102.71% of the earnings are spent on dividend by HAFNI. This is not a sustainable payout ratio.
- HAFNI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP102.71%
EPS Next 2Y-30.21%
EPS Next 3Y-23.67%
HAFNIA LTD / HAFNI.OL FAQ
What is the fundamental rating for HAFNI stock?
ChartMill assigns a fundamental rating of 6 / 10 to HAFNI.OL.
What is the valuation status of HAFNIA LTD (HAFNI.OL) stock?
ChartMill assigns a valuation rating of 7 / 10 to HAFNIA LTD (HAFNI.OL). This can be considered as Undervalued.
What is the profitability of HAFNI stock?
HAFNIA LTD (HAFNI.OL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HAFNIA LTD (HAFNI.OL) stock?
The Price/Earnings (PE) ratio for HAFNIA LTD (HAFNI.OL) is 9.48 and the Price/Book (PB) ratio is 1.27.
Is the dividend of HAFNIA LTD sustainable?
The dividend rating of HAFNIA LTD (HAFNI.OL) is 6 / 10 and the dividend payout ratio is 102.71%.