SALMAR ASA (SALM.OL) Stock Fundamental Analysis
OSL:SALM - Euronext Oslo - NO0010310956 - Common Stock - Currency: NOK
SALM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 industry peers in the Food Products industry. SALM has an excellent profitability rating, but there are concerns on its financial health. SALM is not valued too expensively and it also shows a decent growth rate. Finally SALM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SALM was profitable.
In the past year SALM had a positive cash flow from operations.
In the past 5 years SALM has always been profitable.
In the past 5 years SALM always reported a positive cash flow from operatings.
1.2 Ratios
SALM's Return On Assets of 5.45% is fine compared to the rest of the industry. SALM outperforms 68.97% of its industry peers.
SALM's Return On Equity of 16.56% is amongst the best of the industry. SALM outperforms 86.21% of its industry peers.
The Return On Invested Capital of SALM (6.63%) is better than 62.07% of its industry peers.
SALM had an Average Return On Invested Capital over the past 3 years of 7.81%. This is in line with the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 16.56% | ||
| ROIC | 6.63% |
ROA(3y)5.59%
ROA(5y)7.01%
ROE(3y)16.59%
ROE(5y)17.93%
ROIC(3y)7.81%
ROIC(5y)8.18%
1.3 Margins
SALM has a Profit Margin of 11.23%. This is amongst the best in the industry. SALM outperforms 84.48% of its industry peers.
SALM's Profit Margin has declined in the last couple of years.
The Operating Margin of SALM (19.82%) is better than 91.38% of its industry peers.
SALM's Operating Margin has declined in the last couple of years.
SALM has a Gross Margin of 51.83%. This is amongst the best in the industry. SALM outperforms 82.76% of its industry peers.
In the last couple of years the Gross Margin of SALM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 11.23% | ||
| GM | 51.83% |
OM growth 3Y-4.8%
OM growth 5Y-4.4%
PM growth 3Y-13.56%
PM growth 5Y-11.19%
GM growth 3Y0.35%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
SALM 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 SALM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SALM has more shares outstanding
The debt/assets ratio for SALM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that SALM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SALM (2.37) is comparable to the rest of the industry.
The Debt to FCF ratio of SALM is 6.65, which is on the high side as it means it would take SALM, 6.65 years of fcf income to pay off all of its debts.
SALM's Debt to FCF ratio of 6.65 is in line compared to the rest of the industry. SALM outperforms 43.10% of its industry peers.
SALM has a Debt/Equity ratio of 0.93. This is a neutral value indicating SALM is somewhat dependend on debt financing.
SALM has a worse Debt to Equity ratio (0.93) than 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.87
WACC7.6%
2.3 Liquidity
SALM has a Current Ratio of 1.73. This is a normal value and indicates that SALM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.73, SALM is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that SALM may have some problems paying its short term obligations.
SALM has a Quick ratio of 0.26. This is amonst the worse of the industry: SALM underperforms 94.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for SALM have decreased by -7.90% in the last year.
Measured over the past 5 years, SALM shows a small growth in Earnings Per Share. The EPS has been growing by 0.42% on average per year.
The Revenue has decreased by -6.35% in the past year.
The Revenue has been growing by 16.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.9%
EPS 3Y-0.11%
EPS 5Y0.42%
EPS Q2Q%-24.31%
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y20.66%
Revenue growth 5Y16.65%
Sales Q2Q%-1.78%
3.2 Future
SALM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.66% yearly.
Based on estimates for the next years, SALM will show a quite strong growth in Revenue. The Revenue will grow by 11.39% on average per year.
EPS Next Y84.96%
EPS Next 2Y52.41%
EPS Next 3Y38.66%
EPS Next 5YN/A
Revenue Next Year23.03%
Revenue Next 2Y15.8%
Revenue Next 3Y13.07%
Revenue Next 5Y11.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.27, the valuation of SALM can be described as rather expensive.
Based on the Price/Earnings ratio, SALM is valued a bit more expensive than the industry average as 65.52% of the companies are valued more cheaply.
SALM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
SALM is valuated correctly with a Price/Forward Earnings ratio of 14.07.
SALM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. SALM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
SALM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SALM is more expensive than 68.97% of the companies in the same industry.
SALM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SALM is more expensive than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.36 | ||
| EV/EBITDA | 13 |
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.
SALM has a very decent profitability rating, which may justify a higher PE ratio.
SALM's earnings are expected to grow with 38.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)57.75
EPS Next 2Y52.41%
EPS Next 3Y38.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SALM is a good candidate for dividend investing.
SALM's Dividend Yield is a higher than the industry average which is at 3.35.
Compared to an average S&P500 Dividend Yield of 2.33, SALM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of SALM grows each year by 8.90%, which is quite nice.
Dividend Growth(5Y)8.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SALM pays out 157.78% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SALM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP157.78%
EPS Next 2Y52.41%
EPS Next 3Y38.66%
OSL:SALM (3/7/2025, 7:00:00 PM)
546
+9 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners75.53%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap72.49B
Analysts76.67
Price Target685.63 (25.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend35.52
Dividend Growth(5Y)8.9%
DP157.78%
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)-2.85%
Min Revenue beat(2)-4.35%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-4.35%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.49%
Revenue beat(12)6
Avg Revenue beat(12)0.56%
Revenue beat(16)9
Avg Revenue beat(16)1.49%
PT rev (1m)2.71%
PT rev (3m)3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.11%
EPS NY rev (1m)1.38%
EPS NY rev (3m)-4.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 14.07 | ||
| P/S | 2.74 | ||
| P/FCF | 25.36 | ||
| P/OCF | 13.47 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13 |
EPS(TTM)22.5
EY4.12%
EPS(NY)38.81
Fwd EY7.11%
FCF(TTM)21.53
FCFY3.94%
OCF(TTM)40.53
OCFY7.42%
SpS199.06
BVpS135.03
TBVpS-11.8
PEG (NY)0.29
PEG (5Y)57.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 16.56% | ||
| ROCE | 11.88% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 12.14% | ||
| OM | 19.82% | ||
| PM (TTM) | 11.23% | ||
| GM | 51.83% | ||
| FCFM | 10.81% |
ROA(3y)5.59%
ROA(5y)7.01%
ROE(3y)16.59%
ROE(5y)17.93%
ROIC(3y)7.81%
ROIC(5y)8.18%
ROICexc(3y)8.02%
ROICexc(5y)8.4%
ROICexgc(3y)14.26%
ROICexgc(5y)14.44%
ROCE(3y)13.99%
ROCE(5y)14.66%
ROICexcg growth 3Y-4.21%
ROICexcg growth 5Y-6.91%
ROICexc growth 3Y-7.85%
ROICexc growth 5Y-10.51%
OM growth 3Y-4.8%
OM growth 5Y-4.4%
PM growth 3Y-13.56%
PM growth 5Y-11.19%
GM growth 3Y0.35%
GM growth 5Y-0.39%
F-Score3
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 143.43% | ||
| Cap/Sales | 9.55% | ||
| Interest Coverage | 4.5 | ||
| Cash Conversion | 76.9% | ||
| Profit Quality | 96.29% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 2.37 |
F-Score3
WACC7.6%
ROIC/WACC0.87
Cap/Depr(3y)180.66%
Cap/Depr(5y)256.03%
Cap/Sales(3y)10.02%
Cap/Sales(5y)14.79%
Profit Quality(3y)125.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.9%
EPS 3Y-0.11%
EPS 5Y0.42%
EPS Q2Q%-24.31%
EPS Next Y84.96%
EPS Next 2Y52.41%
EPS Next 3Y38.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y20.66%
Revenue growth 5Y16.65%
Sales Q2Q%-1.78%
Revenue Next Year23.03%
Revenue Next 2Y15.8%
Revenue Next 3Y13.07%
Revenue Next 5Y11.39%
EBIT growth 1Y-38.68%
EBIT growth 3Y14.86%
EBIT growth 5Y11.51%
EBIT Next Year88.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-58.83%
FCF growth 3Y61.05%
FCF growth 5Y11.18%
OCF growth 1Y-42.1%
OCF growth 3Y22.76%
OCF growth 5Y12.18%