SALMAR ASA (SALM.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:SALM - NO0010310956 - Common Stock
573 NOK
+18.5 (+3.34%)
Overall SALM gets a fundamental rating of 4 out of 10. We evaluated SALM against 62 industry peers in the Food Products industry. There are concerns on the financial health of SALM while its profitability can be described as average. SALM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SALM was profitable.
- SALM had a positive operating cash flow in the past year.
- SALM had positive earnings in each of the past 5 years.
- Each year in the past 5 years SALM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.04%, SALM is in line with its industry, outperforming 41.94% of the companies in the same industry.
- The Return On Equity of SALM (7.00%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 2.74%, SALM is doing worse than 67.74% of the companies in the same industry.
- SALM had an Average Return On Invested Capital over the past 3 years of 7.18%. This is in line with the industry average of 7.38%.
- The last Return On Invested Capital (2.74%) for SALM is well below the 3 year average (7.18%), which needs to be investigated, but indicates that SALM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 7% | ||
| ROIC | 2.74% |
ROA(3y)5.59%
ROA(5y)7.01%
ROE(3y)16.59%
ROE(5y)17.93%
ROIC(3y)7.18%
ROIC(5y)7.81%
1.3 Margins
- Looking at the Profit Margin, with a value of 4.36%, SALM is in line with its industry, outperforming 58.06% of the companies in the same industry.
- In the last couple of years the Profit Margin of SALM has declined.
- SALM has a better Operating Margin (8.93%) than 62.90% of its industry peers.
- In the last couple of years the Operating Margin of SALM has declined.
- Looking at the Gross Margin, with a value of 46.22%, SALM is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
- 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 | 8.93% | ||
| PM (TTM) | 4.36% | ||
| GM | 46.22% |
OM growth 3Y-4%
OM growth 5Y-3.92%
PM growth 3Y-13.56%
PM growth 5Y-11.19%
GM growth 3Y0.57%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
- SALM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SALM has about the same amout of shares outstanding than it did 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
- SALM has an Altman-Z score of 2.04. This is not the best score and indicates that SALM is in the grey zone with still only limited risk for bankruptcy at the moment.
- SALM has a Altman-Z score (2.04) which is in line with its industry peers.
- The Debt to FCF ratio of SALM is 25.07, which is on the high side as it means it would take SALM, 25.07 years of fcf income to pay off all of its debts.
- SALM has a Debt to FCF ratio of 25.07. This is in the lower half of the industry: SALM underperforms 61.29% of its industry peers.
- SALM has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.31, SALM is doing worse than 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 25.07 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.36
WACC7.66%
2.3 Liquidity
- A Current Ratio of 2.18 indicates that SALM has no problem at all paying its short term obligations.
- SALM's Current ratio of 2.18 is amongst the best of the industry. SALM outperforms 83.87% of its industry peers.
- A Quick Ratio of 0.37 indicates that SALM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.37, SALM is doing worse than 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- The earnings per share for SALM have decreased strongly by -37.35% in the last year.
- Measured over the past years, SALM shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.01% on average per year.
- Looking at the last year, SALM shows a small growth in Revenue. The Revenue has grown by 1.97% in the last year.
- SALM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.65% yearly.
EPS 1Y (TTM)-37.35%
EPS 3Y7.44%
EPS 5Y-0.01%
EPS Q2Q%-53.41%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y20.66%
Revenue growth 5Y16.65%
Sales Q2Q%27.48%
3.2 Future
- Based on estimates for the next years, SALM will show a very strong growth in Earnings Per Share. The EPS will grow by 25.69% on average per year.
- Based on estimates for the next years, SALM will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y-39.19%
EPS Next 2Y28.52%
EPS Next 3Y25.69%
EPS Next 5YN/A
Revenue Next Year6.16%
Revenue Next 2Y11.84%
Revenue Next 3Y11.53%
Revenue Next 5Y9.49%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 44.35, SALM can be considered very expensive at the moment.
- SALM's Price/Earnings ratio is a bit more expensive when compared to the industry. SALM is more expensive than 66.13% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SALM to the average of the S&P500 Index (28.60), we can say SALM is valued expensively.
- SALM is valuated correctly with a Price/Forward Earnings ratio of 15.55.
- SALM's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SALM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.35 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SALM is valued a bit more expensive than the industry average as 74.19% of the companies are valued more cheaply.
- SALM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.81 | ||
| EV/EBITDA | 22.68 |
4.3 Compensation for Growth
- SALM's earnings are expected to grow with 25.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.52%
EPS Next 3Y25.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.97%, SALM has a reasonable but not impressive dividend return.
- SALM's Dividend Yield is a higher than the industry average which is at 2.38.
- SALM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
- The dividend of SALM is nicely growing with an annual growth rate of 8.89%!
Dividend Growth(5Y)8.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 429.58% of the earnings are spent on dividend by SALM. This is not a sustainable payout ratio.
- The dividend of SALM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP429.58%
EPS Next 2Y28.52%
EPS Next 3Y25.69%
SALMAR ASA / SALM.OL FAQ
Can you provide the ChartMill fundamental rating for SALMAR ASA?
ChartMill assigns a fundamental rating of 4 / 10 to SALM.OL.
Can you provide the valuation status for SALMAR ASA?
ChartMill assigns a valuation rating of 2 / 10 to SALMAR ASA (SALM.OL). This can be considered as Overvalued.
Can you provide the profitability details for SALMAR ASA?
SALMAR ASA (SALM.OL) has a profitability rating of 5 / 10.
What is the earnings growth outlook for SALMAR ASA?
The Earnings per Share (EPS) of SALMAR ASA (SALM.OL) is expected to decline by -39.19% in the next year.
How sustainable is the dividend of SALMAR ASA (SALM.OL) stock?
The dividend rating of SALMAR ASA (SALM.OL) is 6 / 10 and the dividend payout ratio is 429.58%.