SALMAR ASA (SALM.OL) Stock Fundamental Analysis
OSL:SALM - Oslo Bors ASA - NO0010310956 - Common Stock - Currency: NOK
Taking everything into account, SALM scores 5 out of 10 in our fundamental rating. SALM was compared to 60 industry peers in the Food Products industry. SALM scores excellent on profitability, but there are concerns on its financial health. SALM has a decent growth rate and is not valued too expensively. Finally SALM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SALM had positive earnings in the past year.
SALM had a positive operating cash flow in the past year.
SALM had positive earnings in each of the past 5 years.
In the past 5 years SALM always reported a positive cash flow from operatings.
1.2 Ratios
SALM has a better Return On Assets (5.97%) than 78.95% of its industry peers.
The Return On Equity of SALM (19.19%) is better than 87.72% of its industry peers.
The Return On Invested Capital of SALM (7.13%) is better than 73.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SALM is in line with the industry average of 6.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 19.19% | ||
| ROIC | 7.13% |
ROA(3y)6.87%
ROA(5y)8.69%
ROE(3y)17.66%
ROE(5y)20.14%
ROIC(3y)8.73%
ROIC(5y)9.58%
1.3 Margins
Looking at the Profit Margin, with a value of 12.35%, SALM belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
SALM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 20.15%, SALM belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
SALM's Operating Margin has declined in the last couple of years.
The Gross Margin of SALM (52.97%) is better than 85.96% of its industry peers.
In the last couple of years the Gross Margin of SALM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.15% | ||
| PM (TTM) | 12.35% | ||
| GM | 52.97% |
OM growth 3Y10.99%
OM growth 5Y-4.43%
PM growth 3Y-9.53%
PM growth 5Y-18.45%
GM growth 3Y-0.11%
GM growth 5Y-1.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SALM is still creating some value.
SALM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SALM has been increased compared to 5 years ago.
SALM has a better debt/assets ratio than last year.
2.2 Solvency
SALM has an Altman-Z score of 2.34. 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.
Looking at the Altman-Z score, with a value of 2.34, SALM is in line with its industry, outperforming 52.63% of the companies in the same industry.
SALM has a debt to FCF ratio of 5.93. This is a neutral value as SALM would need 5.93 years to pay back of all of its debts.
SALM's Debt to FCF ratio of 5.93 is in line compared to the rest of the industry. SALM outperforms 56.14% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that SALM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, SALM is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.98
WACC7.31%
2.3 Liquidity
SALM has a Current Ratio of 1.63. This is a normal value and indicates that SALM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.63, SALM is doing good in the industry, outperforming 68.42% of the companies in the same industry.
A Quick Ratio of 0.22 indicates that SALM may have some problems paying its short term obligations.
SALM has a Quick ratio of 0.22. This is amonst the worse of the industry: SALM underperforms 96.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.90% over the past year.
The earnings per share for SALM have been decreasing by -11.98% on average. This is quite bad
Looking at the last year, SALM shows a decrease in Revenue. The Revenue has decreased by -0.13% in the last year.
SALM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.00% yearly.
EPS 1Y (TTM)48.9%
EPS 3Y-12.58%
EPS 5Y-11.98%
EPS Q2Q%-48.65%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y29.77%
Revenue growth 5Y20%
Sales Q2Q%-18.02%
3.2 Future
The Earnings Per Share is expected to grow by 54.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, SALM will show a small growth in Revenue. The Revenue will grow by 7.75% on average per year.
EPS Next Y69.68%
EPS Next 2Y73.34%
EPS Next 3Y54.56%
EPS Next 5YN/A
Revenue Next Year-9.01%
Revenue Next 2Y5.72%
Revenue Next 3Y6.18%
Revenue Next 5Y7.75%
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.
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
SALM is valuated quite expensively with a Price/Earnings ratio of 27.86.
Based on the Price/Earnings ratio, SALM is valued a bit more expensive than the industry average as 64.91% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.47, SALM is valued at the same level.
SALM is valuated correctly with a Price/Forward Earnings ratio of 15.01.
SALM's Price/Forward Earnings is on the same level as the industry average.
SALM is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.86 | ||
| Fwd PE | 15.01 |
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 70.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SALM indicates a slightly more expensive valuation: SALM is more expensive than 61.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.26 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
SALM's 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.
A more expensive valuation may be justified as SALM's earnings are expected to grow with 54.56% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y73.34%
EPS Next 3Y54.56%
5. Dividend
5.1 Amount
SALM has a Yearly Dividend Yield of 5.73%, which is a nice return.
SALM's Dividend Yield is rather good when compared to the industry average which is at 3.24. SALM pays more dividend than 96.49% of the companies in the same industry.
SALM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
The dividend of SALM has a limited annual growth rate of 1.84%.
Dividend Growth(5Y)1.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SALM pays out 83.72% 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.
DP83.72%
EPS Next 2Y73.34%
EPS Next 3Y54.56%
SALMAR ASA
OSL:SALM (2/5/2025, 3:35:03 PM)
574.5
+3.5 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.67%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap75.86B
Analysts73.68
Price Target667.54 (16.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly Dividend20.88
Dividend Growth(5Y)1.84%
DP83.72%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.32%
Min EPS beat(2)-29.25%
Max EPS beat(2)-13.4%
EPS beat(4)0
Avg EPS beat(4)-23.69%
Min EPS beat(4)-29.94%
Max EPS beat(4)-13.4%
EPS beat(8)1
Avg EPS beat(8)-32%
EPS beat(12)1
Avg EPS beat(12)-29.51%
EPS beat(16)3
Avg EPS beat(16)-25.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-4.35%
Max Revenue beat(2)-1.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-5.98%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)0.71%
Revenue beat(12)6
Avg Revenue beat(12)0.57%
Revenue beat(16)10
Avg Revenue beat(16)2.66%
PT rev (1m)0.07%
PT rev (3m)0.02%
EPS NQ rev (1m)-7.18%
EPS NQ rev (3m)-43.3%
EPS NY rev (1m)-24.24%
EPS NY rev (3m)-24.24%
Revenue NQ rev (1m)-3.62%
Revenue NQ rev (3m)-11.26%
Revenue NY rev (1m)-6.84%
Revenue NY rev (3m)-6.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.86 | ||
| Fwd PE | 15.01 | ||
| P/S | 2.85 | ||
| P/FCF | 22.26 | ||
| P/OCF | 12.48 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.56 |
EPS(TTM)20.62
EY3.59%
EPS(NY)38.28
Fwd EY6.66%
FCF(TTM)25.81
FCFY4.49%
OCF(TTM)46.03
OCFY8.01%
SpS201.23
BVpS129.49
TBVpS-18.15
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 19.19% | ||
| ROCE | 12.21% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 13.1% | ||
| OM | 20.15% | ||
| PM (TTM) | 12.35% | ||
| GM | 52.97% | ||
| FCFM | 12.83% |
ROA(3y)6.87%
ROA(5y)8.69%
ROE(3y)17.66%
ROE(5y)20.14%
ROIC(3y)8.73%
ROIC(5y)9.58%
ROICexc(3y)9.05%
ROICexc(5y)9.83%
ROICexgc(3y)15.5%
ROICexgc(5y)16.2%
ROCE(3y)14.95%
ROCE(5y)16.4%
ROICexcg growth 3Y8.23%
ROICexcg growth 5Y-7.86%
ROICexc growth 3Y5.99%
ROICexc growth 5Y-11.87%
OM growth 3Y10.99%
OM growth 5Y-4.43%
PM growth 3Y-9.53%
PM growth 5Y-18.45%
GM growth 3Y-0.11%
GM growth 5Y-1.82%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.93 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 160.78% | ||
| Cap/Sales | 10.05% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 86.65% | ||
| Profit Quality | 103.84% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 2.34 |
F-Score5
WACC7.31%
ROIC/WACC0.98
Cap/Depr(3y)224.76%
Cap/Depr(5y)264.85%
Cap/Sales(3y)11.77%
Cap/Sales(5y)15.08%
Profit Quality(3y)102.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.9%
EPS 3Y-12.58%
EPS 5Y-11.98%
EPS Q2Q%-48.65%
EPS Next Y69.68%
EPS Next 2Y73.34%
EPS Next 3Y54.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y29.77%
Revenue growth 5Y20%
Sales Q2Q%-18.02%
Revenue Next Year-9.01%
Revenue Next 2Y5.72%
Revenue Next 3Y6.18%
Revenue Next 5Y7.75%
EBIT growth 1Y-26.35%
EBIT growth 3Y44.03%
EBIT growth 5Y14.68%
EBIT Next Year-12.12%
EBIT Next 3Y12.13%
EBIT Next 5YN/A
FCF growth 1Y-28.12%
FCF growth 3YN/A
FCF growth 5Y30.48%
OCF growth 1Y28.17%
OCF growth 3Y42.99%
OCF growth 5Y27.29%