YARA INTERNATIONAL ASA (YAR.OL) Stock Fundamental Analysis
OSL:YAR - Euronext Oslo - NO0010208051 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to YAR. YAR was compared to 62 industry peers in the Chemicals industry. While YAR is still in line with the averages on profitability rating, there are concerns on its financial health. YAR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
YAR had positive earnings in the past year.
YAR had a positive operating cash flow in the past year.
YAR had positive earnings in each of the past 5 years.
In the past 5 years YAR always reported a positive cash flow from operatings.
1.2 Ratios
YAR has a Return On Assets (0.09%) which is in line with its industry peers.
YAR has a Return On Equity (0.20%) which is comparable to the rest of the industry.
YAR has a Return On Invested Capital of 5.70%. This is in the better half of the industry: YAR outperforms 70.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YAR is above the industry average of 6.15%.
The last Return On Invested Capital (5.70%) for YAR is well below the 3 year average (10.26%), which needs to be investigated, but indicates that YAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.2% | ||
| ROIC | 5.7% |
ROA(3y)5.28%
ROA(5y)4.52%
ROE(3y)11.06%
ROE(5y)9.6%
ROIC(3y)10.26%
ROIC(5y)9.83%
1.3 Margins
The Profit Margin of YAR (0.10%) is comparable to the rest of the industry.
YAR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.40%, YAR is doing good in the industry, outperforming 64.52% of the companies in the same industry.
In the last couple of years the Operating Margin of YAR has declined.
With a Gross Margin value of 26.86%, YAR perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
YAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 0.1% | ||
| GM | 26.86% |
OM growth 3Y-15.9%
OM growth 5Y-3.81%
PM growth 3Y-66.57%
PM growth 5Y-53.53%
GM growth 3Y-0.02%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), YAR is creating some value.
The number of shares outstanding for YAR remains at a similar level compared to 1 year ago.
The number of shares outstanding for YAR has been reduced compared to 5 years ago.
YAR has a worse debt/assets ratio than last year.
2.2 Solvency
YAR has an Altman-Z score of 2.61. This is not the best score and indicates that YAR 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 2.61, YAR is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
The Debt to FCF ratio of YAR is 20.13, which is on the high side as it means it would take YAR, 20.13 years of fcf income to pay off all of its debts.
YAR has a Debt to FCF ratio of 20.13. This is comparable to the rest of the industry: YAR outperforms 45.16% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that YAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, YAR is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 20.13 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.75
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.83 indicates that YAR should not have too much problems paying its short term obligations.
YAR has a Current ratio (1.83) which is in line with its industry peers.
A Quick Ratio of 0.86 indicates that YAR may have some problems paying its short term obligations.
YAR's Quick ratio of 0.86 is on the low side compared to the rest of the industry. YAR is outperformed by 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
YAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.65%, which is quite impressive.
Measured over the past years, YAR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.01% on average per year.
YAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.59%.
YAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.52% yearly.
EPS 1Y (TTM)120.65%
EPS 3Y-22.66%
EPS 5Y-11.01%
EPS Q2Q%142.86%
Revenue 1Y (TTM)-10.59%
Revenue growth 3Y-5.85%
Revenue growth 5Y1.52%
Sales Q2Q%10.55%
3.2 Future
The Earnings Per Share is expected to decrease by -3.29% on average over the next years.
Based on estimates for the next years, YAR will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y76.67%
EPS Next 2Y35.44%
EPS Next 3Y17.28%
EPS Next 5Y-3.29%
Revenue Next Year6.14%
Revenue Next 2Y2.53%
Revenue Next 3Y2.07%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.44, which indicates a correct valuation of YAR.
Based on the Price/Earnings ratio, YAR is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.87. YAR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.51 indicates a reasonable valuation of YAR.
Based on the Price/Forward Earnings ratio, YAR is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.38. YAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YAR indicates a rather cheap valuation: YAR is cheaper than 83.87% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as YAR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.29 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
YAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
YAR has a very decent profitability rating, which may justify a higher PE ratio.
YAR's earnings are expected to grow with 17.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y35.44%
EPS Next 3Y17.28%
5. Dividend
5.1 Amount
YAR has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
YAR's Dividend Yield is comparable with the industry average which is at 3.07.
YAR's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of YAR decreases each year by -8.80%.
Dividend Growth(5Y)-8.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
857.14% of the earnings are spent on dividend by YAR. This is not a sustainable payout ratio.
The Dividend Rate of YAR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP857.14%
EPS Next 2Y35.44%
EPS Next 3Y17.28%
OSL:YAR (4/29/2025, 11:06:03 AM)
348.5
+1.5 (+0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners42.95%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap88.77B
Analysts66.15
Price Target353.56 (1.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend4.91
Dividend Growth(5Y)-8.8%
DP857.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.47%
Min EPS beat(2)-47.21%
Max EPS beat(2)50.14%
EPS beat(4)2
Avg EPS beat(4)-8.15%
Min EPS beat(4)-72.31%
Max EPS beat(4)50.14%
EPS beat(8)3
Avg EPS beat(8)26.57%
EPS beat(12)6
Avg EPS beat(12)21.17%
EPS beat(16)6
Avg EPS beat(16)8.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-3.33%
Revenue beat(4)0
Avg Revenue beat(4)-5.8%
Min Revenue beat(4)-11.67%
Max Revenue beat(4)-3.33%
Revenue beat(8)0
Avg Revenue beat(8)-9.53%
Revenue beat(12)1
Avg Revenue beat(12)-5.47%
Revenue beat(16)3
Avg Revenue beat(16)-3.98%
PT rev (1m)-0.18%
PT rev (3m)-2.05%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)0.56%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)5.19%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.61 | ||
| P/FCF | 42.29 | ||
| P/OCF | 6.61 | ||
| P/B | 1.22 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)21.2
EY6.08%
EPS(NY)33.14
Fwd EY9.51%
FCF(TTM)8.24
FCFY2.36%
OCF(TTM)52.72
OCFY15.13%
SpS567.82
BVpS286.45
TBVpS252.22
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.2% | ||
| ROCE | 7.47% | ||
| ROIC | 5.7% | ||
| ROICexc | 5.85% | ||
| ROICexgc | 6.3% | ||
| OM | 6.4% | ||
| PM (TTM) | 0.1% | ||
| GM | 26.86% | ||
| FCFM | 1.45% |
ROA(3y)5.28%
ROA(5y)4.52%
ROE(3y)11.06%
ROE(5y)9.6%
ROIC(3y)10.26%
ROIC(5y)9.83%
ROICexc(3y)11.17%
ROICexc(5y)10.65%
ROICexgc(3y)12.02%
ROICexgc(5y)11.5%
ROCE(3y)13.48%
ROCE(5y)12.99%
ROICexcg growth 3Y-20.87%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y-20.66%
ROICexc growth 5Y0.45%
OM growth 3Y-15.9%
OM growth 5Y-3.81%
PM growth 3Y-66.57%
PM growth 5Y-53.53%
GM growth 3Y-0.02%
GM growth 5Y-0.33%
F-Score5
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 20.13 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 103.63% | ||
| Cap/Sales | 7.83% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 66.49% | ||
| Profit Quality | 1435.71% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.61 |
F-Score5
WACC7.59%
ROIC/WACC0.75
Cap/Depr(3y)107.36%
Cap/Depr(5y)98.34%
Cap/Sales(3y)6.55%
Cap/Sales(5y)6.27%
Profit Quality(3y)1242.99%
Profit Quality(5y)807.54%
High Growth Momentum
Growth
EPS 1Y (TTM)120.65%
EPS 3Y-22.66%
EPS 5Y-11.01%
EPS Q2Q%142.86%
EPS Next Y76.67%
EPS Next 2Y35.44%
EPS Next 3Y17.28%
EPS Next 5Y-3.29%
Revenue 1Y (TTM)-10.59%
Revenue growth 3Y-5.85%
Revenue growth 5Y1.52%
Sales Q2Q%10.55%
Revenue Next Year6.14%
Revenue Next 2Y2.53%
Revenue Next 3Y2.07%
Revenue Next 5Y2.13%
EBIT growth 1Y71.24%
EBIT growth 3Y-20.82%
EBIT growth 5Y-2.34%
EBIT Next Year147.18%
EBIT Next 3Y34.23%
EBIT Next 5Y15.04%
FCF growth 1Y-81.32%
FCF growth 3Y-28.42%
FCF growth 5Y-24.89%
OCF growth 1Y-43.79%
OCF growth 3Y-2.93%
OCF growth 5Y-7.58%