YARA INTERNATIONAL ASA (YAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:YAR - NO0010208051 - Common Stock
440 NOK
+3.4 (+0.78%)
YAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Chemicals industry. Both the profitability and the financial health of YAR get a neutral evaluation. Nothing too spectacular is happening here. YAR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year YAR was profitable.
- In the past year YAR had a positive cash flow from operations.
- YAR had positive earnings in each of the past 5 years.
- YAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.33%, YAR is doing good in the industry, outperforming 64.79% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.75%, YAR is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
- The Return On Invested Capital of YAR (8.49%) is better than 70.42% of its industry peers.
- YAR had an Average Return On Invested Capital over the past 3 years of 10.26%. This is above the industry average of 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 8.75% | ||
| ROIC | 8.49% |
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
- YAR has a Profit Margin of 4.88%. This is in the better half of the industry: YAR outperforms 61.97% of its industry peers.
- YAR's Profit Margin has declined in the last couple of years.
- YAR has a Operating Margin of 9.59%. This is in the better half of the industry: YAR outperforms 64.79% of its industry peers.
- YAR's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 28.01%, YAR is doing worse than 61.97% 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 | 9.59% | ||
| PM (TTM) | 4.88% | ||
| GM | 28.01% |
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.
- YAR has about the same amout of shares outstanding than it did 1 year ago.
- YAR has less shares outstanding than it did 5 years ago.
- YAR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.87 indicates that YAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of YAR (2.87) is better than 60.56% of its industry peers.
- The Debt to FCF ratio of YAR is 6.26, which is on the high side as it means it would take YAR, 6.26 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of YAR (6.26) is better than 66.20% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that YAR is not too dependend on debt financing.
- YAR has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.01
WACC8.43%
2.3 Liquidity
- YAR has a Current Ratio of 1.73. This is a normal value and indicates that YAR is financially healthy and should not expect problems in meeting its short term obligations.
- YAR has a Current ratio (1.73) which is in line with its industry peers.
- YAR has a Quick Ratio of 1.73. This is a bad value and indicates that YAR is not financially healthy enough and could expect problems in meeting its short term obligations.
- YAR has a Quick ratio of 0.86. This is in the lower half of the industry: YAR underperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| 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 60.44%, which is quite impressive.
- YAR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.01% yearly.
- YAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
- The Revenue has been growing slightly by 1.52% on average over the past years.
EPS 1Y (TTM)60.44%
EPS 3Y-22.66%
EPS 5Y-11.01%
EPS Q2Q%82.19%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y-5.85%
Revenue growth 5Y1.52%
Sales Q2Q%12.42%
3.2 Future
- Based on estimates for the next years, YAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
- Based on estimates for the next years, YAR will show a small growth in Revenue. The Revenue will grow by 0.93% on average per year.
EPS Next Y148.34%
EPS Next 2Y53.85%
EPS Next 3Y29.63%
EPS Next 5Y8.11%
Revenue Next Year11%
Revenue Next 2Y4.2%
Revenue Next 3Y3.03%
Revenue Next 5Y0.93%
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
- Based on the Price/Earnings ratio of 12.57, the valuation of YAR can be described as correct.
- 87.32% of the companies in the same industry are more expensive than YAR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. YAR is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.08 indicates a reasonable valuation of YAR.
- Based on the Price/Forward Earnings ratio, YAR is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of YAR to the average of the S&P500 Index (25.83), we can say YAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 11.08 |
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 85.92% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, YAR is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 5.82 |
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.
- The decent profitability rating of YAR may justify a higher PE ratio.
- A more expensive valuation may be justified as YAR's earnings are expected to grow with 29.63% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y53.85%
EPS Next 3Y29.63%
5. Dividend
5.1 Amount
- YAR has a Yearly Dividend Yield of 1.25%.
- Compared to an average industry Dividend Yield of 2.45, YAR has a dividend in line with its industry peers.
- YAR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
- YAR pays out 17.28% of its income as dividend. This is a sustainable payout ratio.
DP17.28%
EPS Next 2Y53.85%
EPS Next 3Y29.63%
YARA INTERNATIONAL ASA / YAR.OL FAQ
Can you provide the ChartMill fundamental rating for YARA INTERNATIONAL ASA?
ChartMill assigns a fundamental rating of 5 / 10 to YAR.OL.
Can you provide the valuation status for YARA INTERNATIONAL ASA?
ChartMill assigns a valuation rating of 9 / 10 to YARA INTERNATIONAL ASA (YAR.OL). This can be considered as Undervalued.
Can you provide the profitability details for YARA INTERNATIONAL ASA?
YARA INTERNATIONAL ASA (YAR.OL) has a profitability rating of 6 / 10.
How financially healthy is YARA INTERNATIONAL ASA?
The financial health rating of YARA INTERNATIONAL ASA (YAR.OL) is 4 / 10.
Is the dividend of YARA INTERNATIONAL ASA sustainable?
The dividend rating of YARA INTERNATIONAL ASA (YAR.OL) is 3 / 10 and the dividend payout ratio is 17.28%.