YARA INTERNATIONAL ASA (YAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:YAR - NO0010208051 - Common Stock
443.9 NOK
+3.9 (+0.89%)
Taking everything into account, YAR scores 5 out of 10 in our fundamental rating. YAR was compared to 71 industry peers in the Chemicals industry. YAR has an average financial health and profitability rating. YAR may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years YAR has always been profitable.
- In the past 5 years YAR always reported a positive cash flow from operatings.
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.
- YAR has a Return On Equity of 8.75%. This is in the better half of the industry: YAR outperforms 64.79% of its industry peers.
- YAR has a Return On Invested Capital of 8.49%. This is in the better half of the industry: YAR outperforms 70.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for YAR 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
- Looking at the Profit Margin, with a value of 4.88%, YAR is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
- In the last couple of years the Profit Margin of YAR has declined.
- Looking at the Operating Margin, with a value of 9.59%, YAR is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of YAR has declined.
- YAR's Gross Margin of 28.01% is on the low side compared to the rest of the industry. YAR is outperformed by 61.97% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so YAR is still creating some value.
- The number of shares outstanding for YAR remains at a similar level compared to 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
- YAR has an Altman-Z score of 2.86. 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.
- With a decent Altman-Z score value of 2.86, YAR is doing good in the industry, outperforming 60.56% of the companies in the same industry.
- YAR has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as YAR would need 6.26 years to pay back of 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.
- With a Debt to Equity ratio value of 0.42, YAR perfoms like the industry average, outperforming 54.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.01
WACC8.43%
2.3 Liquidity
- A Current Ratio of 1.73 indicates that YAR should not have too much problems paying its short term obligations.
- YAR has a Current ratio (1.73) which is comparable to the rest of the industry.
- 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 worse Quick ratio (0.86) than 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.
- 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 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
- YAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.11% yearly.
- YAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.93% yearly.
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 12.51, the valuation of YAR can be described as correct.
- YAR's Price/Earnings ratio is rather cheap when compared to the industry. YAR is cheaper than 87.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of YAR to the average of the S&P500 Index (27.25), we can say YAR is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.03, the valuation of YAR can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, YAR is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of YAR to the average of the S&P500 Index (25.98), we can say YAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
- 87.32% of the companies in the same industry are more expensive than YAR, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of YAR indicates a rather cheap valuation: YAR is cheaper than 83.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 5.79 |
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 29.63% in the coming years. This may justify a more expensive valuation.
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%.
- YAR's Dividend Yield is comparable with the industry average which is at 2.45.
- 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%.