YARA INTERNATIONAL ASA (YAR.OL) Stock Fundamental Analysis
OSL:YAR - Euronext Oslo - NO0010208051 - Common Stock - Currency: NOK
Taking everything into account, YAR scores 4 out of 10 in our fundamental rating. YAR was compared to 61 industry peers in the Chemicals industry. YAR has a medium profitability rating, but doesn't score so well on its financial health evaluation. YAR is cheap, but on the other hand it scores bad 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.
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 comparable to the rest of the industry.
YAR has a Return On Equity (0.20%) which is comparable to the rest of the industry.
The Return On Invested Capital of YAR (5.03%) is better than 68.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YAR is above the industry average of 6.72%.
The 3 year average ROIC (9.78%) for YAR is well above the current ROIC(5.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.2% | ||
| ROIC | 5.03% |
ROA(3y)5.28%
ROA(5y)4.52%
ROE(3y)11.06%
ROE(5y)9.6%
ROIC(3y)9.78%
ROIC(5y)9.54%
1.3 Margins
YAR has a Profit Margin of 0.10%. This is comparable to the rest of the industry: YAR outperforms 47.62% of its industry peers.
YAR's Profit Margin has declined in the last couple of years.
YAR's Operating Margin of 5.65% is fine compared to the rest of the industry. YAR outperforms 63.49% of its industry peers.
In the last couple of years the Operating Margin of YAR has declined.
YAR has a Gross Margin (26.86%) which is in line with its industry peers.
YAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | 0.1% | ||
| GM | 26.86% |
OM growth 3Y-19.25%
OM growth 5Y-6.13%
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.
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.
The debt/assets ratio for YAR is higher compared to a year ago.
2.2 Solvency
YAR has an Altman-Z score of 2.54. 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 2.54, YAR is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
YAR has a debt to FCF ratio of 20.13. This is a negative value and a sign of low solvency as YAR would need 20.13 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.13, YAR perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
YAR has a Debt/Equity ratio of 0.55. This is a neutral value indicating YAR is somewhat dependend on debt financing.
YAR has a Debt to Equity ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 20.13 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.67
WACC7.51%
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 of 1.83. This is comparable to the rest of the industry: YAR outperforms 53.97% of its industry peers.
A Quick Ratio of 0.86 indicates that YAR may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, YAR is not doing good in the industry: 69.84% of the companies in the same industry are doing better.
| 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 39.64%, 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 -12.94% on average per year.
The Revenue for YAR has decreased by -10.25% in the past year. This is quite bad
Measured over the past years, YAR shows a small growth in Revenue. The Revenue has been growing by 1.52% on average per year.
EPS 1Y (TTM)39.64%
EPS 3Y-25.44%
EPS 5Y-12.94%
EPS Q2Q%-79.55%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-5.85%
Revenue growth 5Y1.52%
Sales Q2Q%-2.45%
3.2 Future
The Earnings Per Share is expected to decrease by -36.37% on average over the next years. This is quite bad
Based on estimates for the next years, YAR will show a small growth in Revenue. The Revenue will grow by 1.28% on average per year.
EPS Next Y87.94%
EPS Next 2Y36.76%
EPS Next 3Y21.73%
EPS Next 5Y-36.37%
Revenue Next Year9.03%
Revenue Next 2Y2.32%
Revenue Next 3Y1.8%
Revenue Next 5Y1.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.78, the valuation of YAR can be described as rather expensive.
Based on the Price/Earnings ratio, YAR is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
YAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of YAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YAR indicates a rather cheap valuation: YAR is cheaper than 90.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of YAR to the average of the S&P500 Index (22.10), we can say YAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
82.54% of the companies in the same industry are more expensive than YAR, based on the Enterprise Value to EBITDA ratio.
YAR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.86 | ||
| EV/EBITDA | 6.24 |
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.
The decent profitability rating of YAR may justify a higher PE ratio.
YAR's earnings are expected to grow with 21.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y36.76%
EPS Next 3Y21.73%
5. Dividend
5.1 Amount
YAR has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
YAR's Dividend Yield is comparable with the industry average which is at 2.89.
Compared to the average S&P500 Dividend Yield of 2.33, YAR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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 2Y36.76%
EPS Next 3Y21.73%
OSL:YAR (3/7/2025, 7:00:00 PM)
332.1
+0.7 (+0.21%)
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 Cap84.60B
Analysts66.15
Price Target354.21 (6.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend5.1
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)-12.27%
Min EPS beat(2)-74.68%
Max EPS beat(2)50.14%
EPS beat(4)2
Avg EPS beat(4)-15.02%
Min EPS beat(4)-74.68%
Max EPS beat(4)50.14%
EPS beat(8)3
Avg EPS beat(8)23.14%
EPS beat(12)6
Avg EPS beat(12)18.88%
EPS beat(16)6
Avg EPS beat(16)6.62%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.68%
Min Revenue beat(4)-11.67%
Max Revenue beat(4)-2.87%
Revenue beat(8)0
Avg Revenue beat(8)-9.47%
Revenue beat(12)1
Avg Revenue beat(12)-5.43%
Revenue beat(16)3
Avg Revenue beat(16)-3.95%
PT rev (1m)-1.11%
PT rev (3m)-1.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.46%
EPS NY rev (1m)11.31%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)4.28%
Revenue NY rev (3m)6.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 10.53 | ||
| P/S | 0.56 | ||
| P/FCF | 38.86 | ||
| P/OCF | 6.07 | ||
| P/B | 1.12 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)16.79
EY5.06%
EPS(NY)31.55
Fwd EY9.5%
FCF(TTM)8.55
FCFY2.57%
OCF(TTM)54.68
OCFY16.46%
SpS588.88
BVpS297.08
TBVpS261.58
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.2% | ||
| ROCE | 6.59% | ||
| ROIC | 5.03% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 5.56% | ||
| OM | 5.65% | ||
| 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)9.78%
ROIC(5y)9.54%
ROICexc(3y)10.62%
ROICexc(5y)10.32%
ROICexgc(3y)11.42%
ROICexgc(5y)11.14%
ROCE(3y)12.85%
ROCE(5y)12.61%
ROICexcg growth 3Y-24.71%
ROICexcg growth 5Y-2.62%
ROICexc growth 3Y-24.47%
ROICexc growth 5Y-2.47%
OM growth 3Y-19.25%
OM growth 5Y-6.13%
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 | 2.11 | ||
| Cap/Depr | 103.63% | ||
| Cap/Sales | 7.83% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 70.27% | ||
| Profit Quality | 1435.71% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.54 |
F-Score5
WACC7.51%
ROIC/WACC0.67
Cap/Depr(3y)107.36%
Cap/Depr(5y)98.34%
Cap/Sales(3y)6.56%
Cap/Sales(5y)6.27%
Profit Quality(3y)1242.99%
Profit Quality(5y)807.54%
High Growth Momentum
Growth
EPS 1Y (TTM)39.64%
EPS 3Y-25.44%
EPS 5Y-12.94%
EPS Q2Q%-79.55%
EPS Next Y87.94%
EPS Next 2Y36.76%
EPS Next 3Y21.73%
EPS Next 5Y-36.37%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-5.85%
Revenue growth 5Y1.52%
Sales Q2Q%-2.45%
Revenue Next Year9.03%
Revenue Next 2Y2.32%
Revenue Next 3Y1.8%
Revenue Next 5Y1.28%
EBIT growth 1Y51.16%
EBIT growth 3Y-23.98%
EBIT growth 5Y-4.7%
EBIT Next Year125.33%
EBIT Next 3Y24.2%
EBIT Next 5Y8.88%
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%