BORREGAARD ASA (BRG.OL) Stock Fundamental Analysis
OSL:BRG - Euronext Oslo - NO0010657505 - Common Stock - Currency: NOK
We assign a fundamental rating of 6 out of 10 to BRG. BRG was compared to 61 industry peers in the Chemicals industry. While BRG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BRG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRG was profitable.
In the past year BRG had a positive cash flow from operations.
BRG had positive earnings in each of the past 5 years.
In the past 5 years BRG always reported a positive cash flow from operatings.
1.2 Ratios
BRG has a better Return On Assets (8.59%) than 90.16% of its industry peers.
BRG's Return On Equity of 16.33% is amongst the best of the industry. BRG outperforms 86.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.72%, BRG belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
BRG had an Average Return On Invested Capital over the past 3 years of 13.82%. This is significantly above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 16.33% | ||
| ROIC | 12.72% |
ROA(3y)9.71%
ROA(5y)9%
ROE(3y)18.18%
ROE(5y)16.56%
ROIC(3y)13.82%
ROIC(5y)12.69%
1.3 Margins
Looking at the Profit Margin, with a value of 10.80%, BRG belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
BRG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.84%, BRG belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
In the last couple of years the Operating Margin of BRG has grown nicely.
BRG has a Gross Margin of 55.73%. This is amongst the best in the industry. BRG outperforms 83.61% of its industry peers.
BRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 10.8% | ||
| GM | 55.73% |
OM growth 3Y1.68%
OM growth 5Y9.36%
PM growth 3Y-3.22%
PM growth 5Y5.58%
GM growth 3Y1.15%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRG is creating some value.
Compared to 1 year ago, BRG has about the same amount of shares outstanding.
The number of shares outstanding for BRG remains at a similar level compared to 5 years ago.
Compared to 1 year ago, BRG has an improved debt to assets ratio.
2.2 Solvency
BRG has an Altman-Z score of 4.24. This indicates that BRG is financially healthy and has little risk of bankruptcy at the moment.
BRG has a Altman-Z score of 4.24. This is amongst the best in the industry. BRG outperforms 90.16% of its industry peers.
The Debt to FCF ratio of BRG is 6.51, which is on the high side as it means it would take BRG, 6.51 years of fcf income to pay off all of its debts.
BRG's Debt to FCF ratio of 6.51 is fine compared to the rest of the industry. BRG outperforms 63.93% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that BRG is not too dependend on debt financing.
BRG has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.57
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.62 indicates that BRG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, BRG is in line with its industry, outperforming 49.18% of the companies in the same industry.
BRG has a Quick Ratio of 1.62. This is a bad value and indicates that BRG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BRG (0.81) is worse than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
BRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.29%.
BRG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.62% yearly.
The Revenue has been growing slightly by 6.80% in the past year.
Measured over the past years, BRG shows a quite strong growth in Revenue. The Revenue has been growing by 8.51% on average per year.
EPS 1Y (TTM)-5.29%
EPS 3Y5.89%
EPS 5Y14.62%
EPS Q2Q%9.24%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y9.48%
Revenue growth 5Y8.51%
Sales Q2Q%8.66%
3.2 Future
Based on estimates for the next years, BRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.08% on average per year.
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y17.7%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
EPS Next 5YN/A
Revenue Next Year4.72%
Revenue Next 2Y5.03%
Revenue Next 3Y5.68%
Revenue Next 5Y6.72%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.33, the valuation of BRG can be described as rather expensive.
Based on the Price/Earnings ratio, BRG is valued a bit cheaper than 62.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, BRG is valued at the same level.
The Price/Forward Earnings ratio is 18.97, which indicates a rather expensive current valuation of BRG.
The rest of the industry has a similar Price/Forward Earnings ratio as BRG.
The average S&P500 Price/Forward Earnings ratio is at 20.42. BRG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.54 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
BRG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BRG may justify a higher PE ratio.
BRG's earnings are expected to grow with 15.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.53
EPS Next 2Y17.24%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, BRG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.10, BRG has a dividend in line with its industry peers.
BRG's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of BRG is nicely growing with an annual growth rate of 10.80%!
Dividend Growth(5Y)10.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.44% of the earnings are spent on dividend by BRG. This is a bit on the high side, but may be sustainable.
BRG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.44%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
OSL:BRG (5/6/2025, 7:00:00 PM)
184
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners58.78%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap18.40B
Analysts81.82
Price Target218.79 (18.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend3.76
Dividend Growth(5Y)10.8%
DP45.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.79%
Min EPS beat(2)-10.93%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-5.31%
Min EPS beat(4)-10.93%
Max EPS beat(4)1.34%
EPS beat(8)5
Avg EPS beat(8)0.39%
EPS beat(12)9
Avg EPS beat(12)4.94%
EPS beat(16)12
Avg EPS beat(16)6.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-6.3%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)8
Avg Revenue beat(16)1.07%
PT rev (1m)-11%
PT rev (3m)-7.14%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)-15.94%
EPS NY rev (1m)-3.25%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 18.97 | ||
| P/S | 2.42 | ||
| P/FCF | 51.54 | ||
| P/OCF | 17.23 | ||
| P/B | 3.65 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)8.24
EY4.48%
EPS(NY)9.7
Fwd EY5.27%
FCF(TTM)3.57
FCFY1.94%
OCF(TTM)10.68
OCFY5.8%
SpS76.17
BVpS50.41
TBVpS49.53
PEG (NY)1.26
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 16.33% | ||
| ROCE | 16.63% | ||
| ROIC | 12.72% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 13.01% | ||
| OM | 16.84% | ||
| PM (TTM) | 10.8% | ||
| GM | 55.73% | ||
| FCFM | 4.69% |
ROA(3y)9.71%
ROA(5y)9%
ROE(3y)18.18%
ROE(5y)16.56%
ROIC(3y)13.82%
ROIC(5y)12.69%
ROICexc(3y)14.38%
ROICexc(5y)13.15%
ROICexgc(3y)14.56%
ROICexgc(5y)13.34%
ROCE(3y)18.07%
ROCE(5y)16.59%
ROICexcg growth 3Y1.2%
ROICexcg growth 5Y9.02%
ROICexc growth 3Y1.34%
ROICexc growth 5Y9.17%
OM growth 3Y1.68%
OM growth 5Y9.36%
PM growth 3Y-3.22%
PM growth 5Y5.58%
GM growth 3Y1.15%
GM growth 5Y0.7%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 126.74% | ||
| Cap/Sales | 9.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.92% | ||
| Profit Quality | 43.38% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.24 |
F-Score7
WACC8.12%
ROIC/WACC1.57
Cap/Depr(3y)122.07%
Cap/Depr(5y)122.12%
Cap/Sales(3y)8.48%
Cap/Sales(5y)8.89%
Profit Quality(3y)58.92%
Profit Quality(5y)78.21%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.29%
EPS 3Y5.89%
EPS 5Y14.62%
EPS Q2Q%9.24%
EPS Next Y17.7%
EPS Next 2Y17.24%
EPS Next 3Y15.08%
EPS Next 5YN/A
Revenue 1Y (TTM)6.8%
Revenue growth 3Y9.48%
Revenue growth 5Y8.51%
Sales Q2Q%8.66%
Revenue Next Year4.72%
Revenue Next 2Y5.03%
Revenue Next 3Y5.68%
Revenue Next 5Y6.72%
EBIT growth 1Y-0.62%
EBIT growth 3Y11.31%
EBIT growth 5Y18.67%
EBIT Next Year57.19%
EBIT Next 3Y22.12%
EBIT Next 5YN/A
FCF growth 1Y-60.16%
FCF growth 3Y-25.83%
FCF growth 5Y25.65%
OCF growth 1Y-31.67%
OCF growth 3Y-9.29%
OCF growth 5Y8.91%