DNO ASA (DNO.OL) Stock Fundamental Analysis
OSL:DNO - Euronext Oslo - NO0003921009 - Common Stock - Currency: NOK
We assign a fundamental rating of 4 out of 10 to DNO. DNO was compared to 58 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of DNO is average, but there are quite some concerns on its profitability. DNO has a valuation in line with the averages, but it does not seem to be growing. Finally DNO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DNO has reported negative net income.
In the past year DNO had a positive cash flow from operations.
In multiple years DNO reported negative net income over the last 5 years.
Each year in the past 5 years DNO had a positive operating cash flow.
1.2 Ratios
DNO has a Return On Assets of -0.91%. This is amonst the worse of the industry: DNO underperforms 82.76% of its industry peers.
DNO has a Return On Equity of -2.50%. This is amonst the worse of the industry: DNO underperforms 82.76% of its industry peers.
DNO has a worse Return On Invested Capital (4.30%) than 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DNO is below the industry average of 15.08%.
The 3 year average ROIC (12.71%) for DNO is well above the current ROIC(4.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.5% | ||
| ROIC | 4.3% |
ROA(3y)4.51%
ROA(5y)1.98%
ROE(3y)9.03%
ROE(5y)2.66%
ROIC(3y)12.71%
ROIC(5y)N/A
1.3 Margins
DNO's Operating Margin of 21.86% is in line compared to the rest of the industry. DNO outperforms 53.45% of its industry peers.
In the last couple of years the Operating Margin of DNO has declined.
DNO has a Gross Margin (38.99%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DNO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.86% | ||
| PM (TTM) | N/A | ||
| GM | 38.99% |
OM growth 3Y-18.19%
OM growth 5Y-2.22%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.31%
GM growth 5Y-2.51%
2. Health
2.1 Basic Checks
DNO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DNO has about the same amount of shares outstanding.
Compared to 5 years ago, DNO has less shares outstanding
Compared to 1 year ago, DNO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that DNO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DNO (1.49) is worse than 63.79% of its industry peers.
DNO has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as DNO would need 3.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.77, DNO is doing good in the industry, outperforming 70.69% of the companies in the same industry.
DNO has a Debt/Equity ratio of 0.74. This is a neutral value indicating DNO is somewhat dependend on debt financing.
DNO's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. DNO is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.52
WACC8.34%
2.3 Liquidity
DNO has a Current Ratio of 3.78. This indicates that DNO is financially healthy and has no problem in meeting its short term obligations.
DNO has a better Current ratio (3.78) than 89.66% of its industry peers.
A Quick Ratio of 3.57 indicates that DNO has no problem at all paying its short term obligations.
DNO has a Quick ratio of 3.57. This is amongst the best in the industry. DNO outperforms 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.57 |
3. Growth
3.1 Past
The earnings per share for DNO have decreased strongly by -300.00% in the last year.
DNO shows a decrease in Revenue. In the last year, the revenue decreased by -0.09%.
Measured over the past years, DNO shows a decrease in Revenue. The Revenue has been decreasing by -7.25% on average per year.
EPS 1Y (TTM)-300%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2500%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y-12.76%
Revenue growth 5Y-7.25%
Sales Q2Q%-11.39%
3.2 Future
Based on estimates for the next years, DNO will show a very strong growth in Earnings Per Share. The EPS will grow by 63.12% on average per year.
DNO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.05% yearly.
EPS Next Y781.75%
EPS Next 2Y195.52%
EPS Next 3Y98.38%
EPS Next 5Y63.12%
Revenue Next Year21.64%
Revenue Next 2Y10.48%
Revenue Next 3Y6.21%
Revenue Next 5Y2.05%
3.3 Evolution
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 negative for DNO. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 8.24 indicates a reasonable valuation of DNO.
DNO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.74. DNO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
67.24% of the companies in the same industry are more expensive than DNO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DNO is valued a bit cheaper than 77.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.14 | ||
| EV/EBITDA | 2.99 |
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.
DNO's earnings are expected to grow with 98.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y195.52%
EPS Next 3Y98.38%
5. Dividend
5.1 Amount
DNO has a Yearly Dividend Yield of 9.97%, which is a nice return.
DNO's Dividend Yield is a higher than the industry average which is at 61.98.
Compared to an average S&P500 Dividend Yield of 2.43, DNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
5.2 History
The dividend of DNO is nicely growing with an annual growth rate of 18.12%!
Dividend Growth(5Y)18.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of DNO are negative and hence is the payout ratio. DNO will probably not be able to sustain this dividend level.
The dividend of DNO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-379.63%
EPS Next 2Y195.52%
EPS Next 3Y98.38%
OSL:DNO (5/6/2025, 1:51:24 PM)
11.674
+0.14 (+1.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners22.73%
Inst Owner ChangeN/A
Ins Owners13.74%
Ins Owner ChangeN/A
Market Cap11.38B
Analysts76.36
Price Target14.99 (28.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
Yearly Dividend1.09
Dividend Growth(5Y)18.12%
DP-379.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-279.16%
Min EPS beat(2)-496.04%
Max EPS beat(2)-62.28%
EPS beat(4)2
Avg EPS beat(4)-32.36%
Min EPS beat(4)-496.04%
Max EPS beat(4)232.01%
EPS beat(8)3
Avg EPS beat(8)-79.62%
EPS beat(12)4
Avg EPS beat(12)-47.8%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-8.35%
Min Revenue beat(2)-17.6%
Max Revenue beat(2)0.89%
Revenue beat(4)2
Avg Revenue beat(4)-6.54%
Min Revenue beat(4)-21.82%
Max Revenue beat(4)12.35%
Revenue beat(8)3
Avg Revenue beat(8)-8.12%
Revenue beat(12)3
Avg Revenue beat(12)-8.19%
Revenue beat(16)4
Avg Revenue beat(16)-8.52%
PT rev (1m)1.38%
PT rev (3m)5.76%
EPS NQ rev (1m)33.35%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-17.35%
EPS NY rev (3m)-11.95%
Revenue NQ rev (1m)1.62%
Revenue NQ rev (3m)8.67%
Revenue NY rev (1m)-5.65%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.24 | ||
| P/S | 1.64 | ||
| P/FCF | 5.14 | ||
| P/OCF | 2.65 | ||
| P/B | 1.01 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 2.99 |
EPS(TTM)-0.21
EYN/A
EPS(NY)1.42
Fwd EY12.14%
FCF(TTM)2.27
FCFY19.47%
OCF(TTM)4.4
OCFY37.71%
SpS7.11
BVpS11.51
TBVpS7.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.5% | ||
| ROCE | 5.58% | ||
| ROIC | 4.3% | ||
| ROICexc | 6.55% | ||
| ROICexgc | 8.12% | ||
| OM | 21.86% | ||
| PM (TTM) | N/A | ||
| GM | 38.99% | ||
| FCFM | 31.97% |
ROA(3y)4.51%
ROA(5y)1.98%
ROE(3y)9.03%
ROE(5y)2.66%
ROIC(3y)12.71%
ROIC(5y)N/A
ROICexc(3y)20.37%
ROICexc(5y)N/A
ROICexgc(3y)23.37%
ROICexgc(5y)N/A
ROCE(3y)16.51%
ROCE(5y)N/A
ROICexcg growth 3Y-26.33%
ROICexcg growth 5Y-7.85%
ROICexc growth 3Y-26.89%
ROICexc growth 5Y-4.85%
OM growth 3Y-18.19%
OM growth 5Y-2.22%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.31%
GM growth 5Y-2.51%
F-Score3
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 108.53% | ||
| Cap/Sales | 29.96% | ||
| Interest Coverage | 2.72 | ||
| Cash Conversion | 125.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.57 | ||
| Altman-Z | 1.49 |
F-Score3
WACC8.34%
ROIC/WACC0.52
Cap/Depr(3y)119.6%
Cap/Depr(5y)99.55%
Cap/Sales(3y)25.42%
Cap/Sales(5y)24.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-300%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2500%
EPS Next Y781.75%
EPS Next 2Y195.52%
EPS Next 3Y98.38%
EPS Next 5Y63.12%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y-12.76%
Revenue growth 5Y-7.25%
Sales Q2Q%-11.39%
Revenue Next Year21.64%
Revenue Next 2Y10.48%
Revenue Next 3Y6.21%
Revenue Next 5Y2.05%
EBIT growth 1Y-35.31%
EBIT growth 3Y-28.63%
EBIT growth 5Y-9.31%
EBIT Next Year225.7%
EBIT Next 3Y49.28%
EBIT Next 5Y32.76%
FCF growth 1Y599.02%
FCF growth 3Y-26.41%
FCF growth 5Y46.03%
OCF growth 1Y112.78%
OCF growth 3Y-17.25%
OCF growth 5Y2.14%