DNO ASA (DNO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:DNO - NO0003921009 - Common Stock
15.62 NOK
-0.35 (-2.19%)
DNO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 71 industry peers in the Oil, Gas & Consumable Fuels industry. DNO may be in some trouble as it scores bad on both profitability and health. DNO has a correct valuation and a medium growth rate. 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.
- DNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.65%, DNO is not doing good in the industry: 81.69% of the companies in the same industry are doing better.
- DNO's Return On Equity of -7.09% is on the low side compared to the rest of the industry. DNO is outperformed by 85.92% of its industry peers.
- DNO has a Return On Invested Capital (5.87%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for DNO is above the industry average of 8.91%.
- The last Return On Invested Capital (5.87%) for DNO is well below the 3 year average (12.71%), which needs to be investigated, but indicates that DNO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.65% | ||
| ROE | -7.09% | ||
| ROIC | 5.87% |
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
- With a decent Operating Margin value of 30.52%, DNO is doing good in the industry, outperforming 78.87% of the companies in the same industry.
- DNO's Operating Margin has declined in the last couple of years.
- DNO has a Gross Margin (40.30%) 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 | 30.52% | ||
| PM (TTM) | N/A | ||
| GM | 40.3% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DNO is still creating some value.
- DNO has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for DNO has been reduced compared to 5 years ago.
- Compared to 1 year ago, DNO has a worse debt to assets ratio.
2.2 Solvency
- DNO has an Altman-Z score of 0.73. This is a bad value and indicates that DNO is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DNO (0.73) is worse than 80.28% of its industry peers.
- The Debt to FCF ratio of DNO is 13.49, which is on the high side as it means it would take DNO, 13.49 years of fcf income to pay off all of its debts.
- DNO has a worse Debt to FCF ratio (13.49) than 61.97% of its industry peers.
- DNO has a Debt/Equity ratio of 0.71. This is a neutral value indicating DNO is somewhat dependend on debt financing.
- DNO has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: DNO underperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.69
WACC8.46%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that DNO may have some problems paying its short term obligations.
- DNO's Current ratio of 0.95 is on the low side compared to the rest of the industry. DNO is outperformed by 74.65% of its industry peers.
- DNO has a Quick Ratio of 0.95. This is a bad value and indicates that DNO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, DNO is in line with its industry, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- DNO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -300.00%.
- The Revenue has grown by 69.56% in the past year. This is a very strong growth!
- DNO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.25% yearly.
EPS 1Y (TTM)-300%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)69.56%
Revenue growth 3Y-12.76%
Revenue growth 5Y-7.25%
Sales Q2Q%220.7%
3.2 Future
- The Earnings Per Share is expected to grow by 63.12% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y495.57%
EPS Next 2Y323.17%
EPS Next 3Y177.45%
EPS Next 5Y63.12%
Revenue Next Year146.4%
Revenue Next 2Y89.98%
Revenue Next 3Y55.19%
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.
- Based on the Price/Forward Earnings ratio of 5.01, the valuation of DNO can be described as very cheap.
- DNO's Price/Forward Earnings ratio is rather cheap when compared to the industry. DNO is cheaper than 98.59% of the companies in the same industry.
- DNO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNO indicates a rather cheap valuation: DNO is cheaper than 81.69% of the companies listed in the same industry.
- DNO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 3.61 |
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.
- A more expensive valuation may be justified as DNO's earnings are expected to grow with 177.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y323.17%
EPS Next 3Y177.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.78%, DNO is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.24, DNO pays a better dividend. On top of this DNO pays more dividend than 88.73% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
5.2 History
- On average, the dividend of DNO grows each year by 18.12%, which is quite nice.
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.
- DNO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-131.97%
EPS Next 2Y323.17%
EPS Next 3Y177.45%
DNO ASA / DNO.OL FAQ
Can you provide the ChartMill fundamental rating for DNO ASA?
ChartMill assigns a fundamental rating of 3 / 10 to DNO.OL.
Can you provide the valuation status for DNO ASA?
ChartMill assigns a valuation rating of 6 / 10 to DNO ASA (DNO.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for DNO ASA?
DNO ASA (DNO.OL) has a profitability rating of 3 / 10.
What is the expected EPS growth for DNO ASA (DNO.OL) stock?
The Earnings per Share (EPS) of DNO ASA (DNO.OL) is expected to grow by 495.57% in the next year.