ELKEM ASA (ELK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ELK - NO0010816093 - Common Stock
29.76 NOK
-0.08 (-0.27%)
ELK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Chemicals industry. ELK has an average financial health and profitability rating. ELK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ELK has reported negative net income.
- ELK had a positive operating cash flow in the past year.
- ELK had positive earnings in each of the past 5 years.
- ELK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ELK's Return On Assets of -1.07% is on the low side compared to the rest of the industry. ELK is outperformed by 70.42% of its industry peers.
- With a Return On Equity value of -2.13%, ELK is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
- ELK has a Return On Invested Capital (2.29%) which is in line with its industry peers.
- ELK had an Average Return On Invested Capital over the past 3 years of 8.73%. This is in line with the industry average of 7.19%.
- The last Return On Invested Capital (2.29%) for ELK is well below the 3 year average (8.73%), which needs to be investigated, but indicates that ELK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.07% | ||
| ROE | -2.13% | ||
| ROIC | 2.29% |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.73%
ROIC(5y)8.61%
1.3 Margins
- ELK's Profit Margin has declined in the last couple of years.
- ELK has a Operating Margin (8.13%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ELK has grown nicely.
- ELK has a Gross Margin of 53.81%. This is amongst the best in the industry. ELK outperforms 80.28% of its industry peers.
- ELK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | N/A | ||
| GM | 53.81% |
OM growth 3Y-7.33%
OM growth 5Y22.64%
PM growth 3Y-41.92%
PM growth 5Y-6.54%
GM growth 3Y0.8%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ELK is creating some value.
- Compared to 1 year ago, ELK has about the same amount of shares outstanding.
- The number of shares outstanding for ELK has been increased compared to 5 years ago.
- Compared to 1 year ago, ELK has an improved debt to assets ratio.
2.2 Solvency
- ELK has an Altman-Z score of 1.75. This is a bad value and indicates that ELK is not financially healthy and even has some risk of bankruptcy.
- ELK's Altman-Z score of 1.75 is on the low side compared to the rest of the industry. ELK is outperformed by 73.24% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that ELK is not too dependend on debt financing.
- ELK's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. ELK outperforms 47.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.3
WACC7.52%
2.3 Liquidity
- A Current Ratio of 3.27 indicates that ELK has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.27, ELK belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
- A Quick Ratio of 1.67 indicates that ELK should not have too much problems paying its short term obligations.
- The Quick ratio of ELK (1.67) is better than 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- ELK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1100.00%.
- The earnings per share for ELK have been decreasing by -11.90% on average. This is quite bad
- The Revenue for ELK has decreased by -46.80% in the past year. This is quite bad
- Measured over the past years, ELK shows a decrease in Revenue. The Revenue has been decreasing by -4.35% on average per year.
EPS 1Y (TTM)-1100%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-46.8%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%-2.63%
3.2 Future
- Based on estimates for the next years, ELK will show a very strong growth in Earnings Per Share. The EPS will grow by 49.55% on average per year.
- ELK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.27% yearly.
EPS Next Y-185.57%
EPS Next 2Y32.5%
EPS Next 3Y49.55%
EPS Next 5YN/A
Revenue Next Year-8.51%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.27%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ELK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- ELK is valuated rather expensively with a Price/Forward Earnings ratio of 21.73.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ELK is on the same level as its industry peers.
- ELK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELK is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as ELK's earnings are expected to grow with 49.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.5%
EPS Next 3Y49.55%
5. Dividend
5.1 Amount
- ELK has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.45, ELK is paying slightly less dividend.
- With a Dividend Yield of 1.02, ELK pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y32.5%
EPS Next 3Y49.55%
ELKEM ASA / ELK.OL FAQ
What is the ChartMill fundamental rating of ELKEM ASA (ELK.OL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ELK.OL.
What is the valuation status for ELK stock?
ChartMill assigns a valuation rating of 2 / 10 to ELKEM ASA (ELK.OL). This can be considered as Overvalued.
What is the profitability of ELK stock?
ELKEM ASA (ELK.OL) has a profitability rating of 5 / 10.
How financially healthy is ELKEM ASA?
The financial health rating of ELKEM ASA (ELK.OL) is 4 / 10.
Can you provide the expected EPS growth for ELK stock?
The Earnings per Share (EPS) of ELKEM ASA (ELK.OL) is expected to decline by -185.57% in the next year.