ELKEM ASA (ELK.OL) Stock Fundamental Analysis
OSL:ELK - Euronext Oslo - NO0010816093 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to ELK. ELK was compared to 61 industry peers in the Chemicals industry. ELK has only an average score on both its financial health and profitability. ELK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ELK had positive earnings in the past year.
ELK had a positive operating cash flow in the past year.
In the past 5 years ELK has always been profitable.
In the past 5 years ELK always reported a positive cash flow from operatings.
1.2 Ratios
ELK's Return On Assets of 0.92% is in line compared to the rest of the industry. ELK outperforms 51.61% of its industry peers.
ELK's Return On Equity of 1.89% is in line compared to the rest of the industry. ELK outperforms 51.61% of its industry peers.
ELK's Return On Invested Capital of 2.19% is in line compared to the rest of the industry. ELK outperforms 53.23% of its industry peers.
ELK had an Average Return On Invested Capital over the past 3 years of 8.74%. This is above the industry average of 6.29%.
The 3 year average ROIC (8.74%) for ELK is well above the current ROIC(2.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.89% | ||
| ROIC | 2.19% |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.74%
ROIC(5y)8.61%
1.3 Margins
ELK has a Profit Margin (1.74%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ELK has declined.
ELK's Operating Margin of 5.23% is in line compared to the rest of the industry. ELK outperforms 59.68% of its industry peers.
In the last couple of years the Operating Margin of ELK has grown nicely.
ELK has a Gross Margin of 47.74%. This is in the better half of the industry: ELK outperforms 64.52% of its industry peers.
In the last couple of years the Gross Margin of ELK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.23% | ||
| PM (TTM) | 1.74% | ||
| GM | 47.74% |
OM growth 3Y-7.23%
OM growth 5Y22.71%
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.
The number of shares outstanding for ELK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ELK has more shares outstanding
ELK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that ELK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ELK (1.66) is worse than 62.90% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that ELK is not too dependend on debt financing.
ELK has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.3
WACC7.34%
2.3 Liquidity
ELK has a Current Ratio of 2.96. This indicates that ELK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.96, ELK belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
ELK has a Quick Ratio of 1.68. This is a normal value and indicates that ELK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ELK (1.68) is better than 75.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
ELK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 680.00%, which is quite impressive.
ELK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.90% yearly.
Looking at the last year, ELK shows a very negative growth in Revenue. The Revenue has decreased by -18.43% in the last year.
The Revenue has been decreasing by -4.35% on average over the past years.
EPS 1Y (TTM)680%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%95.89%
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%0.73%
3.2 Future
The Earnings Per Share is expected to grow by 63.44% on average over the next years. This is a very strong growth
Based on estimates for the next years, ELK will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y57.67%
EPS Next 2Y66.99%
EPS Next 3Y63.44%
EPS Next 5YN/A
Revenue Next Year0.41%
Revenue Next 2Y3.95%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 23.21, ELK is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ELK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.18, ELK is valued at the same level.
Based on the Price/Forward Earnings ratio of 14.72, the valuation of ELK can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELK indicates a somewhat cheap valuation: ELK is cheaper than 67.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ELK to the average of the S&P500 Index (20.81), we can say ELK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
96.77% of the companies in the same industry are more expensive than ELK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
ELK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ELK has a very decent profitability rating, which may justify a higher PE ratio.
ELK's earnings are expected to grow with 63.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y66.99%
EPS Next 3Y63.44%
5. Dividend
5.1 Amount
ELK has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.10, ELK has a dividend in line with its industry peers.
ELK's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y66.99%
EPS Next 3Y63.44%
OSL:ELK (5/2/2025, 7:00:00 PM)
18.1
-0.1 (-0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners22.75%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap11.57B
Analysts78
Price Target24.89 (37.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend6.02
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.29%
Min EPS beat(2)-110.48%
Max EPS beat(2)-52.09%
EPS beat(4)1
Avg EPS beat(4)-1020.13%
Min EPS beat(4)-4454.46%
Max EPS beat(4)536.49%
EPS beat(8)2
Avg EPS beat(8)-657.9%
EPS beat(12)5
Avg EPS beat(12)-433.46%
EPS beat(16)9
Avg EPS beat(16)-319.33%
Revenue beat(2)1
Avg Revenue beat(2)-4.1%
Min Revenue beat(2)-12.1%
Max Revenue beat(2)3.91%
Revenue beat(4)2
Avg Revenue beat(4)-3.41%
Min Revenue beat(4)-12.1%
Max Revenue beat(4)3.91%
Revenue beat(8)3
Avg Revenue beat(8)-3.55%
Revenue beat(12)6
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)-0.91%
PT rev (1m)-0.81%
PT rev (3m)2.09%
EPS NQ rev (1m)-103.6%
EPS NQ rev (3m)-103.1%
EPS NY rev (1m)-29.24%
EPS NY rev (3m)-37.52%
Revenue NQ rev (1m)-4.36%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.59%
Revenue NY rev (3m)-6.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 14.72 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 5.7 | ||
| P/B | 0.45 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)0.78
EY4.31%
EPS(NY)1.23
Fwd EY6.79%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)3.17
OCFY17.54%
SpS43.84
BVpS40.52
TBVpS39.67
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.89% | ||
| ROCE | 3.01% | ||
| ROIC | 2.19% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.44% | ||
| OM | 5.23% | ||
| PM (TTM) | 1.74% | ||
| GM | 47.74% | ||
| FCFM | N/A |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.74%
ROIC(5y)8.61%
ROICexc(3y)10.77%
ROICexc(5y)10.72%
ROICexgc(3y)11.5%
ROICexgc(5y)11.66%
ROCE(3y)12.41%
ROCE(5y)12.33%
ROICexcg growth 3Y-39.91%
ROICexcg growth 5Y-3.15%
ROICexc growth 3Y-37.94%
ROICexc growth 5Y-2%
OM growth 3Y-7.23%
OM growth 5Y22.71%
PM growth 3Y-41.92%
PM growth 5Y-6.54%
GM growth 3Y0.8%
GM growth 5Y2.02%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 119.14% | ||
| Cap/Sales | 12.12% | ||
| Interest Coverage | 1.66 | ||
| Cash Conversion | 47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.66 |
F-Score7
WACC7.34%
ROIC/WACC0.3
Cap/Depr(3y)178.1%
Cap/Depr(5y)168.55%
Cap/Sales(3y)17.35%
Cap/Sales(5y)14.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)680%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%95.89%
EPS Next Y57.67%
EPS Next 2Y66.99%
EPS Next 3Y63.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%0.73%
Revenue Next Year0.41%
Revenue Next 2Y3.95%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
EBIT growth 1Y21.74%
EBIT growth 3Y-24.54%
EBIT growth 5Y17.38%
EBIT Next Year267.83%
EBIT Next 3Y70.28%
EBIT Next 5YN/A
FCF growth 1Y38.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.69%
OCF growth 3Y-25.52%
OCF growth 5Y2%