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 69 industry peers in the Chemicals industry. Both the profitability and the financial health of ELK get a neutral evaluation. Nothing too spectacular is happening here. ELK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ELK was profitable.
In the past year ELK had a positive cash flow from operations.
ELK had positive earnings in each of the past 5 years.
In the past 5 years ELK always reported a positive cash flow from operatings.
1.2 Ratios
ELK's Return On Assets of 1.44% is in line compared to the rest of the industry. ELK outperforms 52.17% of its industry peers.
The Return On Equity of ELK (2.89%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.82%, ELK perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
ELK had an Average Return On Invested Capital over the past 3 years of 8.73%. This is above the industry average of 6.66%.
The last Return On Invested Capital (2.82%) 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 | 1.44% | ||
| ROE | 2.89% | ||
| ROIC | 2.82% |
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 has a Profit Margin (2.92%) which is in line with its industry peers.
ELK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.24%, ELK is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Operating Margin of ELK has grown nicely.
ELK's Gross Margin of 50.13% is fine compared to the rest of the industry. ELK outperforms 75.36% of its industry peers.
In the last couple of years the Gross Margin of ELK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 2.92% | ||
| GM | 50.13% |
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.
ELK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that ELK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, ELK is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
ELK has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.45, ELK is in line with its industry, outperforming 49.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC0.38
WACC7.45%
2.3 Liquidity
ELK has a Current Ratio of 3.19. This indicates that ELK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ELK (3.19) is better than 86.96% of its industry peers.
ELK has a Quick Ratio of 1.71. This is a normal value and indicates that ELK is financially healthy and should not expect problems in meeting its short term obligations.
ELK has a better Quick ratio (1.71) than 76.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 154.81% over the past year.
The earnings per share for ELK have been decreasing by -11.90% on average. This is quite bad
ELK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.51%.
ELK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.35% yearly.
EPS 1Y (TTM)154.81%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%52.17%
Revenue 1Y (TTM)-24.51%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%1.81%
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
ELK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y57.67%
EPS Next 2Y66.99%
EPS Next 3Y63.44%
EPS Next 5YN/A
Revenue Next Year-2.05%
Revenue Next 2Y3.08%
Revenue Next 3Y2.88%
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.
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
With a Price/Earnings ratio of 20.49, ELK is valued on the expensive side.
ELK's Price/Earnings ratio is a bit cheaper when compared to the industry. ELK is cheaper than 62.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ELK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.74, the valuation of ELK can be described as reasonable.
Based on the Price/Forward Earnings ratio, ELK is valued cheaper than 81.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. ELK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
92.75% 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 | 4.99 |
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.
ELK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ELK's earnings are expected to grow with 63.44% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y66.99%
EPS Next 3Y63.44%
5. Dividend
5.1 Amount
ELK has a Yearly Dividend Yield of 1.33%.
Compared to an average industry Dividend Yield of 3.00, ELK has a dividend in line with its industry peers.
With a Dividend Yield of 1.33, ELK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 (6/20/2025, 11:30:20 AM)
23.36
+0.38 (+1.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners20.98%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap14.94B
Analysts78
Price Target24.07 (3.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-1230.8%
Min EPS beat(2)-2351.11%
Max EPS beat(2)-110.48%
EPS beat(4)1
Avg EPS beat(4)-494.3%
Min EPS beat(4)-2351.11%
Max EPS beat(4)536.49%
EPS beat(8)1
Avg EPS beat(8)-956.52%
EPS beat(12)4
Avg EPS beat(12)-629.6%
EPS beat(16)8
Avg EPS beat(16)-470.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-5.85%
Max Revenue beat(2)3.91%
Revenue beat(4)2
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-12.1%
Max Revenue beat(4)3.91%
Revenue beat(8)3
Avg Revenue beat(8)-4.03%
Revenue beat(12)6
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.4%
PT rev (1m)0%
PT rev (3m)-4.07%
EPS NQ rev (1m)-48.45%
EPS NQ rev (3m)-48.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.86%
Revenue NQ rev (1m)-11.58%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | 13.09 | ||
| P/B | 0.6 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)1.14
EY4.88%
EPS(NY)2.18
Fwd EY9.31%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)1.78
OCFY7.64%
SpS38.32
BVpS38.7
TBVpS37.92
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 2.89% | ||
| ROCE | 3.87% | ||
| ROIC | 2.82% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.05% | ||
| OM | 7.24% | ||
| PM (TTM) | 2.92% | ||
| GM | 50.13% | ||
| FCFM | N/A |
ROA(3y)6.39%
ROA(5y)6.2%
ROE(3y)11.85%
ROE(5y)12.17%
ROIC(3y)8.73%
ROIC(5y)8.61%
ROICexc(3y)10.76%
ROICexc(5y)10.71%
ROICexgc(3y)11.49%
ROICexgc(5y)11.66%
ROCE(3y)12.41%
ROCE(5y)12.33%
ROICexcg growth 3Y-39.97%
ROICexcg growth 5Y-3.21%
ROICexc growth 3Y-38.01%
ROICexc growth 5Y-2.06%
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%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 100.78% | ||
| Cap/Sales | 12.18% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 24.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.77 |
F-Score7
WACC7.45%
ROIC/WACC0.38
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)154.81%
EPS 3Y-53.14%
EPS 5Y-11.9%
EPS Q2Q%52.17%
EPS Next Y57.67%
EPS Next 2Y66.99%
EPS Next 3Y63.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.51%
Revenue growth 3Y-18.65%
Revenue growth 5Y-4.35%
Sales Q2Q%1.81%
Revenue Next Year-2.05%
Revenue Next 2Y3.08%
Revenue Next 3Y2.88%
Revenue Next 5YN/A
EBIT growth 1Y424.56%
EBIT growth 3Y-24.62%
EBIT growth 5Y17.3%
EBIT Next Year214.92%
EBIT Next 3Y61.29%
EBIT Next 5YN/A
FCF growth 1Y-161.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.81%
OCF growth 3Y-25.52%
OCF growth 5Y2%