Tuesday, March 28, 2023

All Norwegian Share half 2 – Nr. 16-30

There’s nothing higher than beginning a yr with taking a look at 15 “contemporary” and randomly chosen Norwegian shares. Three of them made it onto my preliminary watch record. As all the time, I’m very happy to get my reader’s enter within the feedback as these are fairly speedy evaluation and I probably miss a number of attention-grabbing issues. Let’s go: 

16. Melhus Sparebank

Melhus is a 43 mn EUR market cap native financial savings financial institution. The inventory trades at round 10x earnings, pays a 6% dividend however hasn’t moved a lot for the final 20 years. EPS is oscillating in a spread since 20 years, too. “Move”.

17. Europris ASA

Europris is a 1,1 bn EUR market cap retailer that sells “low cost selection” gadgets in Norway, each by means of a series of 300 shops but additionally on-line.

AT 12x earnings, the inventory doesn’t look costly and based on TIKR, they did 10x their EBIT since 2013. The corporate IPOed in 2015 and looking out on the chart, they appear to have achieved fairly properly for a retailer, particularly in the previous few years regardless of Covid


They’ve a really attention-grabbing recent capital markets presentation. Amongst others, they appear to have acquired a Skandinavian toy retailer. Total I discover it fairly attention-grabbing though the query clearly is how a lot development alternatives are left in a small nation like Norway, however it’s a “watch”.

18. Sparebank -1 SR Financial institution

Sparebank is a 2,9 bn regional financial institution that appears equally low-cost than most of its Nordic friends with a P/E of ~9x and 4,5% dividend yield. Their long run share value chart appears “constructive” and returns on Fairness have been largely within the low double digits which is excellent. Nonetheless, for some causes I’m not so eager on regional Nordic banks, due to this fact I’ll “move”.

19. EQVA

EQVA is a 21 mn EUR market cap firm that till Mid November known as itself Havyard ASA. The corporate is generally a shipbuilder that providers the oil offshore sector in addition to renewable and fishing. 

The corporate had unfavourable earnings from 2015-2019 and has been making income in 2020 and 2021. The share value appears very very like a theme park curler coaster:

EQVA chart

The corporate claims to have shifted its enterprise mannequin in direction of a extra steady service mannequin, hwoever in Q3 they once more confirmed EBITDA losses. Total, regardless of the brand new title, I’d “move”.

20. Horsiont Energi

Horisont is a 81 mn EUR market cap firm that was IPOed in 2021. The corporate is a developer of “blue Hydrogen” tasks, i.e. producing Hydrogen from Pure Fuel with an built-in Carbon Seize and Storage. The corporate has no revenues and Blue Hydrogen has misplaced most of its attraction resulting from excessive Pure Fuel costs. “Move”.

21. Tomra Techniques

Tomra is a 5,4 bn market cap firm, whose merchandise many people might need encountered in a grocery store: Tomra is the undisputed chief in “reverse merchandising  machines” that automate the gathering of used bottles, cans and so on. in coutnries the place prospects must pay a deposit.

Trying on the share value, it’s fairly clear that Tomra just isn’t an “undiscovered” inventory:

TOMRA SYSTEMS_quote_chart

Regardless of the -1/3 pullback, Tomra remains to be costly and is worth at 44x P/E and 32 EV/EBIT. On the optimistic facet, Tomra is rising properly over a few years. Even in 2020, development was 6,5% and in a traditional yr they develop by 10% or extra. EBIT margins are between 12-15%, returns on Capital are oK, with an ROE of ~17%. The corporate has solely tillte debt

Within the current years, Tomra has diversified additionally into recycling. Curiously, in 2022, they appear to struge with value pressures and for the primary 9M have reported declining income regardless of rising prime line.

Total, Tomra appears ilke an excellent attention-grabbing firm, nevertheless it’s clearly a lot too costly for my style. Nonetheless I’d put them on “watch”. Possibly the they are going to be accessible at a greater valuation sooner or later sooner or later.

22. Voss Veksel Ogland

Voss is a forty five mn EUR market cap small financial institution that’s situated within the city with the identical title. As most different regional Skandinavian banks, the inventory ist low-cost at 8x P/E and a 5,8% dividend yield. Then again, ROE’s are solely 8% and development is low. “Move”.

23. Cover Holdings

Cover is a 2021 IPO that has misplaced -95% of its share value over a yr with a remaining market cap of 4 mn EUR. they’re doing one thing with expertise and are loss making. “Move”.

24. Axactor

Axactor is a 169 mn EUR market cap firm that makes a speciality of “debt assortment”.  Trying on the chart, the corporate appears to come across some points:


The corporate has fairly unstable outcomes with losses in 2020 and 2021. Presently, the corporate appears to be fairly worthwhile, with a 2022 P/E within the center single digits. Nevertheless, the corporate carries important leverage.

I believe it will be actually attention-grabbing to have a look at this nearer though it may be a really tough enterprise mannequin, due to this fact I’ll put them on “watch”.

25. Webstep ASA

Webstep is a 61 mn EUR market cap IT service/consulting firm energetic largely in Norway and Sweden. The corporate has been capable of develop their prime line, however the backside line is kind of unstable. Gross margins are within the vary of 15-20%, in order that they appear to be reasonably an outsourcing firm than a “worth add” marketing consultant.

Q3 2022 appears good from the highest line however dreadful for income. Nothing to see right here, “move”.

26. Bergenbio ASA

Bergenbio is a 6 mn EUR market cap Biopharmaceutical firm that develops based mostly on “small molecule” expertise remedy in opposition to some kinds of most cancers. The corporate has solely part II tasks and is loss making, “move”.

27. Havila Transport

Havila Transport is a 26 mn EUR market cap firm that operates a number of offshore vessels. The corporate has been making operational losses for a while and carries important debt. Web revenue is both an enormous loss or an enormous revenue based mostly on particular gadgets. “Move”.

28. Olav Thon Eiendoms

Olav Thon is a 1.7 bn EUR market cap actual property firm that manages purchasing facilities (and has nothing to do with former German soccer participant Olaf Thon). 

Trying on the share value, they’ve achieved loads higher than their purchasing heart friends. The corporate appears moderately low-cost (7% FCF yield, 5% dividend yield), however purchasing facilities aren’t my energy. Additionally they run valuation adjustments straight by means of the P&L. “Move”.

29. NRC Group

NRC Group is a 101 mn EUR market cap “infrastructure development” group energetic in Scandinavia. In keeping with TIKR, they’ve been loss making for six out of the final 10 years and the srock value has misplaced -75% since 2018. “Move”.

30. Gram Automobile Carriers

Gram Automobile Carriers is a 444 mn EUR market cap firm that was IPOed in March 2022 and ” invests in and operates property within the pure automotive and truck service transport phase. It gives a fleet of vessels for numerous points of the seaborne automobile transportation commerce”.

For some purpose, the inventory tripled since then, making them probably one of the vital profitable recnt IPOs;

Gram Car

According to their Q3 report, for some causes, transport charges have quintupled in 2022. Undecided if that is sustainable. Transport is a sector, the place I’m extraordinarily cautious, due to this fact I’ll “move”.




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