There’s nothing higher than beginning a 12 months with 15 “recent” and randomly chosen Norwegian shares. Three of them made it onto my preliminary watch checklist. As at all times, I’m more than pleased to get my reader’s enter within the feedback as these are fairly fast evaluation and I most certainly miss a number of fascinating 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. “Cross”.
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 in accordance with TIKR, they did 10x their EBIT since 2013. The corporate IPOed in 2015 and looking out on the chart, they appear to have carried out fairly properly for a retailer, particularly in the previous few years regardless of Covid
They’ve a really fascinating latest capital markets presentation. Amongst others, they appear to have acquired a Skandinavian toy retailer. General I discover it fairly fascinating 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 term share worth chart appears “constructive” and returns on Fairness have been largely within the low double digits which is superb. However, for some causes I’m not so eager on regional Nordic banks, subsequently I’ll “move”.
19. EQVA
EQVA is a 21 mn EUR market cap firm that till Mid November referred to as itself Havyard ASA. The corporate is usually a shipbuilder that companies the oil offshore sector in addition to renewable and fishing.
The corporate had unfavorable earnings from 2015-2019 and has been making earnings in 2020 and 2021. The share worth appears very very similar to a theme park curler coaster:
The corporate claims to have shifted its enterprise mannequin in the direction of a extra secure service mannequin, hwoever in Q3 they once more confirmed EBITDA losses. General, 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” initiatives, i.e. producing Hydrogen from Pure Gasoline with an built-in Carbon Seize and Storage. The corporate has no revenues and Blue Hydrogen has misplaced most of its attraction because of excessive Pure Gasoline costs. “Cross”.
21. Tomra Methods
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 forth. in coutnries the place prospects have to pay a deposit.
Trying on the share worth, it’s fairly clear that Tomra will not be an “undiscovered” inventory:
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 standard 12 months 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 latest 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 earnings regardless of growing prime line.
General, Tomra appears ilke a brilliant fascinating firm, nonetheless it’s clearly a lot too costly for my style. However I’d put them on “watch”. Possibly the they are going to be obtainable 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 positioned 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. Alternatively, ROE’s are solely 8% and development is low. “Cross”.
23. Cover Holdings
Cover is a 2021 IPO that has misplaced -95% of its share worth over a 12 months with a remaining market cap of 4 mn EUR. they’re doing one thing with know-how and are loss making. “Cross”.
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. At present, 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 could be actually fascinating to have a look at this nearer though it could be a really troublesome enterprise mannequin, subsequently 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%, so that they appear to be slightly an outsourcing firm than a “worth add” advisor.
Q3 2022 appears good from the highest line however dreadful for earnings. Nothing to see right here, “move”.
26. Bergenbio ASA
Bergenbio is a 6 mn EUR market cap Biopharmaceutical firm that develops primarily based on “small molecule” know-how treatment towards some types of most cancers. The corporate has solely section II initiatives and is loss making, “move”.
27. Havila Delivery
Havila Delivery 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 earnings is both a giant loss or a giant revenue primarily based on particular gadgets. “Cross”.
28. Olav Thon Eiendoms
Olav Thon is a 1.7 bn EUR market cap actual property firm that manages procuring facilities (and has nothing to do with former German soccer participant Olaf Thon).
Trying on the share worth, they’ve carried out so much higher than their procuring middle friends. The corporate appears fairly low cost (7% FCF yield, 5% dividend yield), however procuring facilities are usually not my power. In addition they run valuation adjustments immediately by means of the P&L. “Cross”.
29. NRC Group
NRC Group is a 101 mn EUR market cap “infrastructure building” group energetic in Scandinavia. In line with TIKR, they’ve been loss making for six out of the final 10 years and the srock worth has misplaced -75% since 2018. “Cross”.
30. Gram Automotive Carriers
Gram Automotive Carriers is a 444 mn EUR market cap firm that was IPOed in March 2022 and ” invests in and operates property within the pure automobile and truck provider transport section. It supplies a fleet of vessels for varied elements of the seaborne car transportation commerce”.
For some purpose, the inventory tripled since then, making them most certainly one of the crucial profitable recnt IPOs;
In line with their Q3 report, for some causes, transport charges have quintupled in 2022. Unsure if that is sustainable. Delivery is a sector, the place I’m extraordinarily cautious, subsequently I’ll “move”.