And on we go, after a small break, with a fresh batch of 15 randomly selected Norwegian stocks. This time, the random number generator selected a wide variety of businesses compared to the ususal “Fsih & Ships”. 3 stocks made it onto the watch list, one of them had been in my portfolio in the past. Enjoy !!
121. HAV Group AS
HAV Group is a 32 mn EUR market cap supplier to the maritime industry. Looking at the website, they seem to focus on at least optically on “Green” technologies, for instance electric ships and hydrogen solutions.
That all sounds very good on paper and for 2021 has translated into decent profits, but 2022 looks very different, with declining sales and disappearing profits. Q4 2022 was especially bad with an EBIT margin of -16%.
Looking at the chart, we can see that the timing of the IPO in March 2021 seems to have been perfect….for those who were selling:
And on we go after a short break with another fresh 15 Norwegian stocks, selected by the Google Sheets random generator. This time, I have identified six companies that go onto the preliminary watch list. Let’s go:
Instabank is a 50 mn EUR market cap “fully digital bank that offers loan products, savings and insurance to consumers in Norway, Sweden and Finland.” The company was IPOed in 2022 and surprisingly trades slightly above its IPO price, a clear exception for the 2020/2021 IPO vintage.
Equally surprising is the fact that a relatively young “digital bank” makes a profit. They seem to lend to more “high yielding” customers but overall, they show decent growth and the stock looks cheap at 8x trailing earnings and ~6,5x 2023 earnings.
Although I am not a big fan of Nordic banks, I think this one is worth to potentially “watch”.
107. GNP Energy
GNP Energy is a 19 mn EUR market cap Energy company that has lost more than 50% since its IPO in 2020. I also found very little tangible information on this one. “Pass”.
108. Wilh. Wilhelmsen
Wilh. Wilhelmsen is a 1 bn EUR market cap “global maritime industrial group offering ocean transportation and integrated logistics services for car and ro-ro cargo. It also occupies a leading position in the global maritime service industry, delivering services to some 200 shipyards and 20 000 vessels annually.”.
Looking at the long term chart, it seems that there is significant cyclicality in Wilhelmsen’s business:
The shares currently trade at a historical high and on avery low P/E multiple. The P&L is not easy to read as the majority of net income comes from non-consolidated JVs. My gut feeling tells me that entering at the top of the cycle might not be a smart idea, however they seem to be very active in supporting the offshore wind industry. Therefore I’ll put them on “watch”.
109. Austevoll Seafood
Austevoll is a 1,6 bn EUR fish farmer, which compared to the other fish players so far, is a very established player. Looking at the long term chart we see a relatively good value creation, but quite some volatility:
The stock looks quite cheap at 8x 2023 earnings, but they employ quite some leverage. I think they were also hit by the suprse Norwegian Special tax for Salmon fsih farmers. Overall, this could be one of the fish farms where one could learn something, therefore they go on the preliminary “watch” list.
110. Tysnes Sparebank
Tysnes is a 20 mn EUR local savings bank, which, not surprisingly is located in Tysnes near Bergen. The stock looks cheap, but regional savings banks are not my specialty, therefore I’ll “pass”.
Salmar, with 5,5 bn EUR market cap seems to be one of the “larger fish” among the Norwegian fish farms. The long term share chart looks impressive, despite the obvious hit from the special tax:
However, the valuation at 17,5x 2023 earnings seems to reflect this already to a certain extent. Interestingly, Salmar holds a 71% interest in another listed Norwegian company called Froy which seems to be a specialist in servicing fish farms. According to the Q4 report, they seem to contemplate selling Froy
Overall, Salmar is also a company which could be interesting to “watch” as their track record seems to be really god.
As a one time excepion, I follow up with Froy, a 475 mn market cap stock in which Salmar holds a 72% stake. Froy was IPOed in 2021 and its share price went on a pretty wild ride:
According to their initial investor presentation, Froy seems to be a very important service provider to the fish farming industry, providing all kind of essential services with a focus on Norway:
I guess that their focus on Norway led to the significant loss in the share price follwoing the surpise tax on Norwegian Slamon farming last years.
As mentioned in the Salmar write-up, Salmar seems to be considering “strategic options” for Froy whatever that means. In any case, I find Froy interesting, despite the fact that it is not cheap at 18,5x 2022 earnings. “Watch”.
Okea is a 250 mn EUR market cap company that owns minority interest in several Norwegian off shore oil fields.
They seem to specialize on mature oil fields and try to extend the life of these fields.
The company was IPOed in 2020 and the share price has been fluctuation widly between 10 andf 70 NOKs:
As many oil stocks, the stock looks ridicuolosly cheap at around 2,4x trailing P/E and a big juicy dividend. However there seems to be clearly a strong leverage to oil prices which are now declining for some months. Somehow I still find them interesting bexause of their foucs on Norway, therefore they go on “watch”.
Techstep is a 37 mn EUR market cap company that seems to hav had its best time in the early 2000s, although the current business model seems to have impmented only in 2016. The company seems to offer some mobile services, but only achieved to have a positive operating result in 2 out of the last 6 years. “Pass”.
115. Sparebanken 1 Helgeland
This is a 324 mn EUR market cap regional savings bank that looks quite profitable- The stock has performed quite welll since the GFC and is not too expensive (P/E ~10,5). However. local banks are out of scope for me, “pass”.
Agilyx is a 228 mn EUR market cap company that is active in chemical plastics recycling. As a 2020 IPO, the stock trades around the IPO price, which can be considered a succes for this vintage.
As one can expect from a young cleantech company, they are loss making, although they do have sales, currently a run rate of 15-20 mn EUR. However gross margins are negative for the time being and they are burning cash.
The main shareholder is a fund called “Saphron Hill Ventures” and as many such companies they have an impressive list of strategic partners (Exxon etc.). They seem to operate a JV with Exxon in the US called Cyclix, that recycles plasticand another project seems to be in construction in Japan
Plastic recycling is an interesting topic, however a negativ gross margin really turns me off, therefore I’ll “pass”.
117. Aurskog Sparebanken
Aurskog is a small, 89 mn EUR market cap local savings banklocated in Aurskog near Oslo with no specific aspects at a first glance. “Pass”.
SATS is a 110 mn EUR market cap fitness chain that is active across Scandinavia. The company IPOed in 2020 and lost around -75% since then, indicating that not all is great.
The main reason might be that since their IPO, they have not been able to genrate a profit. The company has significant debt, although they managed to lower the debt burden over the past 3 years.
Because of loan covenants, the company is not allowed to distribute dividends and Q4 2022 was not great, most likely due to electricty and heating costs.
At an EV/EBITDA of ~5,5 this might be interesting for turnaround specialists, but for me the risk is much too high, therfore I’ll “pass”.
119. Nykode Therapeutic
Nykode is 570 mn EUR market cap “clinical-stage biopharmaceutical company, dedicated to the discovery and development of vaccines and novel immunotherapies for the treatment cancer and infectious diseases. Nykode’s modular platform technology specifically targets antigens to Antigen Presenting Cells.” Nykode was only profitable in its IPO year 2020 and has been making losses in 2021 and 2022.
As far as I understand, they are using a different technology to MRNA, but they have some interesting cooperations and Cash should last for a couple of years. However, Biotech is far out of my circle of competence, therefore I’ll “pass”.
120. Wallenius Wilhelmson
By coincidence, this 3 bn EUR market cap company has been selected in the same part of the series as Wilhelm Wilhemsen. And indeed, the companies are related as Wallenius Wilhelmsen seems to be a JV between Wallenius and Wilhelmsen, specialising in owning and operating ships that transport cars.
As other shipping companies, the stock did quite well, doing ~11x since the bottom in MArch/April 2020. The stock looks really cheap at a P/E < 5, but buying cyclical stocks at the margin peak is rarely a good entry point. As I have Wilhelm Wilhelmson already on watch, I’ll “pass” here.
To keep the running gag going: No fish this time and only a few ships, but a lot of other stuff in this random selection of 15 Norwegian stocks. 4 out of these 15 qualified for my prelimiary “watch” list. Let’s go:
91. Wilson ASA
Wilson is a 270 mn EUR market cap shiping company that operates ~130 smaller vessels. As other shipping companies, they trades at very low valuations, in this case 3,5x 2022 P/E. Operating margins have increased from 2,5% to 40% in 2022. I have no idea how sustainable these margins are, but historically the peak has been around 20% and on average maybe 10-15% with a high volatility. Interestingly, the share price hovered around 20 NOKs for 20 years before going up more than 3x in 2021:
Nevertheless, volatile shipping stocks are not my area of expertise, “pass”.
92. Elektroimportoeren ASA
As the name indiactes, this 84 mn EUR market cap company retails and distributes equipment for electrical installations (light, electricity etc.). The company has grown nicely over the past 5 years, however EPS halfed in 2022 which led to a significant drop in the share price below the level of the IPO in 2020:
They seem to have entered the Swedish market in 2022 but overall, Gross margins and like-for-like sales struggled and interest expenses increased, leading to a big reduction in profits. At 19x trailing p/E and 15x trailing EV/EBIT, the stock is not cheap and the IPO seems to have been “well timed”. “Pass”.
Entra is a 1,9 bn EUR market cap real estate company that mostly owns office buildings in Norway. The stock lost almost -50% from its top, similar to many other real estate stocks. I always find it hard to understand the commercial real estate KPIs like EPRA NAV and this stuff, their P&L is quite messy as the show mark-to-market gains and losses in the P&L. Real estate is something I would only consider in very specific circumstances which this is not. “Pass”.
Navamedic is a 57 mn EUR market cap “Nordic pharma company supplying hospitals and pharmacies with pharmaceutical and medical nutrition products”. The company has been loss making for many years but, surprisingly, became profitable in 2022. This is reflected in the share price which is now close to ATH:
The company seems to have a wide protfolio of OTC and prescription drugs as well as “medical nutrition” with some focus on obesitiy, but also antibiotics and other stuff. At less than 20x P/E, the stock is not too expensive and the company plans o grow via M&A etc to 1bn NOK in revenue and 150 mn NOK in EBITDA. For the time being, I will put them onto the extended “watch” list
Cyviz is a 44 mn EUR market cap “global technology provider for standardized conference rooms, control rooms and experience centers.” The company was IPOed in December 2020 and is loss making, but based on TIKR at least cash flow positive.
If I understand their business correctly, they establish control rooms for the defense sector as well as high quality board rooms atc around the world:
Somehow I find this company quite interesting, especially as it is still growing quite quickly (+50% full year, +80% q-o-q). This seems to be one of the better 2020/2021 IPOs, therefore “watch”.
96. Elliptic Laborator
Elliptic is a 160 mn EUR market cap company that does some “”sexy” things like “AI Based 3D gesture Software sensors”. However, Revenue is only 5 mn EUR, stagnating and they are making losses. One of the weaker 2020/202 IPOs, “Pass”.
ATEA is a 1,2 bn EUR market cap “leading Nordic and Baltic solution provider of IT infrastructure with over 7,000 employees. Atea is present in 85 cities in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia. “
With operating margins of 2-3%, the bsuiness model seems to be more of a reseller or distributor. The company is relatively moderately valued at 14x P/E and return on capital/equity is currently at around 20% or more.
Atea has net cash, is paying a rather generous dividend (~5% yield) and has been growing nicely over thy past few years. The share price however does not fully reflect this:
Although similar IT distributors are equally cheap, I put ATEA on “watch”.
98. Green Minerals
Green Minerals is a 5 mn EUR Nano Cap that claims to be the ” pioneer in marine minerals on the Norwegian Continental Shelf”. The company has little revenue and is burning money, with a runway of less than 2 years left. “Pass”.
99. Norwegian Block Exchange
This 10 mn EUR market cap 2021 IPO runs a Crypto exchange. Of course they are burning cash and they have raised addtional money in Q3 2022. “Pass”.
100. Questback Group
Questback is a “leading platform for conducting Employee and Customer Experience surveys”. The market cap of only 5 mn EUR indicates that business is not so great. They have been growing in 2022 but are CF negative and have substantial debt. Further equity financing is likely required as they have less than 1 year runway left. “Pass”.
101. Exact Therapeutics
Exact is a 31 mn EUR market cap stock that IPOed in 2022 and lost around 2/3 of its value since then. They develop technology ” for targeted therapeutic enhancement – Acoustic Cluster Therapy (ACT®). ACT® sonoporation is a unique approach to ultrasound-mediated, targeted drug enhancement”, whatever that means. The company has no revenues, “pass”.
102. Solstad Offshore
Solsatd is a 320 mn EUR market capo company that “operates offshore service and construction vessels for offshore and renewable energy industry worldwide. It provides platform supply vessel, anchor handling vessel, subsea construction, and renewable energy services.”.
Operationally, things look relatively good these days, but the company still carries a lot of debt (~2 bn EUR) and is making losses on GAAP basis. Largest Shareholder seems to be Aker who snapped up other Norwegian players in the past. “Pass”.
Adevinta is a 8,4 bn EUR market cap online classifieds company that was spun-off from Schibsted in 2019. Schibsted owns ~34,8% and interestingly Ebay owns almost the same amount. Looking at the chart, we can see that initially the stock perforemd very well before than suffering from 2022 on:
The business as such looks attractive. High growth rates (+40% in 2022) and decent operating margins. However, a large Goodwill impairment in 2022 led to a GAAP loss.
Based on the projections, the stock is valued a ~15x EV/EBITDA for 2023 and they expect to grow at “low double digits” for the next years. Although the stock is not cheap, it is defintely one to “watch”.
104. Nel ASA
Nel is a (much hyped) 2,2 bn EUR market cap company that is active in the Hydrogen Economy. Nal manufactures Electrolyzers and Hydrogen Filling station equipment. Looking at the chart we can see that Nel has been around for some time and had a frist hype cycle just before the financial crisis:
Compared to other companies in that space, NEL actually does have sales (~90 mn EUR in 2022), but is not making money. Losses are actually higher than sales. Personally, I do not believe in a mass market for Hydrogen as a car or truck fuel at least for the next 10 years or so, therfore I’ll “pass”.
105. Arctizymes Techno
This “fancy name” company has a market cap of 180 mn EUR does something with enzymes and surprising to me is actually making a small profit. Nevertheless, at around 13xEV/Sales and 50x EV/EBIT with only moderate growth, I do not think that this is interesting. “Pass”.
Lot’s of ships this time plus a little fish. Overall, these 15 randomly selected Norwegian stocks resulted in four candidates for my initial watch list. Let’s go:
76. Klaveness Combination Carriers
Klaveness is a ship owner that operates versatile ships that can carry both, bulk cargo as well as tanker cargo. The 380 mn EUR market cap company has been IPOed in 202 and has done quite well, as a few other shipping IPOs. The ships look impressive but otherwise quite normal:
The company claims that their vessels are more fuel efficient which could make it interesting for clinets interested in low CO2 transport.
The stock trades at 6x 2022 earnings which looks cheap, however margins in 2022 were at least 2x of historic levels. The company is quite optimistic for 2023. Ships are to me equally foreign like real estate, so I’ll “pass”.
77. Inin Group AS
Inin is a 26 mn EUR market cap Holdco that made losses for a couple of years. After their IPO in 2020, they sold their main business in 2022, renamed themselves from Elop into Inin and have bought a few new businesses focused on contruction and inspection of infrastructure. Sounds good in principle but looks sketchy from the numbers.
The company has been and will be loss making but wants to become “Cash flow positive” in 2023. “Pass”.
78. Ensurge Micropower
Fitting to the name, Ensurge is a 5 mn EUR market cap Micro Cap claims to develop Soldi State battery and has just issued new shares. “Pass”.
Hyon is a 3 mn EUR nanocap that tries to revolutionize something in the Maritime Hydrogen ecosystem, I am not really sure what. They IPOed in early 2022 and the share price since then went only down. They have some sales but overall this company seems to be too small and early to be interesting. “Pass”.
Orkla is a 6.4 bn EUR market cap company that “is a leading supplier of branded consumer goods to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Branded Consumer Goods comprises Orkla Foods, Orkla Confectionery & Snacks, Orkla Care, Orkla Food Ingredients and Orkla Consumer Investments”.
The long term chart doesn’t support a lot of value creation over the years:
However, looking at the fundamentals, it is interesting to see that there was decent growth in the last years and that the stock trades at a relatviely cheap level compared to its past at 13,6x P/E and 12 x EV/EBIT. In 2022 the food division strugged a little bit, however they also have a Hydropower division more then offset that. They also sell food products in India on top of their Nordics focus. Overall Orkla seems to be a very diverse company and a very interesting “animal” that I would want to learn more about. “Watch”.
Storebrand is a 3,6 bn EUR financial company that is mostly active in life insurance and long term savings products. Looking at the long term chart we can see that there is no big long term value creation but that the stock is interestingly trading near ATH levels:
This is suprising as at fisrt sight, 2022 reslts were significantly below 2021. However the company announced a decent dividend and a share buy back program. They have actually comitted to buy back 10 bn NOK in shares until 2030. Nevertheless, I see very few reasons to own a Norwegian Life insurer, therefore I’ll “pass”.
82. Statt Torsk
Statt Torsk is a 29 mn EUR market cap fish farmer that for a change is farming Cod instead of the usual Salmon. The company IPOed in early 2021 and has lost -50% since IPO. They actually have sales but very little and are loss making as the fish are mostly in the growing phase. Although I prefer Cod to Salmon on my plate, I’ll “pass” on that.
83. Deep Value Drilling
Despite having a great name for any Deep Value Investor, this153 mn EUR market cap owns a single drillship and rents it out to drilling companies. IPOed in 20221, the stock has more than doubled. According to their company presentation, the bough the ship for 65 mn USD compared to the cost to build it of 750 mn USD. This is what they got (I love to pst ship pictures):
However, cool ships don’t necessarily make great long term investments, therfore I’ll “pass”.
84. Havila Kystruten
Havila is a 71 mn EUR market cap and operates 4 cruise ships that run the Fjord tour between Begen and Kyrkenes. The company was IPOed in 2021 and has done really bad and has lost more than -50% since the IPO. Before quickly passing this however, I saw that one of my “peers”, Paladin owns 6,7% of the company and I kjnow that they have invested successfully in Norwegian Ferry companies before. Again here a picture of one of their ships:
The company seems to be in the build up phase and made losses so far, also because LNG fuel was very expensive. In any case, because of the Paladin guys, I’ll “watch” this one.
85. Kraft Bank
Kraft Bank is a 33 mn EUR market cap Bank that “offers refinancing of mortgages and unsecured loans to individuals that due to a challenging personal economy and/or challenging liquidity cannot refinance at a regular bank.”. So something like a “subprime” player.
The Bank is quite young and has grown fast. ROE’s reched 12-13% in 2021 and 2022. At 8x P/E it looks cheap.
Most of their reports are in Norwegian, nevertheless I really find this one interesting. “Watch”.
86. Petronor E&P
Petronor is a 116 mn EUR market cap oil explorer that is active in very exotic locations like Congo and Senegal. Not my cup of tea and since its IPO in 2022, the stock price did very little. “Pass”.
87. EAM Solar
EAm Solar is a 3 mn EUR market cap company that operates solar plants in Italy or inittially planned to do so. There seems to be a very special story that they have been cheated on their initial purchase in 2014 and are now mostly litigating in Italy. This is how they describe themselves in the 2021 report: “This situation has effectively changed EAM from a YieldCo to a large listed lawsuit”. Not my kind of special situation, “pass”.
88. TECO 2030
TECO is 145 mn EUR market cap company that does develops Hydrogen fuel cells for the shipping industry. The company has little revenue and despite capitalizing a lot of expenses, is making large losses. Interestingly, other than many similar cleantech start-ups, the stock is up 2,5x from its 202 IPO. “Pass”.
89. Ocean Sun
Ocean Sun is a 30 mn EUR market cap “floating PV” company that “has developed an innovative solution to global energy needs. The patented technology is based on solar modules mounted on hydro-elastic membranes and offers cost and performance benefits unseen in any other floating PV system today”.
As another 2020 IPO, the share price intitally took off like a rocket but now trades at less than 1/2 of the IPO price. They do have some slaes and have realized some demonstration projects. Here is an example:
They seem to have cash left for 2-3 years at the current burn rate. In order to have at least a few of the Norwegian Clean techs on the watchlist, they get a (weakish) “watch”.
90. Awilco LNG
Awilco is a 110 mn EUR market cap company that owns 2 LNG carriers. After a few very bad years, things seem to look better. This could be in theory an interesting speculation on LNG imports in the next years. Their ships look like being GTT designs:
Nevertheless, I’ll try to stay clear of ships, therefore I’ll “pass”.
And on we go relentlessly with another 15 randomly selected Norwegian Stocks. As this time, an “old friend of mine” is within the selection, maybe one interesting aspect:
When I bought my first Norwegian stock in 2014, the Exchange rate had been 8,21 NOK per Euro. These days, Norway is stronger then ever and Europe is limping along. Nevertheless, the exchange rate today is 10,92 NOK/EUR which means the the NOK lost -25% over 8 plus years. Quite a surprise if you just look at this from the outside. And maybe the Euro is not so weak after all.
61. Höegh Autoliners
Höegh is a 1,15 bn EUR market cap “leading global provider of Roll On Roll Off transportation services, operating a fleet of around 40 Pure Car and Truck Carriers”. The company IPOed in late 202, but compared to other 2021 vintage IPO’s, Höegh investors are quite happy with the share price being up 3x since IPO.
The company seems to have a rather short financial history. Because of supply chain disruptions, charter rates are at mutli-decade highs. The market thinks that these rates are not so sustainable, otherwise the stock would not trade at a P/E of 3,5:
It is still January and I have managed to look at already 60 Norwegian companies, so this is good progress. This time, 6 companies made it onto the watxh list, although I would not consider any of them a strong candidate. Let’s go:
Itera is a 108 mn EUR market cap IT consulting company. The company has managed to grow topline consistently which is reflected in a relatively high valuation with a P/E in the mid 20s.
If I understand the business model correctly, a sinificant part is “near-shoring” IT employees in Eastern Europe.
The company was IPOed in the heydays of the dotcom boom and needed many years to regain the share prcie level from back then as we can see in the chart:
And another 15 Norwegian stocks chosen from my Google Sheets random number function.This time only one “watch” candidate and not even a strong oe. C’mon Norway, you can do better !!!
31. KMC Properties
As the name indicates, this 212 mn EUR market cap company (IPO in 2021) is active in property. They specialize in industrial and logistics property that seems to grow quickly through purchases. The share price hasn’t done much since the IPO and seems to tarde close to NAV . “Pass”.
Argeo is an 8 mn EUR market cap company that was IPOed in 2021. The company is active in fancy sounding seismic analysis activities. Unfortunately, the fancy technology does not translate in earnings but increasing losses. The stock lost more than -75% from the IPO and the company just had to issue new shares. “Pass”.
33. Hexagon Purus
Hexagon Purus ASA, a 520 mn EUR market cap stock sounds like an “Energy transation dream”: Accroding to the Euronext page, the company “is specialized in the manufacture and marketing of Type 4 composite tanks for high pressure hydrogen storage. The group also manufactures battery packs, electric drive systems, components and battery systems for electric and hybrid vehicles.”
There is nothing better than starting a year with looking at 15 “fresh” and randomly selected Norwegian shares. Three of them made it onto my preliminary watch list. As always, I am more than happy to get my reader’s input in the comments as these are quite rapid analysis and I most likely miss a lot of interesting things. Let’s go:
16. Melhus Sparebank
Melhus is a 43 mn EUR market cap local savings bank. The stock trades at around 10x earnings, pays a 6% dividend but hasn’t moved much for the last 20 years. EPS is oscillating in a range since 20 years, too. “Pass”.
17. Europris ASA
Europris is a 1,1 bn EUR market cap retailer that sells “discount variety” items in Norway, both through a chain of 300 stores but also online.
AT 12x earnings, the stock doesn’t look expensive and according to TIKR, they did 10x their EBIT since 2013. The company IPOed in 2015 and looking at the chart, they seem to have done quite well for a retailer, especially in the last few years despite Covid Read more
Good bye Denmark, hello Norway !! As with previous series (Germany, Switzerland & Denmark) I will tackle the Norwegian shares in random order. The main reason for this is that I find this funnier compared to working down the list in Alphabetic order. The first batch of 15 stocks has resulted in two watch list candidates. Let’s go !
Kahoot! is 1,1 bn EUR market cap former “growth darling” that was part of many “naive Tech investor” portfolios. Kahoot! is an online learning platform that addresses both, private customers as well as the corporate learning market. As many other Tech companies the financial report is a gibberish of Non-GAAP adjusted numbers. On a GAAP level, the company is loss making and cash seems to be shrinking. At 7x P/S this still looks much to expensive. “Pass”.