Monday, February 26, 2024

All Norwegian Shares Half 4 – Nr. 46-60


It’s nonetheless January and I’ve managed to have a look at already 60 Norwegian corporations, so that is good progress. This time, 6 corporations made it onto the watxh record, though I’d not contemplate any of them a powerful candidate. Let’s go:

46. Itera

Itera is a 108 mn EUR market cap IT consulting firm. The corporate has managed to develop topline constantly which is mirrored in a comparatively excessive valuation with a P/E within the mid 20s.

If I perceive the enterprise mannequin appropriately, a sinificant half is “near-shoring” IT workers in Japanese Europe.

The corporate was IPOed within the heydays of the dotcom growth and wanted a few years to regain the share prcie degree from again then as we will see within the chart:

Itera chart

Sadly, in Q3 2022, the corporate noticed a drop of round -50% in working margins and the ebook to invoice ratio dropped considerably. As a possible small competitor to Bouvet, I’ll put them on “watch” however.

47. SmartCraft

Smartcraft is a 300 mn EUR market cap SaaS Software program firm that provids options for Craftsmen and the development sector. The corporate IPOed in June 2021, however aside from many IPO peer from that classic, the inventory has performed OK, buying and selling across the IPO value.

Which may should do with the truth that the corporate is definitely worthwhile with first rate margins (20% internet margins). Nevertheless, the inventory ios fairly costly, at round 40x trailing earnungs and 9x gross sales. That is fairly far exterior my comoft zone, subsequently I’ll “go”.

48. Hynion

Hynion is a 6 mn EUR market cap nano cop that IPOed in 2021 and has misplaced 3/4 of its worth since then. The corporate is working a number of Hydrogen fueling stations in Norway and Sweden. Little income, giant losses and a current capital improve. “Cross”.

49. Bergen Carbon Sol

Bergen Carbon is a 32 mn EUR market firm that’s lively within the “manufacturing of carbon nanofibers utilizing CO2 and hydroelectricity and primarily based on electrolysis course of expertise. Carbon nanofibers are a fabric with functions starting from vitality storage, protecting clothes, flame retardant to grease spill remediation.”

Once more an 2021 Classic IPO that has misplaced cash, however just one/3. The corporate appears to be “pre business scale” with out revenues however claims that they’re on a great way to provide enter materials for batteries through a novel, vitality environment friendly course of.

For some purpose, the received a brand new CEO in January 2023. Though it sounds sort of attention-grabbing, this appears early stage enterprise. “Cross”.

50. AEGA

AEGA is a 6 mn EUR market cap firm is proudly owning a few small photo voltaic belongings. They do have revenues however backside line they’re making growing losses. “Cross”.

51. Smartoptics Group

Smartoptics is a 180 mn EUR market cap firm that’s providing “progressive optical networking options and units for the brand new period of open networking”. Once more a 2021 IPO, nevertheless this time the inventory nearly doubled:

smartoptics chart

The corporate is rising and worthwhile. They’re guiding for “long-term income ambition of USD 100 million by 2025/2026 and an EBITDA margin of 17-20%.”. The inventory shouldn’t be low cost but additionally nut tremendous costly. I’ve little exeprience on this space nevertheless it sounds attention-grabbing sufficient to “watch”.

52. Nortel

Nortel is a 33 mn EUR market cap specialised TelCo catering to companies. Once more a 2021 IPO, however one which roughly trades round its IPO value. The corporate is a younger enterprise, based in 2019. Gross margins turned posiive in 2021. In 2022, the corporate growed for the primary 9M by 2,5x and there appears to be some scale impact and in Q3 even EBITDA turned optimistic.

Sadly the corporate solely studies in Norwegian, however by some means I discover it attention-grabbing. “Watch”.

53. Sunndal Sparebank

Sunndal is a ~25 mn EUR market cap native financial savings firm that appears to supply a very juicy dividend yield. Enterprise appears to be going fairly nicely. The corporate appears to have IPOed in 2018. Nevertheless, as I’m not eager on native financial savings financial institution, I’ll “go” once more right here as nicely.

54. IDEX Biometrics

IDEX is a 100 mn EUR market cap firm that “engages within the design, improvement, and sale of fingerprint authentication options in Europe, the Center East, Africa, the Americas, and the Asia-Pacific areas”. The corporate has little or no in gross sales, is making losses and share rely will increase shortly. “Cross”.

55. Pioneer Property

Pioneer is a 43 mn EUR market cap property firm that owns property in Norway, Sweden, Poland and the Netherland. For the final 5 years, the inventory traded in a band between 95-105 NOKs per share by way of each disaster which may be very unusual. Not my space of competence, “go”.

56. Equinor

Equinor is a 97 bn EUR market cap Vitality juggernaut that in the first place sight appears ridiculously low cost at round 1x EV/EBITDA and ~5x P/E.

Nevertheless, one crucial factor to say right here is that each mutliple earlier than tax is fairly meaningless, as a result of Equinor, regardless of 70% Authorities owned, is topic to an addtional “petroleum tax” on prime of the conventional revenue tax which provides as much as round 60-70% taxes.

Equinor is basically one of many foremost beneficieries  of the Russia/Ukraine warfare, as Norway is the plain participant to fill a part of the gaps for nazural gasoline at very excessive costs. A have a look at the chart reveals that a few of that’s clearly included within the share value because the inventory trippled over the past 12 monhts:

Equinor Chart

Equinor appears to have a fairly conservative dividend coverage, so shareholders shouldn’t count on to instantly take part within the windfall earnings. They appear to have began shopping for again shares. Curiously, variety of shares have been growing from 2015 to 2020.

I’m not an enormous fan of investing into this type of “growth time” scenario, however I feel it clearly is sensible to “watch” equinor as they supply actually good inforamtaion to buyers in regards to the vitality markets.

57. Volue

Volue is a 407 mn EUR market cap “worldwide supplier of business-critical software program and expertise companies for the vitality, energy grid and infrastructure markets”. That sounds attention-grabbing. The corporate went public in 2020 and now trades across the IPO value:

Volue chart

As many software program companies, Volue shouldn’t be actual worth (excuse the plain wordply) at an P/E of round 37x for 2023. Volue appears to be the results of a merger of 4 corporations. They appear to remodel in direction of a SaaS mannequin and have formidable targets:

Volue targets

60% of the corporate is owned by a puclic listed funding firm known as Arendals Fossekompani.

Regardless of the excessive valuation, I feel that is one to “watch”.

58. Arendals Fossekompani

I’ve overruled the random inventory selector and chosen Volues (Nr. 37) majority shareholder as subsequent goal manually, so long as my reminiscence stays contemporary.

As talked about above, Arendals owns 60% of Volue and has itself a market cap of 1,4 bn EUR. The corporate is lively in very divergent areas, amongst different they appear to run hydro energy crops, 3D Printing and different stuff.

The inventory chart appears attention-grabbing:

Arendals

In addition they personal 71% of one other listed firm known as Tekna. In precept, it sounds very attention-grabbing what they’re doing, nevertheless it additionally appears like actually onerous to worth. They appear to have a superb observe document in worth creation, however as an illustration the Tekna subsidiary misplaced -75% in worth since their IPO 1 yr in the past. The earlier CEO has jsut resigned after solely 3 years which isn’t 100% optimistic. Nonetheless, I give them the good thing about doubt and put them on “watch”.

59. Tekna Holding

Whereas I’m at it, I overrule the random gsnerator a second time and transfer on on to Tekna, the opposite Holding of Arendals (71%). Tekna is a 70 mn market cap firm that was Ipoed in 2021 however has misplaced nearly -75% since then. Tekna claims to be a “a number one provider of superior micro- and nanomaterials for 3D printing, in addition to the electronics and battery business.” This sounds attractive however is but not worthwhile.

Development is comparatively gradual, round +6% in Q3 2022 and the corporate signifies that they want addtional financing in 2023. So perhaps the expertise is attention-grabbing, however up to now this doesn’t appear to be a slam dunk. “Cross”.

60. PCI Biotech

Because the title says, this 11 mn EUR market cap firm that’s “specializing in improvement and commercialisation of novel therapies for the therapy of most cancers by way of its progressive photochemical internalisation”. I’ve no clue what which means. What I do perceive is that the corporate has little or no income however important and constant losses. “Cross”.

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