Verdsettelse av SalMar ASA

Stephanie Namtvedt & Stephanie J. Graverholt

Student thesis: Master thesis


Aiming for further growth f SalMar reported Q1 EBIT of 485m and a farming EBIT of 18,9 per kilo. This beats its peers, and SalMar has now regained its margin-leading position in Norway. The company was the most aggressive bidder for new green licenses, taking more than 50% in the auction at an estimated price of NOK 494m. Based on this together with unutilized capacity in Villa Organic, we expect a solid volume growth from 2014-2017. Harvesting from previous M&A's n The company had an aggressive M&A profile in recent years, and the time has come to start harvesting from this. SalMar has planned for strong and profitable growth in the years to come, following the recent acquisitions of Villa Organic and 8 green licenses. These are realizing most of its growth potential in years during which we expect record high salmon prices. This seems to be well timed, and a key value driver in the years we are entering. Costs per kilo significantly up the last years d Earnings were negatively affected by increased production costs. Cost per kilo has increased from 19,5 in 2007 to 37,1 in 2013. Feed and biology accounts for much of the change. Heavy investments in R&D, has resulted in a far better survival rate in 2013. In addition, feed price is expected to stabilize at a slightly lower level in the future. Tight supply to keep 2014E and 2015E prices high d We expect salmon prices to remain strong for the next 3 years, due to limited increase in supply and a continued demand growth. Prospects and market signals indicate that the salmon market will be stronger for a longer period this time. Buy recommendation based on higher volume- and price forecast d We believe that the current share price represents an attractive entry opportunity for investors, and we therefore have a buy recommendation on SalMar. The target price is set to 97,7, which yields an upside potential of 13,3%, based on the current pricing. We also expect that SalMar will improve some of its production costs, and keep its cost leader position in Norway.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2014
Number of pages159