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Mowi ASA (MHGVY)
OTHER OTC:MHGVY
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Mowi ASA
(OTC:MHGVY)
78Outperform
Mowi ASA (MHGVY) vs. S&P 500 (SPY)
Market Cap
$9.19B
Dividend Yield2.54%
Average Volume (3M)2.97K
Price to Earnings (P/E)18.4
Beta (1Y)0.79
Revenue Growth1.84%
EPS Growth7.25%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength93
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.98
Shares Outstanding517,111,000
10 Day Avg. Volume0
30 Day Avg. Volume2,966
Financial Highlights & Ratios
PEG Ratio2.54
Price to Book (P/B)N/A
Price to Sales (P/S)1.80
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mowi ASA Business Overview & Revenue Model
Company DescriptionMowi ASA, formerly known as Marine Harvest ASA, is a globally leading seafood company specializing in the production and distribution of farmed salmon. Headquartered in Bergen, Norway, Mowi operates across several sectors including feed production, fish farming, and seafood processing. The company is renowned for its comprehensive supply chain, which encompasses breeding, hatcheries, farming, harvesting, and processing of salmon, enabling it to deliver high-quality seafood to markets worldwide.
How the Company Makes MoneyMowi ASA generates revenue primarily through the farming and sale of Atlantic salmon. The company operates a vertically integrated business model, which means it controls all aspects of its production process from feed manufacturing to fish farming and processing. Key revenue streams include the sale of fresh and frozen salmon and value-added seafood products to retailers, foodservice operators, and wholesalers across the globe. Additionally, Mowi has strategically invested in the production of fish feed, which not only supports its own operations but can also be sold to other fish farming entities. Significant partnerships and long-term supply agreements with major retailers and distributors also contribute to Mowi's earnings, allowing the company to secure steady demand for its products.
Mowi ASA Financial Statement Overview
Summary
Mowi ASA demonstrates strong financial health with robust revenue growth and efficient cash flow management. While the zero EBIT margin is a concern, the solid balance sheet provides stability.Income Statement
Mowi ASA demonstrated strong revenue growth over the past years, with a notable increase from 2023 to 2024. The company has maintained a robust gross profit margin, highlighting efficient cost management. However, the EBIT margin in 2024 was zero, which is unusual compared to previous years and suggests operational challenges. Despite this, the net profit margin has improved, reflecting effective financial management.78
Positive
Balance Sheet
The balance sheet shows a healthy equity position, with stockholders' equity growing steadily. The debt-to-equity ratio appears manageable, indicating a balanced approach to leveraging. Return on equity has slightly declined but remains at a reasonable level. The equity ratio suggests a solid asset base backed by equity, though there is a significant level of total liabilities.75
Positive
Cash Flow
Mowi ASA's cash flow statement reveals strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation. The free cash flow remains healthy, despite slight fluctuations in capital expenditures. Free cash flow growth was negative from 2023 to 2024, yet the cash flow to net income ratios are favorable, showcasing effective cash utilization.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.60B | 5.51B | 4.91B | 4.17B | 3.73B | Gross Profit |
| 2.80B | 2.53B | 2.67B | 2.09B | 1.62B | EBIT |
| 0.00 | 1.91B | 1.12B | 737.40M | 203.50M | EBITDA |
| 1.22B | 1.42B | 1.44B | 1.03B | 521.80M | Net Income Common Stockholders |
| 468.50M | 444.40M | 782.40M | 487.60M | 117.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 290.20M | 292.10M | 176.90M | 103.10M | 100.30M | Total Assets |
| 8.55B | 8.24B | 7.53B | 6.26B | 5.85B | Total Debt |
| 2.68B | 2.57B | 2.40B | 1.88B | 2.10B | Net Debt |
| 2.38B | 2.28B | 2.23B | 1.78B | 2.00B | Total Liabilities |
| 4.55B | 4.48B | 3.84B | 3.13B | 3.08B | Stockholders Equity |
| 3.84B | 3.59B | 3.51B | 3.13B | 2.76B |
| Cash Flow | Free Cash Flow | |||
| 542.40M | 595.90M | 309.60M | 588.40M | 186.90M | Operating Cash Flow |
| 916.60M | 992.20M | 644.80M | 833.10M | 502.70M | Investing Cash Flow |
| -332.10M | -413.60M | -469.40M | -133.70M | -283.40M | Financing Cash Flow |
| -598.30M | -458.20M | -99.90M | -706.60M | -238.10M |
Mowi ASA Technical Analysis
Positive
18.53
Price Trends
18.58
Negative
18.35
Positive
17.75
Positive
Market Momentum
-0.10
Negative
55.81
Neutral
96.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHGVY, the sentiment is Positive. The current price of 18.53 is above the 20-day moving average (MA) of 17.83, below the 50-day MA of 18.58, and above the 200-day MA of 17.75, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 96.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHGVY.
Mowi ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $14.58B | 31.88 | 10.65% | ― | 6.41% | -2.01% | |
78 Outperform | $9.19B | 18.42 | 12.71% | 2.54% | 1.84% | 7.25% | |
76 Outperform | $12.94B | 11.95 | 28.70% | ― | 2.93% | 237.51% | |
76 Outperform | $21.44B | 20.31 | 5.74% | 3.19% | 1.27% | ― | |
75 Outperform | $12.16B | 32.20 | 9.54% | ― | 3.85% | -9.74% | |
73 Outperform | $5.03B | 22.61 | 30.13% | ― | 7.50% | 13.70% | |
64 Neutral | $9.28B | 14.55 | 4.62% | 186.42% | 3.98% | 5.64% |
* Consumer Defensive Sector Average
Performance Comparison
MHGVY
Mowi ASA
18.53
1.58
9.32%
LOPE
Grand Canyon Education
174.95
45.04
34.67%
PPC
Pilgrim's Pride
53.97
22.18
69.77%
TSN
Tyson Foods
61.42
2.46
4.17%
PFGC
Performance Food Group
80.77
11.86
17.21%
USFD
US Foods Holding
64.63
14.21
28.18%
Mowi ASA Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -4.39% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call reveals a predominantly positive sentiment with record-breaking achievements in harvest volumes and revenue, successful acquisition of Nova Sea, and strong sustainability recognition. While there are challenges in specific regions and potential tariff concerns, the overall outlook remains optimistic.Highlights
Record-Breaking Year for Mowi
Mowi achieved a milestone by surpassing 500,000 tonnes in harvest volumes for the first time in its 60-year history, reflecting a growth of 5.7% year-over-year. Revenue reached a record high of €5.62 billion.
Acquisition of Nova Sea
Mowi acquired the remaining shares of Nova Sea, a leading salmon farmer, for NOK 8.2 billion (€694 million). The acquisition is expected to add significant synergies and increase harvest volumes to 600,000 tonnes by 2025.
Sustainability Recognition
Mowi was ranked the world's most sustainable animal protein producer by the Coller FAIRR Initiative for the sixth consecutive year.
Strong Performance in Consumer Products and Feed
Consumer Products achieved a record operational profit of €53 million, while Mowi Feed also reached record highs with an operational EBITDA of €21 million in Q4 and €62 million for the year.
Lowlights
Challenges in Mowi Ireland
Mowi Ireland was loss-making in the fourth quarter due to very low harvest volumes and issues with Rickettsia.
Biological Issues in Region Mid, Norway
Region Mid in Norway faced challenges due to string jellyfish and gill issues, resulting in a low and expensive biomass.
Potential Tariff Concerns
Tariffs on Canadian salmon into the U.S. were postponed, but the situation remains unstable, posing a potential risk to Mowi's operations.
Company Guidance
During the call, Mowi provided substantial guidance on various metrics for its future operations. The company reported a record-breaking year in 2024, achieving a harvest volume of 502,000 tonnes, marking a 5.7% growth year-over-year, which is significant given the industry's overall growth of just 1%. This translated to a record turnover of €5.62 billion. Mowi has increased its harvest volume guidance for 2025 to 530,000 tonnes, up from the originally projected 520,000 tonnes, reflecting another 5.7% growth. With the acquisition of Nova Sea, Mowi anticipates reaching 600,000 tonnes next year, ahead of its 2029 target, now revised to 650,000 tonnes. Additionally, Mowi expects significant cost synergies from the acquisition, estimating NOK 400 million in savings, and reported an operational profit of €226 million in Q4 with €1.50 billion in operating revenues. The company also noted a decrease in feed prices, contributing to reduced farming costs and expected to continue positively impacting 2025 costs. In terms of financial health, Mowi's net interest-bearing debt was €1.87 billion at year-end, with an equity ratio of 46%, and the company announced a quarterly dividend of NOK 2 per share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.