Mowi ASA (MHGVY) AI Stock Analysis

• Market Cap: $12.21B
• Dividend Yield: 2.63%
• Average Volume (3M): 660.00
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.77
• Revenue Growth: 3.89%
• EPS Growth: -4.73%
• Country: US
• Employees: 11,473
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.15
• Shares Outstanding: 527,290,600
• 10 Day Avg. Volume: 1,982
• 30 Day Avg. Volume: 660
• PEG Ratio: 3.11
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 15.64
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 5.47
• Enterprise Value/Ebitda: 13.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $24.00 ▲(5.12% Upside)

Mowi ASA's overall stock score reflects strong financial performance and positive earnings call highlights, including record harvest volumes and cost reductions. Technical analysis suggests a neutral trend, while valuation indicates potential overvaluation. The company's strategic acquisitions and operational efficiencies contribute positively, despite challenges in market prices and regional biological issues.

Positive Factors

Revenue Growth

Record harvest volumes indicate strong demand and operational capability, supporting sustained revenue growth and market leadership.

Operational Efficiency

Cost reductions enhance profitability and competitiveness, allowing Mowi to maintain margins despite market price fluctuations.

Strategic Acquisitions

The Nova Sea acquisition expands capacity and synergies, strengthening Mowi's market position and long-term growth prospects.

Negative Factors

Profit Margin Decline

Declining profit margins may pressure financial performance, requiring strategic adjustments to maintain profitability.

Biological Challenges

Biological issues in Canada pose risks to production stability and profitability, necessitating effective management strategies.

Soft Market Prices

Soft market prices can erode profit margins, challenging Mowi's ability to sustain earnings growth in a competitive market.

Mowi ASA Business Overview & Revenue Model

Company Description

Mowi ASA, a seafood company, produces and supplies farmed salmon products worldwide. The company operates through three segments: Feed, Farming, and Sales and Marketing. It is involved in the salmon feed production, salmon farming and primary processing, and seafood secondary processing activities. The company offers whole gutted fish, including Label Rouge and organic salmon; and white fish and other seafood products, as well as fillets, steaks, cutlets, portions, loins, kebabs, and steak combos. It also provides value added products, such as breaded, pre-fried, dusted, marinated, grilled, battered, topped, filled with sauce, delicatessen, fresh fish ready meal, and smoked fish products. The company offers its products under the Mowi, Mowi Salmon, Donegal Silver, Admiral's, Pieters, Laschinger, Kritsen, Ducktrap River, Harbour Salmon Co., Rebel Fish, Supreme Salmon, Olav's, Northern Harvest, and Mowi Nutrition brand names. The company was formerly known as Marine Harvest ASA and changed its name to Mowi ASA in December 2018. Mowi ASA was founded in 1964 and is headquartered in Bergen, Norway.

How the Company Makes Money

Mowi ASA generates revenue primarily through the sale of farmed Atlantic salmon, which is its core product. The company has multiple revenue streams including wholesale sales of whole fish, fillets, and processed products, as well as value-added items such as ready-to-eat meals and seafood snacks. Additionally, Mowi engages in international trading and exports, significantly boosting its earnings. The company benefits from long-term contracts with retailers and food service operators, ensuring a stable demand for its products. Furthermore, Mowi's focus on sustainability and innovation helps to enhance its brand value and attract environmentally-conscious consumers, contributing to its overall revenue growth.

Mowi ASA Financial Statement Overview

Summary

Mowi ASA shows strong financial health with consistent revenue growth and efficient cash flow management. Despite declines in profit margins and return on equity, the company maintains a stable balance sheet and demonstrates effective operational efficiency.

Income Statement

Mowi ASA has demonstrated consistent revenue growth, with a TTM revenue growth rate of 4.3%. However, the gross profit margin has slightly decreased from 50.04% in 2024 to 44.61% in TTM. The net profit margin also declined from 8.36% in 2024 to 5.79% in TTM. Despite these declines, the company maintains a solid EBIT margin of 10.15% and an EBITDA margin of 18.15% in TTM, indicating stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively stable at 0.70 in TTM, indicating a balanced approach to leveraging. However, the return on equity has decreased from 12.20% in 2024 to 8.75% in TTM, reflecting a decline in profitability. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Mowi ASA's free cash flow has grown by 9.56% in TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is robust at 0.88, indicating efficient cash conversion. The free cash flow to net income ratio of 0.61 in TTM further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.69B	5.60B	5.51B	4.91B	4.17B	3.73B
Gross Profit	2.53B	2.80B	2.53B	2.67B	2.09B	1.62B
EBITDA	1.02B	1.22B	1.42B	1.44B	1.03B	521.80M
Net Income	335.30M	468.50M	444.40M	782.40M	487.60M	117.50M
Balance Sheet
Total Assets	8.07B	8.55B	8.24B	7.53B	6.26B	5.85B
Cash, Cash Equivalents and Short-Term Investments	226.60M	276.70M	292.10M	176.90M	103.10M	100.30M
Total Debt	2.65B	2.68B	2.57B	2.40B	1.88B	2.10B
Total Liabilities	4.28B	4.55B	4.48B	3.84B	3.13B	3.08B
Stockholders Equity	3.63B	3.84B	3.59B	3.51B	3.13B	2.76B
Cash Flow
Free Cash Flow	575.10M	542.40M	595.90M	309.60M	588.40M	186.90M
Operating Cash Flow	939.70M	916.60M	992.20M	644.80M	833.10M	502.70M
Investing Cash Flow	-329.10M	-332.10M	-413.60M	-469.40M	-133.70M	-283.40M
Financing Cash Flow	-561.20M	-598.30M	-458.20M	-99.90M	-706.60M	-238.10M

Mowi ASA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 22.83 is above the 20-day moving average (MA) of 22.41, above the 50-day MA of 22.32, and above the 200-day MA of 19.89, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 58.28 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHGVY.

Mowi ASA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHGVY	71 Outperform	$12.21B	27.58	10.46%	2.63%	3.89%	-4.73%
FDP	69 Neutral	$1.75B	22.30	3.95%	3.15%	1.11%	414.23%
SFD	69 Neutral	$8.54B	9.86	―	4.44%	―	―
BG	66 Neutral	$17.69B	9.83	10.24%	2.99%	10.29%	17.32%
DOLE	63 Neutral	$1.46B	50.11	8.75%	2.17%	7.09%	-83.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TSN	62 Neutral	$19.96B	42.34	2.60%	3.36%	2.12%	-40.75%

Mowi ASA Corporate Events

Mowi ASA Reports Strong Earnings Amid Market Challenges

Mowi ASA’s recent earnings call painted a picture of resilience and strategic foresight, marked by strong sales and profit achievements despite facing industry-wide challenges. The company demonstrated robust cost management and operational efficiency, particularly in its Consumer Products and Feed divisions. However, the quarter was not without its hurdles, as Mowi contended with price pressures due to high supply growth and operational challenges in its Canadian and Arctic operations. Nevertheless, Mowi’s increased volume guidance and cost control measures suggest a positive outlook moving forward.

Mowi ASA Reports Record Revenue Amid Strong Growth

Mowi ASA is a leading global seafood company specializing in the production of farmed salmon, operating across various regions including Norway, Scotland, and Chile. The company is known for its integrated value chain and commitment to sustainable aquaculture practices.