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Mowi ASA (MHGVY)
:MHGVY
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Mowi ASA
(OTC:MHGVY)
Rating:78Outperform
Price Target:
$22.50
▲(10.08% Upside)
Mowi ASA (MHGVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.30B
Dividend Yield3.18%
Average Volume (3M)1.06K
Price to Earnings (P/E)28.4
Beta (1Y)0.73
Revenue Growth5.12%
EPS Growth-31.06%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength61
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.27
Shares Outstanding517,111,000
10 Day Avg. Volume2,606
30 Day Avg. Volume1,064
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue2.31
Enterprise Value/Gross Profit5.52
Enterprise Value/Ebitda12.70
Forecast
1Y Price Target
$22.50Price Target Upside10.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Mowi ASA Business Overview & Revenue Model
Company DescriptionMowi ASA is a leading global seafood company headquartered in Norway, primarily engaged in the farming, processing, and distribution of Atlantic salmon. As one of the largest producers of farmed salmon in the world, Mowi operates in several sectors including aquaculture, fish feed production, and seafood processing. The company offers a range of products, including fresh, frozen, and smoked salmon, catering to both retail and food service markets. Mowi is committed to sustainable practices and innovation within the aquaculture industry, ensuring high-quality offerings that meet global consumer demand.
How the Company Makes MoneyMowi ASA generates revenue primarily through the sale of farmed salmon and related seafood products. The company's revenue model is driven by several key streams: direct sales of whole fish, processed products, and value-added offerings such as smoked and ready-to-eat meals. Mowi benefits from long-term contracts with major retailers and food service companies, which provide stable revenue. Additionally, the company invests in sustainable aquaculture practices, which enhance its brand value and marketability. Strategic partnerships with retailers and distributors further bolster its market reach and revenue potential. Fluctuations in global salmon prices, production volumes, and operational efficiency also significantly impact Mowi's earnings.
Mowi ASA Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: 2.82%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales, profit, and cost management achievements, with notable performances in Consumer Products and Feed divisions. However, the quarter experienced significant pressure on prices due to high supply growth, and challenges in Canadian and Arctic operations. Despite these challenges, Mowi's increased volume guidance and cost control measures present a positive outlook.Q2-2025 Updates
Positive Updates
Record-High Sales and Operational Profit
Mowi reported seasonally record-high sales of EUR 1.39 billion and an operational profit of EUR 189 million, driven by record harvest volumes of 133,000 tonnes, up 21% year-over-year.
Strong Cost Management
Lower realized blended farming costs significantly contributed EUR 49 million to quarterly earnings and EUR 67 million year-to-date, with production costs down by EUR 0.45 year-over-year to EUR 5.39 per kilo.
Impressive Performance of Consumer Products and Feed Divisions
Consumer Products reported an operational profit of EUR 52 million, more than doubling from the previous year, while Mowi Feed achieved seasonally record-high operational EBITDA of EUR 40 million.
Increased Farming Volume Guidance
Mowi increased its farming volume guidance from 530,000 tonnes to 545,000 tonnes for the year, with expectations of harvesting at least 600,000 tonnes next year.
Negative Updates
Pressure on Prices
The industry faced seasonally record-high supply growth of 18% year-over-year, which put pressure on prices throughout the quarter.
Challenges in Mowi Canada
Mowi Canada reported a decline in operational profit from EUR 7 million to EUR 2 million year-over-year, with seasonal issues like algae and low dissolved oxygen affecting performance.
Negative Profit in Arctic Fish Operations
Arctic Fish reported a negative operational profit of EUR 5 million due to low harvest volumes and soft prices, despite reasonably good biological performance.
Company Guidance
In the recent call, Mowi provided guidance for its fiscal year 2025, reporting record-high industry supply growth of 18% year-over-year in Q2, a figure not seen since 2012, impacting prices. Mowi achieved a seasonal record-high harvest volume of 133,000 tonnes, marking a 21% increase year-over-year, translating into sales of EUR 1.39 billion and an operational profit of EUR 189 million. The company reduced its realized production costs to EUR 5.39 per kilo, down EUR 0.45 year-over-year, contributing EUR 49 million to earnings in Q2. Mowi raised its annual farming volume guidance to 545,000 tonnes, an 8.7% increase year-over-year, and anticipates a 10% growth next year with a target of 600,000 tonnes. The Board declared a quarterly dividend of NOK 1.45 per share. The company also reported a net interest-bearing debt of EUR 1.90 billion, with an underlying earnings per share of EUR 0.25 and an annualized return on capital employed at 13.3%.Mowi ASA Financial Statement Overview
Summary
Mowi ASA exhibits strong financial performance with consistent revenue growth and robust operational efficiency. Despite a decline in profitability margins, they remain healthy. The balance sheet is solid with manageable leverage, though rising debt levels require monitoring. Cash flows are strong, supporting operational and investment needs.Income Statement
Mowi ASA demonstrates solid revenue growth with a TTM revenue of $5.63 billion, up from $5.50 billion in the previous year. The gross profit margin is healthy at approximately 41.8%, although it has declined from the previous year's 50.0%. Net profit margin decreased to 5.8% in the TTM from 8.4% annually, indicating some pressure on net earnings. EBIT and EBITDA margins remain robust at 16.2% and 18.1% respectively, reflecting operational efficiency despite a slight drop from previous periods.78
Positive
Balance Sheet
The balance sheet shows a stable equity position with a stockholders' equity of $3.74 billion. The debt-to-equity ratio stands at 0.70, reflecting a moderate level of leverage. The equity ratio is 45.8%, indicating a solid asset base backed by equity. However, there is a slight increase in total debt, which could pose a risk if not managed carefully.72
Positive
Cash Flow
Mowi ASA has a strong cash flow position, with operating cash flow at $881.2 million in the TTM. Free cash flow remains positive at $524.9 million, although it has decreased slightly from the previous year. The operating cash flow to net income ratio is healthy at 2.71, suggesting efficient cash conversion from net income. The free cash flow to net income ratio is 1.61, indicating effective capital expenditure management.80
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 |
| EBITDA | 1.22B | 1.42B | 1.44B | 1.03B | 521.80M |
| Net Income | 468.50M | 444.40M | 782.40M | 487.60M | 117.50M |
Balance Sheet | |||||
| Total Assets | 8.55B | 8.24B | 7.53B | 6.26B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 276.70M | 292.10M | 176.90M | 103.10M | 100.30M |
| Total Debt | 2.68B | 2.57B | 2.40B | 1.88B | 2.10B |
| 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
20.44
Price Trends
19.22
Positive
18.66
Positive
18.44
Positive
Market Momentum
0.27
Negative
68.06
Neutral
96.57
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 20.44 is above the 20-day moving average (MA) of 19.44, above the 50-day MA of 19.22, and above the 200-day MA of 18.44, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 96.57 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.30B | 28.41 | 8.83% | 3.18% | 5.12% | -31.06% | |
77 Outperform | $15.98B | 7.98 | 13.20% | 3.35% | -8.87% | 13.21% | |
76 Outperform | $1.76B | 11.72 | 7.49% | 3.19% | 1.41% | ― | |
71 Outperform | $9.89B | ― | 2.93% | ― | ― | ||
69 Neutral | $19.78B | 25.20 | 4.31% | 3.52% | 1.99% | ― | |
63 Neutral | $1.36B | 57.32 | 8.29% | 2.27% | 4.75% | -88.74% | |
63 Neutral | $20.95B | 14.50 | -4.08% | 3.12% | 2.72% | -11.24% |
* Consumer Defensive Sector Average
Performance Comparison
MHGVY
Mowi ASA
20.44
3.01
17.27%
BG
Bunge Global
83.40
-11.89
-12.48%
FDP
Fresh Del Monte Produce
35.80
8.34
30.37%
TSN
Tyson Foods
56.97
-4.45
-7.25%
DOLE
Dole
14.41
-1.04
-6.73%
SFD
Smithfield Foods
25.71
5.90
29.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.