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Mowi ASA (MHGVY)
OTHER OTC:MHGVY
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Mowi ASA
(OTC:MHGVY)
Rating:75Outperform
Price Target:
$23.00
▲(5.31% Upside)
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.
Cash Generation
Strong cash generation enhances financial flexibility, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.
Volume Guidance Increase
Raising volume guidance reflects confidence in operational capabilities and market demand, suggesting potential for increased revenue and market share.
Negative Factors
Declining Profit Margins
Declining profit margins can impact profitability, indicating potential challenges in cost management or pricing power, affecting long-term financial health.
Challenges in Canadian Operations
Operational challenges in Canada, such as seasonal issues, can hinder regional performance and require strategic adjustments to maintain profitability.
Negative Profit in Arctic Fish Operations
Negative profitability in Arctic operations highlights regional vulnerabilities and the need for improved operational strategies to ensure sustainable growth.
Mowi ASA (MHGVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.30B
Dividend Yield2.85%
Average Volume (3M)10.82K
Price to Earnings (P/E)30.6
Beta (1Y)0.73
Revenue Growth5.12%
EPS Growth-31.06%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength41
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.29
Shares Outstanding517,111,000
10 Day Avg. Volume5,409
30 Day Avg. Volume10,816
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.28
Enterprise Value/Gross Profit5.13
Enterprise Value/Ebitda12.78
Forecast
1Y Price Target
$23.00Price Target Upside5.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Mowi ASA Business Overview & Revenue Model
Company DescriptionMowi 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 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: |
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 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.75
Positive
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.70
Positive
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.80
Positive
| 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
Positive
21.84
Price Trends
19.60
Positive
19.02
Positive
18.57
Positive
Market Momentum
0.48
Negative
77.82
Negative
97.66
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 21.84 is above the 20-day moving average (MA) of 20.34, above the 50-day MA of 19.60, and above the 200-day MA of 18.57, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 77.82 is Negative, neither overbought nor oversold. The STOCH value of 97.66 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.39B | 8.22 | 13.20% | 3.37% | -8.87% | 13.21% | |
76 Outperform | $1.72B | 11.33 | 7.49% | 3.21% | 1.41% | ― | |
75 Outperform | $11.30B | 30.64 | 8.83% | 2.85% | 5.12% | -31.06% | |
71 Outperform | $9.50B | ― | 3.06% | ― | ― | ||
66 Neutral | $19.33B | 24.63 | 4.31% | 3.57% | 1.99% | ― | |
62 Neutral | $20.56B | 14.66 | -3.18% | 3.15% | 1.93% | -6.58% | |
62 Neutral | $1.33B | 53.99 | 8.29% | 2.32% | 4.75% | -88.74% |
* Consumer Defensive Sector Average
Performance Comparison
MHGVY
Mowi ASA
21.85
4.62
26.81%
BG
Bunge Global
81.94
-12.13
-12.89%
FDP
Fresh Del Monte Produce
35.80
7.96
28.59%
TSN
Tyson Foods
56.08
-3.27
-5.51%
DOLE
Dole
13.98
-1.91
-12.02%
SFD
Smithfield Foods
24.43
4.62
23.32%
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.