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Mowi ASA (MHGVY)
OTHER OTC:MHGVY
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Mowi ASA
(OTC:MHGVY)
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Rating:67Neutral
Price Target:
$26.00
▲(17.59% Upside)
Action:DowngradedDate:02/18/26
The score is driven by a financially sound but cyclical profile (margin compression, higher leverage and softer cash conversion), balanced by constructive technical momentum and a positive earnings call featuring higher 2026 volume guidance and sizable cost-savings initiatives. Valuation is reasonable with a modest dividend yield.
Positive Factors
Volume Growth & Scale
Reiterated and growing farming guidance (605k t in 2026, organic target ≥650k t by 2029) points to durable volume-driven scale. Higher harvests spread fixed costs, boost raw supply to downstream units, and underpin long-term revenue stability and operational leverage across the value chain.
Structural Cost Savings / Feed Partnership
A committed feed partnership and a multi-year cost program create a structural margin tailwind. Realizable savings (≥EUR55m p.a. plus broader EUR300–400m potential) should improve unit economics, raise operating leverage, and enhance cash generation durability even if market prices fluctuate.
Financing Strength & Capital Access
Manageable leverage targets, a ~45% equity ratio and successful long-term green bond issuance signal funding depth and resilience. Access to term financing supports planned CapEx and acquisitions, cushions cyclicality, and preserves strategic optionality for integration and efficiency investments.
Negative Factors
Price Cyclicality / Industry Oversupply
The 2025 industry surge (12% supply growth) shows Mowi remains exposed to volatile commodity pricing. Price-driven margin compression can persist across cycles, undermining sustained profitability and cash flow predictability despite operational improvements and cost programs.
Rising Leverage & Weaker Cash Conversion
Leverage is trending up alongside an expanding asset base while free cash flow fell (~14% in 2025) and cash conversion is moderate (~57% of net income). Higher indebtedness with softer cash conversion reduces financial flexibility to fund CapEx, dividends or absorb operational shocks.
Biological & Regional Operational Risk
Material regional setbacks and biological events (Canada loss, gill/plankton issues in Norway, Scotland impacts) create recurring production and cost volatility. Such operational risks can persist and undermine consistent harvests, increase remediation costs, and limit predictable margin expansion.
Mowi ASA (MHGVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.96B
Dividend Yield2.53%
Average Volume (3M)660.00
Price to Earnings (P/E)5.0
Beta (1Y)0.79
Revenue Growth3.89%
EPS Growth-4.73%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.31
Shares Outstanding527,290,600
10 Day Avg. Volume0
30 Day Avg. Volume660
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)2.44
Price to Sales (P/S)1.94
P/FCF Ratio21.54
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit5.21
Enterprise Value/Ebitda9.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.7
Revenue Forecast (FY)$8.11B
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 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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
Overall the call was constructive: the company reported strong operational metrics (record volumes, notable cost reductions, solid quarterly profit and record downstream and feed-year performance) and presented strategic actions (Skretting partnership, continued cost-savings program) that materially improve margins and cash generation prospects. Key negatives relate to 2025 price weakness caused by last year's industry oversupply, a notable regional loss in Canada, biological issues in some regions, and near-term cash absorption from CapEx, working capital and integration of Nova Sea. On balance, the positives — sustainable volume growth, significant cost reductions, a clear feed partnership yielding expected annual savings (EUR 55M) and strong balance sheet metrics — outweigh the lowlights.Q4-2025 Updates
Positive Updates
Quarterly Operational Profit and Record Revenues
Q4 operational EBIT of EUR 213 million on record-high operating revenues of EUR 1.59 billion; demonstrates strong quarter-level profitability despite market headwinds.
Record and Growing Harvest Volumes
Q4 harvest volumes of 152,000 tonnes (slightly above guidance). Full-year 2025 harvest of 559,000 tonnes, up 11.4% year-over-year; 2026 farming guidance of 605,000 tonnes (up 8.3% YoY) and reaffirmed organic target of at least 650,000 tonnes by 2029.
Lower Production Costs
Realized weighted production cost of EUR 5.36/kg in Q4, down 5.8% year-over-year. Farming P&L costs declined by EUR 176 million for 2025, improving competitiveness and margin base going into 2026.
Strong Farming Unit Performance (Norway)
Mowi Norway Q4 operational profit EUR 199 million with margin EUR 2.02/kg on 98,000 tonnes. Region North delivered EUR 2.61/kg margin and Region Mid EUR 2.26/kg, underscoring robust regional performance.
Full-Year Profitability and Returns
Full-year operational EBITDA EUR 949 million and operational profit EUR 727 million. Underlying EPS EUR 0.92 for 2025 and annualized return on capital employed 13.3% for the year (15.5% in the quarter), above the 12% requirement level.
Feed Partnership and Expected Savings
Strategic feed partnership with Skretting/Nutreco expected to deliver at least EUR 55 million annual savings in Mowi Farming while retaining earnings from feed operations; cash effects expected to begin in Q2 2026 with P&L benefits anticipated by 2027.
Downstream and Feed Businesses Performed Well
Consumer Products Q4 operational profit EUR 46 million (second-best Q4 ever) and full-year operational profit EUR 197 million with record sold volumes of 265,000 tonnes product weight. Feed business achieved Q4 operational EBITDA EUR 20 million and full-year EUR 67 million (585,000 tonnes sold volumes in 2025).
Balance Sheet and Financing Strength
Net interest-bearing debt EUR 2.65 billion (post Nova Sea consolidation); new long-term NIBD target EUR 2.70 billion. Equity ratio 45% (47% on covenant basis). Issued EUR 382 million 5-year green bonds at EURIBOR+1.18%, supporting attractive long-term financing.
Material Cost-Saving Track Record and Targets
Total cost savings 2018–2025 amount to EUR 392 million (EUR 251 million in farming). Realized P&L cost effect EUR 176 million in 2025. New 2026 annualized savings target EUR 30 million and productivity target to reduce FTEs by ~250 through automation and efficiency initiatives.
Market Outlook — Tighter Supply Expectations
Management expects industry supply growth to normalize to ~1% for 2026 (versus 12% in 2025) and foresees longer-term constrained supply (1%–2% p.a.) due to regulatory and technological limits, supporting a structurally tighter market vs. recent oversupply.
Negative Updates
Soft Prices and Industry Oversupply in 2025
2025 was characterized by soft salmon prices driven by unprecedented industry supply growth of 12% last year; prices remained low through most of the year and only recovered toward year-end, pressuring margins across the value chain.
Significant Loss in Canada
Mowi Canada reported a loss of EUR 50 million in Q4 due to higher cost base and knock-on biological issues from previous quarters, representing a material regional performance drag despite biology now reported as satisfactory.
Biological and Seasonal Challenges
Biological issues in southern Norway (gills and plankton) negatively impacted Region West and Region South in Q4. Scotland faced autumn biological challenges and harvesting of some high-cost sites, increasing regional costs.
Short-Term Supply Risks (Chile and Q1)
Chile showed continued high short-term biomass and supply (positive for volumes but negative for prices). Management noted Q1 supply growth spikes and acknowledged the possibility of supply surprises despite a 1% central estimate for 2026.
Downstream Margin Pressure from Rising Raw Material Costs
Normalization of farming prices will increase raw material costs for Consumer Products, ending prior 'windfall' margins for downstream and creating transitional margin pressure until higher prices pass through to retail.
Iceland Scale and Cost Disadvantage
Iceland operations returned a small positive contribution but still suffer from lack of scale (estimated ~EUR 0.5/kg cost disadvantage), requiring further investment or regulatory change to close the gap.
CapEx and Working Capital Headwinds in 2026
2026 guidance includes CapEx of EUR 400 million and prudently estimated working capital tie-up of EUR 200 million due to volume growth and Nova Sea integration — near-term cash absorption that will weigh on free cash flow.
Market Uncertainties — Tariffs and Consumption Headwinds
Tariff impacts and cost-of-living dynamics could affect demand (U.S. consumption previously helped but tariffs remain a negative factor). Management recognizes macro/ trade risks that could moderate demand outcomes.
Company Guidance
The company reaffirmed 2026 farming volume guidance of 605,000 tonnes (up 8.3% y/y and vs. 559,000 t in 2025) and an organic 2029 target of at least 650,000 tonnes, with Mowi Norway guided to 380,000 t in 2026 (short‑term ambition 400,000 t) and a low contract book (~15,000 t/quarter); Q4 harvests were 152,000 t and full‑year 2025 turnover was EUR 5.73bn with operational EBITDA EUR 949m and operational profit EUR 727m (Q4 operational EBIT EUR 213m), underlying EPS EUR 0.26 (Q4) / EUR 0.92 (FY) and ROCE 15.5% (Q4) / 13.3% (FY). Cost guidance includes realized production costs of EUR 5.36/kg in Q4 (down 5.8% y/y), EUR 176m P&L cost improvement in 2025, a feed partnership saving at least EUR 55m p.a., an identified EUR 300–400m cost potential to 2029 (EUR 30m annualized target for 2026), and CapEx/working capital/interest/tax guidance of ~EUR 400m / EUR 200m / EUR 210m / EUR 190m; closing NIBD EUR 2.65bn and new long‑term target EUR 2.70bn, equity ratio ~45%, and an announced Q4 dividend of NOK 1.50/share.Mowi ASA Financial Statement Overview
Summary
Solid profitability and positive free cash flow, but results look increasingly cyclical: 2025 revenue dipped, EBIT margins compressed versus 2022–2023, free cash flow declined, and leverage trended higher alongside a larger asset base.Income Statement
Profitability remains solid on the surface, with 2025 gross margin near 49% and net margin ~12%, indicating decent pricing power and cost control versus many commodity-linked peers. However, the earnings trajectory has become choppier: revenue declined in 2025 (down ~2.6%), and operating profitability has compressed versus 2022–2023 levels (EBIT margin down to ~10% in 2025 from low-20%s in 2022). Net income rebounded in 2025 from 2023–2024 levels, but overall results show meaningful cyclicality rather than steady expansion.66
Positive
Balance Sheet
Leverage is moderate but trending higher: debt-to-equity rose to ~0.79 in 2025 from ~0.70 in 2024, and total debt increased materially year over year. Equity has also grown, which helps cushion the balance sheet, but the direction of leverage is a watch item if margins soften further. Asset base expanded significantly in 2025, suggesting investment/expansion, which can support future growth but also raises execution risk if returns do not keep pace.58
Neutral
Cash Flow
Cash generation is positive and consistent, with operating cash flow of ~0.87B and free cash flow of ~0.49B in 2025. That said, cash conversion is only moderate: free cash flow is ~57% of net income in 2025, and cash produced from operations covers less than two-thirds of earnings, implying working-capital swings and/or heavier cash costs. Free cash flow also declined ~14% in 2025, signaling some pressure from investment needs or operating volatility.61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.49B | 5.60B | 5.51B | 4.91B | 4.17B |
| Gross Profit | 2.80B | 2.80B | 2.53B | 2.67B | 2.09B |
| EBITDA | 1.01B | 1.22B | 1.42B | 1.44B | 1.03B |
| Net Income | 689.66M | 468.50M | 444.40M | 782.40M | 487.60M |
Balance Sheet | |||||
| Total Assets | 10.23B | 8.55B | 8.24B | 7.53B | 6.26B |
| Cash, Cash Equivalents and Short-Term Investments | 289.30M | 276.70M | 292.10M | 176.90M | 103.10M |
| Total Debt | 3.46B | 2.68B | 2.57B | 2.40B | 1.88B |
| Total Liabilities | 5.66B | 4.55B | 4.48B | 3.84B | 3.13B |
| Stockholders Equity | 4.37B | 3.84B | 3.59B | 3.51B | 3.13B |
Cash Flow | |||||
| Free Cash Flow | 494.70M | 542.40M | 595.90M | 309.60M | 588.40M |
| Operating Cash Flow | 870.90M | 916.60M | 992.20M | 644.80M | 833.10M |
| Investing Cash Flow | -804.60M | -332.10M | -413.60M | -469.40M | -133.70M |
| Financing Cash Flow | -62.00M | -598.30M | -458.20M | -99.90M | -706.60M |
Mowi ASA Technical Analysis
Negative
22.11
Price Trends
23.10
Negative
22.81
Negative
21.25
Positive
Market Momentum
-0.13
Positive
45.58
Neutral
28.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHGVY, the sentiment is Negative. The current price of 22.11 is below the 20-day moving average (MA) of 23.42, below the 50-day MA of 23.10, and above the 200-day MA of 21.25, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHGVY.
Mowi ASA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.24B | 9.27 | ― | 4.44% | ― | ― | |
70 Outperform | $1.95B | 18.92 | 4.53% | 3.34% | 1.11% | 414.23% | |
67 Neutral | $11.96B | 5.02 | 18.63% | 2.53% | 3.89% | -4.73% | |
64 Neutral | $23.75B | 18.12 | 5.98% | 3.14% | 10.29% | 17.32% | |
63 Neutral | $20.64B | 59.42 | 1.10% | 3.48% | 2.12% | -40.75% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.38B | 27.79 | 3.76% | 2.23% | 7.09% | -83.75% |
* Consumer Defensive Sector Average
MHGVY
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25.53%
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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.