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Mowi ASA (MHGVY)
:MHGVY
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Mowi ASA
(OTC:MHGVY)
Rating:73Outperform
Price Target:
$21.00
▲(11.70%Upside)
Mowi ASA (MHGVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.68B
Dividend Yield3.41%
Average Volume (3M)1.27K
Price to Earnings (P/E)27.9
Beta (1Y)0.68
Revenue Growth1.91%
EPS Growth-1.39%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength51
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.33
Shares Outstanding517,111,000
10 Day Avg. Volume586
30 Day Avg. Volume1,268
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)2.23
Price to Sales (P/S)0.00
P/FCF Ratio15.48
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, 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 through the production and sale of farmed salmon and other seafood products. The company's key revenue streams include the sale of fresh and frozen salmon to wholesalers, retailers, and foodservice providers across global markets. Mowi also earns income from its value-added product segment, which includes processed and packaged seafood products like smoked salmon and ready-to-eat meals. The company benefits from strategic partnerships with retailers and distributors, enhancing its market reach and distribution capabilities. Additionally, Mowi invests in innovative aquaculture technologies and sustainable farming practices to improve efficiency and meet the growing demand for seafood, which further supports its revenue generation.
Mowi ASA Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 3.75%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong operational and biological performance with significant growth in harvest volumes and improved cost efficiency. However, the company faced challenges with lower than expected prices, tariff issues in the US, and regulatory concerns in Norway. Despite these challenges, the company's diverse operations and strategic initiatives suggest resilience.Q1-2025 Updates
Positive Updates
Strong Operational and Biological Performance
Mowi achieved record-high growth in the sea with improved biological metrics, leading to an operational profit of €214 million and revenue of €1.36 billion on 108,000 tonnes harvest volumes, up 12% year-over-year.
Increased Harvest Volumes and Industry Supply Growth
The industry supply growth was up by 13% year-over-year in Europe and 8% globally, with Mowi maintaining a farming volume guidance of 530,000 tonnes for the year.
Cost Reduction and Efficiency Gains
Realized blended farming costs were down compared to last year, with expectations for further decreases due to economies of scale and improved feed prices.
Positive Performance in Consumer Products and Feed Divisions
Consumer Products posted an operating profit increase to €33 million, while Mowi Feed achieved seasonally record-high volumes with a 14% increase year-over-year.
Dividend Distribution
The Board of Directors decided to distribute a quarterly dividend of NOK 1.70 per share.
Negative Updates
Lower Than Expected Prices
Prices in the quarter were lower than expected due to record-high industry supply and tariff turmoil in the US market.
Challenges in Certain Regions
Mowi Arctic Fish broke even, contrasting with a profit in the previous year, due to lower prices and higher costs.
Tariff Concerns in the US Market
The imposition of tariffs on salmon in the US market is a concern, although the direct effects are expected to be limited.
Norwegian Government's White Paper on Aquaculture
The white paper was seen as discouraging, focusing on more taxes and fees, with a perceived bias against the industry.
Company Guidance
In the recent call, Mowi provided significant guidance and metrics for the upcoming periods. The company maintained its farming volume guidance for 2025 at 530,000 tonnes, highlighting strong biological performance and record-high growth in the sea. For 2026, Mowi expects to harvest 600,000 tonnes, with Nova Sea contributing to this growth. Looking further ahead, the company aims for at least 650,000 tonnes by 2029, leveraging increased smolt stocking and post-smolt strategies. The operational profit for Q1 2025 was €214 million, with operational revenue reaching €1.36 billion on 108,000 tonnes harvest volumes, marking a 12% year-over-year increase. The realized blended farming costs were €5.89 per kilo, demonstrating a downward trend. Mowi's net interest-bearing debt stood at €1.88 billion, with an equity ratio of 46%. The company's underlying earnings per share was €0.29, and the annualized return on capital employed was 16%. Despite facing lower-than-expected prices due to high industry supply growth, Mowi remains optimistic about future cost reductions and demand resilience, supported by its integrated global value chain. The board also announced a dividend of NOK 1.70 per share.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
Neutral
18.80
Price Trends
18.96
Negative
18.58
Positive
18.29
Positive
Market Momentum
>-0.01
Positive
42.00
Neutral
0.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHGVY, the sentiment is Neutral. The current price of 18.8 is below the 20-day moving average (MA) of 19.09, below the 50-day MA of 18.96, and above the 200-day MA of 18.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 0.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MHGVY.
Mowi ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.80B | 12.04 | 7.49% | 2.93% | 1.41% | ― | |
73 Outperform | $9.68B | 27.85 | 8.69% | 3.41% | 1.91% | -1.39% | |
73 Outperform | $15.96B | 7.97 | 12.59% | 3.51% | -8.87% | ― | |
73 Outperform | $9.48B | ― | 2.07% | ― | ― | ||
70 Neutral | $18.26B | 19.92 | 5.01% | 3.79% | 1.39% | ― | |
68 Neutral | $1.35B | 14.45 | 8.87% | 2.28% | 0.91% | -49.71% | |
65 Neutral | $24.37B | 12.95 | -0.84% | 3.08% | 1.71% | -10.31% |
* Consumer Defensive Sector Average
Performance Comparison
MHGVY
Mowi ASA
18.62
2.46
15.22%
BG
Bunge Global
78.00
-17.23
-18.09%
FDP
Fresh Del Monte Produce
37.29
10.97
41.68%
TSN
Tyson Foods
52.53
-6.74
-11.37%
DOLE
Dole
14.04
-0.34
-2.36%
SFD
Smithfield Foods
24.32
4.31
21.54%
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.