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Mowi ASA (MHGVY)
:MHGVY
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Mowi ASA
(OTC:MHGVY)
Rating:76Outperform
Price Target:
$20.50
▲(7.44%Upside)
Mowi ASA (MHGVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.90B
Dividend Yield2.72%
Average Volume (3M)10.68K
Price to Earnings (P/E)28.3
Beta (1Y)0.74
Revenue Growth1.91%
EPS Growth-1.39%
CountryUS
Employees11,473
SectorConsumer Defensive
Sector Strength69
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.33
Shares Outstanding517,111,000
10 Day Avg. Volume0
30 Day Avg. Volume10,683
Financial Highlights & Ratios
PEG Ratio-1.06
Price to Book (P/B)3.39
Price to Sales (P/S)0.00
P/FCF Ratio50.07
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, formerly known as Marine Harvest ASA, is a globally leading seafood company specializing in the production and distribution of farmed salmon. Headquartered in Bergen, Norway, Mowi operates across several sectors including feed production, fish farming, and seafood processing. The company is renowned for its comprehensive supply chain, which encompasses breeding, hatcheries, farming, harvesting, and processing of salmon, enabling it to deliver high-quality seafood to markets worldwide.
How the Company Makes MoneyMowi ASA generates revenue primarily through the farming and sale of Atlantic salmon. The company operates a vertically integrated business model, which means it controls all aspects of its production process from feed manufacturing to fish farming and processing. Key revenue streams include the sale of fresh and frozen salmon and value-added seafood products to retailers, foodservice operators, and wholesalers across the globe. Additionally, Mowi has strategically invested in the production of fish feed, which not only supports its own operations but can also be sold to other fish farming entities. Significant partnerships and long-term supply agreements with major retailers and distributors also contribute to Mowi's earnings, allowing the company to secure steady demand for its products.
Mowi ASA Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 5.30%|
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's financial performance is strong, with significant revenue growth and efficient cash flow management. The balance sheet is healthy, though there are concerns about the EBIT margin. Overall, the company demonstrates robust financial health.Income Statement
Mowi ASA demonstrated strong revenue growth over the past years, with a notable increase from 2023 to 2024. The company has maintained a robust gross profit margin, highlighting efficient cost management. However, the EBIT margin in 2024 was zero, which is unusual compared to previous years and suggests operational challenges. Despite this, the net profit margin has improved, reflecting effective financial management.78
Positive
Balance Sheet
The balance sheet shows a healthy equity position, with stockholders' equity growing steadily. The debt-to-equity ratio appears manageable, indicating a balanced approach to leveraging. Return on equity has slightly declined but remains at a reasonable level. The equity ratio suggests a solid asset base backed by equity, though there is a significant level of total liabilities.75
Positive
Cash Flow
Mowi ASA's cash flow statement reveals strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation. The free cash flow remains healthy, despite slight fluctuations in capital expenditures. Free cash flow growth was negative from 2023 to 2024, yet the cash flow to net income ratios are favorable, showcasing effective cash utilization.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.63B | 5.60B | 5.51B | 4.91B | 4.17B | 3.73B | Gross Profit |
| 1.60B | 2.80B | 2.53B | 2.67B | 2.09B | 1.62B | EBIT |
| 485.50M | 833.30M | 1.91B | 1.12B | 737.40M | 203.50M | EBITDA |
| 635.50M | 1.22B | 1.42B | 1.44B | 1.03B | 521.80M | Net Income Common Stockholders |
| 457.50M | 468.50M | 444.40M | 782.40M | 487.60M | 117.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 117.70M | 290.20M | 292.10M | 176.90M | 103.10M | 100.30M | Total Assets |
| 5.84B | 8.55B | 8.24B | 7.53B | 6.26B | 5.85B | Total Debt |
| 1.85B | 2.68B | 2.57B | 2.40B | 1.88B | 2.10B | Net Debt |
| 1.73B | 2.38B | 2.28B | 2.23B | 1.78B | 2.00B | Total Liabilities |
| 2.95B | 4.55B | 4.48B | 3.84B | 3.13B | 3.08B | Stockholders Equity |
| 2.89B | 3.84B | 3.59B | 3.51B | 3.13B | 2.76B |
| Cash Flow | Free Cash Flow | ||||
| 377.50M | 542.40M | 595.90M | 309.60M | 588.40M | 186.90M | Operating Cash Flow |
| 632.30M | 916.60M | 992.20M | 644.80M | 833.10M | 502.70M | Investing Cash Flow |
| -237.50M | -332.10M | -413.60M | -469.40M | -133.70M | -283.40M | Financing Cash Flow |
| -422.70M | -598.30M | -458.20M | -99.90M | -706.60M | -238.10M |
Mowi ASA Technical Analysis
Positive
19.08
Price Trends
18.14
Positive
18.55
Positive
17.98
Positive
Market Momentum
0.22
Negative
61.05
Neutral
99.66
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 19.08 is above the 20-day moving average (MA) of 18.69, above the 50-day MA of 18.14, and above the 200-day MA of 17.98, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 99.66 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $5.21B | 23.06 | 29.85% | ― | 6.31% | 11.24% | |
80 Outperform | $10.76B | 8.89 | 36.53% | ― | 2.35% | 145.82% | |
77 Outperform | $17.80B | 34.92 | 11.16% | ― | 6.32% | 5.69% | |
76 Outperform | $9.90B | 28.29 | 8.69% | 2.72% | 1.91% | -1.39% | |
76 Outperform | $13.69B | 36.09 | 9.05% | ― | 6.20% | -10.58% | |
67 Neutral | $19.45B | 21.21 | 5.01% | 3.59% | 1.39% | ― | |
65 Neutral | $8.89B | 15.04 | 4.68% | 6.15% | 3.59% | -2.51% |
* Consumer Defensive Sector Average
Performance Comparison
MHGVY
Mowi ASA
19.14
2.01
11.73%
LOPE
Grand Canyon Education
183.75
44.69
32.14%
PPC
Pilgrim's Pride
45.75
14.85
48.06%
TSN
Tyson Foods
55.67
3.54
6.79%
PFGC
Performance Food Group
87.50
18.91
27.57%
USFD
US Foods Holding
76.66
24.11
45.88%
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.