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1. Company Snapshot

1.a. Company Description

SalMar ASA, an aquaculture company, produces and sells farmed salmon in Asia, the United States, Canada, Norway, rest of Europe, and internationally.It is involved in the broodfish, lumpfish, and smolt production activities; and marine-phase farming, harvesting, packaging, processing, and selling farmed salmon.The company sells its products to importers/exporters, processing companies, and retail chains through in-house sales force and/or through partners.


SalMar ASA was founded in 1991 and is headquartered in Kverva, Norway.

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1.b. Last Insights on SALM

SalMar ASA's recent performance was driven by strong biological development, with growth in the sea paving the way for increased volume and a higher share of superior quality fish. The company's Q2 2025 operational EBIT for Norway was NOK 696 million, with a harvest volume of 54,500 tonnes and operational EBIT per kg of NOK 12.8. A successful tap issue of a new green bond, raising NOK 500 million, and completion of a share buyback program, purchasing 100,000 shares, also contributed to the positive momentum. Additionally, a new share capital registration was completed, related to the triangular merger between Wilsgård AS and SalMar Farming AS.

1.c. Company Highlights

2. SalMar Q1 2025: Operational Challenges Weigh on Margins Despite Strong Biological Performance

SalMar’s first-quarter 2025 results underscored the company’s ongoing operational challenges, despite a strong biological performance. Operational EBIT dropped to NOK 798 million, down from NOK 1,489 million in the previous quarter, driven by lower harvest volumes and weaker price achievement. The adjusted EPS came in at NOK 2.4, below consensus estimates of NOK 3.74, reflecting the financial strain from higher costs and downgraded fish. CEO Olav Andreas Ervik noted during the earnings call, “While biological performance remains robust, operational inefficiencies and market dynamics have impacted our margins.”

Publication Date: May -20

📋 Highlights
  • Harvest Volumes and Margins:: Norway harvested 40,400 tonnes at NOK21.5/kg margin, while total harvest including Icelandic Salmon and SalMar Ocean reached 42,700 tonnes at NOK18.7/kg.
  • Operational EBIT Performance:: Norway generated NOK852 million EBIT, while overall operational EBIT was NOK798 million, impacted by late harvesting and high downgraded fish.
  • Regional Variations:: Central Norway achieved NOK268 million EBIT (NOK12.7/kg) from 21,100 tonnes, while Northern Norway reported NOK557 million EBIT (NOK28.9/kg) from 19,300 tonnes.
  • Strategic Acquisitions and Biomass Growth:: Biomass at sea grew by 13% (33,000 tonnes), with SalMar accounting for 26% of Norway's growth, supporting its 20% growth guidance for 2025.
  • Financial Position:: Total assets increased to NOK54.7 billion, with net interest-bearing debt rising to NOK22 billion, while the equity ratio improved to 38.3% due to transactions with owners.

Operational Performance: Regional Variability and Strategic Acquisitions

Harvest volumes reached 42,700 tonnes, with Norway contributing 40,400 tonnes at a margin of NOK 21.5 per kilo. Central Norway underperformed with an EBIT of NOK 12.7 per kilo, while Northern Norway delivered a stronger margin of NOK 28.9 per kilo. Challenges such as late harvesting and high downgraded fish persisted, impacting price realization and costs. Scottish Sea Farms stood out with a solid performance, generating NOK 77 million in EBIT from 8,400 tonnes. Strategic initiatives, including the merger with Wilsgård and the acquisition of Knutshaugfisk, are expected to enhance operational efficiency and financial robustness in the long term.

Strategic Updates and Growth Outlook

SalMar’s strategic moves, such as the consolidation of SalMar Ocean as a wholly-owned subsidiary and the acquisition of a controlling stake in Knutshaugfisk, position the company for future growth. Biomass at sea grew by 13%, with SalMar accounting for 26% of Norway’s growth, positioning the company to meet its 20% growth guidance for 2025. Despite these positives, downgraded fish and lower spot prices, exacerbated by U.S. tariffs, weigh on Q2 expectations. Management remains optimistic about the company’s ability to capitalize on the growing demand for sustainable proteins.

Valuation and Financial Health

SalMar’s current valuation reflects a P/E ratio of 20.92 and a P/B ratio of 3.46, indicating a premium for its growth prospects. The dividend yield of 7.45% remains attractive, supported by stable cash flows. Net interest-bearing debt rose to NOK 21,976 million, with a debt ratio of 3.4, reflecting investments in biomass and strategic acquisitions. The company’s strong liquidity position, with NOK 8.1 billion available, provides flexibility to navigate short-term challenges. Analysts estimate a 12.5% revenue growth for next year, though near-term headwinds may limit upside.

3. NewsRoom

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SalMar ASA (SALRF) Q3 2025 Earnings Call Highlights: Record Harvest Volumes and Strategic ...

Nov -11

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SalMar - Release of employee restricted share units in SalMar ASA ("the Company")

Nov -07

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Why The Story Around SalMar Is Changing After Fresh Analyst Updates

Nov -07

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SalMar - Record high harvest volume and positive cost development

Nov -06

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SalMar - Invitation to presentation of the third quarter 2025 results

Nov -03

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SalMar - Prospectus approved for listing of two green bond issues

Oct -15

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SalMar - Issuance of Commercial Papers

Sep -11

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Evaluating SalMar (OB:SALM): Is the Current Quiet Stretch Hiding a Valuation Opportunity?

Sep -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.86%)

6. Segments

Sales & Industry

Expected Growth: 10%

SalMar ASA's 10% growth in Sales & Industry is driven by increasing demand for sustainable and responsible aquaculture practices, expansion into new markets, and strategic acquisitions. Additionally, investments in technology and process improvements have enhanced operational efficiency, contributing to the company's growth.

Other/Eliminations

Expected Growth: 8%

SalMar ASA's Other/Eliminations segment growth of 8% is driven by increased sales of value-added products, improved operational efficiency, and strategic cost reductions. Additionally, the company's focus on sustainability and eco-friendly practices has led to higher demand for its products, contributing to the segment's growth.

Fish Farming Central Norway

Expected Growth: 12%

SalMar ASA's Fish Farming Central Norway segment growth of 12% is driven by increasing demand for sustainable seafood, favorable ocean climate, and proximity to European markets. Additionally, the company's focus on biological and technological advancements, such as its 'Smart Fish Farm' concept, has improved efficiency and reduced costs, contributing to the segment's growth.

Fish Farming Northern Norway

Expected Growth: 11%

SalMar ASA's fish farming in Northern Norway achieves 11% growth driven by increasing demand for sustainable seafood, favorable oceanic conditions, and strategic investments in technology and infrastructure. Additionally, Norway's aquaculture-friendly regulations and SalMar's commitment to eco-friendly practices contribute to the segment's growth.

Icelandic Salmon

Expected Growth: 10%

SalMar ASA's Icelandic Salmon growth is driven by increasing global demand for sustainable seafood, rising popularity of healthy protein sources, and growing market share in Asia. Additionally, SalMar's commitment to sustainable aquaculture practices, efficient production costs, and strategic partnerships contribute to its 10% growth.

SalMar Aker Ocean

Expected Growth: 9%

SalMar Aker Ocean's 9% growth driven by increasing demand for sustainable seafood, expansion into new markets, and strategic acquisitions. Strong operational efficiency, cost savings, and high-margin product mix contribute to profitability. Additionally, investments in aquaculture technology and sustainable practices enhance competitiveness and drive growth.

7. Detailed Products

Salmon

Fresh and frozen salmon fillets, whole salmon, and salmon portions

Trout

Fresh and frozen trout fillets, whole trout, and trout portions

Smolt

Young salmon and trout reared for sale to other fish farmers

Roe and Caviar

Salmon and trout roe and caviar for human consumption

Fishmeal and Fish Oil

Fishmeal and fish oil produced from fish waste and offcuts

Value-Added Products

Smoked salmon, marinated salmon, and other value-added salmon products

8. SalMar ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

SalMar ASA operates in the aquaculture industry, where substitutes are limited. However, there is a growing trend towards plant-based seafood alternatives, which could pose a threat to the company's products.

Bargaining Power Of Customers

SalMar ASA's customers are primarily wholesalers and retailers, who have limited bargaining power due to the company's strong market position and high-quality products.

Bargaining Power Of Suppliers

SalMar ASA relies on a few large suppliers for feed and other essential inputs. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of their products.

Threat Of New Entrants

The aquaculture industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants to SalMar ASA's market.

Intensity Of Rivalry

The aquaculture industry is highly competitive, with several large players competing for market share. SalMar ASA faces intense rivalry from companies such as Mowi and Grieg Seafood.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.70%
Debt Cost 7.48%
Equity Weight 58.30%
Equity Cost 7.48%
WACC 7.48%
Leverage 71.53%

11. Quality Control: SalMar ASA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cal-Maine Foods

A-Score: 7.9/10

Value: 8.1

Growth: 9.4

Quality: 8.1

Yield: 10.0

Momentum: 6.5

Volatility: 5.3

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UIE

A-Score: 6.8/10

Value: 5.4

Growth: 4.4

Quality: 7.9

Yield: 7.5

Momentum: 7.5

Volatility: 8.3

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BIC

A-Score: 6.0/10

Value: 7.6

Growth: 4.1

Quality: 6.7

Yield: 8.1

Momentum: 1.5

Volatility: 7.7

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Mowi

A-Score: 5.4/10

Value: 3.7

Growth: 4.7

Quality: 4.7

Yield: 4.4

Momentum: 6.0

Volatility: 9.0

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SalMar

A-Score: 4.8/10

Value: 3.0

Growth: 6.6

Quality: 3.3

Yield: 6.2

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Bakkafrost

A-Score: 3.7/10

Value: 4.0

Growth: 5.8

Quality: 3.4

Yield: 3.8

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

605.0$

Current Price

605$

Potential

-0.00%

Expected Cash-Flows