Norwegian Air Shuttle ASA
Norwegian Air Shuttle ASA Fundamental Analysis
Norwegian Air Shuttle ASA (NWARF) shows strong financial fundamentals with a PE ratio of 6.30, profit margin of 7.29%, and ROE of 39.40%. The company generates $37.0B in annual revenue with strong year-over-year growth of 38.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NWARF's fundamental strength across five key dimensions:
Efficiency Score
WeakNWARF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWARF trades at attractive valuation levels.
Growth Score
ModerateNWARF shows steady but slowing expansion.
Financial Health Score
ModerateNWARF shows balanced financial health with some risks.
Profitability Score
ModerateNWARF maintains healthy but balanced margins.
Key Financial Metrics
Is NWARF Expensive or Cheap?
P/E Ratio
NWARF trades at 6.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWARF's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Norwegian Air Shuttle ASA at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.85 times EBITDA. This is generally considered low.
How Well Does NWARF Make Money?
Net Profit Margin
For every $100 in sales, Norwegian Air Shuttle ASA keeps $7.29 as profit after all expenses.
Operating Margin
Core operations generate 10.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.40 in profit for every $100 of shareholder equity.
ROA
Norwegian Air Shuttle ASA generates $6.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Norwegian Air Shuttle ASA produces operating cash flow of $7.27B, showing steady but balanced cash generation.
Free Cash Flow
Norwegian Air Shuttle ASA produces free cash flow of $2.39B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.27 in free cash annually.
FCF Yield
NWARF converts 14.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NWARF Stacks Against Its Sector Peers
| Metric | NWARF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.30 | 26.71 | Better (Cheaper) |
| ROE | 39.40% | 1311.00% | Weak |
| Net Margin | 7.29% | -29317.00% (disorted) | Weak |
| Debt/Equity | 4.11 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.03 | 10.53 | Neutral |
| ROA | 6.42% | -1537638.00% (disorted) | Weak |
NWARF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Norwegian Air Shuttle ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-99.77%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
100.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-99.35%
Industry Style: Cyclical, Value, Infrastructure
Declining