Rankings Commodities & uranium Elkem
Elkem
55
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Margin−7
- Multiples vs own history−6
- Debt and covenants−5
Strengths
- Cost programme+1
- Corporate governance+1
How the score is built
From 100 to 55, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 31.26 NOK
- Median analyst target
- 38.00 NOK
- Upside to median
- +21.6%
- Analysts
- 6
- Target range
- 31.00 – 46.00 NOK
- 52-week change
- +16%
- P/E (trailing)
- n/a
- Forward P/E
- 10.4
- PEG
- 0.10
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 5 findings−23 of −30
- −7MarginOperating margin 3.9% and net margin −5.5% (TTM) vs 26% and 21% in 2022. The EBITDA margin in Q2 2026 was 14% (17% a year earlier), and Silicon Products, the core of the new Elkem, earned only 11%.
- −4ROICROIC 1.7% (TTM), 2.9% in 2025 and 4.1% in 2024 vs 32% in 2022. Returns have been far below the cost of capital for three years.
- −4Quality of growthRevenue from continuing operations fell from NOK 21.1bn (2023) to 16.1bn (TTM), and analysts expect −6% in 2026. Sales volume in Silicon Products rose 9% in Q2 but was eaten by lower prices.
- −4Future segmentElkem has sold most of the Silicones division, the most value-added part of the chain, and is left with silicon, ferroalloys and carbon. These are commodity-like products in direct competition with Chinese overcapacity.
- −4Capital allocationNegative FCF in 2023–2025 (−2.2, −1.4 and −1.2bn NOK) after large investments, which ended in an emergency capital raise of NOK 1.8bn in 2026 at a low share price. The share count rose about 20% (301m to 363m).
Price
Today's multiples against the company's own history and its peers. · 2 findings−9 of −35
- −6Multiples vs own historyP/B 0.95 is at the top of the 0.43–0.95 range for 2021–2025, even though ROE is only 1.9%. The forward P/E for 2026 is about 31 (14 on next year's figures) vs 5–10 in good years, and EV/annualised Q2 EBITDA is about 8.9x vs 2–4x in 2021–2023.
- −3FCF yieldTTM FCF of NOK 566m (4.7%) is lifted by released working capital (841m) and halved investment. The underlying, repeatable FCF is uncertain after three years of negative FCF.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−11 of −35
- −5Debt and covenantsLeverage was 5.0x net interest-bearing debt/EBITDA in Q1 vs a covenant of at most 4.75x, which forced the capital raise. It is now 3.2x with interest cover of only 1.4x, and the covenant limit tightens to 4.25x from Q2 2027.
- −4Chinese overcapacity and pricesLow silicon and ferrosilicon prices pulled Q2 EBITDA down to NOK 523m (645m a year earlier). According to Elkem, the EU safeguard on ferroalloys from November 2025 has had a limited effect on prices.
- −2Customer industriesCarbon Solutions volume fell 4% and revenue 13% in Q2 because of closed capacity at customers (smelters), i.e. weak demand downstream.
Plus
Only documented strengths. · 2 findings+2 of +15
- +1Cost programmeThe cost programme is ahead of plan: 400 FTEs vs 300 planned and a target of NOK 600m of annual savings with effect from Q3. Net interest-bearing debt has fallen from NOK 9.2bn to 6.6bn.
- +1Corporate governanceBluestar's 52.9% controlling stake has been bought out, so minority shareholders now own 100% of listed Elkem, and the conflict with the Chinese major shareholder is gone.
Caveats
What the score does not capture, or where the data is weak.
Silicones was sold to Bluestar as of 30 April 2026 in exchange for redemption of Bluestar's 52.9%. Historical figures are partly restated (2023+ without Silicones), so TTM mixes before and after. stockanalysis' EV/EBITDA of 5.5 rests on TTM EBITDA of 3.3bn, which does not fit the new Elkem; annualised Q2 EBITDA (523m) gives about 8.9x. The forward P/E of 14 is apparently for 2027; on 2026 EPS (1.06) the P/E is about 31. Industry: 'Commodities & uranium' was chosen as the closest for silicon/ferrosilicon and carbon materials. Norwegian power prices and the value of the retained minority stake in Silicones have not been examined.
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