REC Silicon ASA
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I guess you are interested in REC Silicon ASA. Buy, hold or sell? I don't know! However, I do recommend doing research before doing anything. I will help you with that.

Let's analyse REC Silicon ASA

Let's start. I'm going to help you getting a better view of REC Silicon ASA. At the end you don't have to ask anyone for trading advice. You can make your own decision, with more confidence, the odds in your favor, backed by data.

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Company's Financial Health
A deep dive into the books. How are the numbers doing? Is REC Silicon ASA even making a profit? Is the company skyrocketing? Or is it sinking like the Titanic. The trend is your friend.
Market Valuation
Finally, you now have an insight of how REC Silicon ASA is doing in the market. If the company is worth buying. The latest step is to find out how other investors value REC Silicon ASA. The closing price on 2022-09-29 was kr17.42 per share. Is the company over- or underpriced?
Key Performance Indicators
A total overlook on how the company is doing. Based on the (trends in) the key performance indicators.

Summary

Financial Health

Profitability Details

	Compared to previous year	Compared to industry
The company is making a loss.
Using its assets, the company is very inefficient in making profit.
Using its investors money, the company is very inefficient in making profit.

Operating Efficiency Details

	Compared to previous year	Compared to industry
The company is operating very inefficient.
The company is very efficient in keeping operating costs low.

Liquidity Details

	Compared to previous year	Compared to industry
The company is very able to pay all its short-term debts.
The company is just able to pay all its short-term debts with the most liquid assets.

Solvency Details

	Compared to previous year	Compared to industry
The company is just able to pay all its debts by selling its assets.
The company is unable to pay all its debts with equity.

1.1. Profitability of REC Silicon ASA.

1.1. Profitability

An important factor of a company's health is the profitability.

1.1.1. Net Profit Margin

Measures how much net profit REC Silicon ASA earns for each kr1 of revenue.

Above 10% is considered healthy but always compare REC Silicon ASA to the industry mean.
A Net Profit Margin of -2.1% means that kr-0.02 for each kr1 in revenue is generated as profit.

Let's take a look of the Net Profit Margin trends of REC Silicon ASA:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-2.1%	+2.1%
TTM	-2.1%	YOY	-4.5%	+2.5%
TTM	-2.1%	5Y	-3.3%	+1.2%
5Y	-3.3%	10Y	-3.3%	0.0%

Measures how much net profit REC Silicon ASA earns for each kr1 of revenue.

Revenue is the amount of profit REC Silicon ASA generates before taxes and all other costs. For example, when you buy a cup of coffee it will cost you kr3. The company does not earn kr3 in profit but also has to pay various costs and taxes to create that cup of coffee. Let's assume the cost of creating a cup of coffee is kr1.5.

The kr3 you pay for a cup of coffee is called revenue.
The kr1.5 that’s left over when all costs to create that cup of coffee (including taxes) are deduced from the revenue is called net profit.

The net profit margin looks at how much net profit REC Silicon ASA earns for each kr1 in revenue.

How to use net profit margin

Higher profit margin is better (more profit).
Above 10% is considered healthy but always compare REC Silicon ASA to the industry mean.
Can be used to compare companies within the industry.

You typically want a high profit margin. This means that for each kr1 in sales, REC Silicon ASA makes more profit. This shows the investor how efficiently REC Silicon ASA is operating in general and compared to other companies in the same industry. REC Silicon ASA operates in the industry.

Why do investors use net profit margin in their analysis

It helps investors to determine the efficiency of REC Silicon ASA. If profit margins remain low (compared to the industry mean) and there are no improvements to make in production costs or other areas that might be a warning sign. If profit margins are high that means the company has low overhead costs and is efficiently using its resources to generate profit.

The three steps every investor should look at:

What is the current net profit margin?
The current most recent quarter (MRQ) Net Profit Margin of REC Silicon ASA is -2.1%. This means that REC Silicon ASA earned kr-0.02 for each kr1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Net Profit Margin of the industry is .
What is the trend?
The trend is important because it shows you how REC Silicon ASA is performing over time. The most recent quarter might be important if REC Silicon ASA released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for REC Silicon ASA up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare REC Silicon ASA with other companies in the same industry ().
Net profit margin should rise over the years.
Can be influenced when REC Silicon ASA sells assets (profit will increase while costs remain the same).
It won’t show what part of REC Silicon ASA is doing great or needs improvement (it only looks at total revenue and total net income).

How to calculate net profit margin

Net profit margin = net income / total revenue * 100%

Real example of REC Silicon ASA

You need the following data to determine net profit margin:

Income statement from the period you want to calculate (for example, MRQ or TTM).

Net income MRQ REC Silicon ASA =
Total revenue MRQ REC Silicon ASA =
kr / kr = 0.00 or 0.0%

Higher is better

The higher the net profit margin, the more efficient the company is generating income. This helps investors to determine how the company is managing money. The net profit margin is an important indicator when diving into the financial health of a company. Overall, you want to see the net profit margin rising over the years. That means the company improved their production and made it more efficient (if possible).

You can use the net profit margin to compare companies within the same industry. If there are two companies where one is much bigger but the smaller one has a higher net profit margin, that means the smaller company is more efficiently using operational costs.

Important: Profit margins can be very different between industries. Companies with assembly lines or transports are much more prone to see shifting in prices for fuel, ingredients and maintenance compared to companies that only provide services. You should never compare net profit margin between different industries.

1.1.2. Return on Assets

Shows how efficient REC Silicon ASA is using its assets to generate profit.

Above 5% is considered healthy but always compare REC Silicon ASA to the industry mean.
-0.2% Return on Assets means that REC Silicon ASA generated kr0.00 profit for each $1 in assets.

Let's take a look of the Return on Assets trends of REC Silicon ASA:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-0.2%	+0.2%
TTM	-0.2%	YOY	0.0%	-0.2%
TTM	-0.2%	5Y	-0.1%	-0.1%
5Y	-0.1%	10Y	-0.1%	0.0%

Shows how efficient REC Silicon ASA is using its assets to generate profit.

For a farm, a tractor is considered an asset. The tractor helps ploughing the land making it possible to plant and harvest crops. But the tractor might be old and needing maintenance all the time reducing its efficiency. Return on assets indicates how effectively the farm is using the tractor (and other assets that help the core business) to plough the land.

How to use return on assets

-0.2% return on assets means the company generated kr0.00 for each kr1 in assets.

Higher is better
Above 5% is considered healthy but always compare REC Silicon ASA to the industry mean.
Can be very different between industries
Can be used to compare companies

Why do investors use return on assets in their analysis

Shows the investor how effectively REC Silicon ASA is using its resources to generate profit. If the return on assets (-0.2%) from REC Silicon ASA are higher than the mean () that means REC Silicon ASA is using its resources better than their competitors. If not, that means their competitors are more efficient in using their resources to generate profit.

An investor should always look at:

What is the current return on assets?
The current most recent quarter (MRQ) Return on Assets of REC Silicon ASA is -0.2%. This means the company generated kr0.00 for each kr1 in assets.
How does it compare to the industry?
The mean MRQ Return on Assets of the industry is .
What is the trend?
The trend is important because it shows you how REC Silicon ASA is performing over time. The most recent quarter might be important if REC Silicon ASA released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for REC Silicon ASA up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
If a company has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

How to calculate return on assets

Return on assets = net income / total assets * 100%

Real example REC Silicon ASA

You need the following data to determine return on assets (ROA):

Income statement
Balance sheet

Net income MRQ (income statement) from REC Silicon ASA =
Total assets MRQ (balance sheet) from REC Silicon ASA =
/ = 0.00 or 0.0%

ROA is an important ratio as it will tell you how effectively REC Silicon ASA is using its resources to generate profits. Example:

Bob and Kristin both sell ice cream in the summer. They both have an ice cream truck. The truck Bob owes cost him $20.000 and the truck Kristin owes cost her $1500. Over the summer, Bob earned $2000 and Kristin earned $200. To calculate the return on assets:

Bob: $2000 / $20.000 * 100% = 10%
Kristin: $200 / $1500 * 100% = 13.3%

This tells you Bob’s company is more valuable but Kristin's company is more efficient. Be aware that total assets can change over time. A transportation business will buy and sell trucks or planes all the time. Before using return on assets as a guideline, you have to know what the exact assets are. For a company that has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

1.1.3. Return on Equity

Shows how efficient REC Silicon ASA is using its investors money to generate profit.

Above 15%-20% is considered healthy but always compare REC Silicon ASA to the industry mean.
0.0% Return on Equity means the company generated kr0.00 for each kr1 the owners (shareholders) invested.

Let's take a look of the Return on Equity trends of REC Silicon ASA:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-1.8%	+1.8%
TTM	-1.8%	YOY	-18.5%	+16.8%
TTM	-1.8%	5Y	-10.2%	+8.4%
5Y	-10.2%	10Y	-10.2%	0.0%

Shows how efficient REC Silicon ASA is using its investors money to generate profit.

A publicly traded company (any company that issues shares to the public) is owned by its shareholders. Return on equity calculates the amount of profit for every $1 the shareholders invested.

How to use return on equity

-1.8% return on equity means REC Silicon ASA generated kr-0.02 for each kr1 the owners (shareholders) invested.

Higher is better
Above 15%-20% is considered healthy but always compare REC Silicon ASA to the industry mean.
Can be very different between industries
Can be used to compare companies

Why do investors use return on equity in their analysis

To find out the owners/management's attitude toward their company. You typically want the owners/management to invest in the company and focus on generating profit. If not enough profit is generated (compared to the industry mean), the company might not be investing their money efficiently.

The three steps every investor should look at:

What is the current return on equity?
The current most recent quarter (MRQ) Return on Equity of REC Silicon ASA is -1.8%. This means that REC Silicon ASA earned kr-0.02 for each kr1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Return on Equity of the industry is .
What is the trend?
The trend is important because it shows you how REC Silicon ASA is performing over time. The most recent quarter might be important if REC Silicon ASA released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for REC Silicon ASA up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Does not include intangible assets (non physical assets like licences, computer software, etc.).
Stockholders equity and shareholders equity refer to the same thing.
Liabilities should not be more than three times return on equity.

How to calculate return on equity

Return on equity = net profit / shareholders equity * 100%

Real example of REC Silicon ASA

You need the following data to determine ROE:

Income statement
Balance sheet
Net profit MRQ (income statement) REC Silicon ASA =
Shareholders equity (balance sheet) MRQ REC Silicon ASA =
/ = 0.00 or 0.0%

A negative shareholder equity is a warning sign. It means the company has more liabilities than assets. It might also mean that the owners did not invest enough money or they are taking money out of the business.

1.2. Operating Efficiency of REC Silicon ASA.

1.2. Operating Efficiency

1.2.1. Operating Margin

Measures how efficient REC Silicon ASA is operating .

Measures how much profit REC Silicon ASA makes for each kr1 of sales after paying variable costs (production costs, wages, etc) but before taxes.
Above 15% is considered healthy but always compare REC Silicon ASA to the industry mean.
An Operating Margin of 0.0% means the company generated kr0.00 for each kr1 in revenue (before taxes).

Let's take a look of the Operating Margin trends of REC Silicon ASA:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-7.3%	+7.3%
TTM	-7.3%	YOY	-17.7%	+10.3%
TTM	-7.3%	5Y	-12.5%	+5.2%
5Y	-12.5%	10Y	-12.5%	0.0%

1.2.2. Operating Ratio

Measures how efficient REC Silicon ASA is keeping operating costs low.

Below 1 is considered healthy (always compare to industry mean).
An Operation Ratio of 0.0% means that the operating costs are kr0.00for each kr1 in net sales.

Let's take a look of the Operating Ratio trends of REC Silicon ASA:

The MRQ is 0.000. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	0.085	-0.085
TTM	0.085	YOY	0.150	-0.065
TTM	0.085	5Y	0.117	-0.032
5Y	0.117	10Y	0.117	0.000

Measures how efficient the company is creating its products or services while keeping operating costs low.

If the operating ratio is below 1 that means the company is making money. The lower the operating ratio, the more efficient the company.

How to use operating ratio

keypoint text= An operation ratio of 0.5 means that the operating costs are $0,5 for each $1 in net sales.

Lower is better
Below 1 is considered healthy (always use industry average)
Can be very different between industries
Can be used to compare companies

Why do investors use operating ratio in their analysis

Shows if costs of creating products and or services is increasing or decreasing. The lower the operating ratio, the more efficient the company is creating products and services.

Things to be aware of

Only compare with other companies in the same industry
You need COGS (Cost Of Goods Sold) to calculate operating ratio which is not always shown in the income statement
Does not consider debt

The three steps every investor should look at:

What is the current net operating ratio?
What is the long term trend?
How does it compare to the industry?

How to calculate operating ratio

Operating ratio = Operating expenses plus COGS \ Net sales

Real life example

You need the following data to determine operating ratio:

Income statement

COGS is not specified on the income statement so we use the following calculation:

(cost of revenue plus total operating expenses) / total revenue
($12,700,000 plus $1,628,000) / $16,934,000 = 0.84

The operating ratio measures the efficiency of a company at keeping low costs while generating profits from sales. It compares the total operating expenses to the net amount of sales. The total operating expenses exists of:

COGS (materials, labour, rent of facility, repairs)
Operating expenses (legal fees, marketing, wages, rent, maintenance/repairs)

Operating expenses are all the costs the company makes that are not directly tied to the production of the service or product. Where COGS are costs that are directly tied to the production of a product or service.

Do note that COGS is not always available in the income statement. Some companies include COGS in the operating expenses while others list COGS separately. To make it even more confusing, COGS is also known as “costs of sales” and costs of sales is the same as costs of revenue.

The operating ratio tells you how efficient the company is creating its products or services while keeping prices low. In this case, a lower ratio is better. Higher or rising operating ratios might tell you that costs are rising while sales are not improving or staying the same.

1.3. Liquidity of REC Silicon ASA.

1.3. Liquidity

1.3.1. Current Ratio

Measures if REC Silicon ASA is able to pay off Short-term Debt.

Above 1.5 is considered healthy (always compare to industry mean).
A Current Ratio of 165.0% means the company has kr1.65 in assets for each kr1 in short-term debts.

Let's take a look of the Current Ratio trends of REC Silicon ASA:

The MRQ is 1.650. The company is able to pay all its short-term debts. +1
The TTM is 4.269. The company is very able to pay all its short-term debts. +2

Trends

Current period		Compared to		+/-
MRQ	1.650	TTM	4.269	-2.619
TTM	4.269	YOY	2.996	+1.273
TTM	4.269	5Y	3.633	+0.636
5Y	3.633	10Y	3.633	0.000

1.3.2. Quick Ratio

Measures if REC Silicon ASA is able to pay off Short-term Debt but only using the most liquid assets.

Above 1 is considered healthy (always compare to industry mean)
A Quick Ratio of 18.0% means the company can pay off kr0.18 for each kr1 in debt (using most liquid assets).

Let's take a look of the Quick Ratio trends of REC Silicon ASA:

The MRQ is 0.180. The company is just not able to pay all its short-term debts with the most liquid assets. -1
The TTM is 1.114. The company is just able to pay all its short-term debts with the most liquid assets.

Trends

Current period		Compared to		+/-
MRQ	0.180	TTM	1.114	-0.934
TTM	1.114	YOY	2.081	-0.967
TTM	1.114	5Y	1.597	-0.483
5Y	1.597	10Y	1.597	0.000

1.4. Solvency of REC Silicon ASA.

1.3. Liquidity

1.4.1. Debt to Asset Ratio

Measures how much % of REC Silicon ASA assets are financed with debt.

Below 1 (100%) is considered healthy (always compare to industry mean).
A Debt to Asset Ratio of 0.86 means that REC Silicon ASA assets are financed with 86.3% credit (debt) and the remaining percentage (100% - 86.3%) is financed by its owners/shareholders.

Let's take a look of the Debt to Asset Ratio trends of REC Silicon ASA:

The MRQ is 0.863. The company is just able to pay all its debts by selling its assets.
The TTM is 0.863. The company is just able to pay all its debts by selling its assets.

Trends

Current period		Compared to		+/-
MRQ	0.863	TTM	0.863	0.000
TTM	0.863	YOY	0.903	-0.040
TTM	0.863	5Y	0.883	-0.020
5Y	0.883	10Y	0.883	0.000

1.4.2. Debt to Equity Ratio

Measures if REC Silicon ASA is able to pay off its debts by using shareholders equity.

Below 2 is considered healthy (always compare to industry mean).
A Debt to Equity ratio of 631.0% means that company has kr6.31 debt for each kr1 in shareholders equity.

Let's take a look of the Debt to Equity Ratio trends of REC Silicon ASA:

The MRQ is 6.310. The company is unable to pay all its debts with equity. -1
The TTM is 6.310. The company is unable to pay all its debts with equity. -1

Trends

Current period		Compared to		+/-
MRQ	6.310	TTM	6.310	0.000
TTM	6.310	YOY	4.172	+2.137
TTM	6.310	5Y	5.241	+1.069
5Y	5.241	10Y	5.241	0.000

2. Market Valuation of REC Silicon ASA

2. Earnings

2.1. Price to Earnings Ratio

Measures how many years it takes to double your invested money in REC Silicon ASA.

Above 15 is considered overpriced but is hard to determine (always use industry average).
A PE ratio of -13.59 means the investor is paying kr-13.59 for every kr1 in earnings.

Let's take a look of the Price to Earnings Ratio trends of REC Silicon ASA:

The EOD is -15.326. Company is losing money. -2
The MRQ is -13.589. Company is losing money. -2
The TTM is -18.059. Company is losing money. -2

Trends

Current period		Compared to		+/-
EOD	-15.326	MRQ	-13.589	-1.736
MRQ	-13.589	TTM	-18.059	+4.470
TTM	-18.059	YOY	-129.796	+111.737
TTM	-18.059	5Y	-73.928	+55.868
5Y	-73.928	10Y	-73.928	0.000

Compares the company's stock price to its earnings.

Indicates if the company’s shares are under or overvalued. A very high PE ratio means that the price of the stock is much higher than the reported earnings.

How to use PE ratio

A PE ratio of 15 means the investor is paying $15 for every $1 in earnings

Above 15 is considered overpriced but is hard to determine (always use industry average)
Can be very different between industries
Can be used to compare companies

Why do investors use PE ratio in their analysis

The PE ratio tells investors the current sentiment in the market for that company. As with every stock, the stock price never shows the real valuation of a company but rather how the market thinks how much the stock is worth.

In other words, the current stock price also incorporates any future earnings or business opportunities in the future. The best example is the stock market crash in 2000. The PE ratio for any internet based company was going through the roof. Only based on the general assumption the internet and all associated businesses would thrive in the future. But this was based on nothing. A business still needs a good product or service to be able to survive. Instead, every investor bought any stock which did something related to the internet.

Many investors were willing to pay premium prices and that was causing the PE ratio to rise. A high PE ratio is a warning sign that investors might be overvaluing a stock based on future earnings.

Things to be aware of

Only compare with other companies in the same industry
Some industries might have very high or very low PE ratios in general
PE ratios can be high for several years, it does not mean a sudden collapse is imminent.
Earnings growth is not included in the PE ratio

How to calculate PE ratio

PE ratio = market value per share / earnings per share (The market value per share is simply the current stock price. )

The PE ratio is a very commonly used ratio to determine the value of a company by comparing the current stock price relative to its earnings per share (EPS). Before we can calculate the PE ratio we need to know the EPS. EPS is calculated as follows:

EPS = (net profit - preferred dividends) / end of period outstanding shares
Net profit = revenue - expenses
Outstanding shares can be found in the balance sheet

The PE value helps investors to determine if the current stock price is under or overvalued. It also projects future growth.

In general, a higher PE ratio means that investors predict higher future growth. If the PE ratio is too high, then investors expect way too much future growth the company can never fulfil. This is most likely to happen in faster moving companies like tech companies or automobile companies like Tesla. These are hot and booming markets where investors expect much future growth driven by new technology (electric cars). When looking at the current MRQ (most recent quarter) PE ratio of Tesla ( jan. 2021) it's about 247 while the average in the industry is only 6. That might be a clue that Tesla is trading for way too high prices compared to their current assets and is more based on future growth.

2.2. Price Earnings to Growth Ratio

Measures the predicted future growth of REC Silicon ASA.

Lower is better
A PEG ratio of 1 means the investor is paying a fair price for the stock

Let's take a look of the Price Earnings to Growth Ratio trends of REC Silicon ASA:

The MRQ is -0.005. Very Bad. -2
The TTM is -0.005. Very Bad. -2

Trends

Current period		Compared to
MRQ	-0.005	TTM	-0.005
TTM	-0.005	5Y	-0.005
5Y	-0.005	10Y	-0.005

PEG Ratio	Meaning
0.5	You can buy the stock cheap
1	You pay a fair price
2.5	The stock is overpriced

2. Books

2.3. Price to Book Ratio

Measures if the stock price of REC Silicon ASA is to cheap or to expensive compared to its book value.

At or below 1 is considered healthy (always compare to industry mean).
A PB ratio of 15.63 means the investor is paying kr15.63 for each kr1 in book value.

Let's take a look of the Price to Book Ratio trends of REC Silicon ASA:

The EOD is 17.624. Seems overpriced? -1
The MRQ is 15.628. Seems overpriced? -1
The TTM is 15.515. Seems overpriced? -1

Trends

Current period		Compared to		+/-
EOD	17.624	MRQ	15.628	+1.997
MRQ	15.628	TTM	15.515	+0.113
TTM	15.515	YOY	9.959	+5.556
TTM	15.515	5Y	12.737	+2.778
5Y	12.737	10Y	12.737	0.000

Measures if the stock price of REC Silicon ASA is to cheap or to expensive compared to its [abbr name=book value&text=What the company is worth when you subtract total liabilities from total assets).

The book value of a company is what remains when you subtract total liabilities from total assets. This can also become negative which means the company has more debts than assets.

The price to book ratio shows the investor if the stock is under or overvalued. A high price to book ratio means that the investor is paying more for a share than the company has in total assets.

How to use PB ratio

A PB ratio of 3 means the investor is paying $3 for each $1 in book value.

Lower is better
At or below 1 is considered healthy
Can be very different between industries
Can be used to compare companies

Why do investors use PB ratio in their analysis

Helps investors to determine if the current stock price is under or overvalued. A low PB ratio means the company’s stock is trading for less than the leftover of total assets - total liabilities. PB ratios can also turn negative which means the company might be in serious financial trouble. In other words, the company has more liabilities than assets.

Things to be aware of

Only compare with other companies in the same industry
Negative PB ratio means that the company might be in serious financial trouble
A higher PB ratio than 1 also means that you are last in line (shareholders get paid last when a company defaults) when the company goes bankrupt for whatever reason.

How to calculate price to book ratio

Calculate the book value: total assets - total liabilities
Calculate book value per share: book value / total outstanding shares
Price to book ratio = share price / book value per share

Real life example

You need the following data to determine Price to book ratio:

Balance sheet
Current stock price
Key performance indicators

1. Calculate the book value: total assets - total liabilities:

Book value = $68,513,000 - $30,855,000 = $37,658,000

2. Calculate book value per share:

Book value per share = $37,658,000 / total outstanding shares (can be found in the latest balance sheet):

Book value per share = $37,658,000 / 3,465,000 = $10.868

3. Price to book ratio = share price / $10.868:

MRQ (most recent quarter) PB ratio = $673.420 / $10.868 = $61,96

The price to book ratio is another way to determine if a stock is under or overvalued. The PB ratio is used to compare the current stock price to its book value. In other words, the PB ratio is used to compare all the assets minus liabilities in relation to the stock price.

If the PB ratio is greater than 1 that means the stock is trading for a higher price than the intrinsic value of the company. Meaning, you pay more than what the company is worth. Although future growth is hard to measure. A higher PB ratio than 1 also means that you are last in line (shareholders get paid last when a company defaults) when the company goes bankrupt for whatever reason.

Book value is limited for companies that offer services because there are not many tangible assets on the balance sheet compared to large manufacturing companies. It also does not take brand names, patents and other things in consideration.

3. Summary

3.1. Key Performance Indicators

The key performance indicators of REC Silicon ASA compared to the Most Recent Quarter (MRQ).

	End of day	+/-	Most Recent Quarter	Trailing 12 Months	+/-	Year-Over-Year	+/-	5 Year	+/-	10 Year	+/-
Book Value Per Share	-	-	0.988	0.988	0%	0.784	+26%	0.886	+12%	0.886	+12%
Book Value Per Share Growth	-	-	-	-0.006	0%	0.253	-100%	0.124	-100%	0.124	-100%
Current Ratio	-	-	1.650	4.269	-61%	2.996	-45%	3.633	-55%	3.633	-55%
Debt To Asset Ratio	-	-	0.863	0.863	0%	0.903	-4%	0.883	-2%	0.883	-2%
Debt To Equity Ratio	-	-	6.310	6.310	0%	4.172	+51%	5.241	+20%	5.241	+20%
Dividend Per Share	-	-	-	-	0%	-	0%	-	0%	-	0%
Eps	-	-	-0.555	-0.284	-49%	-0.009	-98%	-0.147	-74%	-0.147	-74%
Eps Growth	-	-	2915.037	2915.037	0%	-	-	2915.037	0%	2915.037	0%
Gains Per Share	-	-	-	-0.006	0%	0.253	-100%	0.124	-100%	0.124	-100%
Gross Profit Margin	-	-	-	0.250	-100%	1.000	-100%	0.625	-100%	0.625	-100%
Net Profit Margin	-	-	-	-0.021	0%	-0.045	0%	-0.033	0%	-0.033	0%
Operating Margin	-	-	-	-0.073	0%	-0.177	0%	-0.125	0%	-0.125	0%
Operating Ratio	-	-	-	0.085	-100%	0.150	-100%	0.117	-100%	0.117	-100%
Pb Ratio	17.624	+11%	15.628	15.515	+1%	9.959	+57%	12.737	+23%	12.737	+23%
Pe Ratio	-15.326	-13%	-13.589	-18.059	+33%	-129.796	+855%	-73.928	+444%	-73.928	+444%
Peg Ratio	-	-	-0.005	-0.005	0%	-	-	-0.005	0%	-0.005	0%
Price Per Share	17.420	+11%	15.447	15.335	+1%	14.676	+5%	15.005	+3%	15.005	+3%
Quick Ratio	-	-	0.180	1.114	-84%	2.081	-91%	1.597	-89%	1.597	-89%
Return On Assets	-	-	-	-0.002	0%	0.000	0%	-0.001	0%	-0.001	0%
Return On Equity	-	-	-	-0.018	0%	-0.185	0%	-0.102	0%	-0.102	0%
	EOD	+1 -2	MRQ	TTM	+1 -7	YOY	+3 -10	5Y	+3 -10	10Y	+3 -10

3.2. Fundamental Score

Let's check the fundamental score of REC Silicon ASA based on Penke's default stock scanner.

Penke's Stock Scanner

Indicator	Condition		Value
Price to Earnings Ratio (EOD)	Between	0-15	-15.326
Price to Book Ratio (EOD)	Between	0-1	17.624
Net Profit Margin (MRQ)	Greater than	0	0.000
Operating Margin (MRQ)	Greater than	0	0.000
Quick Ratio (MRQ)	Greater than	1	0.180
Current Ratio (MRQ)	Greater than	1	1.650
Debt to Asset Ratio (MRQ)	Less than	1	0.863
Debt to Equity Ratio (MRQ)	Less than	1	6.310
Return on Equity (MRQ)	Greater than	0.15	0.000
Return on Assets (MRQ)	Greater than	0.05	0.000
Total			2/10 (20.0%)

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3.3. Technical Score

Let's check the technical score of REC Silicon ASA based on Penke's default Symbol scanner.

Penke's Symbol Scanner

Indicator	Condition		Value
Rsi	Greater than	50	42.214
Ma 20	Greater than	Ma 50	19.458
Ma 50	Greater than	Ma 100	20.080
Ma 100	Greater than	Ma 200	18.781
Open	Greater than	Close	17.610
Total			3/5 (60.0%)

Create your own Symbol Scanner

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Latest Balance Sheet

Balance Sheet of 2022-06-30. Currency in NOK. All numbers in thousands.

Summary

	As reported
Total Liabilities	-
Total Stockholder Equity	+ -
Total Assets	= -

Assets

Total Assets	-
Total Current Assets	243,900
Long-term Assets	243,900

Total Current Assets

Total Current Assets (as reported)	243,900
Net Receivables	26,600
Inventory	38,000
Other Current Assets	800
Total Current Assets (calculated)	65,400
+/-	178,500

Long-term Assets

Long-term Assets (as reported)	0
Property Plant Equipment	123,200
Long-term Assets (calculated)	123,200
+/-	123,200

Liabilities & Shareholders' Equity

Total Current Liabilities	147,800
Long-term Liabilities	-
Total Stockholder Equity	-

Total Current Liabilities

Total Current Liabilities (as reported)	147,800
Accounts payable	33,800
Other Current Liabilities	700
Total Current Liabilities (calculated)	34,500
+/-	113,300

Long-term Liabilities

Long-term Liabilities (as reported)	0
Long-term Liabilities (calculated)	0
+/-	0

Total Stockholder Equity

Total Stockholder Equity (as reported)	0
Common Stock	59,200
Other Stockholders Equity	590,300
Total Stockholder Equity (calculated)	649,500
+/-	649,500

Other

Net Tangible Assets	112,300

Balance Sheet

Currency in NOK. All numbers in thousands.

Trend

2022-06-30

2022-03-31

2021-12-31

2021-09-30

2021-06-30

2021-03-31

2020-12-31

2020-09-30

2020-06-30

> Total Assets

0
258,400
341,400
341,700
320,500
307,000
0
0
0

307,000

320,500

341,700

341,400

258,400

> Total Current Assets

110,200
109,100
208,200
215,000
199,700
192,000
177,600
274,200
243,900

243,900

274,200

177,600

192,000

199,700

215,000

208,200

109,100

110,200

Cash And Cash Equivalents

0
35,900
134,900
131,500
123,600
126,300
0
0
0

126,300

123,600

131,500

134,900

35,900

Net Receivables

16,100
16,900
21,900
22,500
20,700
18,700
24,200
21,900
26,600

26,600

21,900

24,200

18,700

20,700

22,500

21,900

16,900

16,100

Inventory

50,700
46,800
41,300
48,800
45,000
38,200
33,100
40,000
38,000

38,000

40,000

33,100

38,200

45,000

48,800

41,300

46,800

50,700

Other Current Assets

4,000
4,000
4,500
4,500
4,600
4,500
4,400
900
800

800

900

4,400

4,500

4,600

4,500

4,000

> Long-term Assets

Property Plant Equipment

137,000
129,000
131,100
124,500
118,700
114,000
116,300
114,900
123,200

123,200

114,900

116,300

114,000

118,700

124,500

131,100

129,000

137,000

Intangible Assets

0
1,100
2,000
1,000
1,000
900
0
0
0

900

1,000

2,000

1,100

> Total Liabilities

0
277,600
282,400
291,300
275,500
265,000
0
0
0

265,000

275,500

291,300

282,400

277,600

> Total Current Liabilities

105,800
61,200
59,600
69,400
55,300
46,100
43,500
38,200
147,800

147,800

38,200

43,500

46,100

55,300

69,400

59,600

61,200

105,800

Accounts payable

59,900
29,900
8,000
34,600
27,800
30,500
10,100
33,800
33,800

33,800

10,100

30,500

27,800

34,600

8,000

29,900

59,900

Other Current Liabilities

23,700
1,300
7,100
1,400
1,500
2,100
6,000
1,200
700

700

1,200

6,000

2,100

1,500

1,400

7,100

1,300

23,700

> Long-term Liabilities

> Total Stockholder Equity

0
-19,200
59,000
50,400
45,000
42,000
0
0
0

42,000

45,000

50,400

59,000

-19,200

Common Stock

43,400
43,400
53,700
53,700
53,700
53,700
53,700
59,200
59,200

59,200

53,700

43,400

Retained Earnings Total Equity

Accumulated Other Comprehensive Income

Capital Surplus

0
2,768,800
2,864,500
2,864,500
2,864,500
2,864,500
0
0
0

2,864,500

2,768,800

Treasury Stock

Other Stockholders Equity

587,800
587,800
587,800
587,700
587,800
587,800
587,800
587,800
590,300

590,300

587,800

587,700

587,800

Balance Sheet

Currency in NOK. All numbers in thousands.

	2021-12-31	2020-12-31	2019-12-31	2018-12-31	2017-12-31	2016-12-31
Accounts Payable	10,100	8,000	9,000	17,400	10,200	-
Capital Surpluse	-	2,864,500	2,768,800	2,752,700	2,752,700	2,752,700
Cash	-	134,900	29,400	31,800	104,500	65,800
Cash And Short Term Investments	-	134,900	29,400	31,800	104,500	65,800
Common Stock	53,700	53,700	43,500	405,300	405,300	405,300
Intangible Assets	-	1,000	1,100	11,800	15,700	17,300
Inventory	33,100	41,300	47,700	79,100	82,900	104,100
Long Term Debt	-	118,000	109,000	108,600	-	144,100
Net Receivables	24,200	21,900	25,800	34,500	41,100	44,500
Net Tangible Assets	32,400	58,000	-300	94,900	433,200	-
Other Assets	100	-	4,100	6,400	-	224,500
Other Current Assets	4,400	4,500	4,500	4,300	4,400	4,600
Other Current Liab	6,000	7,100	36,100	33,600	35,200	-
Other Liab	35,000	35,100	23,400	28,000	69,600	-
Other Stockholder Equity	587,800	587,800	587,700	215,200	218,900	-2,376,000
Property Plant Equipment	116,300	131,100	154,000	146,200	540,300	595,200
Retained Earnings	-3,472,700	-3,447,000	-3,399,200	-3,266,500	-2,928,000	-
Short Long Term Debt Total	-	187,700	150,600	108,600	-	144,100
Total Assets	-	341,400	290,600	357,300	800,200	1,070,600
Total Current Assets	177,600	208,200	113,400	158,700	240,400	229,800
Total Current Liabilities	43,500	59,600	115,800	114,000	281,700	80,000
Total Liab	-	282,400	289,800	250,600	351,300	288,600
Total Stockholder Equity	-	59,000	800	106,700	448,900	782,000

	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2020-06-30
Accounts Payable	33,800	33,800	10,100	30,500	27,800	34,600	8,000	29,900	59,900
Capital Surpluse	-	-	-	2,864,500	2,864,500	2,864,500	2,864,500	2,768,800	-
Cash	-	-	-	126,300	123,600	131,500	134,900	35,900	-
Cash And Short Term Investments	-	-	-	126,300	123,600	131,500	134,900	35,900	-
Common Stock	59,200	59,200	53,700	53,700	53,700	53,700	53,700	43,400	43,400
Common Stock Shares Outstanding	-	-	-	42,493	44,481	43,744	36,857	30,639	-
Intangible Assets	-	-	-	900	1,000	1,000	2,000	1,100	-
Inventory	38,000	40,000	33,100	38,200	45,000	48,800	41,300	46,800	50,700
Long Term Debt	-	-	-	116,000	115,900	116,700	118,000	120,100	-
Net Receivables	26,600	21,900	24,200	18,700	20,700	22,500	21,900	16,900	16,100
Net Tangible Assets	112,300	133,300	32,400	41,100	44,000	49,400	58,000	-20,300	-51,000
Other Assets	-	-	100	100	-	-	-1,000	1,200	2,600
Other Current Assets	800	900	4,400	4,500	4,600	4,500	4,500	4,000	4,000
Other Current Liab	700	1,200	6,000	2,100	1,500	1,400	7,100	1,300	23,700
Other Liab	34,800	34,800	35,000	34,600	35,600	36,000	35,100	26,100	26,100
Other Stockholder Equity	590,300	587,800	587,800	587,800	587,800	587,700	587,800	587,800	587,800
Property Plant Equipment	123,200	114,900	116,300	114,000	118,700	124,500	131,100	129,000	137,000
Retained Earnings	-3,504,800	-3,481,300	-3,472,700	-3,464,000	-3,461,000	-3,455,500	-3,447,000	-3,419,300	-3,450,000
Short Long Term Debt Total	-	-	-	184,300	184,600	185,900	187,700	190,300	-
Total Assets	-	-	-	307,000	320,500	341,700	341,400	258,400	-
Total Current Assets	243,900	274,200	177,600	192,000	199,700	215,000	208,200	109,100	110,200
Total Current Liabilities	147,800	38,200	43,500	46,100	55,300	69,400	59,600	61,200	105,800
Total Liab	-	-	-	265,000	275,500	291,300	282,400	277,600	-
Total Stockholder Equity	-	-	-	42,000	45,000	50,400	59,000	-19,200	-

Cash Flow

Currency in NOK. All numbers in thousands.

	2021-12-31	2020-12-31	2019-12-31	2018-12-31	2017-12-31	2016-12-31
Capital Expenditures	8,300	1,300	2,000	1,700	2,600	14,500
Change In Cash	-24,400	105,500	-2,400	-72,700	38,800	-29,700
Change In Working Capital	-	-13,700	20,000	8,200	82,700	59,700
Change To Account Receivables	-2,400	-1,700	5,400	9,700	5,900	-
Change To Inventory	7,900	6,400	21,500	3,800	22,600	-
Change To Liabilities	4,600	-3,200	-7,800	-5,700	18,600	-
Change To Netincome	-22,200	19,900	45,500	262,400	194,000	-
Change To Operating Activities	-600	-16,600	-16,600	-400	1,300	-
Depreciation	28,200	39,700	49,400	61,700	147,000	185,300
Net Borrowings	-3,000	1,600	-7,800	-61,400	-61,400	-
Net Income	-30,100	-46,700	-127,000	-341,600	-350,600	-248,100
Other Cashflows From Investing Activities	-	100	-100	-100	-100	100
Sale Purchase Of Stock	-	105,900	19,000	-	-	-
Total Cash From Financing Activities	-3,000	107,500	11,200	-61,400	-61,400	-21,200
Total Cash From Operating Activities	-14,600	-2,200	-13,000	-10,100	38,800	3,700
Total Cashflows From Investing Activities	-6,800	100	-600	-1,200	-2,800	-14,400

	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2020-06-30
Capital Expenditures	12,800	5,700	3,400	2,100	1,200	1,700	400	300	300
Change In Cash	-31,000	93,500	-15,800	2,700	-7,800	-3,400	99,000	4,300	1,300
Change In Working Capital	-	-	-	13,600	300	200	-13,700	-12,100	-
Change To Account Receivables	-5,300	3,300	-7,400	3,900	1,800	-700	-5,000	-1,300	-2,400
Change To Inventory	2,000	-7,000	5,100	6,800	3,500	-7,600	5,500	3,900	2,200
Change To Liabilities	2,000	-1,500	300	3,200	-2,600	3,700	-5,900	-1,700	-3,400
Change To Netincome	2,700	2,700	2,700	-14,100	-8,200	200	19,700	-20,400	28,500
Change To Operating Activities	-2,100	4,100	-2,600	-100	-2,400	4,500	2,200	-16,100	-1,900
Depreciation	6,700	7,100	6,900	7,000	7,100	7,200	7,200	8,500	12,100
Net Borrowings	-600	-7,700	-1,400	-500	-500	-500	-3,300	-300	6,900
Net Income	-23,600	-8,600	-13,100	-3,000	-5,400	-8,600	-26,600	30,700	-40,200
Other Cashflows From Financing Activities	-	-	100	100	100	100	-	-	-100
Other Cashflows From Investing Activities	-	-	100	100	100	100	1,100	100	100
Sale Purchase Of Stock	-	-	-	-	-	-	105,900	-	-
Total Cash From Financing Activities	-600	101,800	-1,400	-500	-500	-500	102,600	-300	6,800
Total Cash From Operating Activities	-17,600	-2,600	-11,100	3,800	-6,100	-1,300	-2,900	3,600	-5,100
Total Cashflows From Investing Activities	-12,800	-5,700	-3,300	-600	-1,200	-1,700	-800	1,000	-400

Income Statement

Currency in NOK. All numbers in thousands.

	2021-12-31	2020-12-31	2019-12-31	2018-12-31	2017-12-31	2016-12-31
Cost Of Revenue	-	20,600	46,300	55,700	72,000	88,200
Discontinued Operations	13,400	13,400	13,400	13,400	-	-
Ebit	-28,300	-32,800	-60,300	-66,000	-127,200	-
Gross Profit	-	101,500	113,900	165,500	200,400	183,000
Income Before Tax	-	-69,300	-127,000	-348,000	-192,800	-248,100
Income Tax Expense	-	-22,600	-	-6,500	157,800	-
Interest Income	-	-34,000	-42,800	63,800	-63,700	-28,200
Net Income	-	-46,700	-127,000	-341,500	-350,600	-147,400
Net Income Applicable To Common Shares	-30,100	-46,700	-127,000	-341,600	-350,600	-147,400
Operating Income	-	-38,900	-82,600	-407,100	-127,500	-216,000
Other Operating Expenses	76,900	56,100	80,100	93,900	88,500	-
Selling General Administrative	-	79,600	122,500	169,900	180,600	215,700
Tax Provision	-	-22,600	-	-6,500	157,800	-100,700
Total Revenue	-	122,100	160,200	221,200	272,400	271,200

	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2020-06-30
Cost Of Revenue	-	-	-	12,300	6,400	-2,200	8,300	8,100	-
Discontinued Operations	-	100	100	13,400	13,400	13,400	13,400	-	-
Ebit	-7,700	-3,500	-6,700	-10,600	-7,400	-3,100	-5,900	-6,800	-9,500
Extraordinary Items	-	-	-	13,400	-	-	-	-	-
Gross Profit	-	-	-	23,900	29,200	30,300	27,800	22,200	-
Income Before Tax	-	-	-	-16,400	-5,400	-8,600	-26,600	8,200	-
Income Tax Expense	-	-	-	-	-	-	-	-22,500	-
Interest Income	-	-	-	-5,300	-5,600	-5,100	-3,000	-5,500	-
Net Income	-	-	-	-3,000	-5,400	-8,600	-26,600	30,700	-
Net Income Applicable To Common Shares	-23,600	-8,600	-13,100	-3,000	-5,400	-8,600	-26,600	30,700	-40,200
Operating Income	-	-	-	-10,700	500	-3,200	-5,300	9,400	-
Other Operating Expenses	22,800	20,200	22,900	19,000	18,300	16,700	14,700	11,700	14,500
Selling General Administrative	-	-	-	8,600	11,300	9,500	12,700	8,800	-
Tax Provision	-	-	-	-	-	-	-	-22,500	-
Total Revenue	-	-	-	36,200	35,600	28,100	36,100	30,300	-

Latest Income Statement (annual, 2021-12-31)

Gross Profit (+$)
totalRevenue	-
Cost of Revenue	--
Gross Profit	-	0

Operating Income (+$)
Gross Profit	-
Operating Expense	--
Operating Income	-	0

Operating Expense (+$)
Research Development	-
Selling General Administrative	-
Selling And Marketing Expenses	-
Operating Expense	-	0

Net Interest Income (+$)
Interest Income	-
Interest Expense	--
Net Interest Income	-	0

Pretax Income (+$)
Operating Income	-
Net Interest Income	-
Other Non-Operating Income Expenses	-
Income Before Tax (EBT)	-	0 EBIT - interestExpense = -28,300 0 0
Interest Expense	-
Earnings Before Interest and Taxes (ebit)	-28,300	0
Earnings Before Interest and Taxes (ebitda)	-

After tax Income (+$)
Income Before Tax	-
Tax Provision	--
Net Income From Continuing Ops	-	0
Net Income	-
Net Income Applicable To Common Shares	-30,100

Non-recurring Events
Discontinued Operations	13,400
Extraordinary Items	-
Effect of Accounting Charges	-
Other Items	-
Non Recurring	-
Other Operating Expenses	76,900
Total Other Income/Expenses Net	-	0