Recommended as Stock of the Week on May 25, 2026

Salmon Farmer on the Fjord: When the Market Sells Quality at a Discount

TickerBAKKA.OL
Recommended Price463.00 NOK
Current Price 463.00 NOK
P/f Bakkafrost – stock chart

Scores at time of recommendation (May 25, 2026)

Leeway Score
60/100
Excellent
Business Rating
60/100
Excellent
Market-Fit Rating
44/100
Fair
Cycle Rating
76/100
Excellent

More about our scores in Help

5-year stock timeline

2026-08–09 to 2026-08-31 (Q2 and H1 2026 results and dividend)

Bakkafrost reported improved operational performance driven by a record Faroese harvest. The Annual General Meeting approved and the company paid an ordinary dividend in May 2026.

Investors viewed Bakkafrost as executing on its Faroes growth and de-risking in Scotland. The dividend reinforced an income and quality element, though analysts noted missed consensus for Q2, creating some near-term disappointment despite operational improvement.

Q2 2026 revenue reached DKK 1.8 billion. Operational EBIT for Q2 2026 was DKK 273 million, compared to DKK 65 million in the prior year. H1 2026 operational EBIT totaled DKK 544 million. Harvest volumes in 2025 reached 106,823 tgw, providing context for 2026 performance. The company paid a dividend of DKK 3.45 per share (total DKK 205 million) in May 2026 [3][4][1].

2026-Q1 to 2026-09 (Guidance and medium-term capacity targets reiterated)

Management reiterated 2026 harvest guidance and long-term investment program and dividend policy in presentations and reports through 2026.

Market perception shifted toward Bakkafrost as a mid-cycle grower investing to expand capacity while returning capital. Emphasis on tight global supply supporting prices was tempered by concerns about feed costs and Scotland ramp-up timing.

2026 harvest guidance was maintained at approximately 117,000 tgw (97,000 tgw Faroes, 20,000 tgw Scotland). The investment program targets approximately DKK 5 billion, aiming for 145,000 tgw by 2028 and 162,000 tgw by 2030. The Board target payout ratio is 30–50% of EPS. Q1 2026 operational EBIT was DKK 544 million [5][2][13].

2025 — Publication of 2025 Integrated Annual Report (published 2026-09-26)

The 2025 Integrated Annual Report was published, documenting full-year 2025 operations and results.

The report showed higher harvest volumes for 2025 and demonstrated resilience to lower average salmon prices via volume growth. Investors used the report to assess the multi-year capacity investments and profitability per kg.

Group operating revenues for 2025 were DKK 7.0 billion. Operational EBIT for 2025 was DKK 888 million. Total harvest in 2025 reached 106,823 tgw, compared to 90,656 tgw in 2024 [1][8].

2024 — Q4 and Full-Year 2024: strong Faroes performance, Scottish losses and de-risking

2024 full-year results and Q4 reporting showed strong biological performance in the Faroe Islands with growing harvest volumes. Scotland remained loss-making but showed signs of recovery as de-risking measures progressed.

The market narrative split: Faroes operations reinforced a "quality, low-cost" growth story while Scotland was seen as a transitional, investment-heavy segment being de-risked. Investors priced a premium on Faroes execution while discounting Scottish losses and short-term margin pressure.

Full-year 2024 operating revenue was approximately DKK 7.48 billion. Operational EBIT for 2024 was approximately DKK 1.55 billion. Q4 2024 operational EBIT reached DKK 280 million and profit was DKK 477 million. Full-year harvest volumes were approximately 90,700 tgw (Faroe Islands approximately 62,800 tgw, Scotland approximately 27,900 tgw). The Scottish segment reported operational EBIT losses in earlier quarters but improved in Q4 2024 with a harvest of 3,840 tgw [20][27][28][26][29].

2023 — Continued integration and operational focus (post-pandemic normalization)

Bakkafrost continued execution of the multi-year investment plan and operational focus following pandemic-era volatility, with ongoing emphasis on large-smolt strategy and feed and processing integration.

Investors regarded Bakkafrost as leveraging scale and biological improvements in the Faroes while managing the Scottish turnaround. Sentiment was constructive but cautious pending Scottish profitability and the global price environment.

Public filings and presentations in 2023 reiterated the multi-year investment plan of approximately DKK 5–6.2 billion and reported progressive improvements in Faroes biological metrics and smolt strategy [33][41].

2022 — Investment plan and acquisitions; elevated operational guidance

Bakkafrost publicly outlined a major investment programme and made smaller strategic acquisitions to broaden product and value-added footprint. The acquisition of Munkebo Seafood was completed in January 2022.

Market perception shifted toward viewing Bakkafrost as executing vertical integration and expansion. Investors saw higher upfront capex but potential for higher long-term value and improved value-added margins.

Bakkafrost announced a DKK 6.2 billion investment plan for 2022–2026 at the 2021 Capital Markets Day and proceeded with related investments into hatcheries, Scottish operations and value-added capacity [33][41].

2021 — Record Faroes harvests, improved profitability and large investment commitment

2021 was a strong operational year with record harvests in the Faroe Islands. The company announced a major long-term investment plan at the Capital Markets Day in September 2021.

Investors moved from pandemic-recovery optimism to conviction that Bakkafrost could grow volumes and improve per-kg profitability through better smolt production, feed efficiency and scaling of Faroes operations. The company was positioned as a growth compounder backed by a plan to invest heavily in capacity.

2021 harvest HOG was approximately 97,900 tonnes (Faroe Islands approximately 67,200 t, Scotland approximately 29,700 t). Group profit for 2021 was DKK 964 million. The company announced an investment plan of approximately DKK 6.2 billion for 2022–2026 and achieved a record Faroes Q4 harvest of 20,694 tgw. Q2 2021 operational EBIT was DKK 407.5 million [33][32][34][31].

Key Points

From recommendation (May 25, 2026)

  • Stock price NOK 463, P/E 22.5 – with projected EPS growth of around 40% next year (EPS estimate: ~25 DKK), an interesting setup.
  • Revenue growth +11.3%, profit growth +23.8% – operational momentum intact
  • EBIT margin 2025: 12.5% – down from 18.5% (2023), but a turnaround appears to be forming
  • Equity ratio solid at 58.3%, balance sheet structurally sound
  • Fully vertically integrated: from feed production (Havsbrún) through to processing—difficult to replicate
  • Scotland segment growing, Faroe Islands base stable and established
  • Analyst Consensus Price Target: NOK 486 – Market Sees Room to Run

Investment Thesis

From recommendation (May 25, 2026)

Bakkafrost controls the entire salmon production value chain—from feed production to market distribution—a rarity among global salmon producers. This vertical integration delivers structural cost control and quality assurance that competitors simply cannot replicate, especially those without their own feed operations or access to the Faroe Islands' specific geographic advantages. The current NOK 463 price reflects recent margin compression; EBIT margins have contracted from 18.5% in 2023 to 12.5% in 2025, primarily due to startup challenges in Scotland and biological headwinds. Yet EPS estimates show meaningful recovery, jumping from 17.8 to nearly 25—the company is growing through this weakness. If you're betting on structurally rising protein demand, constrained aquaculture capacity globally, and a disciplined operator with genuine competitive moats, the setup here warrants attention.

Key risks and downside factors

P/F Bakkafrost, a vertically integrated Atlantic salmon producer headquartered in the Faroe Islands, competes against larger Norwegian and international salmon farming groups that leverage advantages in scale, geographic footprint, processing capabilities, and branded product distribution. The company faces material risks from biological and health events in its farming operations, exposure to commodity and feed costs, regulatory and environmental constraints within its operating jurisdictions, and price volatility stemming from global supply-demand dynamics and currency fluctuations.

  • Disease and parasite outbreaks—particularly infectious salmon anemia and sea lice infestations—create material headwinds through direct mortality, harvest delays, and elevated spending on veterinary intervention and mitigation measures.
  • Feed and raw material costs—fishmeal, fish oil, and soy—have risen enough to compress margins meaningfully, given how much of aquaculture's production cost goes directly to feed.
  • Regulatory and environmental constraints—including licensing limits, mandatory fallowing periods, and stricter emissions or escape controls—can restrict production growth or demand significant capital investment.
  • Price and foreign exchange volatility stemming from global salmon supply fluctuations and currency movements obscure revenue visibility and can weaken profitability.

Competitive landscape

Bakkafrost operates as a vertically integrated salmon farmer, competing directly against larger, publicly listed Atlantic salmon producers across Norway and globally. Its primary competitors—Mowi, Lerøy Seafood Group, SalMar, and Grieg Seafood—compete on production scale, cost efficiency, feed access, and biosecurity capabilities. The company faces material risks from fish-health events and disease outbreaks, exposure to salmon price swings and market volatility, regulatory and environmental pressures including climate-related constraints, and currency and financing risks tied to its international revenue base and capital-intensive growth plans [8], [3].

CompanyTicker
Mowi ASAMOWI.OL
Lerøy Seafood Group ASALSG.OL
SalMar ASASALM.OL
Grieg Seafood ASAGSF.OL

Private competitors

  • Bakkafrost (private smaller regional farmers and integrators in Faroe Islands and Iceland)

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Catalysts

From recommendation (May 25, 2026)

  • Q Results with Indications of Margin Recovery in the Scotland Segment
  • Improvement in biological performance metrics (mortality rates, growth coefficients) across both regions
  • I need the text to translate. You've provided instructions and what appears to be a headline in German, but no body text to translate. The headline translates to: "Global salmon prices rise amid demand surge or supply constraints among competitors" If you have additional content to translate, please share it and I'll handle it according to your specifications.
  • Capacity Expansion in the Faroe Islands with Positive Guidance Adjustment
  • Regulatory or tax clarity in Norway/Scotland reducing valuation uncertainty

Analysis

From recommendation (May 25, 2026)

Bakkafrost is riding a structural tailwind that's unlikely to reverse. Global appetite for sustainably produced, high-quality protein keeps climbing while available fishing grounds remain finite. The vertical integration—in-house feed production, optimized farming conditions on the Faroes, owned processing—isn't marketing language. It's operational reality that shows up in stable margins and quality premiums. That said, clarity matters: EBIT margins have compressed from 18.5% to 12.5% over three years, and the Scottish segment has wrestled with biological setbacks that have meaningfully weighed on the group. Geographic concentration on the Faroes and Scotland creates exposure—when local environmental stress or disease outbreaks occur, they hit hard. It's happened. Climate change and rising water temperatures are genuine longer-term uncertainties that could reshape farming viability. On the other side, Faroese production is rebounding with higher volumes, the feed business is growing, and biological performance is improving. EPS estimates are moving accordingly. You're not buying a growth story here. You're buying a quality operator in a structurally sound market at a price that appears to have already absorbed the recent friction.

Performance Figures of P/f Bakkafrost

in NOK

1M High / Low
456.80 / 418.80
52W High / Low
526.00 / 390.80
5Y High / Low
797.00 / 388.00
1M
-0.64%
3M
+8.17%
6M
-6.69%
1Y
-5.94%
3Y
-8.95%
5Y
-33.62%

Relative Performance vs Benchmarks

PeriodP/f Bakkafrost vs DAX vs S&P 500 (SPY)
1M -0.64% +2.69% -2.05%
3M +8.17% +8.08% +4.27%
6M -6.69% -12.31% -21.93%
1Y -5.94% -9.04% -23.63%
3Y -8.95% -74.03% -97.03%
5Y -33.62% -98.96% -123.86%

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Historical valuation trends

How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.

PeriodP/E RatioP/S RatioP/B RatioP/CF Ratio
Current22.02.41.67.4
1Y ago120.84.22.65.5
3Y ago47.82.61.98.6
5Y ago33.86.03.337.9

Frequently Asked Questions

From recommendation (May 25, 2026)

Is P/f Bakkafrost a good investment?

P/f Bakkafrost has a Leeway Score of 60/100, which is rated as Excellent. The Leeway Score combines business quality, fundamental evaluation, and valuation cycle into a comprehensive assessment. A higher score indicates stronger investment quality based on AI-powered fundamental analysis.

What does P/f Bakkafrost do?

P/f Bakkafrost is a company characterized by the following investment thesis: P/F Bakkafrost, together with its subsidiaries, engages in the production and sale of salmon products in North America, Western Europe, Eastern Europe, Asia, and internationally. The company operates through seven segments: Fishmeal, Fish Oil and Fish Feed; Freshwater Faroe Islands; Freshwater Scotland; Farming Faroe Islands; Farming Scotland; Services; and Sales & Other. Its products include fresh and frozen whole salmon, fresh and frozen salmon fillets, fresh skin-packed salmon portions, frozen salmon portions and tails, frozen smoked salmon and salmon fillets, frozen salmon bits and pieces, frozen salmon off-cuts and belly flaps, frozen salmon heads, salmon backbones, and salmon skin. The company is also involved in the production and sale of fishmeal, fish oil, and fish feed; production of eggs from breeding self-owned salmon strains; production of smolts; and on-growing of salmon. In addition, it manages a fleet of farming service vessels; provides fish transportation, treatments, net cleaning, harvesting, freight and logistical, and heavy marine support services; converts organic waste into biogas, heating, electricity, and fertilizers; produces styrofoam boxes; and optimizes the value creation and retention from the harvested fish. P/F Bakkafrost was founded in 1968 and is headquartered in Glyvrar, Denmark. P/f Bakkafrost operates in the Consumer Defensive / Farm Products industry is based in Norway employs around 1,816 people. P/f Bakkafrost recently reported revenue of about 7.47B NOK, a profit margin of 10.94%, return on equity of 7.61%, a market capitalisation around 25.87B NOK, valuation multiples of roughly 20.7x earnings, 3.5x sales, 1.7x book value. Analyst consensus currently expects earnings per share of around 23.10 NOK with year‑over‑year growth of 43.49%. P/f Bakkafrost has an ongoing dividend policy and pays around 3.45 NOK per share (0.80% yield).

What are the key metrics for BAKKA.OL?

Key metrics for BAKKA.OL include valuation (P/E 22.5, P/S 2.6, P/B 1.7), profitability (profit margin 11.66%, ROE 7.45%), and growth (revenue 11.30%, earnings 23.80%). Market capitalization is 27.42B NOK. These metrics give an overview of the company's financial performance and valuation.

How has P/f Bakkafrost's stock price performed?

P/f Bakkafrost's stock has returned – over 1 year, – over 3 years, and – over 5 years. Performance can vary depending on market conditions and company developments.

How is BAKKA.OL valued?

BAKKA.OL has the following valuation metrics: P/E Ratio: 22.5, P/S Ratio: 2.6, P/B Ratio: 1.7. These metrics help assess whether the stock is fairly valued compared to its fundamentals.

What are the growth catalysts for P/f Bakkafrost?

The key growth catalysts for P/f Bakkafrost are:
  • Q Results with Indications of Margin Recovery in the Scotland Segment
  • Improvement in biological performance metrics (mortality rates, growth coefficients) across both regions
  • I need the text to translate. You've provided instructions and what appears to be a headline in German, but no body text to translate. The headline translates to: "Global salmon prices rise amid demand surge or supply constraints among competitors" If you have additional content to translate, please share it and I'll handle it according to your specifications.
  • Capacity Expansion in the Faroe Islands with Positive Guidance Adjustment
  • Regulatory or tax clarity in Norway/Scotland reducing valuation uncertainty
These factors can positively influence the company's future growth and performance.

What are the key risks when investing in BAKKA.OL?

Key risks for BAKKA.OL include: P/F Bakkafrost, a vertically integrated Atlantic salmon producer headquartered in the Faroe Islands, competes against larger Norwegian and international salmon farming groups that leverage advantages in scale, geographic footprint, processing capabilities, and branded product distribution. The company faces material risks from biological and health events in its farming operations, exposure to commodity and feed costs, regulatory and environmental constraints within its operating jurisdictions, and price volatility stemming from global supply-demand dynamics and currency fluctuations.
  • Disease and parasite outbreaks—particularly infectious salmon anemia and sea lice infestations—create material headwinds through direct mortality, harvest delays, and elevated spending on veterinary intervention and mitigation measures.
  • Feed and raw material costs—fishmeal, fish oil, and soy—have risen enough to compress margins meaningfully, given how much of aquaculture's production cost goes directly to feed.
  • Regulatory and environmental constraints—including licensing limits, mandatory fallowing periods, and stricter emissions or escape controls—can restrict production growth or demand significant capital investment.
  • Price and foreign exchange volatility stemming from global salmon supply fluctuations and currency movements obscure revenue visibility and can weaken profitability.
Investors should consider these risk factors carefully before making an investment decision.

Who are the main competitors of P/f Bakkafrost?

P/f Bakkafrost competes with several listed peers in its sector. Bakkafrost operates as a vertically integrated salmon farmer, competing directly against larger, publicly listed Atlantic salmon producers across Norway and globally. Its primary competitors—Mowi, Lerøy Seafood Group, SalMar, and Grieg Seafood—compete on production scale, cost efficiency, feed access, and biosecurity capabilities. The company faces material risks from fish-health events and disease outbreaks, exposure to salmon price swings and market volatility, regulatory and environmental pressures including climate-related constraints, and currency and financing risks tied to its international revenue base and capital-intensive growth plans [8, 3, 21].
  • Mowi ASA (MOWI.OL)
  • Lerøy Seafood Group ASA (LSG.OL)
  • SalMar ASA (SALM.OL)
  • Grieg Seafood ASA (GSF.OL)
These competitors influence pricing power, growth opportunities and relative valuation.

Key Metrics

From recommendation (May 25, 2026)

Market Capitalization
27.42B NOK
P/E Ratio
22.51
Analyst Target Price
486.58 NOK

Valuation Metrics

P/S Ratio
2.63
P/B Ratio
1.68

Profitability Metrics

Profit Margin
11.66%
Operating Margin
22.06%
Return on Equity
7.45%
Return on Assets
4.23%

Growth Metrics

Revenue Growth
11.30%
Earnings Growth
23.80%

Dividend history

Long-term record of paid dividends (amount per share and dividend yield at the time of payment).

YearDividendYield at paymentAvg. yield
20265.06 DKK1.60%3.58%
202513.37 DKK4.05%
202413.69 DKK3.20%
202315.63 DKK3.18%
20226.70 DKK1.37%
20214.96 DKK1.02%
201910.63 DKK3.20%
201813.46 DKK3.83%
201710.68 DKK4.80%
201610.37 DKK4.10%
20156.86 DKK4.39%
20144.96 DKK5.53%
20132.04 DKK2.89%
20121.02 DKK2.74%
20114.09 DKK7.84%

Earnings history & estimates

Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.

Historical earnings performance

38.5%
Beat estimate
61.5%
Miss estimate
+61.08%
Avg surprise when beat
-28.14%
Avg surprise when miss

Reports analyzed: 65

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus23.10
Range18.23 – 25.27
8 analysts
Est. growth vs prior: 43.49%
Revisions: 7d ↑1 ↓0 · 30d ↑2 ↓4
Next quarter
September 30, 2024
Consensus5.20
Range3.66 – 6.71
6 analysts
Est. growth vs prior: 16.9%

Key financial figures

All figures in DKK

Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.

20252024202320222021
Revenue7.01B7.33B7.14B7.13B5.55B
Operating income (EBIT)877.82M1.01B1.32B1.83B1.11B
Net income530.17M656.60M955.57M1.35B964.05M
Free cash flow-56.49M1.33B226.07M-33.82M8.87M
Total assets18.95B17.63B17.84B16.88B14.63B
Equity11.04B11.17B10.86B10.39B9.35B
Net debt3.90B3.00B3.53B2.66B2.46B

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