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

2026-05 (Q1 2026 / AGM)

AGM on 30 April 2026 approved a cash dividend of DKK 3.45 per share (total DKK 205m) payable around 21 May. The company issued Q1 commentary with updated 2026 guidance and noted reduced Faroese farming and freshwater costs improving the outlook for 2026 [1][3].

Market viewed the dividend as management balancing shareholder returns during a year of weaker earnings. Investors read the guidance and cost improvements as supportive for recovery of the growth narrative but remained cautious because prior-year profits had been higher and analysts trimmed expectations for dividend size versus some forecasts [1][4].

A short-term rally occurred around the AGM as the dividend confirmed and guidance improved. Price action remained within a broader multi-month trading range as investors awaited execution on 2026 production targets [1][4].

2026-02 (Q4 / FY2025 results)

Q4 report showed weaker EBIT versus prior year. Management forecasted a tighter salmon market in 2026 and proposed DKK 3.45 dividend for 2026, while flagging higher harvest guidance for 2026 in some updates [4][9].

Investor perception shifted from a clear high-margin growth story toward more guarded optimism. The market acknowledged Bakkafrost's strong biological recovery but recognized that 2024–25 market conditions pressured margins and earnings, prompting emphasis on cash returns and execution in 2026 [4][9].

A drawdown through late 2025 into early 2026 was followed by stabilization and tentative bottoming. A bounce occurred on dividend proposal and constructive 2026 guidance, showing early-stage rally and rangebound behavior [4][9].

2025 (H2 2025)

Bakkafrost pursued vertical integration moves, with intent to acquire fish meal and ingredient producer Havsbrún announced late 2024 and progressing into 2025. Management revised production forecasts for coming years as regional performance varied [11][9].

Investors increasingly framed Bakkafrost as pursuing vertical integration to protect margins and capture more value across the chain. Sentiment remained mixed — some saw long-term resilience and strategic sense, while others saw near-term execution and capital allocation risk during an earnings soft patch [11][9].

Price action showed a range with occasional spikes on M&A and production-news days. A broader downtrend from peak 2021–22 levels persisted as the market re-priced near-term earnings risk.

2024 (Full year / integration)

Bakkafrost published its 2023 integrated annual report (revenues DKK ~7.1bn; operational EBIT ~DKK 1.5bn) and announced investment in a new smolt hatchery at Skálavík and climate action targets approved by SBTi. The Board proposed a larger dividend for 2024 at DKK 8.70 per share per the 2023 report disclosures [5][7].

The company's long-term story — high-quality Faroese production, strong biological performance and sustainability credentials — was reinforced. However, investors balanced that narrative against uneven regional results (Scotland underperformance) and volatile salmon market pricing, producing a cautious constructive stance: growth and compounder qualities remained intact but cyclicality was obvious [5][13].

Stabilization and occasional upward bias occurred as operational improvements and sustainability milestones supported sentiment, though price action remained volatile and correlated with macro salmon pricing cycles.

2023 (Operational volatility and investments)

Harvest volumes reached approximately 73,000 tonnes. Regional mix showed strong Faroe Islands performance but weakness in Scotland. The Board proposed dividend and emphasized long-term dividend policy (30–50% of EPS) and investments in hatchery and smolt capacity [5][13].

Market perception was that Bakkafrost remained a high-quality, vertically integrated producer with strong Faroese operations. Investors were increasingly attuned to geographic execution risk in Scotland and to industry cycle effects on near-term earnings. The narrative shifted to "quality-with-cyclicality" rather than unambiguous compounder [5][13].

Intermittent rallies occurred on operational improvement announcements but recurring drawdowns followed when Scottish operations or salmon prices disappointed. Overall price action remained choppy and rangebound.

2022 (Post-acquisition integration and strong earnings year)

The company continued integration following earlier strategic M&A, including Scottish Salmon Company acquisition from prior years. 2022 reported higher net profit versus 2023 and strong margins driven by favorable prices and efficient Faroese production [5][13].

Investor perception peaked that Bakkafrost was a premium salmon operator and consolidator. The combination of scale, vertical integration and Faroese biological performance supported a growth and compounder narrative in 2021–22. Optimism about sustainable dividend policy and earnings power was strong [5][13].

A strong uptrend developed from 2021 into 2022 driven by robust earnings and industry tailwinds. Breakout phases rewarded superior margins and scale.

2021 (Prior strategic M&A completion and secular positioning)

Major strategic deals, including the earlier acquisition of Scottish Salmon Company and consolidation moves, showed their aftermath. The company's profile as leading Faroese salmon producer solidified, with acquisition activity and integration ongoing [8][5].

Market viewed Bakkafrost as a leading integrated salmon group with a credible long-term growth and premium product story. The outlook was bullish as the company combined scale, vertical integration and sustainability credentials. Investors treated the name as a structural winner in salmon farming [8][5].

A continued uptrend from earlier recoveries developed, with strong multi-year appreciation through 2021 into 2022 as earnings and strategic positioning were re-rated positively.

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
485.40 / 436.20
52W High / Low
526.00 / 390.80
5Y High / Low
797.00 / 388.00
1M
+4.72%
3M
+4.54%
6M
+4.41%
1Y
+10.53%
3Y
-14.17%
5Y
-31.63%

Relative Performance vs Benchmarks

PeriodP/f Bakkafrost vs DAX vs S&P 500 (SPY)
1M +4.72% -1.76% +0.27%
3M +4.54% -4.23% -0.83%
6M +4.41% -1.36% -9.89%
1Y +10.53% +1.99% -11.46%
3Y -14.17% -82.83% -98.87%
5Y -31.63% -97.69% -118.70%

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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
Current22.52.61.77.5
1Y ago70.22.41.53.2
3Y ago50.72.92.217.6
5Y ago32.46.23.447.4

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 7.22B NOK, a profit margin of 11.66%, return on equity of 7.45%, a market capitalisation around 27.83B NOK, valuation multiples of roughly 22.6x earnings, 3.9x sales, 1.7x book value. Analyst consensus currently expects earnings per share of around 24.94 NOK with year‑over‑year growth of 42.31%. P/f Bakkafrost has an ongoing dividend policy and pays around 3.45 NOK per share (0.71% 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.

When does P/f Bakkafrost report earnings?

P/f Bakkafrost's next earnings report date is August 31, 2026.

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

37.5%
Beat estimate
62.5%
Miss estimate
+63.58%
Avg surprise when beat
-27.28%
Avg surprise when miss

Reports analyzed: 64

Upcoming earnings report

August 31, 2026
Next earnings date

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus24.94
Range20.69 – 27.76
7 analysts
Est. growth vs prior: 42.31%
Revisions: 7d ↑0 ↓0 · 30d ↑0 ↓1
Next quarter
September 30, 2026
Consensus3.28
Range1.95 – 4.50
3 analysts
Est. growth vs prior: 0%
Revisions: 7d ↑0 ↓0 · 30d ↑0 ↓2

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)877.82M1.04B1.32B1.83B1.18B
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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