AF GRUPPEN ASA (AFG.OL) Stock Fundamental Analysis
OSL:AFG - Oslo Bors ASA - NO0003078107 - Common Stock - Currency: NOK
We assign a fundamental rating of 4 out of 10 to AFG. AFG was compared to 39 industry peers in the Construction & Engineering industry. AFG has only an average score on both its financial health and profitability. AFG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFG was profitable.
In the past year AFG had a positive cash flow from operations.
AFG had positive earnings in each of the past 5 years.
Each year in the past 5 years AFG had a positive operating cash flow.
1.2 Ratios
AFG has a Return On Assets (3.23%) which is comparable to the rest of the industry.
AFG's Return On Equity of 22.35% is fine compared to the rest of the industry. AFG outperforms 73.68% of its industry peers.
AFG has a better Return On Invested Capital (13.77%) than 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFG is significantly above the industry average of 11.05%.
The 3 year average ROIC (18.59%) for AFG is well above the current ROIC(13.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 22.35% | ||
| ROIC | 13.77% |
ROA(3y)5.72%
ROA(5y)6.27%
ROE(3y)30.96%
ROE(5y)33.87%
ROIC(3y)18.59%
ROIC(5y)18.1%
1.3 Margins
Looking at the Profit Margin, with a value of 1.67%, AFG is doing worse than 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of AFG has declined.
AFG has a Operating Margin of 2.53%. This is in the lower half of the industry: AFG underperforms 71.05% of its industry peers.
AFG's Operating Margin has declined in the last couple of years.
AFG has a Gross Margin (32.83%) which is comparable to the rest of the industry.
AFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.53% | ||
| PM (TTM) | 1.67% | ||
| GM | 32.83% |
OM growth 3Y-17.95%
OM growth 5Y-13.5%
PM growth 3Y-28.44%
PM growth 5Y-20.37%
GM growth 3Y0.99%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AFG is creating value.
The number of shares outstanding for AFG has been increased compared to 1 year ago.
The number of shares outstanding for AFG has been increased compared to 5 years ago.
Compared to 1 year ago, AFG has an improved debt to assets ratio.
2.2 Solvency
AFG has an Altman-Z score of 2.66. This is not the best score and indicates that AFG is in the grey zone with still only limited risk for bankruptcy at the moment.
AFG's Altman-Z score of 2.66 is fine compared to the rest of the industry. AFG outperforms 76.32% of its industry peers.
The Debt to FCF ratio of AFG is 0.90, which is an excellent value as it means it would take AFG, only 0.90 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFG (0.90) is better than 94.74% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that AFG is not too dependend on debt financing.
The Debt to Equity ratio of AFG (0.36) is better than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.71
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.62 indicates that AFG may have some problems paying its short term obligations.
AFG has a worse Current ratio (0.62) than 97.37% of its industry peers.
A Quick Ratio of 0.56 indicates that AFG may have some problems paying its short term obligations.
AFG has a Quick ratio of 0.56. This is amonst the worse of the industry: AFG underperforms 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for AFG have decreased strongly by -58.26% in the last year.
Measured over the past years, AFG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.87% on average per year.
AFG shows a decrease in Revenue. In the last year, the revenue decreased by -0.98%.
The Revenue has been growing by 10.22% on average over the past years. This is quite good.
EPS 1Y (TTM)-58.26%
EPS 3Y-26.11%
EPS 5Y-13.87%
EPS Q2Q%330.23%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y4.15%
Revenue growth 5Y10.22%
Sales Q2Q%4.3%
3.2 Future
The Earnings Per Share is expected to grow by 39.21% on average over the next years. This is a very strong growth
Based on estimates for the next years, AFG will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y60.23%
EPS Next 2Y54.65%
EPS Next 3Y39.21%
EPS Next 5YN/A
Revenue Next Year-1.29%
Revenue Next 2Y1.66%
Revenue Next 3Y2.6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.35, AFG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AFG is valued a bit more expensive than 76.32% of the companies in the same industry.
AFG is valuated rather expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.71 indicates a rather expensive valuation of AFG.
73.68% of the companies in the same industry are cheaper than AFG, based on the Price/Forward Earnings ratio.
AFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.35 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
AFG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AFG is more expensive than 65.79% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AFG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.63 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AFG's earnings are expected to grow with 39.21% in the coming years.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y54.65%
EPS Next 3Y39.21%
5. Dividend
5.1 Amount
AFG has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.72, AFG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, AFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of AFG decreases each year by -5.31%.
Dividend Growth(5Y)-5.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AFG pays out 74.80% of its income as dividend. This is not a sustainable payout ratio.
DP74.8%
EPS Next 2Y54.65%
EPS Next 3Y39.21%
AF GRUPPEN ASA
OSL:AFG (2/5/2025, 10:47:34 AM)
158.4
-0.6 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners13.29%
Inst Owner ChangeN/A
Ins Owners23.78%
Ins Owner ChangeN/A
Market Cap17.19B
Analysts70
Price Target144.59 (-8.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend6.47
Dividend Growth(5Y)-5.31%
DP74.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-53.98%
Min EPS beat(2)-103.85%
Max EPS beat(2)-4.1%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-1.18%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.28%
PT rev (3m)20.64%
EPS NQ rev (1m)-4.42%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-2.81%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.35 | ||
| Fwd PE | 17.71 | ||
| P/S | 0.57 | ||
| P/FCF | 8.63 | ||
| P/OCF | 8.63 | ||
| P/B | 7.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)3.74
EY2.36%
EPS(NY)8.95
Fwd EY5.65%
FCF(TTM)18.35
FCFY11.59%
OCF(TTM)18.35
OCFY11.59%
SpS280.29
BVpS20.94
TBVpS-21.63
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 22.35% | ||
| ROCE | 17.67% | ||
| ROIC | 13.77% | ||
| ROICexc | 15.65% | ||
| ROICexgc | N/A | ||
| OM | 2.53% | ||
| PM (TTM) | 1.67% | ||
| GM | 32.83% | ||
| FCFM | 6.55% |
ROA(3y)5.72%
ROA(5y)6.27%
ROE(3y)30.96%
ROE(5y)33.87%
ROIC(3y)18.59%
ROIC(5y)18.1%
ROICexc(3y)21.46%
ROICexc(5y)22.05%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)23.85%
ROCE(5y)24.33%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-16.03%
ROICexc growth 5Y-17.59%
OM growth 3Y-17.95%
OM growth 5Y-13.5%
PM growth 3Y-28.44%
PM growth 5Y-20.37%
GM growth 3Y0.99%
GM growth 5Y-0.78%
F-Score4
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 137.19% | ||
| Profit Quality | 392.13% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.66 |
F-Score4
WACC8.05%
ROIC/WACC1.71
Cap/Depr(3y)61.5%
Cap/Depr(5y)56.39%
Cap/Sales(3y)1.14%
Cap/Sales(5y)1.13%
Profit Quality(3y)164.52%
Profit Quality(5y)146.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-58.26%
EPS 3Y-26.11%
EPS 5Y-13.87%
EPS Q2Q%330.23%
EPS Next Y60.23%
EPS Next 2Y54.65%
EPS Next 3Y39.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y4.15%
Revenue growth 5Y10.22%
Sales Q2Q%4.3%
Revenue Next Year-1.29%
Revenue Next 2Y1.66%
Revenue Next 3Y2.6%
Revenue Next 5YN/A
EBIT growth 1Y-10.05%
EBIT growth 3Y-14.55%
EBIT growth 5Y-4.66%
EBIT Next Year79.47%
EBIT Next 3Y38.1%
EBIT Next 5YN/A
FCF growth 1Y10.73%
FCF growth 3Y1.59%
FCF growth 5Y3.87%
OCF growth 1Y10.73%
OCF growth 3Y9.29%
OCF growth 5Y13.04%