AF GRUPPEN ASA (AFG.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AFG - NO0003078107 - Common Stock
181.6 NOK
-0.4 (-0.22%)
We assign a fundamental rating of 5 out of 10 to AFG. AFG was compared to 45 industry peers in the Construction & Engineering industry. AFG has an average financial health and profitability rating. AFG is not valued too expensively and it also shows 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.
- Each year in the past 5 years AFG has been profitable.
- AFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AFG's Return On Assets of 6.16% is fine compared to the rest of the industry. AFG outperforms 73.33% of its industry peers.
- AFG has a better Return On Equity (38.14%) than 80.00% of its industry peers.
- AFG's Return On Invested Capital of 19.65% is amongst the best of the industry. AFG outperforms 84.44% of its industry peers.
- AFG had an Average Return On Invested Capital over the past 3 years of 15.77%. This is above the industry average of 11.32%.
- The 3 year average ROIC (15.77%) for AFG is below the current ROIC(19.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 38.14% | ||
| ROIC | 19.65% |
ROA(3y)4.7%
ROA(5y)5.88%
ROE(3y)27.22%
ROE(5y)31.5%
ROIC(3y)15.77%
ROIC(5y)17.17%
1.3 Margins
- AFG's Profit Margin of 3.33% is in line compared to the rest of the industry. AFG outperforms 42.22% of its industry peers.
- In the last couple of years the Profit Margin of AFG has declined.
- AFG's Operating Margin of 4.69% is on the low side compared to the rest of the industry. AFG is outperformed by 62.22% of its industry peers.
- In the last couple of years the Operating Margin of AFG has declined.
- Looking at the Gross Margin, with a value of 34.66%, AFG is in line with its industry, outperforming 42.22% of the companies in the same industry.
- AFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.69% | ||
| PM (TTM) | 3.33% | ||
| GM | 34.66% |
OM growth 3Y-13.09%
OM growth 5Y-7.84%
PM growth 3Y-14.18%
PM growth 5Y-9.36%
GM growth 3Y2.15%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AFG is creating value.
- AFG has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AFG has more shares outstanding
- AFG has a better debt/assets ratio than last year.
2.2 Solvency
- AFG has an Altman-Z score of 2.93. 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 has a Altman-Z score of 2.93. This is in the better half of the industry: AFG outperforms 80.00% of its industry peers.
- The Debt to FCF ratio of AFG is 0.53, which is an excellent value as it means it would take AFG, only 0.53 years of fcf income to pay off all of its debts.
- AFG's Debt to FCF ratio of 0.53 is amongst the best of the industry. AFG outperforms 95.56% of its industry peers.
- A Debt/Equity ratio of 0.45 indicates that AFG is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.45, AFG is doing good in the industry, outperforming 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 2.93 |
ROIC/WACC2.33
WACC8.43%
2.3 Liquidity
- AFG has a Current Ratio of 0.70. This is a bad value and indicates that AFG is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of AFG (0.70) is worse than 95.56% of its industry peers.
- AFG has a Quick Ratio of 0.70. This is a bad value and indicates that AFG is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of AFG (0.67) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- AFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 103.53%, which is quite impressive.
- The Earnings Per Share has been decreasing by -5.07% on average over the past years.
- Looking at the last year, AFG shows a small growth in Revenue. The Revenue has grown by 3.01% in the last year.
- The Revenue has been growing slightly by 6.26% on average over the past years.
EPS 1Y (TTM)103.53%
EPS 3Y-12.01%
EPS 5Y-5.07%
EPS Q2Q%27.03%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y3.21%
Revenue growth 5Y6.26%
Sales Q2Q%8.31%
3.2 Future
- AFG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.92% yearly.
- AFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.70% yearly.
EPS Next Y64.84%
EPS Next 2Y33.52%
EPS Next 3Y24.92%
EPS Next 5YN/A
Revenue Next Year4.86%
Revenue Next 2Y5.36%
Revenue Next 3Y4.7%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.02, which indicates a rather expensive current valuation of AFG.
- Based on the Price/Earnings ratio, AFG is valued a bit more expensive than 62.22% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. AFG is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.02, the valuation of AFG can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AFG indicates a slightly more expensive valuation: AFG is more expensive than 68.89% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. AFG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFG is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFG indicates a rather cheap valuation: AFG is cheaper than 82.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| EV/EBITDA | 9.01 |
4.3 Compensation for Growth
- AFG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of AFG may justify a higher PE ratio.
- A more expensive valuation may be justified as AFG's earnings are expected to grow with 24.92% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y33.52%
EPS Next 3Y24.92%
5. Dividend
5.1 Amount
- AFG has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.33, AFG has a dividend in line with its industry peers.
- AFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
- The dividend of AFG decreases each year by -16.34%.
Dividend Growth(5Y)-16.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AFG pays out 52.35% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.35%
EPS Next 2Y33.52%
EPS Next 3Y24.92%
AF GRUPPEN ASA / AFG.OL FAQ
What is the ChartMill fundamental rating of AF GRUPPEN ASA (AFG.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFG.OL.
What is the valuation status of AF GRUPPEN ASA (AFG.OL) stock?
ChartMill assigns a valuation rating of 5 / 10 to AF GRUPPEN ASA (AFG.OL). This can be considered as Fairly Valued.
What is the profitability of AFG stock?
AF GRUPPEN ASA (AFG.OL) has a profitability rating of 6 / 10.
What is the valuation of AF GRUPPEN ASA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AF GRUPPEN ASA (AFG.OL) is 19.02 and the Price/Book (PB) ratio is 7.31.
What is the expected EPS growth for AF GRUPPEN ASA (AFG.OL) stock?
The Earnings per Share (EPS) of AF GRUPPEN ASA (AFG.OL) is expected to grow by 64.84% in the next year.