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. Both the profitability and the financial health of AFG get a neutral evaluation. Nothing too spectacular is happening here. AFG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- AFG had positive earnings in the past year.
- In the past year AFG had a positive cash flow from operations.
- Each year in the past 5 years AFG has been profitable.
- In the past 5 years AFG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.16%, AFG is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- With a decent Return On Equity value of 38.14%, AFG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- AFG has a Return On Invested Capital of 19.65%. This is amongst the best in 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 has a Profit Margin (3.33%) which is in line with 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.
- AFG's Operating Margin has declined in the last couple of years.
- AFG has a Gross Margin (34.66%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of AFG has remained more or less at the same level.
| 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.
- AFG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AFG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.93 indicates that AFG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AFG's Altman-Z score of 2.93 is fine compared to the rest 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.
- The Debt to FCF ratio of AFG (0.53) is better than 95.56% of its industry peers.
- A Debt/Equity ratio of 0.45 indicates that AFG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.45, AFG is in the better half of 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.
- AFG has a Current ratio of 0.70. This is amonst the worse of the industry: AFG underperforms 95.56% of its industry peers.
- A Quick Ratio of 0.67 indicates that AFG may have some problems paying its short term obligations.
- AFG has a Quick ratio of 0.67. This is amonst the worse of the industry: AFG underperforms 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.
- Measured over the past years, AFG shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.07% on average per year.
- AFG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.01%.
- AFG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.26% yearly.
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
- The Earnings Per Share is expected to grow by 24.92% 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 4.70% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 19.02, the valuation of AFG can be described as rather expensive.
- Based on the Price/Earnings ratio, AFG is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, AFG is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.02, which indicates a rather expensive current valuation of AFG.
- 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.
- When comparing the Price/Forward Earnings ratio of AFG to the average of the S&P500 Index (25.72), we can say AFG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFG.
- 84.44% of the companies in the same industry are more expensive than AFG, based on the Price/Free Cash Flow ratio.
| 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.
- AFG has a very decent profitability rating, which 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%.
- AFG's Dividend Yield is comparable with the industry average which is at 2.33.
- 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.