ARENDALS FOSSEKOMPANI ASA (AFK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AFK - NO0003572802 - Common Stock
153.75 NOK
-2.75 (-1.76%)
Overall AFK gets a fundamental rating of 5 out of 10. We evaluated AFK against 18 industry peers in the Industrial Conglomerates industry. Both the health and profitability get an excellent rating, making AFK a very profitable company, without any liquidiy or solvency issues. AFK is valued quite cheap, but it does not seem to be growing. This makes AFK very considerable for value investing!
1. Profitability
1.1 Basic Checks
- AFK had positive earnings in the past year.
- In the past year AFK had a positive cash flow from operations.
- AFK had positive earnings in each of the past 5 years.
- AFK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 37.85%, AFK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 60.35%, AFK belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- The Return On Invested Capital of AFK (3.09%) is worse than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFK is in line with the industry average of 7.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.85% | ||
| ROE | 60.35% | ||
| ROIC | 3.09% |
ROA(3y)8.57%
ROA(5y)5.63%
ROE(3y)14.92%
ROE(5y)9.94%
ROIC(3y)5.74%
ROIC(5y)5.55%
1.3 Margins
- With an excellent Profit Margin value of 89.95%, AFK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of AFK has grown nicely.
- AFK has a Operating Margin (8.00%) which is comparable to the rest of the industry.
- AFK's Operating Margin has improved in the last couple of years.
- AFK's Gross Margin of 60.59% is amongst the best of the industry. AFK outperforms 88.89% of its industry peers.
- AFK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8% | ||
| PM (TTM) | 89.95% | ||
| GM | 60.59% |
OM growth 3Y-4.19%
OM growth 5Y9.48%
PM growth 3Y173.12%
PM growth 5Y119.93%
GM growth 3Y-3.02%
GM growth 5Y2.37%
2. Health
2.1 Basic Checks
- AFK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AFK has about the same amount of shares outstanding.
- Compared to 5 years ago, AFK has about the same amount of shares outstanding.
- The debt/assets ratio for AFK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.14 indicates that AFK is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AFK (3.14) is better than 83.33% of its industry peers.
- The Debt to FCF ratio of AFK is 7.98, which is on the high side as it means it would take AFK, 7.98 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 7.98, AFK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- AFK has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- AFK has a Debt to Equity ratio of 0.28. This is amongst the best in the industry. AFK outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.38
WACC8.16%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that AFK should not have too much problems paying its short term obligations.
- The Current ratio of AFK (1.99) is better than 88.89% of its industry peers.
- AFK has a Quick Ratio of 1.54. This is a normal value and indicates that AFK is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.54, AFK is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- AFK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 853.14%, which is quite impressive.
- The Earnings Per Share has been growing by 118.94% on average over the past years. This is a very strong growth
- The Revenue for AFK has decreased by -36.01% in the past year. This is quite bad
- AFK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.59% yearly.
EPS 1Y (TTM)853.14%
EPS 3Y175.92%
EPS 5Y118.94%
EPS Q2Q%133200%
Revenue 1Y (TTM)-36.01%
Revenue growth 3Y0.97%
Revenue growth 5Y-0.59%
Sales Q2Q%-6.37%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y1594.19%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1036.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 2.45, which indicates a rather cheap valuation of AFK.
- Compared to the rest of the industry, the Price/Earnings ratio of AFK indicates a rather cheap valuation: AFK is cheaper than 100.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. AFK is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.40, the valuation of AFK can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, AFK is valued cheaper than 94.44% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. AFK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.45 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFK.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.69 | ||
| EV/EBITDA | 16.19 |
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.
- AFK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0
PEG (5Y)0.02
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- AFK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARENDALS FOSSEKOMPANI ASA / AFK.OL FAQ
What is the ChartMill fundamental rating of ARENDALS FOSSEKOMPANI ASA (AFK.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFK.OL.
What is the valuation status for AFK stock?
ChartMill assigns a valuation rating of 7 / 10 to ARENDALS FOSSEKOMPANI ASA (AFK.OL). This can be considered as Undervalued.
Can you provide the profitability details for ARENDALS FOSSEKOMPANI ASA?
ARENDALS FOSSEKOMPANI ASA (AFK.OL) has a profitability rating of 7 / 10.
What is the expected EPS growth for ARENDALS FOSSEKOMPANI ASA (AFK.OL) stock?
The Earnings per Share (EPS) of ARENDALS FOSSEKOMPANI ASA (AFK.OL) is expected to grow by 1594.19% in the next year.
Is the dividend of ARENDALS FOSSEKOMPANI ASA sustainable?
The dividend rating of ARENDALS FOSSEKOMPANI ASA (AFK.OL) is 0 / 10 and the dividend payout ratio is 5.56%.