ARENDALS FOSSEKOMPANI ASA (AFK.OL) Stock Fundamental Analysis
OSL:AFK - Euronext Oslo - NO0003572802 - Common Stock - Currency: NOK
AFK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 industry peers in the Industrial Conglomerates industry. While AFK has a great profitability rating, there are some minor concerns on its financial health. AFK has a valuation in line with the averages, but it does not seem to be growing. Finally AFK also has an excellent dividend rating. These ratings could make AFK a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year AFK was profitable.
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
AFK has a better Return On Assets (29.89%) than 100.00% of its industry peers.
The Return On Equity of AFK (48.21%) is better than 86.67% of its industry peers.
AFK has a Return On Invested Capital of 5.58%. This is comparable to the rest of the industry: AFK outperforms 53.33% of its industry peers.
AFK had an Average Return On Invested Capital over the past 3 years of 5.66%. This is in line with the industry average of 7.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.89% | ||
| ROE | 48.21% | ||
| ROIC | 5.58% |
ROA(3y)10%
ROA(5y)6.49%
ROE(3y)16.32%
ROE(5y)10.77%
ROIC(3y)5.66%
ROIC(5y)5.51%
1.3 Margins
AFK has a better Profit Margin (45.99%) than 93.33% of its industry peers.
In the last couple of years the Profit Margin of AFK has grown nicely.
The Operating Margin of AFK (9.06%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AFK has grown nicely.
With a decent Gross Margin value of 59.78%, AFK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AFK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | 45.99% | ||
| GM | 59.78% |
OM growth 3Y-4.7%
OM growth 5Y9.13%
PM growth 3Y187.73%
PM growth 5Y126.91%
GM growth 3Y-2.99%
GM growth 5Y2.38%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFK is destroying value.
Compared to 1 year ago, AFK has about the same amount of shares outstanding.
The number of shares outstanding for AFK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, AFK has an improved debt to assets ratio.
2.2 Solvency
AFK has an Altman-Z score of 3.18. This indicates that AFK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.18, AFK is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AFK has a debt to FCF ratio of 7.26. This is a slightly negative value and a sign of low solvency as AFK would need 7.26 years to pay back of all of its debts.
AFK has a Debt to FCF ratio (7.26) which is in line with its industry peers.
AFK has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AFK (0.30) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.66
WACC8.43%
2.3 Liquidity
AFK has a Current Ratio of 2.06. This indicates that AFK is financially healthy and has no problem in meeting its short term obligations.
AFK has a Current ratio of 2.06. This is in the better half of the industry: AFK outperforms 80.00% of its industry peers.
AFK has a Quick Ratio of 1.60. 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 1.60, AFK is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 17124.70% over the past year.
Measured over the past years, AFK shows a very strong growth in Earnings Per Share. The EPS has been growing by 125.85% on average per year.
The Revenue has been growing slightly by 6.46% in the past year.
AFK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.60% yearly.
EPS 1Y (TTM)17124.7%
EPS 3Y190.58%
EPS 5Y125.85%
EPS Q2Q%6267.43%
Revenue 1Y (TTM)6.46%
Revenue growth 3Y0.95%
Revenue growth 5Y-0.6%
Sales Q2Q%-18.91%
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 Y199.07%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.56%
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
Based on the Price/Earnings ratio of 2.59, the valuation of AFK can be described as very cheap.
Based on the Price/Earnings ratio, AFK is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AFK is valued rather cheaply.
AFK is valuated quite expensively with a Price/Forward Earnings ratio of 38.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFK indicates a slightly more expensive valuation: AFK is more expensive than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, AFK is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.59 | ||
| Fwd PE | 38.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFK is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AFK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.98 | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
AFK'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 AFK may justify a higher PE ratio.
PEG (NY)0.01
PEG (5Y)0.02
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, AFK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.70, AFK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, AFK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
On average, the dividend of AFK grows each year by 11.49%, which is quite nice.
Dividend Growth(5Y)11.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AFK pays out 9.46% of its income as dividend. This is a sustainable payout ratio.
AFK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.46%
EPS Next 2YN/A
EPS Next 3YN/A
OSL:AFK (3/7/2025, 7:00:00 PM)
124.4
-1.2 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners1.81%
Inst Owner ChangeN/A
Ins Owners2.91%
Ins Owner ChangeN/A
Market Cap6.97B
Analysts76.67
Price Target228.48 (83.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend4.55
Dividend Growth(5Y)11.49%
DP9.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.59 | ||
| Fwd PE | 38.49 | ||
| P/S | 1.21 | ||
| P/FCF | 27.98 | ||
| P/OCF | 9.52 | ||
| P/B | 1.27 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)48.11
EY38.67%
EPS(NY)3.23
Fwd EY2.6%
FCF(TTM)4.45
FCFY3.57%
OCF(TTM)13.07
OCFY10.51%
SpS102.66
BVpS97.93
TBVpS79.96
PEG (NY)0.01
PEG (5Y)0.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.89% | ||
| ROE | 48.21% | ||
| ROCE | 7.41% | ||
| ROIC | 5.58% | ||
| ROICexc | 7.45% | ||
| ROICexgc | 9.15% | ||
| OM | 9.06% | ||
| PM (TTM) | 45.99% | ||
| GM | 59.78% | ||
| FCFM | 4.33% |
ROA(3y)10%
ROA(5y)6.49%
ROE(3y)16.32%
ROE(5y)10.77%
ROIC(3y)5.66%
ROIC(5y)5.51%
ROICexc(3y)9.01%
ROICexc(5y)15.27%
ROICexgc(3y)20.49%
ROICexgc(5y)N/A
ROCE(3y)7.53%
ROCE(5y)7.32%
ROICexcg growth 3Y-38.87%
ROICexcg growth 5Y-27.48%
ROICexc growth 3Y-28.45%
ROICexc growth 5Y-17.68%
OM growth 3Y-4.7%
OM growth 5Y9.13%
PM growth 3Y187.73%
PM growth 5Y126.91%
GM growth 3Y-2.99%
GM growth 5Y2.38%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 7.26 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 51.55% | ||
| Cap/Sales | 8.4% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 50.21% | ||
| Profit Quality | 9.42% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.18 |
F-Score6
WACC8.43%
ROIC/WACC0.66
Cap/Depr(3y)124.53%
Cap/Depr(5y)113.11%
Cap/Sales(3y)10.33%
Cap/Sales(5y)8.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17124.7%
EPS 3Y190.58%
EPS 5Y125.85%
EPS Q2Q%6267.43%
EPS Next Y199.07%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.46%
Revenue growth 3Y0.95%
Revenue growth 5Y-0.6%
Sales Q2Q%-18.91%
Revenue Next Year-7.56%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.6%
EBIT growth 3Y-3.8%
EBIT growth 5Y8.47%
EBIT Next Year-5.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y123.87%
FCF growth 3Y-25.59%
FCF growth 5Y-3.31%
OCF growth 1Y283.74%
OCF growth 3Y-5.13%
OCF growth 5Y9.12%