AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
889 NOK
+10 (+1.14%)
Taking everything into account, AKER scores 4 out of 10 in our fundamental rating. AKER was compared to 18 industry peers in the Industrial Conglomerates industry. AKER has an average financial health and profitability rating. AKER is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year AKER was profitable.
- AKER had a positive operating cash flow in the past year.
- In the past 5 years AKER has always been profitable.
- AKER had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.89%, AKER perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- AKER has a Return On Equity (7.98%) which is comparable to the rest of the industry.
- AKER has a worse Return On Invested Capital (0.73%) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.98% | ||
| ROIC | 0.73% |
ROA(3y)8.29%
ROA(5y)6.56%
ROE(3y)17.77%
ROE(5y)15.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of AKER (26.42%) is better than 94.44% of its industry peers.
- AKER's Profit Margin has improved in the last couple of years.
- AKER has a Operating Margin of 5.01%. This is in the lower half of the industry: AKER underperforms 72.22% of its industry peers.
- The Gross Margin of AKER (72.08%) is better than 94.44% of its industry peers.
- AKER's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.01% | ||
| PM (TTM) | 26.42% | ||
| GM | 72.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y5.47%
PM growth 5YN/A
GM growth 3Y6.91%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AKER is destroying value.
- The number of shares outstanding for AKER remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, AKER has more shares outstanding
- AKER has a worse debt/assets ratio than last year.
2.2 Solvency
- AKER has an Altman-Z score of 1.65. This is a bad value and indicates that AKER is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.65, AKER is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- The Debt to FCF ratio of AKER is 4.03, which is a neutral value as it means it would take AKER, 4.03 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.03, AKER belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that AKER is somewhat dependend on debt financing.
- AKER has a better Debt to Equity ratio (0.72) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.09
WACC8.32%
2.3 Liquidity
- AKER has a Current Ratio of 1.58. This is a normal value and indicates that AKER is financially healthy and should not expect problems in meeting its short term obligations.
- AKER has a Current ratio (1.58) which is in line with its industry peers.
- AKER has a Quick Ratio of 1.58. This is a normal value and indicates that AKER is financially healthy and should not expect problems in meeting its short term obligations.
- AKER's Quick ratio of 1.58 is amongst the best of the industry. AKER outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- AKER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.93%.
- The Earnings Per Share has been growing by 19.11% on average over the past years. This is quite good.
- AKER shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.75%.
- The Revenue has been growing by 18.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-50.93%
EPS 3Y19.11%
EPS 5YN/A
EPS Q2Q%-102.79%
Revenue 1Y (TTM)42.75%
Revenue growth 3Y13.08%
Revenue growth 5Y18.07%
Sales Q2Q%12.75%
3.2 Future
- AKER is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.88% yearly.
- AKER is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -49.20% yearly.
EPS Next Y-11.93%
EPS Next 2Y-5.57%
EPS Next 3Y-2.88%
EPS Next 5YN/A
Revenue Next Year-88.96%
Revenue Next 2Y-64.57%
Revenue Next 3Y-49.2%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- A Price/Earnings ratio of 18.30 indicates a rather expensive valuation of AKER.
- 77.78% of the companies in the same industry are more expensive than AKER, based on the Price/Earnings ratio.
- AKER is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- AKER is valuated cheaply with a Price/Forward Earnings ratio of 7.15.
- Based on the Price/Forward Earnings ratio, AKER is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AKER to the average of the S&P500 Index (25.72), we can say AKER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
- 72.22% of the companies in the same industry are cheaper than AKER, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AKER indicates a rather cheap valuation: AKER is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 47.36 |
4.3 Compensation for Growth
- A cheap valuation may be justified as AKER's earnings are expected to decrease with -2.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.57%
EPS Next 3Y-2.88%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.29%, AKER is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.95, AKER pays a better dividend. On top of this AKER pays more dividend than 94.44% of the companies listed in the same industry.
- AKER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
5.2 History
- The dividend of AKER is nicely growing with an annual growth rate of 15.41%!
Dividend Growth(5Y)15.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 257.59% of the earnings are spent on dividend by AKER. This is not a sustainable payout ratio.
- The Dividend Rate of AKER has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP257.59%
EPS Next 2Y-5.57%
EPS Next 3Y-2.88%
AKER ASA-A SHARES / AKER.OL FAQ
What is the ChartMill fundamental rating of AKER ASA-A SHARES (AKER.OL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AKER.OL.
What is the valuation status of AKER ASA-A SHARES (AKER.OL) stock?
ChartMill assigns a valuation rating of 5 / 10 to AKER ASA-A SHARES (AKER.OL). This can be considered as Fairly Valued.
What is the profitability of AKER stock?
AKER ASA-A SHARES (AKER.OL) has a profitability rating of 4 / 10.
Can you provide the financial health for AKER stock?
The financial health rating of AKER ASA-A SHARES (AKER.OL) is 4 / 10.
Can you provide the expected EPS growth for AKER stock?
The Earnings per Share (EPS) of AKER ASA-A SHARES (AKER.OL) is expected to decline by -11.93% in the next year.