AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
857 NOK
0 (0%)
AKER gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 18 industry peers in the Industrial Conglomerates industry. Both the profitability and the financial health of AKER get a neutral evaluation. Nothing too spectacular is happening here. 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.
- In the past year AKER had a positive cash flow from operations.
- Each year in the past 5 years AKER has been profitable.
- AKER had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- AKER has a Return On Assets of 3.89%. This is comparable to the rest of the industry: AKER outperforms 50.00% of its industry peers.
- AKER has a Return On Equity (7.98%) which is comparable to the rest of the industry.
- The Return On Invested Capital of AKER (0.73%) is worse 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
- AKER has a better Profit Margin (26.42%) than 94.44% of its industry peers.
- In the last couple of years the Profit Margin of AKER has grown nicely.
- Looking at the Operating Margin, with a value of 5.01%, AKER is doing worse than 72.22% of the companies in the same industry.
- AKER's Gross Margin of 72.08% is amongst the best of the industry. AKER outperforms 94.44% of its industry peers.
- In the last couple of years the Gross Margin of AKER has declined.
| 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
- AKER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AKER has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AKER has more shares outstanding
- Compared to 1 year ago, AKER has a worse debt to assets ratio.
2.2 Solvency
- AKER has an Altman-Z score of 1.63. 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 1.63, AKER is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- AKER has a debt to FCF ratio of 4.03. This is a neutral value as AKER would need 4.03 years to pay back of 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 Debt to Equity ratio of 0.72. This is in the better half of the industry: AKER outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.09
WACC8.33%
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 of 1.58. This is comparable to the rest of the industry: AKER outperforms 55.56% of 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 has a Quick ratio of 1.58. This is amongst the best in 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%.
- AKER shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.11% yearly.
- Looking at the last year, AKER shows a very strong growth in Revenue. The Revenue has grown by 42.75%.
- AKER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.07% yearly.
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
- Based on estimates for the next years, AKER will show a decrease in Earnings Per Share. The EPS will decrease by -2.88% on average per year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- The Price/Earnings ratio is 17.64, which indicates a rather expensive current valuation of AKER.
- Based on the Price/Earnings ratio, AKER is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. AKER is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 6.89 indicates a rather cheap valuation of AKER.
- 100.00% of the companies in the same industry are more expensive than AKER, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of AKER to the average of the S&P500 Index (25.98), we can say AKER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AKER is valued a bit more expensive than 72.22% of the companies in the same industry.
- 88.89% of the companies in the same industry are more expensive than AKER, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 46.55 |
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
- AKER has a Yearly Dividend Yield of 6.29%, which is a nice return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, AKER pays a better dividend.
| 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.