AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
889 NOK
+10 (+1.14%)
We assign a fundamental rating of 4 out of 10 to AKER. AKER was compared to 18 industry peers in the Industrial Conglomerates industry. AKER has only an average score on both its financial health and profitability. AKER is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- AKER had positive earnings in the past year.
- In the past year AKER had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 3.89%, AKER is in line with its industry, 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's Return On Invested Capital of 0.73% is on the low side compared to the rest of the industry. AKER is outperformed by 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.
- AKER's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 5.01%, AKER is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- AKER's Gross Margin of 72.08% is amongst the best of the industry. AKER outperforms 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
- AKER 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, AKER has about the same amount of shares outstanding.
- The number of shares outstanding for AKER has been increased compared to 5 years ago.
- AKER has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.65, we must say that AKER is in the distress zone and has some risk of bankruptcy.
- AKER's Altman-Z score of 1.65 is on the low side compared to the rest of the industry. AKER is outperformed by 72.22% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 4.03, AKER belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- AKER has a Debt/Equity ratio of 0.72. This is a neutral value indicating 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 | 1.65 |
ROIC/WACC0.09
WACC8.32%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that AKER should not have too much problems paying 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 better Quick ratio (1.58) than 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%.
- Measured over the past years, AKER shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.11% on average per year.
- Looking at the last year, AKER shows a very strong growth in Revenue. The Revenue has grown by 42.75%.
- Measured over the past years, AKER shows a quite strong growth in Revenue. The Revenue has been growing by 18.07% on average per year.
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.
- Based on estimates for the next years, AKER will show a very negative growth in Revenue. The Revenue will decrease by -49.20% on average per year.
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
- A Price/Earnings ratio of 18.30 indicates a rather expensive valuation of AKER.
- AKER's Price/Earnings ratio is a bit cheaper when compared to the industry. AKER is cheaper than 77.78% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AKER to the average of the S&P500 Index (28.60), we can say AKER is valued slightly cheaper.
- The Price/Forward Earnings ratio is 7.15, which indicates a rather cheap valuation of AKER.
- Based on the Price/Forward Earnings ratio, AKER is valued cheaper than 100.00% of the companies in the same industry.
- AKER is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AKER indicates a slightly more expensive valuation: AKER is more expensive than 72.22% of the companies listed 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 | 7.53 | ||
| 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
- 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.
- 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
- On average, the dividend of AKER grows each year by 15.41%, which is quite nice.
Dividend Growth(5Y)15.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AKER pays out 257.59% of its income as dividend. 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.