AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
857 NOK
+14 (+1.66%)
We assign a fundamental rating of 4 out of 10 to AKER. AKER was compared to 16 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.
- In the past year AKER had a positive cash flow from operations.
- AKER had positive earnings in each of the past 5 years.
- Of the past 5 years AKER 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AKER (3.89%) is comparable to the rest of the 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 68.75% 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 93.75% of its industry peers.
- In the last couple of years the Profit Margin of AKER has grown nicely.
- The Operating Margin of AKER (5.01%) is worse than 68.75% of its industry peers.
- The Gross Margin of AKER (72.08%) is better than 93.75% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AKER 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.
- The debt/assets ratio for AKER is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.61, we must say that AKER is in the distress zone and has some risk of bankruptcy.
- AKER has a worse Altman-Z score (1.61) than 75.00% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 4.03, AKER belongs to the best of the industry, outperforming 93.75% 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's Debt to Equity ratio of 0.72 is fine compared to the rest of the industry. AKER outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.09
WACC8.06%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that AKER should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.58, AKER is in line with its industry, outperforming 56.25% of the companies in the same industry.
- A Quick Ratio of 1.58 indicates that AKER should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.58, AKER belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- The earnings per share for AKER have decreased strongly by -50.93% in the last year.
- 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.
- The Revenue has grown by 42.75% in the past year. This is a very strong growth!
- 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
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 17.64 indicates a rather expensive valuation of AKER.
- Compared to the rest of the industry, the Price/Earnings ratio of AKER indicates a somewhat cheap valuation: AKER is cheaper than 75.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AKER is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 6.89, the valuation of AKER can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AKER indicates a rather cheap valuation: AKER is cheaper than 100.00% of the companies listed in the same industry.
- AKER is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 6.89 |
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 75.00% of the companies listed in the same industry.
- AKER's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AKER is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 46.03 |
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 6.54%, which is a nice return.
- AKER's Dividend Yield is rather good when compared to the industry average which is at 3.08. AKER pays more dividend than 93.75% of the companies in the same industry.
- AKER's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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
- 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.