AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
863 NOK
+6 (+0.7%)
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 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.
- 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's Return On Assets of 3.89% is in line compared to the rest of the industry. AKER outperforms 50.00% of its industry peers.
- AKER's Return On Equity of 7.98% is in line compared to the rest of the industry. AKER outperforms 50.00% of its industry peers.
- 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
- AKER's Profit Margin of 26.42% is amongst the best of the industry. AKER outperforms 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.
- With an excellent Gross Margin value of 72.08%, AKER belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AKER is destroying value.
- AKER has about the same amout of shares outstanding than it did 1 year ago.
- 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
- 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.
- AKER has a worse Altman-Z score (1.63) than 72.22% 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.
- The Debt to FCF ratio of AKER (4.03) is better than 94.44% of its industry peers.
- 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 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 | 1.63 |
ROIC/WACC0.09
WACC8.33%
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 55.56% 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.
- 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%.
- AKER shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.11% yearly.
- 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.
- 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
- With a Price/Earnings ratio of 17.76, AKER is valued on the expensive side.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, AKER is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 6.94, the valuation of AKER can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AKER is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- 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 | 17.76 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AKER is valued a bit more expensive than the industry average as 72.22% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, AKER is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| 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
- With a Yearly Dividend Yield of 6.29%, AKER is a good candidate for dividend investing.
- AKER's Dividend Yield is rather good when compared to the industry average which is at 2.95. AKER pays more dividend than 94.44% of the companies 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
- 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.
- AKER's earnings are declining while the Dividend Rate has been growing. 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.