AKER ASA-A SHARES (AKER.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKER - NO0010234552 - Common Stock
857 NOK
+14 (+1.66%)
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. Both the profitability and the financial health of AKER get a neutral evaluation. Nothing too spectacular is happening here. AKER has a valuation in line with the averages, 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.
- In the past 5 years AKER has always been profitable.
- Of the past 5 years AKER 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.89%, AKER perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- With a Return On Equity value of 7.98%, AKER perfoms like the industry average, outperforming 56.25% of the companies in the same 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 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
- AKER's Profit Margin of 26.42% is amongst the best of the industry. AKER outperforms 93.75% of its industry peers.
- AKER's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 5.01%, AKER is doing worse than 68.75% of the companies in the same industry.
- AKER's Gross Margin of 72.08% is amongst the best of the industry. AKER outperforms 93.75% 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
- 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.
- Compared to 5 years ago, AKER has more shares outstanding
- 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 68.75% 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.
- AKER's Debt to FCF ratio of 4.03 is amongst the best of the industry. AKER outperforms 93.75% 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.
- Looking at the Debt to Equity ratio, with a value of 0.72, AKER is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.09
WACC8.06%
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.
- 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.
- 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 87.50% 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.
- The Revenue has grown by 42.75% in the past year. This is a very strong growth!
- 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
- 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.
- 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 17.64 indicates a rather expensive valuation of AKER.
- Based on the Price/Earnings ratio, AKER is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- AKER's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- AKER is valuated cheaply with a Price/Forward Earnings ratio of 6.89.
- 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 25.98, 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
- 68.75% of the companies in the same industry are cheaper than AKER, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, AKER is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| 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
- 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 93.75% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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
- 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.