AKER BP ASA (AKRBP.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKRBP - NO0010345853 - Common Stock
277.95 NOK
+3.95 (+1.44%)
AKRBP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Oil, Gas & Consumable Fuels industry. While AKRBP belongs to the best of the industry regarding profitability, there are concerns on its financial health. AKRBP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year AKRBP was profitable.
- AKRBP had a positive operating cash flow in the past year.
- In the past 5 years AKRBP has always been profitable.
- In the past 5 years AKRBP always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AKRBP (1.90%) is worse than 69.01% of its industry peers.
- Looking at the Return On Equity, with a value of 7.15%, AKRBP is in line with its industry, outperforming 40.85% of the companies in the same industry.
- AKRBP has a better Return On Invested Capital (14.55%) than 91.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AKRBP is significantly above the industry average of 8.91%.
- The 3 year average ROIC (21.65%) for AKRBP is well above the current ROIC(14.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 7.15% | ||
| ROIC | 14.55% |
ROA(3y)4.01%
ROA(5y)3.47%
ROE(3y)12.7%
ROE(5y)15.61%
ROIC(3y)21.65%
ROIC(5y)17.98%
1.3 Margins
- AKRBP has a Profit Margin (7.33%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of AKRBP has grown nicely.
- Looking at the Operating Margin, with a value of 65.52%, AKRBP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of AKRBP has grown nicely.
- The Gross Margin of AKRBP (90.93%) is better than 95.77% of its industry peers.
- AKRBP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.52% | ||
| PM (TTM) | 7.33% | ||
| GM | 90.93% |
OM growth 3Y5.91%
OM growth 5Y9.76%
PM growth 3Y0.36%
PM growth 5Y28.5%
GM growth 3Y2.16%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AKRBP is creating value.
- AKRBP has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AKRBP has more shares outstanding
- AKRBP has a worse debt/assets ratio than last year.
2.2 Solvency
- AKRBP has an Altman-Z score of 1.10. This is a bad value and indicates that AKRBP is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.10, AKRBP is not doing good in the industry: 74.65% of the companies in the same industry are doing better.
- AKRBP has a Debt/Equity ratio of 0.69. This is a neutral value indicating AKRBP is somewhat dependend on debt financing.
- AKRBP has a Debt to Equity ratio of 0.69. This is in the lower half of the industry: AKRBP underperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC1.74
WACC8.34%
2.3 Liquidity
- AKRBP has a Current Ratio of 1.12. This is a normal value and indicates that AKRBP is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of AKRBP (1.12) is worse than 67.61% of its industry peers.
- A Quick Ratio of 1.01 indicates that AKRBP should not have too much problems paying its short term obligations.
- AKRBP has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- AKRBP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.45%.
- The Earnings Per Share has been growing by 29.29% on average over the past years. This is a very strong growth
- AKRBP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.01%.
- The Revenue has been growing by 29.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-54.45%
EPS 3Y-3.64%
EPS 5Y29.29%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-11.01%
Revenue growth 3Y29.74%
Revenue growth 5Y29.9%
Sales Q2Q%-9.07%
3.2 Future
- Based on estimates for the next years, AKRBP will show a decrease in Earnings Per Share. The EPS will decrease by -1.37% on average per year.
- AKRBP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.69% yearly.
EPS Next Y-59.74%
EPS Next 2Y-20.34%
EPS Next 3Y-7.07%
EPS Next 5Y-1.37%
Revenue Next Year-12.68%
Revenue Next 2Y-13.15%
Revenue Next 3Y-2.7%
Revenue Next 5Y-0.69%
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
- With a Price/Earnings ratio of 21.55, AKRBP is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of AKRBP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, AKRBP is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.63, the valuation of AKRBP can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as AKRBP.
- AKRBP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
- AKRBP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AKRBP is cheaper than 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.37 |
4.3 Compensation for Growth
- AKRBP has an outstanding profitability rating, which may justify a higher PE ratio.
- AKRBP's earnings are expected to decrease with -7.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-20.34%
EPS Next 3Y-7.07%
5. Dividend
5.1 Amount
- AKRBP has a Yearly Dividend Yield of 9.65%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.24, AKRBP pays a better dividend. On top of this AKRBP pays more dividend than 90.14% of the companies listed in the same industry.
- AKRBP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.65% |
5.2 History
- The dividend of AKRBP has a limited annual growth rate of 2.89%.
Dividend Growth(5Y)2.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AKRBP pays out 187.49% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of AKRBP has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP187.49%
EPS Next 2Y-20.34%
EPS Next 3Y-7.07%
AKER BP ASA / AKRBP.OL FAQ
What is the fundamental rating for AKRBP stock?
ChartMill assigns a fundamental rating of 5 / 10 to AKRBP.OL.
What is the valuation status for AKRBP stock?
ChartMill assigns a valuation rating of 4 / 10 to AKER BP ASA (AKRBP.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for AKER BP ASA?
AKER BP ASA (AKRBP.OL) has a profitability rating of 8 / 10.
What is the financial health of AKER BP ASA (AKRBP.OL) stock?
The financial health rating of AKER BP ASA (AKRBP.OL) is 2 / 10.
What is the expected EPS growth for AKER BP ASA (AKRBP.OL) stock?
The Earnings per Share (EPS) of AKER BP ASA (AKRBP.OL) is expected to decline by -59.74% in the next year.