AKER SOLUTIONS ASA (AKSO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKSO - NO0010716582 - Common Stock
34.28 NOK
+0.4 (+1.18%)
Taking everything into account, AKSO scores 5 out of 10 in our fundamental rating. AKSO was compared to 36 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of AKSO get a neutral evaluation. Nothing too spectacular is happening here. AKSO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- AKSO had positive earnings in the past year.
- AKSO had a positive operating cash flow in the past year.
- AKSO had positive earnings in 4 of the past 5 years.
- In the past 5 years AKSO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AKSO (10.36%) is better than 88.89% of its industry peers.
- The Return On Equity of AKSO (35.51%) is better than 91.67% of its industry peers.
- AKSO has a better Return On Invested Capital (29.23%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AKSO is below the industry average of 10.31%.
- The 3 year average ROIC (6.50%) for AKSO is below the current ROIC(29.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.36% | ||
| ROE | 35.51% | ||
| ROIC | 29.23% |
ROA(3y)13.04%
ROA(5y)6.85%
ROE(3y)32.44%
ROE(5y)16.2%
ROIC(3y)6.5%
ROIC(5y)4.95%
1.3 Margins
- AKSO has a Profit Margin of 4.17%. This is in the lower half of the industry: AKSO underperforms 61.11% of its industry peers.
- In the last couple of years the Profit Margin of AKSO has grown nicely.
- The Operating Margin of AKSO (6.10%) is worse than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of AKSO has grown nicely.
- AKSO's Gross Margin of 23.10% is in line compared to the rest of the industry. AKSO outperforms 44.44% of its industry peers.
- AKSO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 4.17% | ||
| GM | 23.1% |
OM growth 3Y36.36%
OM growth 5Y13.2%
PM growth 3Y79.6%
PM growth 5Y104.35%
GM growth 3Y-9.73%
GM growth 5Y-6.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AKSO is creating value.
- Compared to 1 year ago, AKSO has less shares outstanding
- Compared to 5 years ago, AKSO has more shares outstanding
- Compared to 1 year ago, AKSO has a worse debt to assets ratio.
2.2 Solvency
- AKSO has a debt to FCF ratio of 1.32. This is a very positive value and a sign of high solvency as it would only need 1.32 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.32, AKSO belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
- AKSO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- AKSO's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. AKSO outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | N/A |
ROIC/WACC3.66
WACC7.98%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that AKSO may have some problems paying its short term obligations.
- The Current ratio of AKSO (0.88) is worse than 88.89% of its industry peers.
- AKSO has a Quick Ratio of 0.88. This is a bad value and indicates that AKSO is not financially healthy enough and could expect problems in meeting its short term obligations.
- AKSO has a Quick ratio of 0.87. This is amonst the worse of the industry: AKSO underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 21.15% over the past year.
- AKSO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.16% yearly.
- AKSO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.37%.
- Measured over the past years, AKSO shows a quite strong growth in Revenue. The Revenue has been growing by 12.70% on average per year.
EPS 1Y (TTM)21.15%
EPS 3Y108.01%
EPS 5Y30.16%
EPS Q2Q%5.29%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y21.76%
Revenue growth 5Y12.7%
Sales Q2Q%26.57%
3.2 Future
- Based on estimates for the next years, AKSO will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.40% on average per year.
- AKSO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.92% yearly.
EPS Next Y5.81%
EPS Next 2Y-9.8%
EPS Next 3Y-13.4%
EPS Next 5YN/A
Revenue Next Year19.31%
Revenue Next 2Y-5.23%
Revenue Next 3Y-6.92%
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
- With a Price/Earnings ratio of 5.44, the valuation of AKSO can be described as very cheap.
- 88.89% of the companies in the same industry are more expensive than AKSO, based on the Price/Earnings ratio.
- AKSO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 7.09, which indicates a rather cheap valuation of AKSO.
- Based on the Price/Forward Earnings ratio, AKSO is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, AKSO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 7.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AKSO is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AKSO indicates a somewhat cheap valuation: AKSO is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 2.07 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AKSO has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as AKSO's earnings are expected to decrease with -13.40% in the coming years.
PEG (NY)0.94
PEG (5Y)0.18
EPS Next 2Y-9.8%
EPS Next 3Y-13.4%
5. Dividend
5.1 Amount
- AKSO has a Yearly Dividend Yield of 9.99%, which is a nice return.
- AKSO's Dividend Yield is rather good when compared to the industry average which is at 3.63. AKSO pays more dividend than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AKSO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.99% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AKSO pays out 310.95% of its income as dividend. This is not a sustainable payout ratio.
DP310.95%
EPS Next 2Y-9.8%
EPS Next 3Y-13.4%
AKER SOLUTIONS ASA / AKSO.OL FAQ
Can you provide the ChartMill fundamental rating for AKER SOLUTIONS ASA?
ChartMill assigns a fundamental rating of 5 / 10 to AKSO.OL.
What is the valuation status of AKER SOLUTIONS ASA (AKSO.OL) stock?
ChartMill assigns a valuation rating of 8 / 10 to AKER SOLUTIONS ASA (AKSO.OL). This can be considered as Undervalued.
What is the profitability of AKSO stock?
AKER SOLUTIONS ASA (AKSO.OL) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for AKSO stock?
The Earnings per Share (EPS) of AKER SOLUTIONS ASA (AKSO.OL) is expected to grow by 5.81% in the next year.
Can you provide the dividend sustainability for AKSO stock?
The dividend rating of AKER SOLUTIONS ASA (AKSO.OL) is 5 / 10 and the dividend payout ratio is 310.95%.