AKER SOLUTIONS ASA (AKSO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:AKSO - NO0010716582 - Common Stock
34.62 NOK
+0.34 (+0.99%)
We assign a fundamental rating of 5 out of 10 to AKSO. AKSO was compared to 36 industry peers in the Energy Equipment & Services industry. AKSO has only an average score on both its financial health and profitability. AKSO may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year AKSO was profitable.
- AKSO had a positive operating cash flow in the past year.
- Of the past 5 years AKSO 4 years were profitable.
- AKSO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AKSO (10.36%) is better than 88.89% of its industry peers.
- With an excellent Return On Equity value of 35.51%, AKSO belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- 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.
- AKSO's Operating Margin of 6.10% is on the low side compared to the rest of the industry. AKSO is outperformed by 66.67% of its industry peers.
- In the last couple of years the Operating Margin of AKSO has grown nicely.
- AKSO has a Gross Margin of 23.10%. This is comparable to the rest of the industry: AKSO outperforms 44.44% of its industry peers.
- In the last couple of years the Gross Margin of AKSO has declined.
| 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.
- The number of shares outstanding for AKSO has been reduced compared to 1 year ago.
- 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
- The Debt to FCF ratio of AKSO is 1.32, which is an excellent value as it means it would take AKSO, only 1.32 years of fcf income to pay off all of its debts.
- AKSO has a better Debt to FCF ratio (1.32) than 80.56% of its industry peers.
- AKSO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- AKSO has a better Debt to Equity ratio (0.24) than 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.
- A Quick Ratio of 0.87 indicates that AKSO may have some problems paying its short term obligations.
- AKSO has a worse Quick ratio (0.87) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- AKSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.15%, which is quite impressive.
- Measured over the past years, AKSO shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.16% on average per year.
- The Revenue has been growing slightly by 5.37% in the past year.
- The Revenue has been growing by 12.70% on average over the past years. This is quite good.
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.
- The Revenue is expected to decrease by -6.92% on average over the next years.
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
- Based on the Price/Earnings ratio of 5.50, 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.
- The average S&P500 Price/Earnings ratio is at 28.82. AKSO is valued rather cheaply when compared to this.
- AKSO is valuated cheaply with a Price/Forward Earnings ratio of 7.16.
- 80.56% of the companies in the same industry are more expensive than AKSO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. AKSO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.5 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
- 94.44% of the companies in the same industry are more expensive than AKSO, based on the Enterprise Value to EBITDA ratio.
- 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 | 7.31 | ||
| EV/EBITDA | 2.1 |
4.3 Compensation for Growth
- AKSO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of AKSO 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)0.95
PEG (5Y)0.18
EPS Next 2Y-9.8%
EPS Next 3Y-13.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.99%, AKSO is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.63, AKSO pays a better dividend. On top of this AKSO pays more dividend than 91.67% of the companies listed 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
- 310.95% of the earnings are spent on dividend by AKSO. 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%.