KONGSBERG AUTOMOTIVE ASA (KOA.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:KOA - NO0003033102 - Common Stock
2.175 NOK
-0.07 (-2.9%)
We assign a fundamental rating of 3 out of 10 to KOA. KOA was compared to 31 industry peers in the Automobile Components industry. While KOA seems to be doing ok healthwise, there are quite some concerns on its profitability. KOA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- KOA had negative earnings in the past year.
- In the past year KOA had a positive cash flow from operations.
- In multiple years KOA reported negative net income over the last 5 years.
- In the past 5 years KOA always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -2.80%, KOA is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
- With a Return On Equity value of -8.95%, KOA is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
- KOA's Return On Invested Capital of 0.62% is on the low side compared to the rest of the industry. KOA is outperformed by 77.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KOA is below the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.8% | ||
| ROE | -8.95% | ||
| ROIC | 0.62% |
ROA(3y)-2.65%
ROA(5y)-4.12%
ROE(3y)-9.12%
ROE(5y)-14.89%
ROIC(3y)3.96%
ROIC(5y)3.79%
1.3 Margins
- Looking at the Operating Margin, with a value of 0.44%, KOA is doing worse than 77.42% of the companies in the same industry.
- KOA's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 58.04%, KOA belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- KOA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.44% | ||
| PM (TTM) | N/A | ||
| GM | 58.04% |
OM growth 3Y-32.91%
OM growth 5Y-20.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KOA is destroying value.
- Compared to 1 year ago, KOA has less shares outstanding
- KOA has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, KOA has an improved debt to assets ratio.
2.2 Solvency
- KOA has an Altman-Z score of 1.76. This is a bad value and indicates that KOA is not financially healthy and even has some risk of bankruptcy.
- KOA has a Altman-Z score of 1.76. This is comparable to the rest of the industry: KOA outperforms 58.06% of its industry peers.
- KOA has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as KOA would need 6.47 years to pay back of all of its debts.
- KOA has a Debt to FCF ratio of 6.47. This is in the better half of the industry: KOA outperforms 70.97% of its industry peers.
- A Debt/Equity ratio of 1.08 is on the high side and indicates that KOA has dependencies on debt financing.
- KOA has a Debt to Equity ratio (1.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.07
WACC8.43%
2.3 Liquidity
- A Current Ratio of 1.93 indicates that KOA should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.93, KOA belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- KOA has a Quick Ratio of 1.43. This is a normal value and indicates that KOA is financially healthy and should not expect problems in meeting its short term obligations.
- KOA has a better Quick ratio (1.43) than 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- KOA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.04%, which is quite impressive.
- KOA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.26%.
- Measured over the past years, KOA shows a decrease in Revenue. The Revenue has been decreasing by -7.45% on average per year.
EPS 1Y (TTM)62.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%118.89%
Revenue 1Y (TTM)-10.26%
Revenue growth 3Y-1.76%
Revenue growth 5Y-7.45%
Sales Q2Q%-10.3%
3.2 Future
- KOA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.35% yearly.
- Based on estimates for the next years, KOA will show a small growth in Revenue. The Revenue will grow by 1.60% on average per year.
EPS Next Y100%
EPS Next 2Y61.62%
EPS Next 3Y45.35%
EPS Next 5YN/A
Revenue Next Year-8.15%
Revenue Next 2Y-0.87%
Revenue Next 3Y1.6%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for KOA. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 14.00 indicates a correct valuation of KOA.
- Based on the Price/Forward Earnings ratio, KOA is valued a bit more expensive than the industry average as 67.74% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. KOA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14 |
4.2 Price Multiples
- 74.19% of the companies in the same industry are cheaper than KOA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, KOA is valued a bit cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 8.82 |
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.
- KOA's earnings are expected to grow with 45.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.62%
EPS Next 3Y45.35%
5. Dividend
5.1 Amount
- KOA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KONGSBERG AUTOMOTIVE ASA / KOA.OL FAQ
What is the fundamental rating for KOA stock?
ChartMill assigns a fundamental rating of 3 / 10 to KOA.OL.
What is the valuation status of KONGSBERG AUTOMOTIVE ASA (KOA.OL) stock?
ChartMill assigns a valuation rating of 4 / 10 to KONGSBERG AUTOMOTIVE ASA (KOA.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for KONGSBERG AUTOMOTIVE ASA?
KONGSBERG AUTOMOTIVE ASA (KOA.OL) has a profitability rating of 2 / 10.
How sustainable is the dividend of KONGSBERG AUTOMOTIVE ASA (KOA.OL) stock?
The dividend rating of KONGSBERG AUTOMOTIVE ASA (KOA.OL) is 0 / 10 and the dividend payout ratio is -3.18%.