ORKLA ASA (ORK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ORK - NO0003733800 - Common Stock
112.9 NOK
+1.3 (+1.16%)
We assign a fundamental rating of 6 out of 10 to ORK. ORK was compared to 62 industry peers in the Food Products industry. ORK scores excellent on profitability, but there are some minor concerns on its financial health. ORK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ORK was profitable.
- In the past year ORK had a positive cash flow from operations.
- In the past 5 years ORK has always been profitable.
- In the past 5 years ORK always reported a positive cash flow from operatings.
1.2 Ratios
- ORK has a better Return On Assets (12.51%) than 96.77% of its industry peers.
- ORK has a Return On Equity of 23.73%. This is amongst the best in the industry. ORK outperforms 90.32% of its industry peers.
- With a decent Return On Invested Capital value of 8.53%, ORK is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ORK is in line with the industry average of 7.38%.
- The 3 year average ROIC (8.51%) for ORK is below the current ROIC(8.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | 23.73% | ||
| ROIC | 8.53% |
ROA(3y)6.32%
ROA(5y)6.54%
ROE(3y)12.04%
ROE(5y)12.07%
ROIC(3y)8.51%
ROIC(5y)8.58%
1.3 Margins
- With an excellent Profit Margin value of 15.29%, ORK belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
- In the last couple of years the Profit Margin of ORK has remained more or less at the same level.
- The Operating Margin of ORK (10.77%) is better than 69.35% of its industry peers.
- In the last couple of years the Operating Margin of ORK has declined.
- Looking at the Gross Margin, with a value of 49.59%, ORK is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- ORK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 15.29% | ||
| GM | 49.59% |
OM growth 3Y-3.43%
OM growth 5Y-2.09%
PM growth 3Y-3.47%
PM growth 5Y-0.52%
GM growth 3Y0.09%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORK is still creating some value.
- Compared to 1 year ago, ORK has about the same amount of shares outstanding.
- ORK has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for ORK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.51 indicates that ORK is not in any danger for bankruptcy at the moment.
- ORK has a Altman-Z score of 3.51. This is in the better half of the industry: ORK outperforms 79.03% of its industry peers.
- The Debt to FCF ratio of ORK is 2.88, which is a good value as it means it would take ORK, 2.88 years of fcf income to pay off all of its debts.
- ORK has a better Debt to FCF ratio (2.88) than 87.10% of its industry peers.
- A Debt/Equity ratio of 0.35 indicates that ORK is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.35, ORK is doing good in the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.07
WACC7.96%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that ORK should not have too much problems paying its short term obligations.
- ORK has a Current ratio (1.33) which is in line with its industry peers.
- A Quick Ratio of 0.71 indicates that ORK may have some problems paying its short term obligations.
- ORK's Quick ratio of 0.71 is in line compared to the rest of the industry. ORK outperforms 40.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.93% over the past year.
- ORK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.75% yearly.
- Looking at the last year, ORK shows a small growth in Revenue. The Revenue has grown by 2.82% in the last year.
- The Revenue has been growing by 10.13% on average over the past years. This is quite good.
EPS 1Y (TTM)5.93%
EPS 3Y7.58%
EPS 5Y8.75%
EPS Q2Q%4.52%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y11.89%
Revenue growth 5Y10.13%
Sales Q2Q%2.48%
3.2 Future
- Based on estimates for the next years, ORK will show a small growth in Earnings Per Share. The EPS will grow by 6.04% on average per year.
- Based on estimates for the next years, ORK will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y1.53%
EPS Next 2Y2.55%
EPS Next 3Y3.79%
EPS Next 5Y6.04%
Revenue Next Year1.5%
Revenue Next 2Y2.32%
Revenue Next 3Y2.55%
Revenue Next 5Y2.65%
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.
- 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 17.08, ORK is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as ORK.
- When comparing the Price/Earnings ratio of ORK to the average of the S&P500 Index (27.21), we can say ORK is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.64, ORK is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as ORK.
- ORK is valuated rather 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 | 17.08 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
- ORK's Enterprise Value to EBITDA ratio is in line with the industry average.
- 62.90% of the companies in the same industry are more expensive than ORK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORK does not grow enough to justify the current Price/Earnings ratio.
- ORK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)11.13
PEG (5Y)1.95
EPS Next 2Y2.55%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.86%, ORK is a good candidate for dividend investing.
- ORK's Dividend Yield is rather good when compared to the industry average which is at 2.38. ORK pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ORK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
5.2 History
- On average, the dividend of ORK grows each year by 18.18%, which is quite nice.
Dividend Growth(5Y)18.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ORK pays out 97.57% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ORK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.57%
EPS Next 2Y2.55%
EPS Next 3Y3.79%
ORKLA ASA / ORK.OL FAQ
What is the ChartMill fundamental rating of ORKLA ASA (ORK.OL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ORK.OL.
What is the valuation status for ORK stock?
ChartMill assigns a valuation rating of 4 / 10 to ORKLA ASA (ORK.OL). This can be considered as Fairly Valued.
How profitable is ORKLA ASA (ORK.OL) stock?
ORKLA ASA (ORK.OL) has a profitability rating of 8 / 10.
What is the financial health of ORKLA ASA (ORK.OL) stock?
The financial health rating of ORKLA ASA (ORK.OL) is 7 / 10.
What is the expected EPS growth for ORKLA ASA (ORK.OL) stock?
The Earnings per Share (EPS) of ORKLA ASA (ORK.OL) is expected to grow by 1.53% in the next year.