ORKLA ASA (ORK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ORK - NO0003733800 - Common Stock
113.1 NOK
+0.5 (+0.44%)
Taking everything into account, ORK scores 6 out of 10 in our fundamental rating. ORK was compared to 62 industry peers in the Food Products industry. ORK has an excellent profitability rating, 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
- ORK had positive earnings in the past year.
- In the past year ORK had a positive cash flow from operations.
- ORK had positive earnings in each of the past 5 years.
- Each year in the past 5 years ORK had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.51%, ORK belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
- 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
- The Profit Margin of ORK (15.29%) is better than 95.16% of its industry peers.
- ORK's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ORK (10.77%) is better than 69.35% of its industry peers.
- ORK's Operating Margin has declined in the last couple of years.
- ORK has a better Gross Margin (49.59%) than 79.03% of its industry peers.
- 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
- ORK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ORK remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ORK has about the same amount of shares outstanding.
- The debt/assets ratio for ORK has been reduced compared to a year ago.
2.2 Solvency
- ORK has an Altman-Z score of 3.53. This indicates that ORK is financially healthy and has little risk of bankruptcy at the moment.
- ORK has a better Altman-Z score (3.53) than 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.
- The Debt to FCF ratio of ORK (2.88) is better than 87.10% of its industry peers.
- ORK has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 3.53 |
ROIC/WACC1.07
WACC7.97%
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 of 1.33. This is comparable to the rest of the industry: ORK outperforms 54.84% of its industry peers.
- A Quick Ratio of 0.71 indicates that ORK may have some problems paying its short term obligations.
- With a Quick ratio value of 0.71, ORK perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- ORK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
- Measured over the past years, ORK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.75% on average per year.
- ORK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.82%.
- 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
- The Earnings Per Share is expected to grow by 6.04% on average over the next years.
- The Revenue is expected to grow by 2.65% on average over the next years.
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
- A Price/Earnings ratio of 17.11 indicates a rather expensive valuation of ORK.
- The rest of the industry has a similar Price/Earnings ratio as ORK.
- ORK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 16.67 indicates a correct valuation of ORK.
- 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 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ORK.
- ORK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ORK is cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 11.62 |
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)11.15
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.
- ORK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- ORK's earnings are growing slower than its dividend. 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 5 / 10 to ORK.OL.
What is the valuation status for ORK stock?
ChartMill assigns a valuation rating of 3 / 10 to ORKLA ASA (ORK.OL). This can be considered as Overvalued.
How profitable is ORKLA ASA (ORK.OL) stock?
ORKLA ASA (ORK.OL) has a profitability rating of 7 / 10.
What is the financial health of ORKLA ASA (ORK.OL) stock?
The financial health rating of ORKLA ASA (ORK.OL) is 6 / 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.