ORKLA ASA (ORK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ORK - NO0003733800 - Common Stock
112.6 NOK
-0.3 (-0.27%)
Taking everything into account, ORK scores 5 out of 10 in our fundamental rating. ORK was compared to 62 industry peers in the Food Products industry. While ORK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ORK is quite expensive at the moment. It does show 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.
- Each year in the past 5 years ORK has been profitable.
- ORK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ORK (12.51%) is better 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.
- ORK has a Return On Invested Capital of 8.53%. This is in the better half of the industry: ORK outperforms 75.81% of its industry peers.
- ORK had an Average Return On Invested Capital over the past 3 years of 8.51%. This is in line with the industry average of 7.38%.
- The last Return On Invested Capital (8.53%) for ORK is above the 3 year average (8.51%), which is a sign of increasing profitability.
| 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.
- ORK has a better Operating Margin (10.77%) 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.
- In the last couple of years the Gross Margin of ORK has remained more or less at the same level.
| 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.
- Compared to 1 year ago, ORK has about the same amount of shares outstanding.
- 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.
- Looking at the Altman-Z score, with a value of 3.53, ORK is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- 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.
- ORK has a Debt to Equity ratio of 0.35. This is in the better half of the industry: ORK outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.07
WACC7.97%
2.3 Liquidity
- ORK has a Current Ratio of 1.33. This is a normal value and indicates that ORK is financially healthy and should not expect problems in meeting 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.
- ORK has a Quick Ratio of 1.33. This is a bad value and indicates that ORK is not financially healthy enough and could expect problems in meeting 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%.
- ORK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.75% yearly.
- ORK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.82%.
- ORK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.13% yearly.
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
- ORK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.04% yearly.
- 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
- Based on the Price/Earnings ratio of 17.03, the valuation of ORK can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ORK is on the same level as its industry peers.
- ORK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 16.60, the valuation of ORK can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ORK is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. ORK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
- ORK's Enterprise Value to EBITDA is on the same level as the industry average.
- ORK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.9 | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ORK may justify a higher PE ratio.
PEG (NY)11.1
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.
- Compared to an average industry Dividend Yield of 2.38, ORK pays a better dividend. On top of this ORK pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ORK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
5.2 History
- The dividend of ORK is nicely growing with an annual growth rate of 18.18%!
Dividend Growth(5Y)18.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 97.57% of the earnings are spent on dividend by ORK. 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 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.