ORKLA ASA (ORK.OL) Stock Fundamental Analysis
OSL:ORK - Oslo Bors ASA - NO0003733800 - Common Stock - Currency: NOK
ORK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 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
In the past year ORK was profitable.
In the past year ORK had a positive cash flow from operations.
ORK had positive earnings in each of the past 5 years.
In the past 5 years ORK always reported a positive cash flow from operatings.
1.2 Ratios
ORK has a better Return On Assets (6.38%) than 84.21% of its industry peers.
The Return On Equity of ORK (12.31%) is better than 70.18% of its industry peers.
With a decent Return On Invested Capital value of 7.89%, ORK is doing good in the industry, outperforming 77.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ORK is in line with the industry average of 6.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.31% | ||
| ROIC | 7.89% |
ROA(3y)6.35%
ROA(5y)6.53%
ROE(3y)12.01%
ROE(5y)11.78%
ROIC(3y)8.28%
ROIC(5y)8.31%
1.3 Margins
Looking at the Profit Margin, with a value of 8.18%, ORK belongs to the top of the industry, outperforming 80.70% 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.
Looking at the Operating Margin, with a value of 10.88%, ORK is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
In the last couple of years the Operating Margin of ORK has declined.
ORK's Gross Margin of 47.41% is fine compared to the rest of the industry. ORK outperforms 70.18% 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 | 10.88% | ||
| PM (TTM) | 8.18% | ||
| GM | 47.41% |
OM growth 3Y-5.04%
OM growth 5Y-2.63%
PM growth 3Y-6.15%
PM growth 5Y-0.88%
GM growth 3Y-1.09%
GM growth 5Y-0.6%
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.
ORK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.26 indicates that ORK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, ORK belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
The Debt to FCF ratio of ORK is 3.07, which is a good value as it means it would take ORK, 3.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ORK (3.07) is better than 87.72% of its industry peers.
ORK has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, ORK is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.05
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.30 indicates that ORK should not have too much problems paying its short term obligations.
ORK has a Current ratio (1.30) which is in line with its industry peers.
ORK has a Quick Ratio of 1.30. 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 0.70, ORK is not doing good in the industry: 64.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ORK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.77%.
The Earnings Per Share has been growing by 9.73% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.24% in the past year.
ORK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.67% yearly.
EPS 1Y (TTM)7.77%
EPS 3Y4.73%
EPS 5Y9.73%
EPS Q2Q%9.94%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y12.88%
Revenue growth 5Y10.67%
Sales Q2Q%4.34%
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 3.21% on average per year.
Based on estimates for the next years, ORK will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y13.36%
EPS Next 2Y9.04%
EPS Next 3Y8.4%
EPS Next 5Y3.21%
Revenue Next Year3.36%
Revenue Next 2Y3.18%
Revenue Next 3Y3.08%
Revenue Next 5Y3.35%
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 16.49, the valuation of ORK can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ORK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ORK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.95, ORK is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as ORK.
ORK is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.95 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
ORK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ORK may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)1.7
EPS Next 2Y9.04%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
ORK has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
ORK's Dividend Yield is comparable with the industry average which is at 3.24.
ORK's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of ORK decreases each year by -4.59%.
Dividend Growth(5Y)-4.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ORK pays out 105.83% of its income as dividend. This is not a sustainable payout ratio.
DP105.83%
EPS Next 2Y9.04%
EPS Next 3Y8.4%
ORKLA ASA
OSL:ORK (2/5/2025, 3:37:15 PM)
102.9
+0.2 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners73.75%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap103.05B
Analysts69.33
Price Target112.65 (9.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend3.18
Dividend Growth(5Y)-4.59%
DP105.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.54%
Min EPS beat(2)8.44%
Max EPS beat(2)12.64%
EPS beat(4)3
Avg EPS beat(4)6.07%
Min EPS beat(4)-4.78%
Max EPS beat(4)12.64%
EPS beat(8)6
Avg EPS beat(8)8%
EPS beat(12)9
Avg EPS beat(12)6.6%
EPS beat(16)11
Avg EPS beat(16)6.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)1.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-2.59%
Max Revenue beat(4)1.53%
Revenue beat(8)5
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)1.78%
Revenue beat(16)10
Avg Revenue beat(16)1.24%
PT rev (1m)4.85%
PT rev (3m)13.86%
EPS NQ rev (1m)-2.25%
EPS NQ rev (3m)5.57%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.95 | ||
| P/S | 1.48 | ||
| P/FCF | 15.42 | ||
| P/OCF | 11.76 | ||
| P/B | 2.23 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)6.24
EY6.06%
EPS(NY)6.88
Fwd EY6.69%
FCF(TTM)6.67
FCFY6.49%
OCF(TTM)8.75
OCFY8.51%
SpS69.5
BVpS46.2
TBVpS10.05
PEG (NY)1.23
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.31% | ||
| ROCE | 10.55% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 16.43% | ||
| OM | 10.88% | ||
| PM (TTM) | 8.18% | ||
| GM | 47.41% | ||
| FCFM | 9.6% |
ROA(3y)6.35%
ROA(5y)6.53%
ROE(3y)12.01%
ROE(5y)11.78%
ROIC(3y)8.28%
ROIC(5y)8.31%
ROICexc(3y)8.45%
ROICexc(5y)8.64%
ROICexgc(3y)18.6%
ROICexgc(5y)18.36%
ROCE(3y)11.08%
ROCE(5y)11.11%
ROICexcg growth 3Y-2.69%
ROICexcg growth 5Y-3.39%
ROICexc growth 3Y-4.33%
ROICexc growth 5Y-3.46%
OM growth 3Y-5.04%
OM growth 5Y-2.63%
PM growth 3Y-6.15%
PM growth 5Y-0.88%
GM growth 3Y-1.09%
GM growth 5Y-0.6%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 69.76% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83% | ||
| Profit Quality | 117.37% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.26 |
F-Score7
WACC7.51%
ROIC/WACC1.05
Cap/Depr(3y)114.57%
Cap/Depr(5y)112.7%
Cap/Sales(3y)4.82%
Cap/Sales(5y)5.16%
Profit Quality(3y)69.17%
Profit Quality(5y)78.52%
High Growth Momentum
Growth
EPS 1Y (TTM)7.77%
EPS 3Y4.73%
EPS 5Y9.73%
EPS Q2Q%9.94%
EPS Next Y13.36%
EPS Next 2Y9.04%
EPS Next 3Y8.4%
EPS Next 5Y3.21%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y12.88%
Revenue growth 5Y10.67%
Sales Q2Q%4.34%
Revenue Next Year3.36%
Revenue Next 2Y3.18%
Revenue Next 3Y3.08%
Revenue Next 5Y3.35%
EBIT growth 1Y4.42%
EBIT growth 3Y7.19%
EBIT growth 5Y7.76%
EBIT Next Year48.84%
EBIT Next 3Y17.4%
EBIT Next 5Y13.38%
FCF growth 1Y156.54%
FCF growth 3Y2.74%
FCF growth 5Y15.63%
OCF growth 1Y58.72%
OCF growth 3Y3.19%
OCF growth 5Y10.56%