VEIDEKKE ASA (VEI.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VEI - NO0005806802 - Common Stock
176.2 NOK
0 (0%)
VEI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Construction & Engineering industry. VEI scores excellent on profitability, but there are some minor concerns on its financial health. VEI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- VEI had positive earnings in the past year.
- VEI had a positive operating cash flow in the past year.
- Each year in the past 5 years VEI has been profitable.
- VEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of VEI (7.11%) is better than 75.56% of its industry peers.
- VEI has a better Return On Equity (44.79%) than 86.67% of its industry peers.
- With an excellent Return On Invested Capital value of 23.53%, VEI belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VEI is significantly above the industry average of 11.32%.
- The last Return On Invested Capital (23.53%) for VEI is above the 3 year average (20.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 44.79% | ||
| ROIC | 23.53% |
ROA(3y)6.25%
ROA(5y)7.26%
ROE(3y)36.63%
ROE(5y)43.49%
ROIC(3y)20.02%
ROIC(5y)18.85%
1.3 Margins
- The Profit Margin of VEI (3.18%) is worse than 60.00% of its industry peers.
- VEI's Profit Margin has improved in the last couple of years.
- VEI has a worse Operating Margin (3.92%) than 71.11% of its industry peers.
- In the last couple of years the Operating Margin of VEI has grown nicely.
- With a Gross Margin value of 37.19%, VEI perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- VEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.92% | ||
| PM (TTM) | 3.18% | ||
| GM | 37.19% |
OM growth 3Y-1.78%
OM growth 5Y14.32%
PM growth 3Y6.26%
PM growth 5Y4.12%
GM growth 3Y2.65%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
- VEI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- VEI has about the same amout of shares outstanding than it did 1 year ago.
- VEI has about the same amout of shares outstanding than it did 5 years ago.
- VEI has a worse debt/assets ratio than last year.
2.2 Solvency
- VEI has an Altman-Z score of 3.29. This indicates that VEI is financially healthy and has little risk of bankruptcy at the moment.
- VEI has a better Altman-Z score (3.29) than 88.89% of its industry peers.
- VEI has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
- VEI has a Debt to FCF ratio of 0.10. This is amongst the best in the industry. VEI outperforms 100.00% of its industry peers.
- VEI has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.08, VEI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 3.29 |
ROIC/WACC2.82
WACC8.34%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that VEI may have some problems paying its short term obligations.
- VEI's Current ratio of 0.80 is on the low side compared to the rest of the industry. VEI is outperformed by 91.11% of its industry peers.
- A Quick Ratio of 0.74 indicates that VEI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.74, VEI is doing worse than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.89% over the past year.
- The Earnings Per Share has been growing slightly by 6.43% on average over the past years.
- Looking at the last year, VEI shows a small growth in Revenue. The Revenue has grown by 1.09% in the last year.
- The Revenue has been growing slightly by 2.43% on average over the past years.
EPS 1Y (TTM)0.89%
EPS 3Y9.54%
EPS 5Y6.43%
EPS Q2Q%17.65%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y3.13%
Revenue growth 5Y2.43%
Sales Q2Q%10.35%
3.2 Future
- VEI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.45% yearly.
- Based on estimates for the next years, VEI will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y11.34%
EPS Next 2Y9.8%
EPS Next 3Y8.02%
EPS Next 5Y7.45%
Revenue Next Year3.79%
Revenue Next 2Y5.15%
Revenue Next 3Y4.65%
Revenue Next 5Y5.69%
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 stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.80, the valuation of VEI can be described as rather expensive.
- VEI's Price/Earnings is on the same level as the industry average.
- VEI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.78, which indicates a correct valuation of VEI.
- Based on the Price/Forward Earnings ratio, VEI is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, VEI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEI is on the same level as its industry peers.
- VEI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VEI is cheaper than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of VEI may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)2.77
EPS Next 2Y9.8%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.99%, VEI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.33, VEI pays a better dividend. On top of this VEI pays more dividend than 88.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, VEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
5.2 History
- On average, the dividend of VEI grows each year by 9.66%, which is quite nice.
Dividend Growth(5Y)9.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- VEI pays out 90.00% of its income as dividend. This is not a sustainable payout ratio.
- VEI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP90%
EPS Next 2Y9.8%
EPS Next 3Y8.02%
VEIDEKKE ASA / VEI.OL FAQ
Can you provide the ChartMill fundamental rating for VEIDEKKE ASA?
ChartMill assigns a fundamental rating of 6 / 10 to VEI.OL.
Can you provide the valuation status for VEIDEKKE ASA?
ChartMill assigns a valuation rating of 4 / 10 to VEIDEKKE ASA (VEI.OL). This can be considered as Fairly Valued.
How profitable is VEIDEKKE ASA (VEI.OL) stock?
VEIDEKKE ASA (VEI.OL) has a profitability rating of 7 / 10.
What is the financial health of VEIDEKKE ASA (VEI.OL) stock?
The financial health rating of VEIDEKKE ASA (VEI.OL) is 6 / 10.
Can you provide the expected EPS growth for VEI stock?
The Earnings per Share (EPS) of VEIDEKKE ASA (VEI.OL) is expected to grow by 11.34% in the next year.