OLAV THON EIENDOMSSELSKAP AS (OLT.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:OLT - NO0005638858 - Common Stock
335 NOK
+1 (+0.3%)
We assign a fundamental rating of 4 out of 10 to OLT. OLT was compared to 71 industry peers in the Real Estate Management & Development industry. While OLT belongs to the best of the industry regarding profitability, there are concerns on its financial health. OLT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- OLT had positive earnings in the past year.
- In the past year OLT had a positive cash flow from operations.
- Of the past 5 years OLT 4 years were profitable.
- Of the past 5 years OLT 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of OLT (3.76%) is better than 74.65% of its industry peers.
- OLT has a better Return On Equity (7.48%) than 76.06% of its industry peers.
- OLT's Return On Invested Capital of 4.34% is amongst the best of the industry. OLT outperforms 84.51% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for OLT is in line with the industry average of 3.94%.
- The 3 year average ROIC (4.07%) for OLT is below the current ROIC(4.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 7.48% | ||
| ROIC | 4.34% |
ROA(3y)1.62%
ROA(5y)2.3%
ROE(3y)3.15%
ROE(5y)4.56%
ROIC(3y)4.07%
ROIC(5y)3.88%
1.3 Margins
- With a decent Profit Margin value of 48.22%, OLT is doing good in the industry, outperforming 76.06% of the companies in the same industry.
- OLT's Profit Margin has been stable in the last couple of years.
- OLT has a Operating Margin of 63.68%. This is amongst the best in the industry. OLT outperforms 83.10% of its industry peers.
- OLT's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 68.27%, OLT perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
- OLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.68% | ||
| PM (TTM) | 48.22% | ||
| GM | 68.27% |
OM growth 3Y-0.49%
OM growth 5Y0.1%
PM growth 3Y-21.9%
PM growth 5Y-0.89%
GM growth 3Y-1.61%
GM growth 5Y-1.38%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OLT is destroying value.
- Compared to 1 year ago, OLT has about the same amount of shares outstanding.
- OLT has less shares outstanding than it did 5 years ago.
- OLT has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.48, we must say that OLT is in the distress zone and has some risk of bankruptcy.
- OLT's Altman-Z score of 1.48 is fine compared to the rest of the industry. OLT outperforms 71.83% of its industry peers.
- OLT has a debt to FCF ratio of 12.41. This is a negative value and a sign of low solvency as OLT would need 12.41 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 12.41, OLT is doing good in the industry, outperforming 67.61% of the companies in the same industry.
- OLT has a Debt/Equity ratio of 0.53. This is a neutral value indicating OLT is somewhat dependend on debt financing.
- OLT has a better Debt to Equity ratio (0.53) than 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 12.41 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.62
WACC7.03%
2.3 Liquidity
- OLT has a Current Ratio of 0.21. This is a bad value and indicates that OLT is not financially healthy enough and could expect problems in meeting its short term obligations.
- OLT has a worse Current ratio (0.21) than 83.10% of its industry peers.
- A Quick Ratio of 0.18 indicates that OLT may have some problems paying its short term obligations.
- OLT has a worse Quick ratio (0.18) than 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
- OLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2378.70%, which is quite impressive.
- OLT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.32% yearly.
- The Revenue has been growing slightly by 3.19% in the past year.
- The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)2378.7%
EPS 3Y-15.42%
EPS 5Y4.32%
EPS Q2Q%20.6%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y7.54%
Revenue growth 5Y4.7%
Sales Q2Q%31.18%
3.2 Future
- Based on estimates for the next years, OLT will show a small growth in Earnings Per Share. The EPS will grow by 4.86% on average per year.
- Based on estimates for the next years, OLT will show a decrease in Revenue. The Revenue will decrease by -1.48% on average per year.
EPS Next Y-7.92%
EPS Next 2Y11.64%
EPS Next 3Y4.86%
EPS Next 5YN/A
Revenue Next Year-9.24%
Revenue Next 2Y-3.66%
Revenue Next 3Y-1.48%
Revenue Next 5YN/A
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.
- 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 21.19, OLT is valued on the expensive side.
- 60.56% of the companies in the same industry are more expensive than OLT, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. OLT is valued slightly cheaper when compared to this.
- OLT is valuated correctly with a Price/Forward Earnings ratio of 14.05.
- OLT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OLT is cheaper than 71.83% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, OLT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OLT indicates a somewhat cheap valuation: OLT is cheaper than 71.83% of the companies listed in the same industry.
- OLT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
- OLT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.91
EPS Next 2Y11.64%
EPS Next 3Y4.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.17%, OLT has a reasonable but not impressive dividend return.
- OLT's Dividend Yield is comparable with the industry average which is at 4.22.
- OLT's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
- The dividend of OLT is nicely growing with an annual growth rate of 8.90%!
Dividend Growth(5Y)8.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 30.76% of the earnings are spent on dividend by OLT. This is a low number and sustainable payout ratio.
- OLT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.76%
EPS Next 2Y11.64%
EPS Next 3Y4.86%
OLAV THON EIENDOMSSELSKAP AS / OLT.OL FAQ
What is the ChartMill fundamental rating of OLAV THON EIENDOMSSELSKAP AS (OLT.OL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to OLT.OL.
What is the valuation status of OLAV THON EIENDOMSSELSKAP AS (OLT.OL) stock?
ChartMill assigns a valuation rating of 4 / 10 to OLAV THON EIENDOMSSELSKAP AS (OLT.OL). This can be considered as Fairly Valued.
How profitable is OLAV THON EIENDOMSSELSKAP AS (OLT.OL) stock?
OLAV THON EIENDOMSSELSKAP AS (OLT.OL) has a profitability rating of 7 / 10.
What is the expected EPS growth for OLAV THON EIENDOMSSELSKAP AS (OLT.OL) stock?
The Earnings per Share (EPS) of OLAV THON EIENDOMSSELSKAP AS (OLT.OL) is expected to decline by -7.92% in the next year.
How sustainable is the dividend of OLAV THON EIENDOMSSELSKAP AS (OLT.OL) stock?
The dividend rating of OLAV THON EIENDOMSSELSKAP AS (OLT.OL) is 4 / 10 and the dividend payout ratio is 30.76%.