ORKLA ASA (ORK.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ORK - NO0003733800 - Common Stock
111.6 NOK
-1.3 (-1.15%)
Overall ORK gets a fundamental rating of 6 out of 10. We evaluated ORK against 64 industry peers in the Food Products industry. ORK gets an excellent profitability rating and is at the same time showing great financial health properties. ORK has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years ORK always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 12.51%, ORK belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
- ORK's Return On Equity of 23.73% is amongst the best of the industry. ORK outperforms 87.50% of its industry peers.
- The Return On Invested Capital of ORK (8.53%) is better than 70.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ORK is in line with the industry average of 7.95%.
- 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
- ORK's Profit Margin of 15.29% is amongst the best of the industry. ORK outperforms 95.31% of its industry peers.
- In the last couple of years the Profit Margin of ORK has remained more or less at the same level.
- ORK's Operating Margin of 10.77% is fine compared to the rest of the industry. ORK outperforms 65.63% 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 81.25% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORK is still creating some value.
- ORK has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ORK has about the same amount of shares outstanding.
- Compared to 1 year ago, ORK has an improved debt to assets ratio.
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 Altman-Z score of 3.53. This is in the better half of the industry: ORK outperforms 79.69% of its industry peers.
- ORK has a debt to FCF ratio of 2.88. This is a good value and a sign of high solvency as ORK would need 2.88 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.88, ORK belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
- A Debt/Equity ratio of 0.35 indicates that ORK is not too dependend on debt financing.
- ORK has a Debt to Equity ratio of 0.35. This is in the better half of the industry: ORK outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.07
WACC7.96%
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 (1.33) which is in line with 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.
- The Quick ratio of ORK (0.71) is worse than 60.94% of its industry peers.
- ORK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
- Looking at the last year, ORK shows a small growth in Revenue. The Revenue has grown by 2.82% in the last year.
- 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
- Based on estimates for the next years, ORK will show a small growth in Earnings Per Share. The EPS will grow by 6.04% on average per year.
- Based on estimates for the next years, ORK will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y0.71%
EPS Next 2Y2.64%
EPS Next 3Y3.89%
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 16.88, the valuation of ORK can be described as correct.
- ORK's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of ORK to the average of the S&P500 Index (27.21), we can say ORK is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.42, the valuation of ORK can be described as correct.
- ORK's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ORK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 16.42 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ORK.
- 62.50% of the companies in the same industry are more expensive than ORK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.75 | ||
| EV/EBITDA | 11.64 |
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.
- The excellent profitability rating of ORK may justify a higher PE ratio.
PEG (NY)23.88
PEG (5Y)1.93
EPS Next 2Y2.64%
EPS Next 3Y3.89%
5. Dividend
5.1 Amount
- ORK has a Yearly Dividend Yield of 8.84%, which is a nice return.
- ORK's Dividend Yield is rather good when compared to the industry average which is at 2.42. 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 | 8.84% |
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
- ORK pays out 97.57% of its income as dividend. 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 2Y2.64%
EPS Next 3Y3.89%
ORKLA ASA / ORK.OL FAQ
What is the ChartMill fundamental rating of ORKLA ASA (ORK.OL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ORK.OL.
What is the valuation status for ORK stock?
ChartMill assigns a valuation rating of 4 / 10 to ORKLA ASA (ORK.OL). This can be considered as Fairly Valued.
How profitable is ORKLA ASA (ORK.OL) stock?
ORKLA ASA (ORK.OL) has a profitability rating of 8 / 10.
What is the financial health of ORKLA ASA (ORK.OL) stock?
The financial health rating of ORKLA ASA (ORK.OL) is 7 / 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 0.71% in the next year.