Aker ASA
Aker ASA Fundamental Analysis
Aker ASA (AKAAF) shows moderate financial fundamentals with a PE ratio of 20.24, profit margin of 29.58%, and ROE of 8.54%. The company generates $13.3B in annual revenue with weak year-over-year growth of 1.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AKAAF's fundamental strength across five key dimensions:
Efficiency Score
WeakAKAAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAKAAF trades at attractive valuation levels.
Growth Score
WeakAKAAF faces weak or negative growth trends.
Financial Health Score
ExcellentAKAAF maintains a strong and stable balance sheet.
Profitability Score
ModerateAKAAF maintains healthy but balanced margins.
Key Financial Metrics
Is AKAAF Expensive or Cheap?
P/E Ratio
AKAAF trades at 20.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AKAAF's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Aker ASA at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.10 times EBITDA. This is generally considered low.
How Well Does AKAAF Make Money?
Net Profit Margin
For every $100 in sales, Aker ASA keeps $29.58 as profit after all expenses.
Operating Margin
Core operations generate 38.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.54 in profit for every $100 of shareholder equity.
ROA
Aker ASA generates $3.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aker ASA generates strong operating cash flow of $4.49B, reflecting robust business health.
Free Cash Flow
Aker ASA generates strong free cash flow of $2.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $29.38 in free cash annually.
FCF Yield
AKAAF converts 2.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AKAAF Stacks Against Its Sector Peers
| Metric | AKAAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.24 | 26.76 | Better (Cheaper) |
| ROE | 8.54% | 1279.00% | Weak |
| Net Margin | 29.58% | -38858.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.34 | 10.41 | Neutral |
| ROA | 3.95% | -1505740.00% (disorted) | Weak |
AKAAF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aker ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-74.71%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
525.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
197.12%
Industry Style: Cyclical, Value, Infrastructure
High Growth