Aker Solutions ASA
Aker Solutions ASA Fundamental Analysis
Aker Solutions ASA (AKRTF) shows strong financial fundamentals with a PE ratio of 7.87, profit margin of 4.08%, and ROE of 23.73%. The company generates $62.7B in annual revenue with strong year-over-year growth of 46.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 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 AKRTF's fundamental strength across five key dimensions:
Efficiency Score
WeakAKRTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAKRTF trades at attractive valuation levels.
Growth Score
ModerateAKRTF shows steady but slowing expansion.
Financial Health Score
ModerateAKRTF shows balanced financial health with some risks.
Profitability Score
ModerateAKRTF maintains healthy but balanced margins.
Key Financial Metrics
Is AKRTF Expensive or Cheap?
P/E Ratio
AKRTF trades at 7.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AKRTF's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values Aker Solutions ASA at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.21 times EBITDA. This is generally considered low.
How Well Does AKRTF Make Money?
Net Profit Margin
For every $100 in sales, Aker Solutions ASA keeps $4.08 as profit after all expenses.
Operating Margin
Core operations generate 6.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.73 in profit for every $100 of shareholder equity.
ROA
Aker Solutions ASA generates $6.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aker Solutions ASA generates limited operating cash flow of $3.25B, signaling weaker underlying cash strength.
Free Cash Flow
Aker Solutions ASA produces free cash flow of $2.82B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.81 in free cash annually.
FCF Yield
AKRTF converts 13.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How AKRTF Stacks Against Its Sector Peers
| Metric | AKRTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.87 | 19.95 | Better (Cheaper) |
| ROE | 23.73% | 963.00% | Weak |
| Net Margin | 4.08% | -48347.00% (disorted) | Weak |
| Debt/Equity | 0.28 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.94 | 4.82 | Weak Liquidity |
| ROA | 6.63% | -2296.00% (disorted) | Weak |
AKRTF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aker Solutions ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.39%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1022.70%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
782.86%
Industry Style: Cyclical, Value, Commodity
High Growth