AAK AB (publ.)
AAK AB (publ.) Fundamental Analysis
AAK AB (publ.) (ARHUF) shows weak financial fundamentals with a PE ratio of 19.26, profit margin of 7.57%, and ROE of 17.55%. The company generates $45.6B in annual revenue with weak year-over-year growth of 2.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARHUF's fundamental strength across five key dimensions:
Efficiency Score
WeakARHUF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARHUF trades at attractive valuation levels.
Growth Score
WeakARHUF faces weak or negative growth trends.
Financial Health Score
ExcellentARHUF maintains a strong and stable balance sheet.
Profitability Score
ModerateARHUF maintains healthy but balanced margins.
Key Financial Metrics
Is ARHUF Expensive or Cheap?
P/E Ratio
ARHUF trades at 19.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARHUF's PEG of -0.82 indicates potential undervaluation.
Price to Book
The market values AAK AB (publ.) at 3.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.35 times EBITDA. This signals the market has high growth expectations.
How Well Does ARHUF Make Money?
Net Profit Margin
For every $100 in sales, AAK AB (publ.) keeps $7.57 as profit after all expenses.
Operating Margin
Core operations generate 9.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.55 in profit for every $100 of shareholder equity.
ROA
AAK AB (publ.) generates $9.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AAK AB (publ.) generates limited operating cash flow of $2.74B, signaling weaker underlying cash strength.
Free Cash Flow
AAK AB (publ.) produces free cash flow of $1.43B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.47 in free cash annually.
FCF Yield
ARHUF converts 2.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ARHUF Stacks Against Its Sector Peers
| Metric | ARHUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.26 | 21.18 | Neutral |
| ROE | 17.55% | 1130.00% | Weak |
| Net Margin | 7.57% | -2195.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 2.05 | 2.53 | Strong Liquidity |
| ROA | 9.92% | -611087.00% (disorted) | Weak |
ARHUF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AAK AB (publ.)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.63%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
113.90%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-58.46%
Industry Style: Defensive, Dividend, Low Volatility
Declining