Orkla ASA
Orkla ASA Fundamental Analysis
Orkla ASA (ORKLY) shows strong financial fundamentals with a PE ratio of 11.02, profit margin of 16.04%, and ROE of 24.43%. The company generates $71.7B in annual revenue with moderate year-over-year growth of 4.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.9/100 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 ORKLY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentORKLY demonstrates superior asset utilization.
Valuation Score
ExcellentORKLY trades at attractive valuation levels.
Growth Score
ModerateORKLY shows steady but slowing expansion.
Financial Health Score
ExcellentORKLY maintains a strong and stable balance sheet.
Profitability Score
ExcellentORKLY achieves industry-leading margins.
Key Financial Metrics
Is ORKLY Expensive or Cheap?
P/E Ratio
ORKLY trades at 11.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ORKLY's PEG of 0.24 indicates potential undervaluation.
Price to Book
The market values Orkla ASA at 2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.37 times EBITDA. This is generally considered low.
How Well Does ORKLY Make Money?
Net Profit Margin
For every $100 in sales, Orkla ASA keeps $16.04 as profit after all expenses.
Operating Margin
Core operations generate 9.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.43 in profit for every $100 of shareholder equity.
ROA
Orkla ASA generates $12.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Orkla ASA produces operating cash flow of $8.88B, showing steady but balanced cash generation.
Free Cash Flow
Orkla ASA produces free cash flow of $6.62B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.64 in free cash annually.
FCF Yield
ORKLY converts 5.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ORKLY Stacks Against Its Sector Peers
| Metric | ORKLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.02 | 23.25 | Better (Cheaper) |
| ROE | 24.43% | 1240.00% | Weak |
| Net Margin | 16.04% | -9728.00% (disorted) | Strong |
| Debt/Equity | 0.34 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 2.54 | Neutral |
| ROA | 12.93% | -203388.00% (disorted) | Strong |
ORKLY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Orkla ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.22%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
58.03%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
57.87%
Industry Style: Defensive, Dividend, Low Volatility
High Growth