Buy Or Sell Opportunity • Jun 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.3% to kr179. The fair value is estimated to be kr225, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Announcement • May 23
AF Gruppen ASA (OB:AFG) completed the acquisition of an unknown majority stake in Claxton Engineering Services LTD from Acteon Group Limited. AF Gruppen ASA (OB:AFG) agreed to acquire an unknown majority stake in Claxton Engineering Services LTD from Acteon Group Limited for an enterprise value of £63.5 million on April 15, 2026. The consideration will be settled in cash and financed from AF Gruppen’s liquidity reserves
The transaction comprises the operating companies Claxton Engineering Service Ltd. (UK), Probe Manufacturing and Fabrication Ltd. (UK), Claxton Engineering Services Pte Ltd. (Singapore), Claxton Services Pty Ltd. (Australia), Claxton Engineering Services LLC SPC (Abu Dhabi), Claxton Engineering Services AS (Norway) and Claxton Services Inc. (USA). Claxton will operate as an independent business unit within the Offshore business area of AF Gruppen.
The transaction is subject to approval by the Norwegian Competition Authority and is expected to be completed during the second quarter of 2026.
AF Gruppen ASA (OB:AFG) completed the acquisition of an unknown majority stake in Claxton Engineering Services LTD from Acteon Group Limited on May 21, 2026. Claxton will be organised as a new business unit within the Offshore business area of AF Gruppen. Buy Or Sell Opportunity • May 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.1% to kr179. The fair value is estimated to be kr224, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 9.9% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Reported Earnings • May 15
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: kr1.84 (up from kr1.27 in 1Q 2025). Revenue: kr7.98b (up 12% from 1Q 2025). Net income: kr203.0m (up 46% from 1Q 2025). Profit margin: 2.5% (up from 1.9% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 7.0%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 08
Upcoming dividend of kr6.50 per share Eligible shareholders must have bought the stock before 15 May 2026. Payment date: 22 May 2026. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Norwegian dividend payers (7.5%). Lower than average of industry peers (5.3%). Price Target Changed • Apr 30
Price target increased by 10% to kr190 Up from kr173, the current price target is an average from 3 analysts. New target price is 6.8% above last closing price of kr178. Stock is up 20% over the past year. The company is forecast to post earnings per share of kr11.06 for next year compared to kr9.99 last year. Announcement • Apr 16
AF Gruppen ASA (OB:AFG) agreed to acquire an unknown majority stake in Claxton Engineering Services LTD from Acteon Group Limited for an enterprise value of £63.5 million. AF Gruppen ASA (OB:AFG) agreed to acquire an unknown majority stake in Claxton Engineering Services LTD from Acteon Group Limited for an enterprise value of £63.5 million on April 15, 2026. The consideration will be settled in cash and financed from AF Gruppen’s liquidity reserves
The transaction comprises the operating companies Claxton Engineering Service Ltd. (UK), Probe Manufacturing and Fabrication Ltd. (UK), Claxton Engineering Services Pte Ltd. (Singapore), Claxton Services Pty Ltd. (Australia), Claxton Engineering Services LLC SPC (Abu Dhabi), Claxton Engineering Services AS (Norway) and Claxton Services Inc. (USA). Claxton will operate as an independent business unit within the Offshore business area of AF Gruppen.
The transaction is subject to approval by the Norwegian Competition Authority and is expected to be completed during the second quarter of 2026. New Risk • Feb 17
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 3.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Declared Dividend • Feb 16
Final dividend of kr6.50 announced Shareholders will receive a dividend of kr6.50. Ex-date: 15th May 2026 Payment date: 22nd May 2026 Dividend yield will be 5.7%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 16
Full year 2025 earnings released: EPS: kr9.99 (vs kr6.52 in FY 2024) Full year 2025 results: EPS: kr9.99 (up from kr6.52 in FY 2024). Revenue: kr32.0b (up 4.6% from FY 2024). Net income: kr1.09b (up 54% from FY 2024). Profit margin: 3.4% (up from 2.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 7% per year. Announcement • Feb 13
AF Gruppen ASA Proposes Cash Dividend for the Financial Year 2025, Payable on 22 May 2026 The Board of AF Gruppen ASA has proposed a dividend of NOK 6.50 per share for the financial year 2025, subject to approval at the general meeting on 13 May 2026. The last day including the right to the dividend is 13 May 2026, the ex-date is 15 May 2026, the record date is 18 May 2026, and the payment date is scheduled for 22 May 2026. Price Target Changed • Jan 18
Price target increased by 27% to kr166 Up from kr130, the current price target is an average from 2 analysts. New target price is 10% below last closing price of kr184. Stock is up 25% over the past year. The company is forecast to post earnings per share of kr9.26 for next year compared to kr6.52 last year. Price Target Changed • Jan 06
Price target increased by 8.0% to kr135 Up from kr125, the current price target is provided by 1 analyst. New target price is 27% below last closing price of kr185. Stock is up 24% over the past year. The company posted earnings per share of kr6.52 last year. New Risk • Jan 06
New major risk - Revenue and earnings growth Earnings have declined by 8.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 17
Third quarter 2025 earnings: EPS in line with expectations, revenues disappoint Third quarter 2025 results: EPS: kr2.36 (up from kr1.85 in 3Q 2024). Revenue: kr7.80b (up 8.3% from 3Q 2024). Net income: kr258.0m (up 28% from 3Q 2024). Profit margin: 3.3% (up from 2.8% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Price Target Changed • Nov 14
Price target increased by 8.3% to kr130 Up from kr120, the current price target is provided by 1 analyst. New target price is 28% below last closing price of kr180. Stock is up 30% over the past year. The company posted earnings per share of kr6.52 last year. New Risk • Nov 14
New major risk - Revenue and earnings growth Earnings have declined by 9.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Oct 20
Now 20% undervalued Over the last 90 days, the stock has risen 7.6% to kr167. The fair value is estimated to be kr209, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. New Risk • Oct 09
New major risk - Revenue and earnings growth Earnings have declined by 9.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Oct 02
Now 21% undervalued Over the last 90 days, the stock has risen 7.1% to kr165. The fair value is estimated to be kr210, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Buy Or Sell Opportunity • Sep 11
Now 20% undervalued Over the last 90 days, the stock has risen 9.3% to kr169. The fair value is estimated to be kr211, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Reported Earnings • Aug 31
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: kr2.49 (up from kr0.07 loss in 2Q 2024). Revenue: kr7.81b (up 2.1% from 2Q 2024). Net income: kr272.0m (up kr280.0m from 2Q 2024). Profit margin: 3.5% (up from net loss in 2Q 2024). The move to profitability was primarily driven by higher revenue. Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) also surpassed analyst estimates by 28%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Buy Or Sell Opportunity • Aug 26
Now 20% undervalued Over the last 90 days, the stock has risen 3.9% to kr155. The fair value is estimated to be kr195, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 6.6% in 2 years. Earnings are forecast to grow by 47% in the next 2 years. Buy Or Sell Opportunity • Aug 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.3% to kr155. The fair value is estimated to be kr195, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 7.6% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Buy Or Sell Opportunity • Jul 14
Now 20% undervalued Over the last 90 days, the stock has risen 14% to kr156. The fair value is estimated to be kr195, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 7.6% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Major Estimate Revision • Jul 01
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from kr31.4b to kr31.1b. EPS estimate also fell from kr9.24 per share to kr8.15 per share. Net income forecast to grow 35% next year vs 28% growth forecast for Construction industry in Norway. Consensus price target of kr154 unchanged from last update. Share price was steady at kr153 over the past week. Buy Or Sell Opportunity • May 27
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at kr148. The fair value is estimated to be kr122, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 8.2% in 2 years. Earnings are forecast to grow by 56% in the next 2 years. Reported Earnings • May 16
First quarter 2025 earnings: Revenues and EPS in line with analyst expectations First quarter 2025 results: EPS: kr1.27 (down from kr1.30 in 1Q 2024). Revenue: kr7.13b (flat on 1Q 2024). Net income: kr139.0m (down 1.4% from 1Q 2024). Profit margin: 1.9% (down from 2.0% in 1Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • May 09
Upcoming dividend of kr5.00 per share Eligible shareholders must have bought the stock before 16 May 2025. Payment date: 21 May 2025. Payout ratio is on the higher end at 77%, however this is supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Norwegian dividend payers (9.4%). Lower than average of industry peers (4.8%). Major Estimate Revision • Mar 07
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from kr8.14 to kr9.22. Revenue forecast steady at kr31.4b. Net income forecast to grow 42% next year vs 43% growth forecast for Construction industry in Norway. Consensus price target up from kr141 to kr154. Share price fell 2.0% to kr145 over the past week. Price Target Changed • Mar 06
Price target increased by 12% to kr154 Up from kr137, the current price target is an average from 2 analysts. New target price is 7.2% above last closing price of kr144. Stock is up 8.8% over the past year. The company is forecast to post earnings per share of kr9.22 for next year compared to kr6.52 last year. Reported Earnings • Feb 16
Full year 2024 earnings released: EPS: kr6.52 (vs kr3.73 in FY 2023) Full year 2024 results: EPS: kr6.52 (up from kr3.73 in FY 2023). Revenue: kr30.6b (flat on FY 2023). Net income: kr708.0m (up 76% from FY 2023). Profit margin: 2.3% (up from 1.3% in FY 2023). Revenue is forecast to grow 3.2% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Feb 15
New major risk - Revenue and earnings growth Earnings have declined by 12% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Feb 14
AF Gruppen ASA Proposes Dividend for the First Half of Year 2025, Payable on 21 May 2025 The Board in AF Gruppen ASA has decided to propose to the general meeting on May 15, 2025 a dividend of NOK 5.00 (3.50) per share for the first half-year 2025. Last day including right: 15 May 2025, Ex-date: 16 May 2025, Record date: 19 May 2025, Payment date: 21 May 2025 and Date of approval: 15 May 2025. The dividend for the first half-year 2025 of NOK 5.00 per share will be distributed as repayment of share premium. Buy Or Sell Opportunity • Feb 03
Now 20% undervalued Over the last 90 days, the stock has risen 21% to kr156. The fair value is estimated to be kr197, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.9% over the last 3 years. Earnings per share has declined by 33%. Revenue is forecast to grow by 6.1% in 2 years. Earnings are forecast to grow by 111% in the next 2 years. Price Target Changed • Jan 09
Price target increased by 21% to kr115 Up from kr95.00, the current price target is provided by 1 analyst. New target price is 24% below last closing price of kr152. Stock is up 23% over the past year. The company is forecast to post earnings per share of kr6.15 for next year compared to kr3.73 last year. Reported Earnings • Nov 17
Third quarter 2024 earnings: Revenues and EPS in line with analyst expectations Third quarter 2024 results: EPS: kr1.85 (up from kr0.43 in 3Q 2023). Revenue: kr7.20b (up 4.3% from 3Q 2023). Net income: kr201.0m (up 337% from 3Q 2023). Profit margin: 2.8% (up from 0.7% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Nov 07
Now 23% overvalued The stock has been flat over the last 90 days, currently trading at kr132. The fair value is estimated to be kr108, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.0% over the last 3 years. Earnings per share has declined by 31%. Revenue is forecast to grow by 5.0% in 2 years. Earnings are forecast to grow by 163% in the next 2 years. Announcement • Sep 21
AF Gruppen ASA (OB:AFG) commences an Equity Buyback Plan, under the authorization approved on May 15, 2024. AF Gruppen ASA (OB:AFG) commences share repurchases on September 16, 2024, under the program mandated by the shareholders in the Annual General Meeting held on May 15, 2024. As per the mandate, the company will repurchase its shares worth a nominal value of NOK 0.54 million. The minimum amount that may be paid for a share is NOK 0.05 and the highest amount that may be paid for a share is NOK 300. The purpose of the program is to give the company an opportunity to purchase the shares in situations where it would be in the company’s interest. The acquisition of the shares may occur, with settlement in cash, with settlement by means other than cash or as settlement in connection with a merger or demerger. The authority will be valid until the next Annual General Meeting, and in any case no later than June 30, 2025.
On September 13, 2024, the company initiated a share repurchase program. Under the program, the company will repurchase up to 200,000 shares for a total of NOK 30 million. The repurchased shares will be used for the company's employee share program. The program will commence on September 16, 2024 and will expire on October 4, 2024. Reported Earnings • Sep 01
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: kr0.07 loss per share (down from kr1.72 profit in 2Q 2023). Revenue: kr7.65b (down 2.6% from 2Q 2023). Net loss: kr8.00m (down 104% from profit in 2Q 2023). Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 27
Consensus EPS estimates fall by 23% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from kr7.33 to kr5.64. Revenue forecast unchanged from kr30.1b at last update. Net income forecast to grow 24% next year vs 24% growth forecast for Construction industry in Norway. Consensus price target of kr100.00 unchanged from last update. Share price rose 2.2% to kr132 over the past week. Buy Or Sell Opportunity • Aug 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.5% to kr132. The fair value is estimated to be kr168, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Earnings per share has declined by 24%. Revenue is forecast to grow by 5.5% in 2 years. Earnings are forecast to grow by 68% in the next 2 years. Announcement • Jun 21
AF Gruppen ASA, Annual General Meeting, May 15, 2025 AF Gruppen ASA, Annual General Meeting, May 15, 2025. New Risk • Jun 17
New major risk - Revenue and earnings growth Earnings have declined by 5.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Upcoming Dividend • May 09
Upcoming dividend of kr3.50 per share Eligible shareholders must have bought the stock before 16 May 2024. Payment date: 27 May 2024. Payout ratio is on the higher end at 94%, however this is supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Norwegian dividend payers (7.6%). Lower than average of industry peers (3.8%). Reported Earnings • Apr 25
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: kr3.73 (down from kr8.96 in FY 2022). Revenue: kr30.4b (down 2.2% from FY 2022). Net income: kr402.0m (down 58% from FY 2022). Profit margin: 1.3% (down from 3.1% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Declared Dividend • Feb 21
Dividend of kr3.50 announced Shareholders will receive a dividend of kr3.50. Ex-date: 16th May 2024 Payment date: 27th May 2024 Dividend yield will be 2.9%, which is about the same as the industry average. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio). However, it is well covered by cash flows (24% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 4.3% to bring the payout ratio under control. EPS is expected to grow by 85% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: kr3.73 (down from kr8.96 in FY 2022). Revenue: kr30.5b (down 1.9% from FY 2022). Net income: kr402.0m (down 58% from FY 2022). Profit margin: 1.3% (down from 3.1% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Price Target Changed • Jan 25
Price target decreased by 26% to kr100.00 Down from kr135, the current price target is provided by 1 analyst. New target price is 17% below last closing price of kr121. Stock is down 15% over the past year. The company posted earnings per share of kr8.96 last year. Reported Earnings • Nov 16
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: kr0.43 (down from kr1.46 in 3Q 2022). Revenue: kr6.91b (down 8.4% from 3Q 2022). Net income: kr46.0m (down 70% from 3Q 2022). Profit margin: 0.7% (down from 2.1% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 75%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Construction industry in Norway. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 13% per year. Recent Insider Transactions • Nov 14
Chairman of the Board recently bought kr565k worth of stock On the 10th of November, Morten Grongstad bought around 5k shares on-market at roughly kr113 per share. This transaction amounted to 25% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth kr650k. Morten has been a buyer over the last 12 months, purchasing a net total of kr1.2m worth in shares. Major Estimate Revision • Nov 12
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr31.1b to kr30.7b. EPS estimate also fell from kr6.83 per share to kr5.15 per share. Net income forecast to shrink 2.6% next year vs 7.2% growth forecast for Construction industry in Norway . Consensus price target down from kr140 to kr135. Share price fell 7.8% to kr114 over the past week. Recent Insider Transactions • Aug 28
Chairman of the Board recently bought kr650k worth of stock On the 25th of August, Morten Grongstad bought around 5k shares on-market at roughly kr130 per share. This transaction amounted to 33% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Morten's only on-market trade for the last 12 months. New Risk • Aug 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.3% Last year net profit margin: 3.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 99% Dividend per share is over 7x cash flows per share. Minor Risk Profit margins are more than 30% lower than last year (2.3% net profit margin). 