DB:AF8

Stock Analysis Report

Executive Summary

AF Gruppen ASA, a contracting and industrial company, engages in civil engineering, environment, building, property, energy, and offshore businesses primarily in Norway and Sweden.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has AF Gruppen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AF8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

AF8

-6.7%

DE Construction

-0.9%

DE Market


1 Year Return

12.7%

AF8

-23.1%

DE Construction

12.8%

DE Market

Return vs Industry: AF8 exceeded the German Construction industry which returned -23.1% over the past year.

Return vs Market: AF8 matched the German Market which returned 12.8% over the past year.


Shareholder returns

AF8IndustryMarket
7 Day-1.1%-6.7%-0.9%
30 Day1.2%-3.9%-0.4%
90 Day1.8%-4.1%2.3%
1 Year18.7%12.7%-19.9%-23.1%16.3%12.8%
3 Yearn/a-19.3%-25.3%15.8%5.7%
5 Yearn/a63.6%45.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is AF Gruppen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AF Gruppen undervalued compared to its fair value and its price relative to the market?

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AF8 (€17.4) is trading below our estimate of fair value (€24.35)

Significantly Below Fair Value: AF8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AF8 is poor value based on its PE Ratio (21.3x) compared to the Construction industry average (12.4x).

PE vs Market: AF8 is poor value based on its PE Ratio (21.3x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: AF8 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: AF8 is overvalued based on its PB Ratio (8.5x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is AF Gruppen forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AF8's forecast earnings growth (7.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: AF8's earnings (7.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: AF8's earnings are forecast to grow, but not significantly.

Revenue vs Market: AF8's revenue (10.4% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: AF8's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AF8's Return on Equity is forecast to be high in 3 years time (37%)


Next Steps

Past Performance

How has AF Gruppen performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AF8 has high quality earnings.

Growing Profit Margin: AF8's current net profit margins (3.8%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: AF8's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: AF8's earnings growth over the past year (10.6%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: AF8 earnings growth over the past year (10.6%) exceeded the Construction industry 2.1%.


Return on Equity

High ROE: AF8's Return on Equity (34.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AF Gruppen's financial position?


Financial Position Analysis

Short Term Liabilities: AF8's short term assets (NOK5.1B) do not cover its short term liabilities (NOK8.4B).

Long Term Liabilities: AF8's short term assets (NOK5.1B) exceed its long term liabilities (NOK1.4B).


Debt to Equity History and Analysis

Debt Level: AF8's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: AF8's debt to equity ratio has reduced from 20.8% to 5.7% over the past 5 years.

Debt Coverage: AF8's debt is well covered by operating cash flow (887.1%).

Interest Coverage: AF8's interest payments on its debt are well covered by EBIT (60.8x coverage).


Balance Sheet

Inventory Level: AF8 has a high level of physical assets or inventory.

Debt Coverage by Assets: AF8's debt is covered by short term assets (assets are 30.2x debt).


Next Steps

Dividend

What is AF Gruppen's current dividend yield, its reliability and sustainability?

5.25%

Current Dividend Yield


Upcoming Dividend Payment

Purchase AF Gruppen before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.2%marketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: AF8's dividend (5.25%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AF8's dividend (5.25%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: AF8's dividend payments have been volatile in the past 10 years.

Growing Dividend: AF8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.6%), AF8's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AF8's dividends in 3 years are not forecast to be well covered by earnings (91.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Morten Grongstad (44yo)

4.3yrs

Tenure

kr8,718,000

Compensation

Mr. Morten Grongstad serves as Chief Executive Officer and President of AF Bygg Göteborg AB. Mr. Grongstad has been Chief Executive Officer of AF Gruppen ASA since October 15, 2015 and has been its Preside ...


CEO Compensation Analysis

Compensation vs Market: Morten's total compensation ($USD939.62K) is below average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Morten's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Morten Grongstad
President & CEO4.3yrskr8.72m0.22% NOK4.2m
Sverre Hærem
CFO & Executive VP12.6yrskr4.99m0.12% NOK2.3m
Arild Moe
Executive Vice President of Civil Engineering0yrskr4.66m0.26% NOK4.7m
Bård Frydenlund
Executive Vice President of Sweden1.1yrskr4.24m0.14% NOK2.5m
Amund Tøftum
Executive Vice President of Offshore4.1yrskr3.99m0.080% NOK1.5m
Eirik Wraal
Executive Vice President of Environment & Energy4.1yrskr4.02m0.029% NOK541.3k
Anny Øen
Director of Group Accounting0yrsno data0.027% NOK508.0k
Wibecke Brusdal
Director of Corporate Communications0yrsno data0.12% NOK2.3m
Ida Gram
Executive Vice President of Property1.1yrsno data0.0030% NOK55.5k
Konserndirektør Flåta
Executive Vice President of Bygg Norge0.9yrsno data0.00019% NOK3.5k

4.1yrs

Average Tenure

43yo

Average Age

Experienced Management: AF8's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pål Rønn
Chairman of the Board3.8yrsno data0.20% NOK3.7m
Hege Bømark
Director7.8yrsno datano data
Arne Sveen
Director0yrsno datano data
Kenneth Svendsen
Director0yrsno data0.088% NOK1.6m
Borghild Lunde
Director0yrsno datano data
Kristian Holth
Director3.8yrsno datano data
Kristina Alvendal
Director0.8yrsno datano data
Kjetel Digre
Director0.8yrsno datano data
Baumann Arne
Director1.8yrsno datano data
Hilde Flaen
Director0yrsno data0.025% NOK458.4k

2.8yrs

Average Tenure

49.5yo

Average Age

Experienced Board: AF8's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

AF Gruppen ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AF Gruppen ASA
  • Ticker: AF8
  • Exchange: DB
  • Founded: 1985
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr18.644b
  • Listing Market Cap: kr1.850b
  • Shares outstanding: 103.01m
  • Website: https://www.afgruppen.com

Number of Employees


Location

  • AF Gruppen ASA
  • Innspurten 15
  • Oslo
  • Oslo
  • 663
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFGOB (Oslo Bors)YesClass A SharesNONOKSep 1997
0DH7LSE (London Stock Exchange)YesClass A SharesGBNOKSep 1997
AGRU.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDSep 1997
AFGOBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBNOKSep 1997
AF8DB (Deutsche Boerse AG)YesClass A SharesDEEURSep 1997

Biography

AF Gruppen ASA, a contracting and industrial company, engages in civil engineering, environment, building, property, energy, and offshore businesses primarily in Norway and Sweden. The company’s Civil Engineering business area undertakes civil engineering and niche projects related to roads and railways, port facilities, airports, tunnels, foundation work, power, and energy, as well as onshore facilities for oil and gas. Its Energy and Environment business area provides smart and energy efficient services for buildings and industry; demolition services; and receiving, treating, and recycling of materials. The company’s Building business area develops, engineers, and builds commercial, residential, and public buildings, as well as rehabilitation projects. Its Property business area develops residential units and commercial buildings. The Sweden business area engages in building, civil engineering, property, and environmental activities in Sweden. The company’s offshore business area undertakes the removal, demolition, and recycling of offshore installations; and new building, modification, and maintenance works related to cranes, modules, and rig services, as well as heating, ventilation, air conditioning, and cooling systems. It also provides services related to the maintenance and modification of onshore facilities for the oil and gas industry. AF Gruppen ASA was founded in 1985 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:07
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.