Afarak Group Oyj (HLSE:AFAGR) - Share price, News & Analysis

AFAGR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

AFAGR Stock Overview

Afarak Group Oyj engages in the production and supply of chrome products worldwide.

Rewards

Trading at 94.5% below our estimate of its fair value

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Has a high level of debt

Does not have a meaningful market cap (€72M)

Afarak Group Oyj Competitors

ArcelorMittal South Africa

JSE:ACL

R7.9b

Price History & Performance

Summary of all time highs, changes and price drops for Afarak Group Oyj
Historical stock prices
Current Share Price	€0.29
52 Week High	€0.98
52 Week Low	€0.12
Beta	0.94
1 Month Change	-45.13%
3 Month Change	72.35%
1 Year Change	39.52%
3 Year Change	-67.01%
5 Year Change	-68.32%
Change since IPO	-29.87%

Recent News & Updates

Mar 28

Is Afarak Group Oyj (HEL:AFAGR) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	AFAGR	FI Metals and Mining	FI Market
7D	3.2%	1.7%	2.4%
1Y	39.5%	-3.9%	-11.9%

Return vs Industry: AFAGR exceeded the Finnish Metals and Mining industry which returned -3.9% over the past year.

Return vs Market: AFAGR exceeded the Finnish Market which returned -11.9% over the past year.

Price Volatility

Is AFAGR's price volatile compared to industry and market?
AFAGR volatility
AFAGR Average Weekly Movement	31.9%
Metals and Mining Industry Average Movement	7.8%
Market Average Movement	5.9%
10% most volatile stocks in FI Market	8.5%
10% least volatile stocks in FI Market	4.0%

Stable Share Price: AFAGR is more volatile than 90% of Finnish stocks over the past 3 months, typically moving +/- 32% a week.

Volatility Over Time: AFAGR's weekly volatility has increased from 17% to 32% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	503	Guy Konsbruck	https://www.afarak.com

Afarak Group Oyj engages in the production and supply of chrome products worldwide. It operates through two segments, FerroAlloys and Speciality Alloys. The Ferro Alloys segment produces high carbon FeCr, plasma ferrochrome, charge ferrochrome, stainless steel alloy, and granulated MC ferrochrome.

Afarak Group Oyj Fundamentals Summary

How do Afarak Group Oyj's earnings and revenue compare to its market cap?
AFAGR fundamental statistics
Market Cap	€72.33m
Earnings (TTM)	€765.00k
Revenue (TTM)	€80.26m

94.8x

P/E Ratio

0.9x

P/S Ratio

Is AFAGR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFAGR income statement (TTM)
Revenue	€80.26m
Cost of Revenue	€55.26m
Gross Profit	€25.00m
Other Expenses	€24.23m
Earnings	€765.00k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 19, 2022

Earnings per share (EPS)	0.0031
Gross Margin	31.15%
Net Profit Margin	0.95%
Debt/Equity Ratio	88.0%

How did AFAGR perform over the long term?

See historical performance and comparison

Valuation

Is Afarak Group Oyj undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AFAGR (€0.29) is trading below our estimate of fair value (€5.29)

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

Price To Earnings Ratio

PE vs Industry: AFAGR is poor value based on its Price-To-Earnings Ratio (94.8x) compared to the European Metals and Mining industry average (5.6x).

PE vs Market: AFAGR is poor value based on its Price-To-Earnings Ratio (94.8x) compared to the Finnish market (17.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFAGR's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: AFAGR is overvalued based on its Price-To-Book Ratio (1.6x) compared to the XE Metals and Mining industry average (1.3x).

Future Growth

How is Afarak Group Oyj forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-13.3%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Afarak Group Oyj has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Afarak Group Oyj performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-14.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AFAGR has high quality earnings.

Growing Profit Margin: AFAGR became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: AFAGR has become profitable over the past 5 years, growing earnings by -14.7% per year.

Accelerating Growth: AFAGR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AFAGR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (102.9%).

Return on Equity

High ROE: AFAGR's Return on Equity (1.4%) is considered low.

Financial Health

How is Afarak Group Oyj's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AFAGR's short term assets (€54.4M) exceed its short term liabilities (€43.7M).

Long Term Liabilities: AFAGR's short term assets (€54.4M) do not cover its long term liabilities (€59.2M).

Debt to Equity History and Analysis

Debt Level: AFAGR's net debt to equity ratio (73.5%) is considered high.

Reducing Debt: AFAGR's debt to equity ratio has increased from 2.1% to 88% over the past 5 years.

Debt Coverage: AFAGR's debt is well covered by operating cash flow (34.4%).

Interest Coverage: AFAGR's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

Dividend

What is Afarak Group Oyj current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AFAGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AFAGR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AFAGR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AFAGR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: AFAGR is not paying a notable dividend for the Finnish market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AFAGR has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure

CEO

Guy Konsbruck (56 yo)

5.33yrs

Tenure

€430,000

Compensation

Mr. Guy Konsbruck has been Chief Executive Officer of Afarak Group Oyj (known as Afarak Group Plc) since January 15, 2017 and has been the Executive Director since February 5, 2018. Mr. Konsbruck served as...

Leadership Team

Experienced Management: AFAGR's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: AFAGR's board of directors are considered experienced (5 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31