AF Gruppen (OB:AFG) - Share price, News & Analysis

AFG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	3/6
Financial Health	4/6
Dividends	3/6

AFG Stock Overview

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

Rewards

Trading at 31.9% below our estimate of its fair value

Earnings are forecast to grow 12.32% per year

Risk Analysis

Dividend of 6.01% is not well covered by earnings

Significant insider selling over the past 3 months

AF Gruppen Competitors

Veidekke

OB:VEI

kr13.8b

Veolia Environnement

ENXTPA:VIE

€17.9b

Kesko Oyj

HLSE:KESKOB

€9.6b

Skanska

OM:SKA B

kr70.8b

Price History & Performance

Summary of all time highs, changes and price drops for AF Gruppen
Historical stock prices
Current Share Price	kr163.20
52 Week High	kr207.00
52 Week Low	kr167.20
Beta	0.53
1 Month Change	-17.58%
3 Month Change	-18.24%
1 Year Change	-15.00%
3 Year Change	-0.49%
5 Year Change	5.29%
Change since IPO	1,713.34%

Recent News & Updates

May 13

AF Gruppen (OB:AFG) Has Affirmed Its Dividend Of kr6.50

The board of AF Gruppen ASA ( OB:AFG ) has announced that it will pay a dividend of kr6.50 per share on the 25th of...

Apr 28

AF Gruppen's (OB:AFG) Dividend Will Be kr6.50

AF Gruppen ASA's ( OB:AFG ) investors are due to receive a payment of kr6.50 per share on 25th of May. Based on this...

Shareholder Returns

	AFG	NO Construction	NO Market
7D	-8.3%	-5.9%	-1.2%
1Y	-15.0%	-13.2%	12.6%

Return vs Industry: AFG exceeded the Norwegian Construction industry which returned -13.2% over the past year.

Return vs Market: AFG underperformed the Norwegian Market which returned 12.6% over the past year.

Price Volatility

Is AFG's price volatile compared to industry and market?
AFG volatility
AFG Average Weekly Movement	3.2%
Construction Industry Average Movement	6.5%
Market Average Movement	7.4%
10% most volatile stocks in NO Market	12.4%
10% least volatile stocks in NO Market	4.2%

Stable Share Price: AFG is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AFG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	5,639	Amund Tøftum	https://afgruppen.com

AF Gruppen ASA, a contracting and industrial company, engages in civil engineering, construction, property, energy, environment, 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 Construction business area develops, engineers, and constructs commercial, residential, and public buildings, as well as rehabilitation projects.

AF Gruppen Fundamentals Summary

How do AF Gruppen's earnings and revenue compare to its market cap?
AFG fundamental statistics
Market Cap	kr18.66b
Earnings (TTM)	kr1.00b
Revenue (TTM)	kr28.43b

17.4x

P/E Ratio

0.6x

P/S Ratio

Is AFG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFG income statement (TTM)
Revenue	kr28.43b
Cost of Revenue	kr19.68b
Gross Profit	kr8.76b
Other Expenses	kr7.75b
Earnings	kr1.00b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)	9.39
Gross Margin	30.80%
Net Profit Margin	3.53%
Debt/Equity Ratio	2.7%

How did AFG perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

111%

Payout Ratio

Does AFG pay a reliable dividends?

See AFG dividend history and benchmarks

When do you need to buy AFG by to receive an upcoming dividend?
AF Gruppen dividend dates
Ex Dividend Date	May 16 2022
Dividend Pay Date	May 25 2022
Days until Ex dividend	1 day
Days until Dividend pay date	8 days

Does AFG pay a reliable dividends?

See AFG dividend history and benchmarks

Valuation

Is AF Gruppen 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

36.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AFG (NOK174.6) is trading below our estimate of fair value (NOK256.21)

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

Price To Earnings Ratio

PE vs Industry: AFG is poor value based on its PE Ratio (18.6x) compared to the European Construction industry average (12.2x).

PE vs Market: AFG is poor value based on its PE Ratio (18.6x) compared to the Norwegian market (13.1x).

Price to Earnings Growth Ratio

PEG Ratio: AFG is poor value based on its PEG Ratio (1.5x)

Price to Book Ratio

PB vs Industry: AFG is overvalued based on its PB Ratio (6.9x) compared to the NO Construction industry average (1.5x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

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

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFG's forecast earnings growth (12.3% per year) is above the savings rate (1.1%).

Earnings vs Market: AFG's earnings (12.3% per year) are forecast to grow faster than the Norwegian market (3.3% per year).

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

Revenue vs Market: AFG's revenue (9.5% per year) is forecast to grow faster than the Norwegian market (1.5% per year).

High Growth Revenue: AFG's revenue (9.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AFG's Return on Equity is forecast to be very high in 3 years time (45%).

Past Performance

How has AF Gruppen 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

10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AFG has high quality earnings.

Growing Profit Margin: AFG's current net profit margins (3.5%) are lower than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: AFG's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: AFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AFG had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Construction industry average (23.3%).

Return on Equity

High ROE: AFG's Return on Equity (33.3%) is considered high.

Financial Health

How is AF Gruppen's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: AFG's short term assets (NOK6.0B) do not cover its short term liabilities (NOK8.6B).

Long Term Liabilities: AFG's short term assets (NOK6.0B) exceed its long term liabilities (NOK1.4B).

Debt to Equity History and Analysis

Debt Level: AFG has more cash than its total debt.

Reducing Debt: AFG's debt to equity ratio has increased from 1.8% to 2.7% over the past 5 years.

Debt Coverage: AFG's debt is well covered by operating cash flow (1835.4%).

Interest Coverage: AFG's interest payments on its debt are well covered by EBIT (659.5x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

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

6.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AFG's dividend (6.01%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.9%).

High Dividend: AFG's dividend (6.01%) is low compared to the top 25% of dividend payers in the Norwegian market (6.64%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (111%), AFG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (69.7%), AFG's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

3.3yrs

Average management tenure

CEO

Amund Tøftum (43 yo)

1.75yrs

Tenure

kr9,098,000

Compensation

Mr. Amund Tøftum serves as Chief Executive Officer of AF Gruppen ASA since August 24, 2020. Mr. Tøftum has served as Executive Vice President of Offshore at AF Gruppen ASA since January 1, 2016 until Augus...

CEO Compensation Analysis

Compensation vs Market: Amund's total compensation ($USD930.45K) is about average for companies of similar size in the Norwegian market ($USD748.66K).

Compensation vs Earnings: Amund's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AFG's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: AFG's board of directors are considered experienced (6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: AFG insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31