Multiconsult (OB:MULTI) - Share price, News & Analysis

Q: What is the Fair Price of MULTI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MULTI (NOK122) is trading below our estimate of [[fair value]] (NOK426.64)

MULTI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

MULTI Stock Overview

Multiconsult ASA provides engineering design, consultancy, and architecture services in the Norway and internationally.

Rewards

Trading at 71.4% below our estimate of its fair value

Earnings are forecast to grow 1.42% per year

Earnings have grown 18.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Multiconsult Competitors

Self Storage Group

OB:SSG

kr2.9b

VOW

OB:VOW

kr2.8b

Zalaris

OB:ZAL

kr759.1m

Serma Group Société anonyme

ENXTPA:ALSER

€359.0m

Price History & Performance

Summary of all time highs, changes and price drops for Multiconsult
Historical stock prices
Current Share Price	kr122.00
52 Week High	kr199.00
52 Week Low	kr122.00
Beta	1.53
1 Month Change	-12.23%
3 Month Change	-14.09%
1 Year Change	-28.86%
3 Year Change	94.27%
5 Year Change	35.18%
Change since IPO	31.54%

Shareholder Returns

	MULTI	NO Professional Services	NO Market
7D	-3.3%	4.2%	-3.4%
1Y	-28.9%	-10.6%	3.2%

Return vs Industry: MULTI underperformed the Norwegian Professional Services industry which returned -10.6% over the past year.

Return vs Market: MULTI underperformed the Norwegian Market which returned 3.2% over the past year.

Price Volatility

Is MULTI's price volatile compared to industry and market?
MULTI volatility
MULTI Average Weekly Movement	3.7%
Professional Services Industry Average Movement	5.1%
Market Average Movement	7.2%
10% most volatile stocks in NO Market	12.7%
10% least volatile stocks in NO Market	4.0%

Stable Share Price: MULTI is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MULTI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1908	3,246	Grethe Bergly	https://www.multiconsultgroup.com

Multiconsult ASA provides engineering design, consultancy, and architecture services in the Norway and internationally. It offers multidisciplinary consultancy, design, planning, project supervision and management, geotechnical site survey, verification and control, analysis and due diligence, environmental and HSE, hydrometry and hydrological field work, river basin management, green bond, and lenders advisory services. The company serves building and properties, cities and society, industry, oil and gas, renewable energy, rail and other transportation, and water and environment sectors.

Multiconsult Fundamentals Summary

How do Multiconsult's earnings and revenue compare to its market cap?
MULTI fundamental statistics
Market Cap	kr3.34b
Earnings (TTM)	kr289.72m
Revenue (TTM)	kr3.96b

11.5x

P/E Ratio

0.8x

P/S Ratio

Is MULTI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MULTI income statement (TTM)
Revenue	kr3.96b
Cost of Revenue	kr2.54b
Gross Profit	kr1.42b
Other Expenses	kr1.13b
Earnings	kr289.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)	10.57
Gross Margin	35.94%
Net Profit Margin	7.31%
Debt/Equity Ratio	21.7%

How did MULTI perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

56%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MULTI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MULTI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MULTI. This is calculated by dividing MULTI's market cap by their current preferred multiple.
What is MULTI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr3.34b

MULTI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	9.4x
PEG Ratio	8.1x

Price to Earnings Ratio vs Peers

How does MULTI's PE Ratio compare to its peers?

MULTI PE Ratio vs Peers

The above table shows the PE ratio for MULTI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	1748.1x
SSG Self Storage Group	8.3x	-40.4%	kr2.9b
VOW VOW	6906x	48.8%	kr2.8b
ZAL Zalaris	59.3x	n/a	kr759.1m
ALSER Serma Group Société anonyme	19x	n/a	€359.0m
MULTI Multiconsult	11.5x	1.4%	kr3.3b

Forward PE

Price-To-Earnings vs Peers: MULTI is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (1748.1x).

Price to Earnings Ratio vs Industry

How does MULTI's PE Ratio compare vs other companies in the European Professional Services Industry?

Price-To-Earnings vs Industry: MULTI is good value based on its Price-To-Earnings Ratio (11.5x) compared to the European Professional Services industry average (19.1x)

Price to Earnings Ratio vs Fair Ratio

What is MULTI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MULTI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	15.9x

Price-To-Earnings vs Fair Ratio: MULTI is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).

Share Price vs Fair Value

What is the Fair Price of MULTI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MULTI (NOK122) is trading below our estimate of fair value (NOK426.64)

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

Price to Earnings Growth Ratio

PEG Ratio: MULTI is poor value based on its PEG Ratio (8.1x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

1.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MULTI's forecast earnings growth (1.4% per year) is above the savings rate (1.1%).

Earnings vs Market: MULTI's earnings (1.4% per year) are forecast to grow slower than the Norwegian market (1.6% per year).

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

Revenue vs Market: MULTI's revenue (5.2% per year) is forecast to grow faster than the Norwegian market (0.3% per year).

High Growth Revenue: MULTI's revenue (5.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MULTI's Return on Equity is forecast to be high in 3 years time (26.3%)

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Past Performance

How has Multiconsult performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

18.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MULTI has high quality earnings.

Growing Profit Margin: MULTI's current net profit margins (7.3%) are higher than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: MULTI's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: MULTI's earnings growth over the past year (25.1%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: MULTI earnings growth over the past year (25.1%) underperformed the Professional Services industry 44.6%.

Return on Equity

High ROE: MULTI's Return on Equity (30%) is considered high.

Discover strong past performing companies

Financial Health

How is Multiconsult's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: MULTI's short term assets (NOK1.3B) do not cover its short term liabilities (NOK1.5B).

Long Term Liabilities: MULTI's short term assets (NOK1.3B) exceed its long term liabilities (NOK738.8M).

Debt to Equity History and Analysis

Debt Level: MULTI's net debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: MULTI's debt to equity ratio has reduced from 27.1% to 21.7% over the past 5 years.

Debt Coverage: MULTI's debt is well covered by operating cash flow (153%).

Interest Coverage: MULTI's interest payments on its debt are well covered by EBIT (12.3x coverage).

Balance Sheet

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Dividend

What is Multiconsult current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

4.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MULTI's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.74%).

High Dividend: MULTI's dividend (4.92%) is low compared to the top 25% of dividend payers in the Norwegian market (6.94%).

Stability and Growth of Payments

Stable Dividend: MULTI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MULTI's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.3%), MULTI's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (59.8%), MULTI's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure

CEO

Grethe Bergly (59 yo)

3.25yrs

Tenure

kr5,620,821

Compensation

Ms. Grethe Bergly has been Chief Executive Officer at Multiconsult ASA since March 1, 2019 and served as an Executive Vice President of Greater Oslo Area at Multiconsult ASA until March 1, 2019. Ms. Bergly...

CEO Compensation Analysis

Compensation vs Market: Grethe's total compensation ($USD575.54K) is about average for companies of similar size in the Norwegian market ($USD583.31K).

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

Leadership Team

Experienced Management: MULTI's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: MULTI's board of directors are not considered experienced ( 1.2 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31