OB:AKSO

Stock Analysis Report

Aker Solutions

Executive Summary

Aker Solutions ASA provides products, systems, and services to the oil and gas industry worldwide.

Snowflake

Fundamentals

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Aker Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

AKSO

-2.2%

NO Energy Services

-1.0%

NO Market


1 Year Return

-55.6%

AKSO

-35.2%

NO Energy Services

-9.4%

NO Market

Return vs Industry: AKSO underperformed the Norwegian Energy Services industry which returned -35.2% over the past year.

Return vs Market: AKSO underperformed the Norwegian Market which returned -9.4% over the past year.


Shareholder returns

AKSOIndustryMarket
7 Day1.5%-2.2%-1.0%
30 Day-14.2%-8.2%-1.9%
90 Day-21.5%-9.5%-0.9%
1 Year-55.6%-55.6%-33.9%-35.2%-4.5%-9.4%
3 Year-43.3%-43.3%1.8%-5.2%40.1%21.9%
5 Year-45.1%-46.9%-31.2%-52.0%63.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aker Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AKSO (NOK24.34) is trading below our estimate of fair value (NOK66.6)

Significantly Undervalued: AKSO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKSO is good value based on its PE Ratio (16x) compared to the Energy Services industry average (16.9x).

PE vs Market: AKSO is poor value based on its PE Ratio (16x) compared to the Norwegian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: AKSO is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: AKSO is overvalued based on its PB Ratio (0.9x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Aker Solutions forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKSO's forecast earnings growth (26.2% per year) is above the savings rate (1.8%).

Earnings vs Market: AKSO's earnings (26.2% per year) are forecast to grow faster than the Norwegian market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AKSO's revenue (2% per year) is forecast to grow slower than the Norwegian market (4.9% per year).

High Growth Revenue: AKSO's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AKSO's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Aker Solutions performed over the past 5 years?

-36.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AKSO's earnings have declined by -36.4% per year over the past 5 years.

Accelerating Growth: AKSO's earnings growth over the past year (17%) exceeds its 5-year average (-36.4% per year).

Earnings vs Industry: AKSO earnings growth over the past year (17%) exceeded the Energy Services industry 5%.


Return on Equity

High ROE: AKSO's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: AKSO's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: AKSO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Aker Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: AKSO's short term assets (NOK13.0B) exceeds its short term liabilities (NOK11.4B)

Long Term Liabilities: AKSO's short term assets (13.0B) exceeds its long term liabilities (8.5B)


Debt to Equity History and Analysis

Debt Level: AKSO's debt to equity ratio (49.9%) is considered high

Reducing Debt: AKSO's debt to equity ratio has increased from 48.4% to 49.9% over the past 5 years.

Debt Coverage: AKSO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AKSO's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: AKSO's debt is covered by short term assets (assets are 3.634810x debt).


Next Steps

Dividend

What is Aker Solutions's current dividend yield, its reliability and sustainability?

1.53%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.6%markettop25%6.3%industryaverage4.6%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: AKSO is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKSO's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

What is the CEO of Aker Solutions's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Luis Antonio Gomes Araujo (60yo)

5.3yrs

Tenure

kr14,921,651

Compensation

Mr. Luis Antonio Gomes Araujo has been the Chief Executive Officer of (Akastor ASA) Aker Solutions ASA since July 1, 2014. Mr. Gomes Araujo has been Chief Executive Officer of Aker Solutions since July 1,  ...


CEO Compensation Analysis

Compensation vs. Market: Luis Antonio's total compensation ($USD1.64M) is about average for companies of similar size in the Norwegian market ($USD536.88K).

Compensation vs Earnings: Luis Antonio's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.9yrs

Average Tenure

Experienced Management: AKSO's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

62yo

Average Age

Experienced Board: AKSO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AKSO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr102,40013 Aug 19
Linda Aase
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Brownfield Projects
Shares4,000
Max Pricekr25.60
Buykr64,75012 Aug 19
Ole Grimsrud
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,500
Max Pricekr25.90
Buykr79,66019 Jul 19
Hilde Karlsen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,800
Max Pricekr28.45
Buykr845,75005 Jul 19
Luis Antonio Gomes Araujo
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares25,000
Max Pricekr33.83

Ownership Breakdown


Management Team

  • Egil Boyum

    Executive Vice President of Greenfield Projects

    • Tenure: 2.9yrs
    • Compensation: kr5.52m
  • Luis Antonio Gomes Araujo (60yo)

    Chief Executive Officer

    • Tenure: 5.3yrs
    • Compensation: kr14.92m
  • Valborg Lundegaard (59yo)

    Executive Vice President of Customer Management

    • Tenure: 8.7yrs
    • Compensation: kr5.36m
  • Mark Riding

    Executive Vice President of Strategy

    • Tenure: 2.9yrs
    • Compensation: kr6.69m
  • Dean Watson

    Chief Operating Officer & Executive VP of Subsea Lifecycle Services

    • Tenure: 3.1yrs
    • Compensation: kr7.49m
  • Ole Grimsrud

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Herve Valla

    Chief Technology Officer

    • Tenure: 0yrs
  • Knut Nyborg

    Executive Vice President of Front End

    • Tenure: 1.9yrs
    • Compensation: kr4.09m
  • Linda Aase

    Executive Vice President of Brownfield Projects

    • Tenure: 1yrs
    • Compensation: kr2.62m
  • Fredrik Berge

    Senior Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Birgit Aagaard-Svendsen (63yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: kr420.00k
  • Henrik Madsen (66yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: kr262.50k
  • Atle Teigland (62yo)

    Director

    • Tenure: 15yrs
    • Compensation: kr295.00k
  • Koosum Kalyan (64yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: kr400.00k
  • Øyvind Eriksen (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: kr610.00k
  • Haakon Berg (45yo)

    Deputy Director

    • Tenure: 2.5yrs
  • Kristian Røkke (36yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: kr352.50k
  • Hilde Karlsen

    Director

    • Tenure: 8.6yrs
    • Compensation: kr175.00k
  • Jan Erlandsen

    Deputy Board Member

    • Tenure: 0yrs
  • Audun Brathen

    Director

    • Tenure: 0.5yrs

Company Information

Aker Solutions ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aker Solutions ASA
  • Ticker: AKSO
  • Exchange: OB
  • Founded: 1841
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr6.609b
  • Shares outstanding: 271.53m
  • Website: https://akersolutions.com

Number of Employees


Location

  • Aker Solutions ASA
  • Oksenøyveien 8
  • Fornebu
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKSOOB (Oslo Bors)YesOrdinary SharesNONOKSep 2014
1AKADB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2014
0QXPLSE (London Stock Exchange)YesOrdinary SharesGBNOKSep 2014
AKRT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2014
AKSOoBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKSep 2014

Biography

Aker Solutions ASA provides products, systems, and services to the oil and gas industry worldwide. The company operates through Projects and Services segments. It offers field planning, feasibility, and co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:25
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.