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 Analysis

Fair 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

Stable Share Price: AKSO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.8%

AKSO

19.2%

NO Energy Services

8.2%

NO Market


1 Year Return

-85.6%

AKSO

-63.8%

NO Energy Services

-24.8%

NO Market

Return vs Industry: AKSO underperformed the Norwegian Energy Services industry which returned -67.7% over the past year.

Return vs Market: AKSO underperformed the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

AKSOIndustryMarket
7 Day18.8%19.2%8.2%
30 Day-46.2%-40.0%-16.8%
90 Day-74.6%-57.5%-25.0%
1 Year-85.6%-85.6%-62.7%-63.8%-20.8%-24.8%
3 Year-87.4%-87.4%-60.7%-63.4%2.1%-10.7%
5 Year-86.6%-86.6%-54.7%-71.4%14.8%-11.1%

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

Below Fair Value: AKSO (NOK5.97) is trading below our estimate of fair value (NOK24.24)

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


Price To Earnings Ratio

PE vs Industry: AKSO is poor value based on its PE Ratio (39.5x) compared to the Energy Services industry average (6.8x).

PE vs Market: AKSO is poor value based on its PE Ratio (39.5x) compared to the Norwegian market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: AKSO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AKSO is good value based on its PB Ratio (0.2x) compared to the NO Energy Services industry average (0.2x).


Next Steps

Future Growth

How is Aker Solutions forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKSO's forecast earnings growth (30.4% per year) is above the savings rate (0.7%).

Earnings vs Market: AKSO's earnings (30.4% per year) are forecast to grow faster than the Norwegian market (19.8% per year).

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

Revenue vs Market: AKSO's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: AKSO's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKSO's Return on Equity is forecast to be low in 3 years time (0.1%).


Next Steps

Past Performance

How has Aker Solutions performed over the past 5 years?

-31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKSO has a large one-off loss of NOK374.0M impacting its December 31 2019 financial results.

Growing Profit Margin: AKSO's current net profit margins (0.1%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: AKSO's earnings have declined by -31.4% per year over the past 5 years.

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

Earnings vs Industry: AKSO had negative earnings growth (-92%) over the past year, making it difficult to compare to the Energy Services industry average (-28.5%).


Return on Equity

High ROE: AKSO's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Aker Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: AKSO's short term assets (NOK12.3B) exceed its short term liabilities (NOK10.2B).

Long Term Liabilities: AKSO's short term assets (NOK12.3B) exceed its long term liabilities (NOK9.1B).


Debt to Equity History and Analysis

Debt Level: AKSO's debt to equity ratio (48.4%) is considered high.

Reducing Debt: AKSO's debt to equity ratio has reduced from 66.5% to 48.4% over the past 5 years.

Debt Coverage: AKSO's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: AKSO's interest payments on its debt are not well covered by EBIT (2.4x 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 3.5x debt).


Next Steps

Dividend

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

1.29%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Stability and Growth of Payments

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 the Norwegian market.


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

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

3.4yrs

Average management tenure


CEO

Luis Gomes Araujo (60yo)

5.75s

Tenure

kr14,921,651

Compensation

Mr. Luis Antonio Gomes Araujo has been the Chief Executive Officer of Aker Solutions ASA since July 1, 2014. Mr. Gomes Araujo has been Chief Executive Officer of Aker Solutions since July 1, 2014. He is an ...


CEO Compensation Analysis

Compensation vs Market: Luis's total compensation ($USD1.43M) is above average for companies of similar size in the Norwegian market ($USD470.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luis Gomes Araujo
Chief Executive Officer5.75yrskr14.92m0.038% NOK681.4k
Dean Watson
COO & Executive VP of Subsea Lifecycle Services3.58yrskr7.49mno data
Mark Riding
Executive Vice President of Strategy3.42yrskr6.69m0.012% NOK208.4k
Valborg Lundegaard
Executive Vice President of Customer Management9.17yrskr5.36m0.0019% NOK33.8k
Egil Boyum
Executive Vice President of Greenfield Projects3.42yrskr5.52m0.0015% NOK27.3k
Knut Nyborg
Executive Vice President of Front End2.42yrskr4.09m0.00059% NOK10.4k
Linda Aase
Executive Vice President of Brownfield Projects1.5yrskr2.62m0.014% NOK251.0k
Ole Grimsrud
Chief Financial Officer0.67yrno data0.0079% NOK140.6k
Herve Valla
Chief Technology Officerno datano datano data
Fredrik Berge
Senior Manager of Investor Relationsno datano datano data

3.4yrs

Average Tenure

Experienced Management: AKSO's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Birgit Aagaard-Svendsen
Director2yrskr420.00k0.033% NOK586.0k
Henrik Madsen
Director2yrskr262.50kno data
Atle Teigland
Independent Director15.5yrskr295.00k0.011% NOK196.9k
Koosum Kalyan
Independent Director6.25yrskr400.00kno data
Øyvind Eriksen
Chairmanno datakr610.00kno data
Kristian Røkke
Director2yrskr352.50kno data
Hilde Karlsen
Independent Director9.08yrskr175.00k0.0083% NOK147.3k
Jan Erlandsen
Deputy Board Memberno datano datano data
Caroline Hellemsvik
Deputy Board Memberno datano datano data
Audun Brathen
Director1yrno data0.0015% NOK25.8k

2.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AKSO's board of directors are not considered experienced ( 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: AKSO 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.


Top Shareholders

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: kr1.770b
  • Shares outstanding: 271.94m
  • 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
1AKABRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFSep 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 concept studies; floater designs; offshore wind farm planning, installation, commissioning, operations, and maintenance services; and riser solutions for water depth and environmental conditions. The company also provides engineering, project management, and procurement services, such as design of offshore oil and gas production facilities, and onshore receiving and processing facilities; jacket designs; subsea production systems; subsea trees; and control systems. In addition, it offers subsea wellheads engineering, manufacturing, installation, and life-of-field support services, including umbilical systems, subsea structures, tie-in systems, subsea compression and pump systems, subsea power distribution and processing systems, and intervention and workover systems; lifecycle, hook-up and completion, maintenance, modification, asset integrity management, and yards and fabrication services, as well as carbon capture, utilization, and storage services. Aker Solutions ASA was founded in 1841 and is headquartered in Fornebu, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:01
End of Day Share Price2020/04/03 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.