OB:KVAER

Stock Analysis Report

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Executive Summary

Kværner ASA provides engineering, procurement, and construction (EPC) services for offshore platforms, onshore plants, floating production units, and renewable energy solutions in Norway, Europe, Canada, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KVAER is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: KVAER's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

13.9%

KVAER

-3.4%

NO Energy Services

-0.6%

NO Market


1 Year Return

-26.5%

KVAER

-36.8%

NO Energy Services

0.4%

NO Market

Return vs Industry: KVAER exceeded the Norwegian Energy Services industry which returned -49.2% over the past year.

Return vs Market: KVAER underperformed the Norwegian Market which returned -7.9% over the past year.


Shareholder returns

KVAERIndustryMarket
7 Day13.9%-3.4%-0.6%
30 Day15.8%40.0%13.9%
90 Day-5.5%22.6%7.8%
1 Year-26.5%-26.5%-33.7%-36.8%4.1%0.4%
3 Year-31.0%-36.1%-59.0%-61.9%8.5%-3.7%
5 Year28.3%18.7%-24.6%-47.4%58.0%26.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KVAER (NOK9.26) is trading below our estimate of fair value (NOK16.53)

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


Price To Earnings Ratio

PE vs Industry: KVAER is poor value based on its PE Ratio (22.5x) compared to the XE Energy Services industry average (12.2x).

PE vs Market: KVAER is poor value based on its PE Ratio (22.5x) compared to the Norwegian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: KVAER is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KVAER is overvalued based on its PB Ratio (0.7x) compared to the NO Energy Services industry average (0.4x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KVAER's forecast earnings growth (12.8% per year) is above the savings rate (1.6%).

Earnings vs Market: KVAER's earnings (12.8% per year) are forecast to grow slower than the Norwegian market (32.1% per year).

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

Revenue vs Market: KVAER's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: KVAER's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KVAER's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has Kværner performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KVAER has a high level of non-cash earnings.

Growing Profit Margin: KVAER's current net profit margins (1.4%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: KVAER has become profitable over the past 5 years, growing earnings by -1.7% per year.

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

Earnings vs Industry: KVAER had negative earnings growth (-61.9%) over the past year, making it difficult to compare to the Energy Services industry average (-28.6%).


Return on Equity

High ROE: KVAER's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Kværner's financial position?


Financial Position Analysis

Short Term Liabilities: KVAER's short term assets (NOK3.8B) exceed its short term liabilities (NOK1.9B).

Long Term Liabilities: KVAER's short term assets (NOK3.8B) exceed its long term liabilities (NOK596.0M).


Debt to Equity History and Analysis

Debt Level: KVAER is debt free.

Reducing Debt: KVAER had no debt 5 years ago.

Debt Coverage: KVAER has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KVAER has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KVAER's dividend (5.4%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.39%).

High Dividend: KVAER's dividend (5.4%) is low compared to the top 25% of dividend payers in the Norwegian market (6.35%).


Stability and Growth of Payments

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

Growing Dividend: KVAER has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.6%), KVAER's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KVAER's dividends in 3 years are not forecast to be well covered by earnings (98.3% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Karl-Petter Loken

2.5yrs

Tenure

kr8,283,246

Compensation

Mr. Karl-Petter Loken has been President and Chief Executive Officer of Kværner ASA since May 2018. Mr. Loken served as the Head of Project Development for the oil company Lundin Norway. From 2011 to 2015,...


CEO Compensation Analysis

Compensation vs Market: Karl-Petter's total compensation ($USD912.58K) is above average for companies of similar size in the Norwegian market ($USD460.49K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karl-Petter Loken
President & CEO2.5yrskr8.28m0.019%
NOK 466.6k
Henrik Inadomi
Senior VP of Corporate Support & General Counsel2.58yrskr4.45m0.10%
NOK 2.6m
Ellen Andersen
Senior VP & Chief of Staff3.67yrskr3.28mno data
Steinar Røgenes
Executive Vice President of EPCI4.83yrskr4.07m0.089%
NOK 2.2m
Arnt Knudsen
Senior Vice President of Business Development4.83yrskr4.06m0.067%
NOK 1.7m
Elly Bjerknes
Executive Vice President of Process Solutions4.83yrskr3.53mno data
Hans Mølmen
Executive Vice President of Concrete & New Solutions4.83yrskr3.39mno data
Sturla Magnus
Executive Vice President of Process & Structures3.83yrskr4.36m0.023%
NOK 582.1k
Guro Loken
Executive Vice President of FPSOsno datakr939.38k0.0032%
NOK 80.7k
Kenneth Simonsen
Executive Vice President of Renewablesno datakr950.16k0.029%
NOK 718.4k
Oyvind Berge
Chief Financial Officer0.25yrno datano data
Torbjorn Andersen
VP of Investor Relations & Communicationsno datano datano data

3.8yrs

Average Tenure

Experienced Management: KVAER's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kjell Rokke
Directorno datakr379.00kno data
Leif-Arne Langøy
Chairmanno datakr664.00k0.072%
NOK 1.8m
Lone Schrøder
Independent Director4.58yrskr515.00kno data
Thorhild Widvey
Independent Director4.58yrskr469.00kno data
Jan Haugan
Director2.67yrsno data0.072%
NOK 1.8m
Rune Rafdal
Employee Elected Director9.42yrskr262.50k0.0032%
NOK 81.0k
Ståle Johansen
Employee Elected Director9.42yrskr172.50k0.0048%
NOK 119.3k
Emil Brustad-Nilsen
Deputy Director4.58yrsno datano data
Line Breidablikk
Employee Elected Director1.5yrskr115.00k0.00061%
NOK 15.2k

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: KVAER's board of directors are considered experienced (4.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Kværner ASA
  • Ticker: KVAER
  • Exchange: OB
  • Founded: 2011
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr2.491b
  • Shares outstanding: 269.00m
  • Website: https://www.kvaerner.com

Number of Employees


Location

  • Kværner ASA
  • SnarOeyveien 20
  • Fornebu
  • Oslo
  • Oslo
  • 1360
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KVAEROB (Oslo Bors)YesOrdinary SharesNONOKJul 2011
KV7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2011
0Q2SLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2011
KVAE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2011
KVAEROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2011

Biography

Kværner ASA provides engineering, procurement, and construction (EPC) services for offshore platforms, onshore plants, floating production units, and renewable energy solutions in Norway, Europe, Canada, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/11 21:18
End of Day Share Price2020/11/10 00:00
Earnings2020/09/30
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.