OB:KVAER

Stock Analysis Report

Executive Summary

Kværner ASA provides engineering, procurement, and construction (EPC) services for offshore platforms and onshore plants of oil and gas operators in Norway, Europe, Canada, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Kværner has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

OB:KVAER

-5.6%

NO Energy Services

-1.6%

NO Market


1 Year Return

-23.9%

OB:KVAER

-42.0%

NO Energy Services

-14.3%

NO Market

KVAER outperformed the Energy Services industry which returned -42% over the past year.

KVAER underperformed the Market in Norway which returned -14.3% over the past year.


Share holder returns

KVAERIndustryMarket
7 Day-0.2%-5.6%-1.6%
30 Day-15.6%-15.8%-4.9%
90 Day-22.1%-27.2%-8.3%
1 Year-17.8%-23.9%-40.9%-42.0%-9.6%-14.3%
3 Year50.2%39.0%-8.9%-15.2%36.7%19.1%
5 Year31.1%-2.9%-53.6%-67.0%37.0%6.3%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kværner's share price is below the future cash flow value, and at a moderate discount (> 20%).

Kværner's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Kværner is good value based on earnings compared to the NO Energy Services industry average.

Kværner is good value based on earnings compared to the Norway market.


Price Based on Expected Growth

Kværner earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Kværner is overvalued based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is Kværner expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kværner's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Kværner's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Kværner's revenue growth is positive but not above the Norway market average.

Kværner's earnings are expected to decrease over the next 1-3 years, this is below the Norway market average.

Kværner's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Kværner is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kværner performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kværner's year on year earnings growth rate has been positive over the past 5 years.

Kværner's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Kværner's 1-year earnings growth is negative, it can't be compared to the NO Energy Services industry average.


Return on Equity

Kværner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kværner used its assets more efficiently than the NO Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Kværner's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kværner's financial position?


Financial Position Analysis

Kværner is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kværner's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kværner has no debt.

Kværner has no debt compared to 5 years ago when it was 19.2%.

Kværner has no debt, it does not need to be covered by operating cash flow.

Kværner has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Kværner has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

10.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kværner's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.74%).

Kværner's dividend is above the markets top 25% of dividend payers in Norway (6.45%).

Kværner has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Kværner has only been paying a dividend for 8 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Karl-Petter Loken 0

1.3yrs

Tenure

kr7,006,987

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

Karl-Petter's remuneration is higher than average for companies of similar size in Norway.

Insufficient data for Karl-Petter to compare compensation growth.


Management Age and Tenure

3.3yrs

Average Tenure

The tenure for the Kværner management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

The tenure for the Kværner board of directors is about average.


Insider Trading

More shares have been bought than sold by Kværner individual insiders in the past 3 months.


Recent Insider Transactions

Buykr432,80015 Aug 19
Karl-Petter Loken
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares40,000
Max Pricekr10.82
Buykr984,00007 May 19
Idar Eikrem
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares75,000
Max Pricekr13.12
Buykr1,939,03407 May 19
Leif-Arne Langøy
EntityIndividual
Role
Chairman of the Board
Chairman
Shares150,000
Max Pricekr12.93

Ownership Breakdown


Management Team

  • Idar Eikrem (56yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: kr5.33m
  • Ingrid Aarsnes

    Vice President of Investor Relations & Communications

    • Tenure: 0.0yrs
  • Henrik Inadomi

    Senior VP of Corporate Support & General Counsel

    • Tenure: 1.3yrs
    • Compensation: kr3.65m
  • Steinar Røgenes

    Executive Vice President of EPCI

    • Tenure: 3.6yrs
    • Compensation: kr3.75m
  • Arnt Knudsen

    Senior Vice President of Business Development

    • Tenure: 3.6yrs
    • Compensation: kr3.85m
  • Elly Bjerknes

    Executive Vice President of Process Solutions

    • Tenure: 3.6yrs
    • Compensation: kr3.75m
  • Ellen Andersen

    Senior VP & Chief of Staff

    • Tenure: 2.4yrs
    • Compensation: kr3.56m
  • Hans Mølmen

    Executive Vice President of Concrete & New Solutions

    • Tenure: 3.6yrs
    • Compensation: kr3.56m
  • Sturla Magnus

    Executive Vice President of Structural Solutions

    • Tenure: 2.6yrs
    • Compensation: kr4.14m
  • Karl-Petter Loken

    President & CEO

    • Tenure: 1.3yrs
    • Compensation: kr7.01m

Board Members

  • Kjell Røkke (61yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: kr361.00k
  • Leif-Arne Langøy (63yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: kr648.00k
  • Lone Schrøder (59yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: kr500.00k
  • Thorhild Widvey (63yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: kr455.50k
  • Jan Haugan (62yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: kr1.53m
  • Rune Rafdal (56yo)

    Employee Elected Director

    • Tenure: 8.2yrs
    • Compensation: kr255.00k
  • Ståle Johansen (51yo)

    Employee Elected Director

    • Tenure: 8.2yrs
    • Compensation: kr167.50k
  • Emil Brustad-Nilsen (38yo)

    Deputy Director

    • Tenure: 3.3yrs
  • Line Breidablikk (34yo)

    Employee Elected Director

    • Tenure: 0.3yrs

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: kr2.915b
  • Shares outstanding: 267.91m
  • Website: https://www.kvaerner.com

Number of Employees


Location

  • Kværner ASA
  • Oksenøyveien 10
  • Lysaker
  • Oslo
  • Oslo
  • 1366
  • 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 and onshore plants of oil and gas operators in Norway, Europe, Canada, and internationally. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 21:34
End of Day Share Price2019/08/19 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.