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.

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

2.2%

KVAER

3.4%

NO Energy Services

1.7%

NO Market


1 Year Return

-15.6%

KVAER

-34.1%

NO Energy Services

-8.2%

NO Market

Return vs Industry: KVAER exceeded the Norwegian Energy Services industry which returned -34.1% over the past year.

Return vs Market: KVAER underperformed the Norwegian Market which returned -8.2% over the past year.


Share holder returns

KVAERIndustryMarket
7 Day2.2%3.4%1.7%
30 Day-6.5%-5.6%-0.09%
90 Day-12.5%-7.9%-0.7%
1 Year-8.8%-15.6%-32.9%-34.1%-3.2%-8.2%
3 Year23.6%14.4%2.5%-4.6%40.8%22.5%
5 Year75.5%40.0%-31.1%-51.6%63.9%26.3%

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

Undervalued: KVAER (NOK11.44) is trading below our estimate of fair value (NOK34.19)

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


Price Based on Earnings

PE vs Industry: KVAER is good value based on its PE Ratio (12.1x) compared to the Energy Services industry average (17.2x).

PE vs Market: KVAER is good value based on its PE Ratio (12.1x) compared to the Norwegian market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: KVAER's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: KVAER 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 Kværner expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: KVAER's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: KVAER's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: KVAER's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KVAER's revenue (2.4% per year) is forecast to grow slower than the Norwegian market (4.9% per year).

High Growth Revenue: KVAER's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: KVAER's Return on Equity is forecast to be low in 3 years time (6.9%).


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

Earnings Trend: KVAER's earnings have grown by 19.4% per year over the past 5 years.

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 (-45.2%) over the past year, making it difficult to compare to the Energy Services industry average (5%).


Return on Equity

High ROE: KVAER's Return on Equity (7.7%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Kværner's financial position?


Financial Position Analysis

Short Term Liabilities: KVAER's short term assets (NOK4.4B) exceeds its short term liabilities (NOK2.4B)

Long Term Liabilities: KVAER's short term assets (NOK4.4B) exceeds its long term liabilities (NOK753.0M)


Debt to Equity History and Analysis

Debt Level: KVAER is debt free.

Reducing Debt: KVAER has no debt compared to 5 years ago when its debt to equity ratio was 19.2%.

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

Inventory Level: KVAER has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if KVAER's debt is covered by short term assets.


Next Steps

Dividend

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

9.87%

Expected Dividend Yield


Dividend Yield vs Market

company8.7%marketbottom25%2.6%markettop25%6.3%industryaverage6.4%forecastin3Years9.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: KVAER's dividend (8.74%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.56%).

High Dividend: KVAER's dividend (8.74%) is in the top 25% of dividend payers in the Norwegian market (6.31%)

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 8 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.9%), 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 (143.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Karl-Petter Loken 0

1.4yrs

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

Compensation vs. Market: Karl-Petter has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Norwegian market.

Compensation vs Earnings: Insufficient data to compare Karl-Petter's compensation with company performance.


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: KVAER's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

59yo

Average Age

Experienced Board: KVAER's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: KVAER insiders have bought more shares than they have sold 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: 3.5yrs
    • Compensation: kr5.33m
  • Ingrid Aarsnes

    Vice President of Investor Relations & Communications

    • Tenure: 0yrs
  • Henrik Inadomi

    Senior VP of Corporate Support & General Counsel

    • Tenure: 1.5yrs
    • Compensation: kr3.65m
  • Steinar Røgenes

    Executive Vice President of EPCI

    • Tenure: 3.8yrs
    • Compensation: kr3.75m
  • Arnt Knudsen

    Senior Vice President of Business Development

    • Tenure: 3.8yrs
    • Compensation: kr3.85m
  • Elly Bjerknes

    Executive Vice President of Process Solutions

    • Tenure: 3.8yrs
    • Compensation: kr3.75m
  • Ellen Andersen

    Senior VP & Chief of Staff

    • Tenure: 2.6yrs
    • Compensation: kr3.56m
  • Hans Mølmen

    Executive Vice President of Concrete & New Solutions

    • Tenure: 3.8yrs
    • Compensation: kr3.56m
  • Sturla Magnus

    Executive Vice President of Structural Solutions

    • Tenure: 2.8yrs
    • Compensation: kr4.14m
  • Karl-Petter Loken

    President & CEO

    • Tenure: 1.4yrs
    • Compensation: kr7.01m

Board Members

  • Kjell Røkke (61yo)

    Director

    • Tenure: 0yrs
    • Compensation: kr361.00k
  • Leif-Arne Langøy (63yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: kr648.00k
  • Lone Schrøder (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: kr500.00k
  • Thorhild Widvey (63yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: kr455.50k
  • Jan Haugan (62yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: kr1.53m
  • Rune Rafdal (56yo)

    Employee Elected Director

    • Tenure: 8.3yrs
    • Compensation: kr255.00k
  • Ståle Johansen (51yo)

    Employee Elected Director

    • Tenure: 8.3yrs
    • Compensation: kr167.50k
  • Emil Brustad-Nilsen (38yo)

    Deputy Director

    • Tenure: 3.5yrs
  • Line Breidablikk (34yo)

    Employee Elected Director

    • Tenure: 0.4yrs

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: kr3.065b
  • 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 Analysis2019/10/13 22:39
End of Day Share Price2019/10/11 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.

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