OB:ARCUS

Stock Analysis Report

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Executive Summary

Arcus ASA, together with its subsidiaries, imports, produces, markets, sells, and distributes wine and spirits. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ARCUS is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ARCUS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

ARCUS

0.7%

NO Beverage

-0.8%

NO Market


1 Year Return

22.0%

ARCUS

-8.9%

NO Beverage

-1.4%

NO Market

Return vs Industry: ARCUS exceeded the Norwegian Beverage industry which returned -9.9% over the past year.

Return vs Market: ARCUS exceeded the Norwegian Market which returned -0.7% over the past year.


Shareholder returns

ARCUSIndustryMarket
7 Day0.2%0.7%-0.8%
30 Day2.3%16.1%11.0%
90 Day6.8%13.4%8.9%
1 Year27.2%22.0%-7.6%-8.9%2.1%-1.4%
3 Year7.1%-5.4%-5.4%-10.5%10.0%-2.5%
5 Yearn/a-0.04%-9.4%58.6%27.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arcus 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: ARCUS (NOK43.8) is trading below our estimate of fair value (NOK224.85)

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


Price To Earnings Ratio

PE vs Industry: ARCUS is good value based on its PE Ratio (15.2x) compared to the XE Beverage industry average (23.2x).

PE vs Market: ARCUS is good value based on its PE Ratio (15.2x) compared to the Norwegian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARCUS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARCUS is good value based on its PB Ratio (1.7x) compared to the XE Beverage industry average (2.2x).


Next Steps

Future Growth

How is Arcus forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.5%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arcus has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Arcus performed over the past 5 years?

32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCUS has a large one-off loss of NOK70.3M impacting its September 30 2020 financial results.

Growing Profit Margin: ARCUS's current net profit margins (6.5%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: ARCUS's earnings have grown significantly by 32.1% per year over the past 5 years.

Accelerating Growth: ARCUS's earnings growth over the past year (43.4%) exceeds its 5-year average (32.1% per year).

Earnings vs Industry: ARCUS earnings growth over the past year (43.4%) exceeded the Beverage industry -5.8%.


Return on Equity

High ROE: ARCUS's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is Arcus's financial position?


Financial Position Analysis

Short Term Liabilities: ARCUS's short term assets (NOK2.3B) exceed its short term liabilities (NOK1.9B).

Long Term Liabilities: ARCUS's short term assets (NOK2.3B) exceed its long term liabilities (NOK2.2B).


Debt to Equity History and Analysis

Debt Level: ARCUS's debt to equity ratio (44%) is considered high.

Reducing Debt: ARCUS's debt to equity ratio has reduced from 117.9% to 44% over the past 5 years.

Debt Coverage: ARCUS's debt is well covered by operating cash flow (71.4%).

Interest Coverage: ARCUS's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARCUS's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.31%).

High Dividend: ARCUS's dividend (3.79%) is low compared to the top 25% of dividend payers in the Norwegian market (5.88%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARCUS has been paying a dividend for less than 10 years.

Growing Dividend: ARCUS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.4%), ARCUS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Kenneth Hamnes (50 yo)

5.33yrs

Tenure

kr5,543,000

Compensation

Mr. Kenneth Hamnes has been the Chief Executive Officer of Arcus-Gruppen AS since May 2015. Mr. Hamnes is a Co-Owner of Ekelyveien AS. He has been the Group Chief Executive Officer of Arcus AS since 2015. ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD627.75K) is about average for companies of similar size in the Norwegian market ($USD585.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Hamnes
Group Chief Executive Officer 5.33yrskr5.54mno data
Sigmund Toth
CFO and Group Director of Finance & IT4.25yrskr3.34m0.045%
NOK 1.3m
Per Bjørkum
Group Director of Communications & IR7.92yrskr2.23m0.036%
NOK 1.1m
Jan-Erik Nilsen
Acting Group Director of Human Resources1.25yrskr1.34m0.016%
NOK 475.8k
Svante Selling
Chief Executive Officer of Vingruppen i Norden AB (Wine Sweden)2.83yrskr3.19m0.024%
NOK 718.9k
Roar Ødelien
Chief Executive Officer of Vectura AS1.08yrskr343.00k0.00082%
NOK 24.4k
Petra Thorén
Chief Executive of Vingruppen Oy (Wine Finland)1yrkr160.00kno data
Erik Bern
Group Director of Group Technical Development & Services - CSR7.17yrskr2.66m0.038%
NOK 1.1m
Erlend Stefansson
Group Director of Spirits8.33yrskr3.53m0.10%
NOK 3.1m
Eirik Andersen
Group Director Wine Norway2.92yrskr2.90m0.038%
NOK 1.1m

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: ARCUS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stein Hagen
Deputy Director1.67yrskr107.00kno data
Michael Johansen
Independent Chairman of the Board4.33yrskr582.00k0.23%
NOK 6.8m
Leena Saarinen
Independent Director4.33yrskr293.00k0.0027%
NOK 81.3k
Erik Hagen
Directorno datakr677.00k0.0024%
NOK 73.0k
Kirsten Ægidius
Independent Director1.67yrskr197.00kno data
Arne Larsen
Deputy Directorno datakr16.00kno data
Ann-Beth Freuchen
Independent Director3.92yrskr262.00kno data
Carl Hagen
Independent Director1.67yrskr704.00kno data
Nils Selte
Independent Director1.67yrskr330.00kno data
Ingeborg Flønes
Director0.50yrno datano data
Torbjørn Hjelle
Deputy Directorno datano datano data
Anne-Marie Flaten
Director0.92yrno datano data

1.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ARCUS's board of directors are not considered experienced ( 1.7 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: 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

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


Key Information

  • Name: Arcus ASA
  • Ticker: ARCUS
  • Exchange: OB
  • Founded:
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr2.979b
  • Shares outstanding: 68.02m
  • Website: https://www.arcus.no

Number of Employees


Location

  • Arcus ASA
  • Destilleriveien 11
  • Postbox 64
  • Hagan
  • Akershus
  • 1483
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCUSOB (Oslo Bors)YesOrdinary SharesNONOKDec 2016
A48DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2016
0RMYLSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2016
ARCUSOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKDec 2016

Biography

Arcus ASA, together with its subsidiaries, imports, produces, markets, sells, and distributes wine and spirits. It offers its products under the Lysholm Linie, Løiten Linie, Gammel Opland, Gilde, Aalborg, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 17:22
End of Day Share Price2020/12/02 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.