OB:ORK

Stock Analysis Report

Executive Summary

Orkla ASA engages in the branded consumer goods, renewable energy, real estate, and financial investment businesses.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ORK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

ORK

-1.6%

NO Food

-3.8%

NO Market


1 Year Return

22.2%

ORK

11.1%

NO Food

-4.9%

NO Market

Return vs Industry: ORK exceeded the Norwegian Food industry which returned 17% over the past year.

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


Shareholder returns

ORKIndustryMarket
7 Day-3.1%-1.6%-3.8%
30 Day-4.6%-3.4%-6.1%
90 Day-3.7%1.0%-2.5%
1 Year27.0%22.2%15.7%11.1%0.1%-4.9%
3 Year35.2%14.5%71.6%48.2%27.8%11.7%
5 Year79.0%40.6%184.6%122.8%52.9%18.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORK (NOK86.56) is trading above our estimate of fair value (NOK74.54)

Significantly Below Fair Value: ORK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORK is good value based on its PE Ratio (22.6x) compared to the Food industry average (24.2x).

PE vs Market: ORK is poor value based on its PE Ratio (22.6x) compared to the Norwegian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: ORK is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: ORK is good value based on its PB Ratio (2.5x) compared to the NO Food industry average (3.4x).


Next Steps

Future Growth

How is Orkla forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORK's forecast earnings growth (6.2% per year) is above the savings rate (0.7%).

Earnings vs Market: ORK's earnings (6.2% per year) are forecast to grow slower than the Norwegian market (18.7% per year).

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

Revenue vs Market: ORK's revenue (2.7% per year) is forecast to grow slower than the Norwegian market (3.3% per year).

High Growth Revenue: ORK's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORK's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Orkla performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORK has high quality earnings.

Growing Profit Margin: ORK's current net profit margins (8.8%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: ORK's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: ORK's earnings growth over the past year (17.3%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: ORK earnings growth over the past year (17.3%) exceeded the Food industry -36.1%.


Return on Equity

High ROE: ORK's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Orkla's financial position?


Financial Position Analysis

Short Term Liabilities: ORK's short term assets (NOK14.7B) exceed its short term liabilities (NOK9.9B).

Long Term Liabilities: ORK's short term assets (NOK14.7B) exceed its long term liabilities (NOK12.6B).


Debt to Equity History and Analysis

Debt Level: ORK's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: ORK's debt to equity ratio has reduced from 31% to 19.8% over the past 5 years.

Debt Coverage: ORK's debt is well covered by operating cash flow (88.3%).

Interest Coverage: ORK's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet

Inventory Level: ORK has a high level of physical assets or inventory.

Debt Coverage by Assets: ORK's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

3.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateApr 17 2020Dividend Pay DateJan 01 197018369 days from Ex DividendBuy in the next 52 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: ORK's dividend (3%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.83%).

High Dividend: ORK's dividend (3%) is low compared to the top 25% of dividend payers in the Norwegian market (6.18%).


Stability and Growth of Payments

Stable Dividend: ORK's dividends per share have been stable in the past 10 years.

Growing Dividend: ORK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.7%), ORK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORK's dividends in 3 years are forecast to be covered by earnings (59.9% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Jaan Semlitsch (47yo)

0.5yrs

Tenure

Mr. Jaan Ivar Semlitsch is the President, Chief Executive Officer and Member of Group Executive Board at Orkla ASA since August 2019. He was the Chief Executive Officer of Elkjop Nordic. For the past year, ...


Leadership Team

NamePositionTenureCompensationOwnership
Jens Staff
Executive VP of Finance & IT5.7yrskr5.18m0.00032% NOK271.0k
Atle Nagel-Johansen
Executive VP7.7yrskr6.65m0.0028% NOK2.4m
Johan Clarin
Executive VP6.4yrskr5.75m0.00041% NOK347.2k
Christer Grönberg
Executive VP of Group Functions & Member of Group Executive Board5.2yrskr4.89m0.00083% NOK702.9k
Ann-Beth Freuchen
Executive VP4.6yrskr6.53m0.00092% NOK779.1k
Jeanette Fladby
Executive VP2.1yrskr3.73m0.00067% NOK567.4k
Johan Wilhelmsson
Executive VP2.1yrskr4.59m0.00095% NOK804.5k
Karl Tveter
Executive VP of Strategy0.3yrskr5.88m0.0049% NOK4.1m
Jaan Semlitsch
President0.5yrsno data0.0040% NOK3.4m
Håkon Mageli
Group Director of Corporate Communications & Corporate Affairs and Member of Group Executive Board7.7yrskr3.48m0.0096% NOK8.1m

4.9yrs

Average Tenure

52yo

Average Age

Experienced Management: ORK's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Vangen
Director3.8yrskr1.00m0.00089% NOK753.7k
Liselott Kilaas
Member of the Board2.8yrskr518.00k0.00078% NOK660.6k
Grace Skaugen
Deputy Chair of the Board0yrskr794.00k0.00085% NOK719.8k
Lars Dahlgren
Member of the Board5.8yrskr518.00k0.00090% NOK762.2k
Terje Utstrand
Director8.1yrskr1.13m0.00071% NOK601.3k
Stein Hagen
Chairman of the Board13.8yrskr917.50k25% NOK21.2b
Nils Selte
Member of the Board5.8yrskr692.67k0.0027% NOK2.3m
Ingrid Blank
Member of the Board6.8yrskr635.00k0.00090% NOK762.2k
Sverre Josvanger
Director8.1yrskr1.21m0.0020% NOK1.7m
Karin Hansson
Director3.8yrskr793.10k0.00017% NOK144.0k

5.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ORK's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ORK insiders have only sold shares 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

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


Key Information

  • Name: Orkla ASA
  • Ticker: ORK
  • Exchange: OB
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr84.686b
  • Shares outstanding: 1.00b
  • Website: https://www.orkla.com

Number of Employees


Location

  • Orkla ASA
  • Nedre Skøyenvei 26
  • Oslo
  • Oslo
  • 276
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORKOB (Oslo Bors)YesOrdinary SharesNONOKJan 1992
OKLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0FINLSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1992
ORKL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ORKOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1992
ORKL.YOTCPK (Pink Sheets LLC)SPON ADR AUSUSDOct 1995

Biography

Orkla ASA engages in the branded consumer goods, renewable energy, real estate, and financial investment businesses. The company offers branded products, including pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery retail trade, as well as the out-of-home, convenience store, and petrol station sectors. It also provides confectionery, biscuit, and snack products; and develops bran and crispbread products, as well as snack meals. In addition, the company offers cleaning products, toothbrushes, and personal hygiene products; hygiene and cleaning solutions to the professional market; dietary supplements and health products; basic garments through the grocery channel; painting tools and cleaning products; and wound care products, as well as operates Gymgrossisten and Bodystore e-commerce portals for health and sports nutrition products. Further, it supplies margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan, and ice cream ingredients; produces and supplies power to the Nordic power market; and undertakes industrial property and real estate development projects. The company offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Abba, Kalles, Beauvais, Den Gamle Fabrik, Spilva, Vitana and MTR brands; snacks and confectionery products under the KiMs, Nidar, Göteborgs Kex, Sætre, OLW, Panda, Laima, Selga, Adazu, and Kalev brands; wound care and health products under the Möller’s, Collett, Salvequick, Nutrilett, Maxim, Riemann, Define, Sunsilk, Blenda, Jif, Sun, Zalo, Jordan, and Pierre Robert brands; and food ingredients under the Mors Hjemmebakte, Bakke Dal, and Naturli’ brands. It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally. The company is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:34
End of Day Share Price2020/02/24 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.