OB:ORK

Stock Analysis Report

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Executive Summary

Orkla ASA engages in branded consumer goods, and consumer and financial investment businesses. More Details


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 is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ORK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

ORK

-4.4%

NO Food

3.0%

NO Market


1 Year Return

-4.4%

ORK

-9.1%

NO Food

-1.9%

NO Market

Return vs Industry: ORK exceeded the Norwegian Food industry which returned -8.4% over the past year.

Return vs Market: ORK matched the Norwegian Market which returned -4.1% over the past year.


Shareholder returns

ORKIndustryMarket
7 Day-3.4%-4.4%3.0%
30 Day-7.9%1.4%8.3%
90 Day-7.1%-0.5%6.8%
1 Year-1.7%-4.4%-7.8%-9.1%1.7%-1.9%
3 Year10.6%0.3%42.6%29.1%9.5%-2.8%
5 Year49.2%18.6%106.4%65.7%54.5%23.8%

Long-Term 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?

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORK (NOK84.04) is trading below our estimate of fair value (NOK94.72)

Significantly Below Fair Value: ORK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ORK is good value based on its PE Ratio (18.6x) compared to the NO Food industry average (21x).

PE vs Market: ORK is poor value based on its PE Ratio (18.6x) compared to the Norwegian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: ORK is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ORK is good value based on its PB Ratio (2.3x) compared to the NO Food industry average (2.5x).


Next Steps

Future Growth

How is Orkla forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORK's forecast earnings growth (5.6% per year) is above the savings rate (1.6%).

Earnings vs Market: ORK's earnings (5.6% per year) are forecast to grow slower than the Norwegian market (33.8% per year).

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

Revenue vs Market: ORK's revenue (2.4% per year) is forecast to grow slower than the Norwegian market (6.1% per year).

High Growth Revenue: ORK's revenue (2.4% 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 (12.6%).


Next Steps

Past Performance

How has Orkla performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORK has high quality earnings.

Growing Profit Margin: ORK's current net profit margins (9.7%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: ORK's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: ORK's earnings growth over the past year (36.5%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: ORK earnings growth over the past year (36.5%) exceeded the Food industry 18.4%.


Return on Equity

High ROE: ORK's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Orkla's financial position?


Financial Position Analysis

Short Term Liabilities: ORK's short term assets (NOK16.8B) exceed its short term liabilities (NOK11.5B).

Long Term Liabilities: ORK's short term assets (NOK16.8B) exceed its long term liabilities (NOK14.7B).


Debt to Equity History and Analysis

Debt Level: ORK's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: ORK's debt to equity ratio has reduced from 33.1% to 23.4% over the past 5 years.

Debt Coverage: ORK's debt is well covered by operating cash flow (79.8%).

Interest Coverage: ORK's interest payments on its debt are well covered by EBIT (33.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORK's dividend (3.09%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.45%).

High Dividend: ORK's dividend (3.09%) is low compared to the top 25% of dividend payers in the Norwegian market (6.03%).


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 (57.7%), 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?

4.1yrs

Average management tenure


CEO

Jaan Semlitsch (49 yo)

1.25yrs

Tenure

kr3,105,000

Compensation

Mr. Jaan Ivar Semlitsch is the President, Chief Executive Officer and Member of Group Executive Board at Orkla ASA since August 15, 2019. He was the Chief Executive Officer of Elkjop Nordic. For the past y...


CEO Compensation Analysis

Compensation vs Market: Jaan's total compensation ($USD347.60K) is below average for companies of similar size in the Norwegian market ($USD984.81K).

Compensation vs Earnings: Insufficient data to compare Jaan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jaan Semlitsch
President1.25yrskr3.11m0.0046%
NOK 3.9m
Atle Nagel-Johansen
Executive VP8.42yrskr6.68m0.0028%
NOK 2.4m
Johan Clarin
Executive VP7.17yrskr5.25m0.00044%
NOK 370.1k
Christer Grönberg
Executive VP of Group Functions & Member of Group Executive Board5.92yrskr4.62m0.00086%
NOK 723.4k
Ann-Beth Freuchen
Executive VP5.33yrskr6.34m0.00095%
NOK 799.1k
Jeanette Fladby
Executive VP2.83yrskr4.44m0.00070%
NOK 588.8k
Johan Wilhelmsson
Executive VP2.83yrskr5.83m0.00098%
NOK 824.4k
Sverre Prytz
Executive VP of M&A and Strategy and Member of Group Executive Board0.92yrkr261.00k0.000030%
NOK 25.2k
Harald Ullevoldsæter
Executive VP0.67yrno data0.00012%
NOK 100.9k
Håkon Mageli
Group Director of Corporate Communications & Corporate Affairs and Member of Group Executive Board8.42yrskr3.48m0.010%
NOK 8.4m
Kenneth Haavet
Executive VP0.83yrno data0.000030%
NOK 25.2k
Thomas Oybo
Head of Share Portfolio & Investment Director14.25yrsno datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: ORK's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Vangen
Employee Representative Director4.58yrskr1.02m0.00092%
NOK 773.9k
Liselott Kilaas
Independent Member of the Board3.58yrskr532.00k0.0010%
NOK 841.2k
Terje Utstrand
Employee Representative Director8.83yrskr1.19m0.00075%
NOK 630.9k
Stein Hagen
Chairman of the Board14.5yrskr912.33kno data
Nils Selte
Member of the Board6.58yrskr828.67k0.0027%
NOK 2.3m
Ingrid Blank
Independent Member of the Board7.5yrskr840.50k0.00090%
NOK 757.1k
Peter Agnefjall
Independent Member of the Board2.58yrskr671.50k0.0020%
NOK 1.7m
Sverre Josvanger
Employee Representative Director8.83yrskr1.14m0.0020%
NOK 1.7m
Karin Hansson
Employee Representative Director4.58yrskr830.66k0.00018%
NOK 151.4k
Anna Mossberg
Director0.58yrno data0.00020%
NOK 168.2k
Anders Kristiansen
Director0.58yrno data0.0034%
NOK 2.9m
Lill Hansen
Deputy memberno datano data0.000050%
NOK 42.1k

4.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ORK'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: ORK 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

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: kr84.118b
  • Shares outstanding: 1.00b
  • Website: https://www.orkla.no

Number of Employees


Location

  • Orkla ASA
  • Drammensveien 149
  • Oslo
  • Oslo
  • 277
  • 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 branded consumer goods, and consumer and financial investment businesses. The company offers branded products, including pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 22:02
End of Day Share Price2020/11/24 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.