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ORK

OrklaOB:ORK Stock Report

Market Cap

kr83.8b

7D

-2.2%

1Y

-2.2%

Updated

26 Nov, 2021

Data

Company Financials +
ORK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends5/6

ORK Stock Overview

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

Orkla Competitors

Nestlé

SWX:NESN

CHF331.4b

Procter & Gamble

NYSE:PG

US$356.9b

L'Oréal

ENXTPA:OR

€224.4b

PepsiCo

NasdaqGS:PEP

US$222.8b

Price History & Performance

Summary of all time highs, changes and price drops for Orkla
Historical stock prices
Current Share Pricekr84.14
52 Week Highkr91.60
52 Week Lowkr76.00
Beta-0.28
1 Month Change7.87%
3 Month Change6.97%
1 Year Change-2.21%
3 Year Change18.51%
5 Year Change11.67%
Change since IPO884.09%

Recent News & Updates

Nov 21
Orkla ASA's (OB:ORK) Intrinsic Value Is Potentially 57% Above Its Share Price

Orkla ASA's (OB:ORK) Intrinsic Value Is Potentially 57% Above Its Share Price

In this article we are going to estimate the intrinsic value of Orkla ASA ( OB:ORK ) by projecting its future cash...

Nov 08
Returns Are Gaining Momentum At Orkla (OB:ORK)

Returns Are Gaining Momentum At Orkla (OB:ORK)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Oct 10
Orkla (OB:ORK) Seems To Use Debt Quite Sensibly

Orkla (OB:ORK) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 05
Here's Why We Think Orkla (OB:ORK) Is Well Worth Watching

Here's Why We Think Orkla (OB:ORK) Is Well Worth Watching

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Aug 09
Returns On Capital Are Showing Encouraging Signs At Orkla (OB:ORK)

Returns On Capital Are Showing Encouraging Signs At Orkla (OB:ORK)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

ORKNO FoodNO Market
7D-2.2%-4.0%-0.6%
1Y-2.2%9.8%23.0%

Return vs Industry: ORK underperformed the Norwegian Food industry which returned 9.8% over the past year.

Return vs Market: ORK underperformed the Norwegian Market which returned 23% over the past year.

Price Volatility

Is ORK's price volatile compared to industry and market?
ORK volatility
ORK Average Weekly Movement2.2%
Food Industry Average Movement5.0%
Market Average Movement5.7%
10% most volatile stocks in NO Market10.5%
10% least volatile stocks in NO Market3.0%

Stable Share Price: ORK is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ORK's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a18,110Jaan Semlitschhttps://www.orkla.no

Orkla ASA engages in branded consumer goods, and industrial and financial investment businesses. The company offers branded products, including frozen 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.

Orkla Fundamentals Summary

How do Orkla's earnings and revenue compare to its market cap?
ORK fundamental statistics
Market Capkr83.80b
Earnings (TTM)kr4.66b
Revenue (TTM)kr48.81b

18.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORK income statement (TTM)
Revenuekr48.81b
Cost of Revenuekr14.61b
Gross Profitkr34.20b
Expenseskr29.54b
Earningskr4.66b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)4.68
Gross Margin70.07%
Net Profit Margin9.55%
Debt/Equity Ratio41.3%

How did ORK perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

59%

Payout Ratio

Valuation

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

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORK (NOK84.14) is trading below our estimate of fair value (NOK135.41)

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


Price To Earnings Ratio

PE vs Industry: ORK is good value based on its PE Ratio (18x) compared to the Norwegian Food industry average (28.2x).

PE vs Market: ORK is poor value based on its PE Ratio (18x) compared to the Norwegian market (15x).


Price to Earnings Growth Ratio

PEG Ratio: ORK is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: ORK's PB Ratio (2.3x) is in line with the NO Food industry average.


Future Growth

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

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORK's forecast earnings growth (5.3% per year) is above the savings rate (1.2%).

Earnings vs Market: ORK's earnings (5.3% per year) are forecast to grow slower than the Norwegian market (11.7% 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 (6.7% 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 (12.8%).


Past Performance

How has Orkla performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORK has high quality earnings.

Growing Profit Margin: ORK's current net profit margins (9.5%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: ORK's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: ORK's earnings growth over the past year (3.3%) is below its 5-year average (7.9% per year).

Earnings vs Industry: ORK earnings growth over the past year (3.3%) exceeded the Food industry 1.6%.


Return on Equity

High ROE: ORK's Return on Equity (12.9%) is considered low.


Financial Health

How is Orkla's financial position?


Financial Position Analysis

Short Term Liabilities: ORK's short term assets (NOK16.2B) exceed its short term liabilities (NOK15.0B).

Long Term Liabilities: ORK's short term assets (NOK16.2B) exceed its long term liabilities (NOK16.0B).


Debt to Equity History and Analysis

Debt Level: ORK's net debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: ORK's debt to equity ratio has increased from 33.7% to 41.3% over the past 5 years.

Debt Coverage: ORK's debt is well covered by operating cash flow (39.5%).

Interest Coverage: ORK's interest payments on its debt are well covered by EBIT (34.5x coverage).


Balance Sheet


Dividend

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

3.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORK's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.7%).

High Dividend: ORK's dividend (3.27%) is low compared to the top 25% of dividend payers in the Norwegian market (4.92%).


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 (59.3%), 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 (59.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jaan Semlitsch (50 yo)

2.25yrs

Tenure

kr9,878,000

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 ($USD1.09M) is about average for companies of similar size in the Norwegian market ($USD1.10M).

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


Leadership Team

Experienced Management: ORK's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ORK's board of directors are considered experienced (5.6 years average tenure).


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

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


Key Information

  • Name: Orkla ASA
  • Ticker: ORK
  • Exchange: OB
  • Founded: NaN
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr83.797b
  • Shares outstanding: 995.93m
  • Website: https://www.orkla.no

Number of Employees


Location

  • Orkla ASA
  • Drammensveien 149
  • Oslo
  • Oslo
  • 277
  • Norway

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:21
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.