OB:ORK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

0.09%

ORK

5.3%

NO Food

1.1%

NO Market


1 Year Return

28.1%

ORK

8.9%

NO Food

-7.3%

NO Market

Return vs Industry: ORK exceeded the Norwegian Food industry which returned 8.9% over the past year.

Return vs Market: ORK exceeded the Norwegian Market which returned -7.3% over the past year.


Shareholder returns

ORKIndustryMarket
7 Day0.09%5.3%1.1%
30 Day5.3%7.9%-0.7%
90 Day10.2%4.7%2.3%
1 Year33.1%28.1%13.6%8.9%-2.5%-7.3%
3 Year25.1%5.9%63.2%40.2%41.3%22.8%
5 Year107.0%62.6%209.8%142.2%59.8%22.9%

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?

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ORK (NOK84.9) is trading below our estimate of fair value (NOK129.16)

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


Price To Earnings Ratio

PE vs Industry: ORK is poor value based on its PE Ratio (25x) compared to the Food industry average (18.3x).

PE vs Market: ORK is poor value based on its PE Ratio (25x) compared to the Norwegian market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ORK is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: ORK is good value based on its PB Ratio (2.6x) compared to the NO Food industry average (3.7x).


Next Steps

Future Growth

How is Orkla forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORK's forecast earnings growth (5.7% per year) is above the savings rate (1.8%).

Earnings vs Market: ORK's earnings (5.7% per year) are forecast to grow slower than the Norwegian market (14.8% 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 (4.7% 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

High Future ROE: ORK's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has Orkla performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORK's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: ORK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORK had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Food industry average (3.8%).


Return on Equity

High ROE: ORK's Return on Equity (10.7%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: ORK has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Orkla's financial position?


Financial Position Analysis

Short Term Liabilities: ORK's short term assets (NOK14.4B) exceeds its short term liabilities (NOK11.0B)

Long Term Liabilities: ORK's short term assets (14.4B) exceeds its long term liabilities (12.3B)


Debt to Equity History and Analysis

Debt Level: ORK's debt to equity ratio (27.6%) is considered satisfactory

Reducing Debt: ORK's debt to equity ratio has reduced from 38.2% to 27.6% over the past 5 years.

Debt Coverage: ORK's debt is well covered by operating cash flow (54.5%).

Interest Coverage: ORK's interest payments on its debt are well covered by EBIT (29.2x 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 1.601270x debt).


Next Steps

Dividend

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

3.06%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%2.6%markettop25%6.3%industryaverage3.8%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ORK's dividend (3.06%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.64%).

High Dividend: ORK's dividend (3.06%) is low compared to the top 25% of dividend payers in the Norwegian market (6.32%).

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: At its current payout ratio (76.6%), ORK's 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 (59.7% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Jaan Semlitsch (47yo)

0.2yrs

Tenure

0

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, ...


Management Age and Tenure

5.1yrs

Average Tenure

52yo

Average Age

Experienced Management: ORK's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ORK's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr197,91215 Jul 19
Liselott Kilaas
EntityIndividual
Role
Member of the Board of Directors
Member of the Board
Shares2,600
Max Pricekr76.12
Buykr189,40015 Jul 19
Lars Dahlgren
EntityIndividual
Role
Member of the Board of Directors
Member of the Board
Shares2,500
Max Pricekr75.76
Buykr113,25128 May 19
Johan Wilhelmsson
EntityIndividual
Role
Member of Management Board
Executive VP
Shares1,506
Max Pricekr75.20
Buykr267,76021 Mar 19
Johan Wilhelmsson
EntityIndividual
Role
Member of Management Board
Executive VP
Shares4,000
Max Pricekr66.94
Buykr184,25012 Feb 19
Ingrid Blank
EntityIndividual
Role
Member of the Board of Directors
Member of the Board
Shares2,750
Max Pricekr67.00
Buykr67,10012 Feb 19
Lars Dahlgren
EntityIndividual
Role
Member of the Board of Directors
Member of the Board
Shares1,000
Max Pricekr67.10
Buykr1,005,15012 Feb 19
Håkon Mageli
EntityIndividual
Shares15,000
Max Pricekr67.01
Buykr644,44812 Feb 19
Infovidi Board Services Limited
EntityCompany
Shares9,600
Max Pricekr67.13
Buykr238,73510 Dec 18
Johan Wilhelmsson
EntityIndividual
Role
Member of Management Board
Executive VP
Shares3,500
Max Pricekr68.21

Ownership Breakdown


Management Team

  • Karl Tveter (55yo)

    Executive VP of Strategy

    • Tenure: 7.7yrs
    • Compensation: kr5.88m
  • Terje Andersen (61yo)

    CEO of Orkla Investments & Member of Group Executive Board

    • Tenure: 14.8yrs
    • Compensation: kr5.81m
  • Atle Nagel-Johansen (56yo)

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: kr6.65m
  • Jens Staff (52yo)

    CFO, Executive VP & Member of Group Executive Board

    • Tenure: 5.3yrs
    • Compensation: kr5.18m
  • Johan Clarin (48yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: kr5.75m
  • Christer Gronberg (58yo)

    Executive VP of Group Functions & Member of Group Executive Board

    • Tenure: 4.8yrs
    • Compensation: kr4.89m
  • Ann-Beth Freuchen (48yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: kr6.53m
  • Jeanette Fladby (51yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: kr3.73m
  • Johan Wilhelmsson (52yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: kr4.59m
  • Jaan Semlitsch (47yo)

    President

    • Tenure: 0.2yrs

Board Members

  • Roger Vangen (54yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: kr1.00m
  • Liselott Kilaas (60yo)

    Member of the Board

    • Tenure: 2.5yrs
    • Compensation: kr518.00k
  • Grace Skaugen (66yo)

    Deputy Chair of the Board

    • Tenure: 0yrs
    • Compensation: kr794.00k
  • Lars Dahlgren (49yo)

    Member of the Board

    • Tenure: 5.5yrs
    • Compensation: kr518.00k
  • Terje Utstrand (55yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: kr1.13m
  • Stein Hagen (63yo)

    Chairman of the Board

    • Tenure: 13.4yrs
    • Compensation: kr917.50k
  • Nils Selte (54yo)

    Member of the Board

    • Tenure: 5.5yrs
    • Compensation: kr692.67k
  • Ingrid Blank (57yo)

    Member of the Board

    • Tenure: 6.4yrs
    • Compensation: kr635.00k
  • Sverre Josvanger (56yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: kr1.21m
  • Karin Hansson (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: kr793.10k

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: kr84.926b
  • 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 topp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:49
End of Day Share Price2019/10/18 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.