OM:AAK

Stock Analysis Report

Executive Summary

AAK AB (publ.) develops and sells vegetable oils and fats in Sweden and internationally.

Rewards

Earnings are forecast to grow 9.47% per year

Earnings grew by 12.5% over the past year

Pays a reliable dividend of 1.3%

Risk Analysis

No risks detected for AAK from our risk checks.


Snowflake Analysis

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


Similar Companies

Share Price & News

How has AAK AB (publ.)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

15.6%

AAK

13.9%

SE Food

7.4%

SE Market


1 Year Return

16.2%

AAK

9.6%

SE Food

-8.2%

SE Market

Return vs Industry: AAK exceeded the Swedish Food industry which returned 5.3% over the past year.

Return vs Market: AAK exceeded the Swedish Market which returned -9.7% over the past year.


Shareholder returns

AAKIndustryMarket
7 Day15.6%13.9%7.4%
30 Day-2.1%-5.5%-14.3%
90 Day-9.0%-12.8%-19.4%
1 Year17.5%16.2%11.6%9.6%-5.5%-8.2%
3 Year72.5%66.2%38.2%29.9%4.9%-10.6%
5 Year105.0%92.5%56.6%44.3%11.9%-11.6%

Price Volatility Vs. Market

How volatile is AAK AB (publ.)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AAK AB (publ.) undervalued compared to its fair value and its price relative to the market?

27.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAK (SEK161.9) is trading above our estimate of fair value (SEK127.56)

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


Price To Earnings Ratio

PE vs Industry: AAK is poor value based on its PE Ratio (27.6x) compared to the Food industry average (21.1x).

PE vs Market: AAK is poor value based on its PE Ratio (27.6x) compared to the Swedish market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: AAK is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: AAK is overvalued based on its PB Ratio (4x) compared to the SE Food industry average (1.5x).


Next Steps

Future Growth

How is AAK AB (publ.) forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAK's forecast earnings growth (9.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: AAK's earnings (9.5% per year) are forecast to grow faster than the Swedish market (7.9% per year).

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

Revenue vs Market: AAK's revenue (5.3% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: AAK's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAK's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has AAK AB (publ.) performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAK has high quality earnings.

Growing Profit Margin: AAK's current net profit margins (5.2%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: AAK's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: AAK's earnings growth over the past year (12.5%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: AAK earnings growth over the past year (12.5%) exceeded the Food industry -0.7%.


Return on Equity

High ROE: AAK's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is AAK AB (publ.)'s financial position?


Financial Position Analysis

Short Term Liabilities: AAK's short term assets (SEK13.5B) exceed its short term liabilities (SEK7.6B).

Long Term Liabilities: AAK's short term assets (SEK13.5B) exceed its long term liabilities (SEK4.9B).


Debt to Equity History and Analysis

Debt Level: AAK's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: AAK's debt to equity ratio has reduced from 46.2% to 37% over the past 5 years.

Debt Coverage: AAK's debt is well covered by operating cash flow (40.4%).

Interest Coverage: AAK's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: AAK's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is AAK AB (publ.)'s current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AAK's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (2.03%).

High Dividend: AAK's dividend (1.3%) is low compared to the top 25% of dividend payers in the Swedish market (6.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), AAK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAK's dividends in 3 years are forecast to be well covered by earnings (35.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Johan Westman (46yo)

1.83s

Tenure

kr13,599,098

Compensation

Mr. Johan Westman has been the President and Chief Executive Officer of AAK AB (publ.) since May 2, 2018. Mr. Westman served as Managing Director of Blanklight and Senior Vice President of Europe at Shiloh ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD1.36M) is about average for companies of similar size in the Swedish market ($USD1.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johan Westman
President & CEO1.83yrskr13.60mno data
Fredrik Nilsson
CFO, Head of Corporate Communications6.17yrskr1.72m0.035% SEK13.8m
David Smith
President Global Operations & VPno datano datano data
Karsten Nielsen
CTO & VP9.17yrsno data0.018% SEK7.0m
Anne Olesen
Chief Strategy & Sustainability Officerno datano data0.047% SEK18.4m
Torben Lange
President of Asia & VPno datano data0.035% SEK13.8m
René Schou
President of Global Industries & VPno datano datano data
Tim Stephenson
President of Global Sourcing & Trading and VP0.17yrno datano data
Mikael Ekdahl
Secretary of the Board1.83yrskr900.00kno data
Octavio de León
VP & President of North Latin Americano datano data0.095% SEK36.8m

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: AAK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gun Nilsson
Director2.83yrskr625.00k0.0024% SEK918.9k
Georg Brunstam
Chairman of the Board1.83yrskr950.00kno data
Bengt Baron
Independent Director2.83yrskr375.00k0.0024% SEK918.9k
Patrik Andersson
Director0.83yrno datano data
Märta Andreen
Director6.83yrskr550.00kno data
Marianne Kirkegaard
Independent Director4.83yrskr375.00kno data
Annica Edvardsson
Deputy Director2.83yrsno datano data

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: AAK's board of directors are not considered experienced ( 2.8 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

AAK AB (publ.)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AAK AB (publ.)
  • Ticker: AAK
  • Exchange: OM
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr38.935b
  • Shares outstanding: 253.73m
  • Website: https://www.aak.com

Number of Employees


Location

  • AAK AB (publ.)
  • Skrivaregatan 9
  • Malmö
  • Skåne County
  • 215 32
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAKOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKSep 2005
ARHU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2005
0A0JLSE (London Stock Exchange)YesOrdinary SharesGBSEKSep 2005
6AA0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2005
AAKSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKSep 2005

Biography

AAK AB (publ.) develops and sells vegetable oils and fats in Sweden and internationally. It offers food ingredients for the bakery, dairy, special nutrition, and foodservice industries; chocolate and confectionery fats, including cocoa butter alternatives under the TROPICAO, ILLEXAO, AKOPOL, CEBES, SILKO, CHOCOFILL, and DELIAIR brands; speciality fats for confectionery filling; and functional emollients for the personal care industry. The company also provides fatty acids and glycerine for various applications, as well as proteins and fats for animal feeds. AAK AB (publ.) is headquartered in Malmö, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 20:59
End of Day Share Price2020/03/31 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.