AAK AB (publ.) (OM:AAK) - Share price, News & Analysis

AAK fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

AAK Stock Overview

AAK AB (publ.) develops and sells plant-based oils and fats worldwide.

Rewards

Price-To-Earnings ratio (27.6x) is below the Food industry average (36.5x)

Earnings are forecast to grow 13.72% per year

Risk Analysis

Dividend of 1.53% is not well covered by earnings

Profit margins (3.9%) are lower than last year (5.6%)

AAK AB (publ.) Competitors

Nestlé

SWX:NESN

CHF316.6b

Mondelez International

NasdaqGS:MDLZ

US$87.2b

Archer-Daniels-Midland

NYSE:ADM

US$49.4b

Hershey

NYSE:HSY

US$43.9b

Price History & Performance

Summary of all time highs, changes and price drops for AAK AB (publ.)
Historical stock prices
Current Share Price	kr163.40
52 Week High	kr211.70
52 Week Low	kr153.75
Beta	0.39
1 Month Change	-9.70%
3 Month Change	-6.47%
1 Year Change	-15.53%
3 Year Change	-2.71%
5 Year Change	52.59%
Change since IPO	592.86%

Recent News & Updates

Mar 06

Return Trends At AAK AB (publ.) (STO:AAK) Aren't Appealing

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Shareholder Returns

	AAK	SE Food	SE Market
7D	-0.9%	-0.09%	0.05%
1Y	-15.5%	-21.0%	-12.2%

Return vs Industry: AAK exceeded the Swedish Food industry which returned -21% over the past year.

Return vs Market: AAK underperformed the Swedish Market which returned -12.2% over the past year.

Price Volatility

Is AAK's price volatile compared to industry and market?
AAK volatility
AAK Average Weekly Movement	3.9%
Food Industry Average Movement	9.4%
Market Average Movement	7.6%
10% most volatile stocks in SE Market	12.8%
10% least volatile stocks in SE Market	4.9%

Stable Share Price: AAK is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AAK's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1871	4,000	Johan Westman	https://www.aak.com

AAK AB (publ.) develops and sells plant-based oils and fats worldwide. It offers food ingredients for the bakery, dairy, foodservice, and special nutrition industries; chocolate and confectionery, including cocoa butter alternatives, compound fats, filling fats, barrier fats, and spreads; caramel products; and functional emollients for the cosmetics industry. The company also provides fatty acids and glycerine for various applications; candle waxes; feed products; and natural emulsifiers.

AAK AB (publ.) Fundamentals Summary

How do AAK AB (publ.)'s earnings and revenue compare to its market cap?
AAK fundamental statistics
Market Cap	kr42.25b
Earnings (TTM)	kr1.53b
Revenue (TTM)	kr39.07b

27.6x

P/E Ratio

1.1x

P/S Ratio

Is AAK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAK income statement (TTM)
Revenue	kr39.07b
Cost of Revenue	kr30.89b
Gross Profit	kr8.17b
Other Expenses	kr6.64b
Earnings	kr1.53b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	5.91
Gross Margin	20.92%
Net Profit Margin	3.91%
Debt/Equity Ratio	43.4%

How did AAK perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

27.63x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AAK (SEK163.4) is trading above our estimate of fair value (SEK150.4)

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

Price To Earnings Ratio

PE vs Industry: AAK is good value based on its Price-To-Earnings Ratio (27.6x) compared to the Swedish Food industry average (36.5x).

PE vs Market: AAK is poor value based on its Price-To-Earnings Ratio (27.6x) compared to the Swedish market (17.5x).

Price to Earnings Growth Ratio

PEG Ratio: AAK is poor value based on its PEG Ratio (2x)

Price to Book Ratio

PB vs Industry: AAK is overvalued based on its Price-To-Book Ratio (3.3x) compared to the SE Food industry average (2.1x).

Future Growth

How is AAK AB (publ.) forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAK's forecast earnings growth (13.7% per year) is above the savings rate (0.3%).

Earnings vs Market: AAK's earnings (13.7% per year) are forecast to grow faster than the Swedish market (9.7% per year).

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

Revenue vs Market: AAK's revenue (8.4% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: AAK's revenue (8.4% 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 (15.9%).

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAK has high quality earnings.

Growing Profit Margin: AAK's current net profit margins (3.9%) are lower than last year (5.6%).

Past Earnings Growth Analysis

Earnings Trend: AAK's earnings have grown by 6.3% per year over the past 5 years.

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

Earnings vs Industry: AAK had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Food industry average (-12.3%).

Return on Equity

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

Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAK's short term assets (SEK21.2B) exceed its short term liabilities (SEK14.8B).

Long Term Liabilities: AAK's short term assets (SEK21.2B) exceed its long term liabilities (SEK3.2B).

Debt to Equity History and Analysis

Debt Level: AAK's net debt to equity ratio (34.3%) is considered satisfactory.

Reducing Debt: AAK's debt to equity ratio has reduced from 46.5% to 43.4% over the past 5 years.

Debt Coverage: AAK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AAK's interest payments on its debt are well covered by EBIT (26.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AAK's dividend (1.53%) is higher than the bottom 25% of dividend payers in the Swedish market (1.43%).

High Dividend: AAK's dividend (1.53%) is low compared to the top 25% of dividend payers in the Swedish market (4.8%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.2%), AAK's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: AAK is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure

CEO

Johan Westman (48 yo)

4yrs

Tenure

kr21,531,644

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD2.20M) is above average for companies of similar size in the Swedish market ($USD988.84K).

Compensation vs Earnings: Johan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AAK's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: AAK's board of directors are considered experienced (4.7 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31