OTCPK:ARHU.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


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


Market Performance


7 Day Return

0%

OTCPK:ARHU.F

-0.1%

US Food

-1.0%

US Market


1 Year Return

n/a

OTCPK:ARHU.F

-1.5%

US Food

-0.4%

US Market

No trading data on ARHU.F.

No trading data on ARHU.F.


Share holder returns

ARHU.FIndustryMarket
7 Day0%-0.1%-1.0%
30 Day0%-0.01%-3.3%
90 Day0%1.8%0.4%
1 Yearn/a1.1%-1.5%1.8%-0.4%
3 Yearn/a-7.6%-15.4%39.4%30.4%
5 Yearn/a42.8%26.0%54.2%37.1%

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

No news available

Valuation

Is AAK AB (publ.) undervalued based on future cash flows and its price relative to the stock market?

32.83x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

AAK AB (publ.)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

AAK AB (publ.)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

AAK AB (publ.) is overvalued based on earnings compared to the US Food industry average.

AAK AB (publ.) is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

AAK AB (publ.) is poor value based on expected growth next year.


Price Based on Value of Assets

AAK AB (publ.) is overvalued based on assets compared to the US Food industry average.


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AAK AB (publ.)'s revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

AAK AB (publ.)'s earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

AAK AB (publ.)'s revenue growth is positive but not above the United States of America market average.

AAK AB (publ.)'s earnings growth is positive but not above the United States of America market average.

AAK AB (publ.)'s earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

AAK AB (publ.) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

AAK AB (publ.)'s year on year earnings growth rate has been positive over the past 5 years.

AAK AB (publ.)'s 1-year earnings growth is less than its 5-year average (9.5% vs 10.9%)

AAK AB (publ.)'s earnings growth has exceeded the US Food industry average in the past year (9.5% vs -18.1%).


Return on Equity

AAK AB (publ.) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AAK AB (publ.) used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

AAK AB (publ.)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

AAK AB (publ.) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AAK AB (publ.)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AAK AB (publ.)'s level of debt (33.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (61% vs 33.8% today).

Debt is well covered by operating cash flow (57%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.4x debt.


Next Steps

Dividend

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

1.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AAK AB (publ.)'s pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).

AAK AB (publ.)'s dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, AAK AB (publ.) has been paying a dividend for less than 10 years.

Dividend payments have increased, but AAK AB (publ.) only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of AAK AB (publ.)'s salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Johan Westman (45yo)

1.1yrs

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

Johan's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Johan to compare compensation growth.


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

The tenure for the AAK AB (publ.) management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

55yo

Average Age

The average tenure for the AAK AB (publ.) board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellUS$25,662,34512 Mar 19
Melker Schorling Tjanste AB
EntityCompany
Shares1,805,282
Max PriceUS$14.34
SellUS$666,67527 Aug 18
Karsten Nielsen
EntityIndividual
Role
CTO & VP
Shares41,000
Max PriceUS$16.26
SellUS$520,37224 Aug 18
Karsten Nielsen
EntityIndividual
Role
CTO & VP
Shares32,000
Max PriceUS$16.28

Ownership Breakdown


Management Team

  • Johan Westman (45yo)

    President & CEO

    • Tenure: 1.1yrs
    • Compensation: SEK13.60m
  • Anne Olesen (54yo)

    Chief Marketing Officer & VP of Corporate Social Responsibility

  • David Smith (58yo)

    President Global Operations & VP

  • Gerardo Garza de Hereida (57yo)

    VP & President AAK South Latin America

    • Tenure: 4.7yrs
  • Torben Lange (55yo)

    President of Asia

  • Renald Mackintosh (67yo)

    Chairman Special Nutrition & Personal Care and VP

    • Tenure: 3.8yrs
  • Fredrik Nilsson (41yo)

    CFO, Head of Corporate Communications

    • Tenure: 5.4yrs
    • Compensation: SEK1.72m
  • Mikael Ekdahl (67yo)

    Secretary of the Board

    • Tenure: 1.1yrs
    • Compensation: SEK900.00k
  • Karsten Nielsen (55yo)

    CTO & VP

    • Tenure: 8.4yrs
  • Octavio de León (51yo)

    VP & President of North Latin America


Board Members

  • Gun Nilsson (63yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: SEK625.00k
  • Georg Brunstam (61yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: SEK950.00k
  • Bengt Baron (56yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: SEK375.00k
  • Patrik Andersson (55yo)

    Director

    • Tenure: 0.1yrs
  • Märta Andreen (34yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: SEK550.00k
  • Lillie Valeur (48yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: SEK500.00k
  • Marianne Kirkegaard (50yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: SEK375.00k
  • Annica Edvardsson

    Deputy Director

    • Tenure: 2.1yrs

Company Information

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


Key Information

  • Name: AAK AB (publ.)
  • Ticker: ARHU.F
  • Exchange: OTCPK
  • Founded:
  • Industry: packaged foods and meats
  • Sector: food, beverage & tobacco
  • Market Cap: kr44.352b
  • Listing Market Cap: kr4.683b
  • Shares outstanding: 253.73m
  • Website: Click here

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 confe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/18 00:05
End of Day Share Price2019/03/20 00:00
Earnings2019/03/31
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.