Fact based stock research
AF Gruppen (OB:AFG)

NO0003078107

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

AF Gruppen stock research in summary

afgruppen.no

ANALYSIS: With an Obermatt Combined Rank of 6 (worse than 94% compared with investment alternatives), AF Gruppen (Construction & Engineering, Norway) shares have lower financial characteristics compared with similar stocks. Shares of AF Gruppen are low in value (priced high) with a consolidated Value Rank of 8 (worse than 92% of alternatives), show below-average growth (Growth Rank of 30), and are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 6, is a sell recommendation based on AF Gruppen's financial characteristics. As the company AF Gruppen's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 8), low growth (Obermatt Growth Rank of 30), and risky financing practices (Obermatt Safety Rank of 34), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	8
Growth Rank	30
Safety Rank	34
Combined Rank	6

Country	Norway
Industry	Construction & Engineering
Index	Dividends Europe, Employee Focus EU
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: AF Gruppen

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	5	13	8
GROWTH
GROWTH	19	55	7	30
SAFETY
SAFETY	54	43	44	34
SENTIMENT
SENTIMENT	n/a	42	31	^new
360° VIEW
360° VIEW	n/a	13	4	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better AF Gruppen is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	5	13	8
GROWTH
GROWTH	19	55	7	30
SAFETY
SAFETY	54	43	44	34
COMBINED
COMBINED	38	13	1	6

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of AF Gruppen the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 8 (worse than 92% compared with alternatives), AF Gruppen shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for AF Gruppen. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 72% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 48 which means that the stock price compared with what market professionals expect for future profits is higher than 52% of comparable companies, indicating a low value concerning AF Gruppen's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 13 which means that the stock price compared with what market professionals expect for future profit levels is higher than 87% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 11 is also low. Compared with invested capital, the stock price is higher than for 89% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 8, is a sell recommendation based on AF Gruppen's stock price compared with the company's operational size and dividend yields. Should dividend investors pick AF Gruppen? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose AF Gruppen only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50	39	45	48
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	38	9	31	13
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	3	10	11
DIVIDEND YIELD
DIVIDEND YIELD	98	89	82	72
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	50	5	13	8

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of AF Gruppen; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 30 (better than 30% compared with alternatives), AF Gruppen shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for AF Gruppen. While Profit Growth has a good rank of 98, as professionals currently expect the company to grow its profits more than 98% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 25, which means that currently professionals expect the company to grow less than 75% of its competitors, while Capital Growth has a rank of 15 and Stock Returns have been below market median, with a rank of 33 (67% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 30, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	25	78	36	25
PROFIT GROWTH
PROFIT GROWTH	n/a	18	17	98
CAPITAL GROWTH
CAPITAL GROWTH	n/a	43	13	15
STOCK RETURNS
STOCK RETURNS	35	55	9	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	55	7	30

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of AF Gruppen.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company AF Gruppen has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of AF Gruppen is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for AF Gruppen. Leverage is at a rank of 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Liquidity is also good at a rank of 54, meaning the company generates more profit to service its debt than 54% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 8, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 92% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), AF Gruppen has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for AF Gruppen. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with AF Gruppen and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	76	64	52	63
REFINANCING
REFINANCING	12	13	5	8
LIQUIDITY
LIQUIDITY	77	68	82	54
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	54	43	44	34

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of AF Gruppen and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	9	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	43	26	^new
MARKET PULSE
MARKET PULSE	n/a	85	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	42	31	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for AF Gruppen.
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