Fact based stock research
Aker Solutions (OB:AKSO)
NO0010716582
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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.
Aker Solutions stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Aker Solutions (Oil & Gas Equipment, Norway) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Aker Solutions are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), are safely financed (Safety Rank of 62, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more
RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Aker Solutions's financial characteristics. As the company Aker Solutions's key financial metrics exhibit good value (Obermatt Value Rank of 53) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 62), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 53% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Norway |
| Industry | Oil & Gas Equipment |
| Index | Moonshot Tech |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Aker Solutions
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 29 |
|
62 |
|
78 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
100 |
|
24 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 21 |
|
6 |
|
61 |
|
62 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
12 |
|
78 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
38 |
|
78 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Aker Solutions (Oil & Gas Equipment, Norway) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Aker Solutions are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), are safely financed (Safety Rank of 62, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more
RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Aker Solutions's financial characteristics. As the company Aker Solutions's key financial metrics exhibit good value (Obermatt Value Rank of 53) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 62), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 53% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 29 |
|
62 |
|
78 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
100 |
|
24 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 21 |
|
6 |
|
61 |
|
62 |
|
| COMBINED | ||||||||
| COMBINED | 13 |
|
63 |
|
67 |
|
42 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Aker Solutions shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Aker Solutions. Price-to-Sales (P/S) is 63, which means that the stock price compared with what market professionals expect for future sales is lower than for 63% of comparable companies, indicating a good value concerning Aker Solutions's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 74, which means that dividends are expected to be higher than for 74% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 71% of alternatives (only 29% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 52% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Aker Solutions's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. 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 especially important 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) | 89 |
|
77 |
|
61 |
|
63 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
34 |
|
59 |
|
48 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 43 |
|
64 |
|
65 |
|
29 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
48 |
|
72 |
|
74 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 29 |
|
62 |
|
78 |
|
53 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Aker Solutions 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 half of the indicators below and half above average for Aker Solutions. Profit Growth has a rank of 58, which means that currently professionals expect the company to grow its profits more than 58% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 75 (above 75% of alternative investments). But Sales Growth has a below the median rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Capital Growth also has a lower rank of 4. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Aker Solutions. 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 mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 66 |
|
79 |
|
4 |
|
18 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 11 |
|
92 |
|
90 |
|
58 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
93 |
|
1 |
|
4 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 67 |
|
86 |
|
58 |
|
75 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 45 |
|
100 |
|
24 |
|
29 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Aker Solutions has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Aker Solutions is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Aker Solutions.Leverage is at 79, meaning the company has a below-average debt-to-equity ratio. It has less debt than 79% of its competitors.Refinancing is at a rank of 60, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. Liquidity is at 25, meaning that the company generates less profit to service its debt than 75% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Aker Solutions has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Aker Solutions more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 47 |
|
33 |
|
63 |
|
79 |
|
| REFINANCING | ||||||||
| REFINANCING | 16 |
|
28 |
|
60 |
|
60 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 32 |
|
14 |
|
37 |
|
25 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 21 |
|
6 |
|
61 |
|
62 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
26 |
|
38 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
75 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
32 |
|
92 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
25 |
|
55 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
12 |
|
78 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Aker Solutions from November 14, 2024.
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