AKER SOLUTIONS

Aker Solutions ASA operates globally, providing solutions to the oil and gas industry. The company has two segments: Renewables and Field Development; and Life Cycle. They offer field planning, engineering, project management, procurement services, and facility design/construction. Additional services include offshore fish farming, carbon capture, utilization and storage, hydrogen and derivatives, hydropower, and offshore wind solutions. Aker Solutions also provides construction services, electrification services, maintenance, modifications, decommissioning, asset integrity management, hook-up, and completion solutions. The company was founded in 1841 and is headquartered in Norway.

Overview

Sector

Oil & Gas

Target Price

56.8 NOK

Current Price

30.2 NOK

Potential

88%

Strengths

With an appreciation Potential of 88.04%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (5.45) is lower than the sector mean (66.45).
Price to book ratio (1.29) is lower than the sector mean (1.77).
The company has low debt. Net Debt to EBITDA Ratio is -1.08 and it is lower than the sector mean.
The company has high returns. ROIC (27.57%) is higher than the sector mean (11.75%).
EV/EBITDA (4.40) is lower than the sector mean (32.72).
EV/EBIT (4.44) is lower than the sector mean.
Price to free cash flow (8.73) is lower than the sector mean.

Weaknesses

EBITDA Margin (5.04%) appears relatively low.

Key Financial Data

Indicator	Value
PER	5.5
EV/EBITDA	4.4
Price/Free Cash Flow'	8.7
ROIC	27.6%
Net Debt/EBITDA	-1.1