Fact based stock research
Orkla (OB:ORK)
NO0003733800
How to read the ranks
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.
Orkla stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 41 (worse than 59% compared with investment alternatives), Orkla (Packaged Foods & Meats, Norway) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Orkla are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), are safely financed (Safety Rank of 54, which means low debt burdens), but show below-average growth (Growth Rank of 20). ...read more
RECOMMENDATION: A Combined Rank of 41, is a hold recommendation based on Orkla's financial characteristics. As the company Orkla's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 20) while being safely financed (Obermatt Safety Rank of 54), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 67% 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 | Packaged Foods & Meats |
| Index | Dividends Europe, Energy Efficient, Renewables Users, OBX Index |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
25-Apr-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.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Orkla
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
51 |
|
63 |
|
67 |
|
| GROWTH | ||||||||
| GROWTH | 38 |
|
1 |
|
79 |
|
20 |
|
| SAFETY | ||||||||
| SAFETY | 35 |
|
89 |
|
76 |
|
54 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
20 |
|
34 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
21 |
|
79 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 41 (worse than 59% compared with investment alternatives), Orkla (Packaged Foods & Meats, Norway) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Orkla are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), are safely financed (Safety Rank of 54, which means low debt burdens), but show below-average growth (Growth Rank of 20). ...read more
RECOMMENDATION: A Combined Rank of 41, is a hold recommendation based on Orkla's financial characteristics. As the company Orkla's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 20) while being safely financed (Obermatt Safety Rank of 54), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 67% 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 | 76 |
|
51 |
|
63 |
|
67 |
|
| GROWTH | ||||||||
| GROWTH | 38 |
|
1 |
|
79 |
|
20 |
|
| SAFETY | ||||||||
| SAFETY | 35 |
|
89 |
|
76 |
|
54 |
|
| COMBINED | ||||||||
| COMBINED | 42 |
|
39 |
|
94 |
|
41 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Orkla shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Orkla. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 56 which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Orkla's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56, and for Dividend Yield with a Dividend Yield Rank of 81. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 66% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 34). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Orkla's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Orkla has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Orkla shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 46 |
|
27 |
|
31 |
|
34 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 68 |
|
46 |
|
55 |
|
56 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 48 |
|
43 |
|
48 |
|
56 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 82 |
|
84 |
|
81 |
|
81 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 76 |
|
51 |
|
63 |
|
67 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 20 (better than 20% compared with alternatives), Orkla shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Orkla. Sales Growth has a below market rank of 33, which means that, currently, professionals expect the company to grow less than 67% of its competitors. The same is valid for Capital Growth, with a rank of 32, and Profit Growth, with a rank of 35. Currently, professionals expect the company to grow its profits less than 65% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 58, which means that the stock returns have recently been above 58% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 20, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Orkla, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 23 |
|
35 |
|
52 |
|
33 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 38 |
|
15 |
|
56 |
|
35 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
31 |
|
77 |
|
32 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 58 |
|
35 |
|
59 |
|
58 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 38 |
|
1 |
|
79 |
|
20 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company Orkla 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 Orkla 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, with just one indicator above average for Orkla and the other two below average. Leverage is at a rank of 71 meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors.Refinancing is at a rank of 34, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 66% of its competitors. Liquidity is at a rank of 46, meaning that the company generates less profit to service its debt than 54% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), Orkla has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Orkla are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Orkla 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 | 50 |
|
96 |
|
74 |
|
71 |
|
| REFINANCING | ||||||||
| REFINANCING | 30 |
|
17 |
|
33 |
|
34 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 50 |
|
91 |
|
82 |
|
46 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 35 |
|
89 |
|
76 |
|
54 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
29 |
|
22 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
67 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
30 |
|
81 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
42 |
|
23 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
20 |
|
34 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Orkla from April 25, 2024.
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