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Arcus

OB:ARCUS
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARCUS
OB
NOK3B
Market Cap
  1. Home
  2. NO
  3. Food, Beverage & Tobacco
Company description

Arcus ASA, together with its subsidiaries, imports, produces, markets, sells, and distributes wine and spirits. The last earnings update was 37 days ago. More info.


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ARCUS Share Price and Events
7 Day Returns
1.4%
OB:ARCUS
0%
Europe Beverage
1.9%
NO Market
1 Year Returns
-15.7%
OB:ARCUS
15.2%
Europe Beverage
-8.5%
NO Market
ARCUS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arcus (ARCUS) 1.4% 0% 2.5% -15.7% - -
Europe Beverage 0% -0.9% 2.7% 15.2% 7% 37%
NO Market 1.9% 7.4% 3.2% -8.5% 30.5% 17.1%
1 Year Return vs Industry and Market
  • ARCUS underperformed the Beverage industry which returned 15.2% over the past year.
  • ARCUS underperformed the Market in Norway which returned -8.5% over the past year.
Price Volatility
ARCUS
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Arcus's competitors could be found in our database.

Value

 Is Arcus undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arcus to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arcus.

OB:ARCUS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year NO Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OB:ARCUS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.511 (1 + (1- 23%) (76.09%))
0.873
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (0.873 * 5.96%)
6.96%

Discounted Cash Flow Calculation for OB:ARCUS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arcus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OB:ARCUS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 6.96%)
2020 201.21 Est @ 3.89% 188.11
2021 207.75 Est @ 3.25% 181.59
2022 213.58 Est @ 2.8% 174.53
2023 218.90 Est @ 2.49% 167.24
2024 223.87 Est @ 2.27% 159.90
2025 228.61 Est @ 2.12% 152.66
2026 233.21 Est @ 2.01% 145.60
2027 237.72 Est @ 1.94% 138.75
2028 242.20 Est @ 1.88% 132.17
2029 246.67 Est @ 1.85% 125.84
Present value of next 10 years cash flows NOK1,566.00
OB:ARCUS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NOK246.67 × (1 + 1.76%) ÷ (6.96% – 1.76%)
NOK4,825.54
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK4,825.54 ÷ (1 + 6.96%)10
NOK2,461.84
OB:ARCUS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK1,566.00 + NOK2,461.84
NOK4,027.84
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK4,027.84 / 68.01
NOK59.22
OB:ARCUS Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK59.22
Current discount Discount to share price of NOK37.30
= -1 x (NOK37.30 - NOK59.22) / NOK59.22
37%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arcus is available for.
Intrinsic value
37%
Share price is NOK37.3 vs Future cash flow value of NOK59.22
Current Discount Checks
For Arcus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arcus's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arcus's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arcus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arcus's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:ARCUS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in NOK NOK1.99
OB:ARCUS Share Price ** OB (2019-09-20) in NOK NOK37.3
Europe Beverage Industry PE Ratio Median Figure of 55 Publicly-Listed Beverage Companies 22.21x
Norway Market PE Ratio Median Figure of 149 Publicly-Listed Companies 13.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arcus.

OB:ARCUS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:ARCUS Share Price ÷ EPS (both in NOK)

= 37.3 ÷ 1.99

18.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arcus is good value based on earnings compared to the Europe Beverage industry average.
  • Arcus is overvalued based on earnings compared to the Norway market.
Price based on expected Growth
Does Arcus's expected growth come at a high price?
Raw Data
OB:ARCUS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
18.6%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.76x
Norway Market PEG Ratio Median Figure of 110 Publicly-Listed Companies 0.77x

*Line of best fit is calculated by linear regression .

OB:ARCUS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.72x ÷ 18.6%

1.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arcus is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arcus's assets?
Raw Data
OB:ARCUS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in NOK NOK22.39
OB:ARCUS Share Price * OB (2019-09-20) in NOK NOK37.3
Europe Beverage Industry PB Ratio Median Figure of 70 Publicly-Listed Beverage Companies 1.74x
Norway Market PB Ratio Median Figure of 240 Publicly-Listed Companies 1.12x
OB:ARCUS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:ARCUS Share Price ÷ Book Value per Share (both in NOK)

= 37.3 ÷ 22.39

1.67x

* Primary Listing of Arcus.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arcus is good value based on assets compared to the Europe Beverage industry average.
X
Value checks
We assess Arcus's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Arcus has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arcus expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arcus expected to grow at an attractive rate?
  • Arcus's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • Arcus's earnings growth is expected to exceed the Norway market average.
  • Arcus's revenue growth is positive but not above the Norway market average.
Annual Growth Rates Comparison
Raw Data
OB:ARCUS Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:ARCUS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 18.6%
OB:ARCUS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 1.7%
Europe Beverage Industry Earnings Growth Rate Market Cap Weighted Average 7.2%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
Norway Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Norway Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OB:ARCUS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:ARCUS Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,842 225 1
2020-12-31 2,763 209 1
2019-12-31 2,694 176 1
OB:ARCUS Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-06-30 2,743 266 133
2019-03-31 2,718 289 156
2018-12-31 2,723 395 158
2018-09-30 2,706 250 159
2018-06-30 2,664 254 181
2018-03-31 2,638 269 177
2017-12-31 2,575 200 181
2017-09-30 2,555 52 69
2017-06-30 2,556 47 -8
2017-03-31 2,543 9 -25
2016-12-31 2,582 -2 -35
2016-09-30 2,651 255 68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arcus's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
  • Arcus's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OB:ARCUS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Arcus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:ARCUS Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.30 3.30 3.30 1.00
2020-12-31 3.07 3.07 3.07 1.00
2019-12-31 2.59 2.59 2.59 1.00
OB:ARCUS Past Financials Data
Date (Data in NOK Millions) EPS *
2019-06-30 1.99
2019-03-31 2.25
2018-12-31 2.33
2018-09-30 2.35
2018-06-30 2.66
2018-03-31 2.58
2017-12-31 2.66
2017-09-30 1.06
2017-06-30 -0.14
2017-03-31 -0.45
2016-12-31 -0.67
2016-09-30 1.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arcus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arcus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arcus has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arcus performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arcus's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arcus has delivered over 20% year on year earnings growth in the past 5 years.
  • Arcus's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Arcus's 1-year earnings growth is negative, it can't be compared to the Europe Beverage industry average.
Earnings and Revenue History
Arcus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arcus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:ARCUS Past Revenue, Cash Flow and Net Income Data
Date (Data in NOK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,743.10 133.06 511.64
2019-03-31 2,718.40 155.86 506.84
2018-12-31 2,723.20 158.46 515.34
2018-09-30 2,706.26 159.08 518.82
2018-06-30 2,664.36 181.38 517.42
2018-03-31 2,638.46 176.68 514.32
2017-12-31 2,575.06 181.28 504.12
2017-09-30 2,555.30 69.33 496.40
2017-06-30 2,556.00 -8.17 485.50
2017-03-31 2,543.40 -24.67 476.80
2016-12-31 2,582.40 -34.57 475.40
2016-09-30 2,650.64 68.48 377.86
2015-12-31 2,470.64 64.08 463.06
2014-12-31 2,208.42 62.51 460.16
2013-12-31 2,166.64 14.99 488.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arcus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arcus used its assets less efficiently than the Europe Beverage industry average last year based on Return on Assets.
  • Arcus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arcus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arcus has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arcus's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arcus's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arcus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arcus's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arcus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arcus Company Filings, last reported 2 months ago.

OB:ARCUS Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,521.30 864.90 98.50
2019-03-31 1,617.50 737.50 124.40
2018-12-31 1,654.03 723.50 282.59
2018-09-30 1,511.30 773.10 90.70
2018-06-30 1,480.70 906.50 134.70
2018-03-31 1,642.50 839.40 175.60
2017-12-31 1,669.42 815.52 184.42
2017-09-30 1,518.70 765.90 144.10
2017-06-30 1,477.50 850.70 126.90
2017-03-31 1,505.60 764.20 126.00
2016-12-31 1,502.59 703.27 199.39
2016-09-30 743.90 1,086.70 79.00
2015-12-31 876.41 1,208.48 190.42
2014-12-31 761.00 971.04 175.13
2013-12-31 638.78 988.07 148.39
  • Arcus's level of debt (56.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (140% vs 56.9% today).
  • Debt is well covered by operating cash flow (30.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
X
Financial health checks
We assess Arcus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arcus has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Arcus's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.45%
Current annual income from Arcus dividends. Estimated to be 5.6% next year.
If you bought NOK2,000 of Arcus shares you are expected to receive NOK89 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arcus's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.51%).
  • Arcus's dividend is below the markets top 25% of dividend payers in Norway (6.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OB:ARCUS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Beverage Industry Average Dividend Yield Market Cap Weighted Average of 50 Stocks 2%
Norway Market Average Dividend Yield Market Cap Weighted Average of 115 Stocks 4.4%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.5%
Norway Bottom 25% Dividend Yield 25th Percentile 2.5%
Norway Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OB:ARCUS Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.31 1.00
2020-12-31 2.15 1.00
2019-12-31 1.81 1.00
OB:ARCUS Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-02-14 1.660 4.401
2018-03-19 1.660 3.862
2017-05-10 1.470 3.226
2017-02-14 1.470 3.107

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Arcus has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Arcus only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Arcus's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Arcus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arcus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arcus has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Arcus's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kenneth Hamnes
COMPENSATION NOK3,684,000
AGE 49
TENURE AS CEO 4.1 years
CEO Bio

Mr. Kenneth Hamnes has been the Chief Executive Officer of Arcus-Gruppen AS since May 2015. Mr. Hamnes is a Co-Owner of Ekelyveien AS. He has been the Group Chief Executive Officer of Arcus AS since 2015. He has been the Group Chief Executive Officer of Arcus ASA since August 2015. He has many years of experience in leading positions within companies in the FMCG sector. He served as the Chief Executive Officer of the Norwegian snack foods manufacturer Maarud. He served as the Chief Executive Officer of Maarud AS from 2009 to 2015. He served as Sales Director of Stabburet AS (Orkla Group) from 2006 to 2009. He served as Sales Director of Bakers AS (Orkla Group) from 2004 to 2006. He served as a Consultant/Project Manager at Boston Consulting Group from 2002 to 2004. He served as Key Account Manager / Brand manager of Lilleborg AS (Orkla Group) from 1997 to 2000. Mr. Hamnes earned Master of Business Administration at Norwegian School of Management (NHH) from 1993 to 1997 and attended Varehandelens Høyskole from 1990 to 1992.

CEO Compensation
  • Kenneth's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kenneth's remuneration is about average for companies of similar size in Norway.
Management Team Tenure

Average tenure and age of the Arcus management team in years:

2.3
Average Tenure
53
Average Age
  • The tenure for the Arcus management team is about average.
Management Team

Kenneth Hamnes

TITLE
Group Chief Executive Officer
COMPENSATION
NOK4M
AGE
49
TENURE
4.1 yrs

Sigmund Toth

TITLE
CFO and Group Director of Finance & IT
COMPENSATION
NOK2M
TENURE
3 yrs

Per Bjørkum

TITLE
Group Director of Communications & IR
COMPENSATION
NOK2M
AGE
55
TENURE
6.7 yrs

Erik Bern

TITLE
Executive Vice President of Group Technical Development & Services - CSR
COMPENSATION
NOK2M
AGE
58

Erlend Stefansson

TITLE
Executive Vice President of Liquor
COMPENSATION
NOK2M
AGE
51

Eirik Andersen

TITLE
Executive Vice President of Vin Norge
COMPENSATION
NOK3M
TENURE
1.7 yrs

Christian Granlund

TITLE
Chief Executive Officer of Vectura AS
COMPENSATION
NOK2M
TENURE
2.3 yrs

Svante Selling

TITLE
Chief Executive Officer of Vingruppen i Norden AB (Wine Sweden & Finland)
COMPENSATION
NOK3M
TENURE
1.6 yrs

Jan-Erik Nilsen

TITLE
Acting Group Director of Human Resources
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Arcus board of directors in years:

1.5
Average Tenure
59
Average Age
  • The average tenure for the Arcus board of directors is less than 3 years, this suggests a new board.
Board of Directors

Michael Johansen

TITLE
Chairman of the Board
TENURE
3.1 yrs

Eilif Due

TITLE
Director
AGE
64
TENURE
9.7 yrs

Leena Saarinen

TITLE
Director
AGE
59
TENURE
3.1 yrs

Ann-Beth Freuchen

TITLE
Director
AGE
48
TENURE
2.7 yrs

Nils Selte

TITLE
Director
TENURE
0.4 yrs

Kirsten Ægidius

TITLE
Director
AGE
56
TENURE
0.4 yrs

Carl Hagen

TITLE
Director
TENURE
0.4 yrs

Stein Hagen

TITLE
Deputy Director
AGE
63
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
18. Jun 19 Sell Bjorn Oulie Individual 17. Jun 19 17. Jun 19 -400 NOK37.00 NOK-14,800
13. Dec 18 Buy Bjorn Oulie Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
14. Dec 18 Buy Michael Johansen Individual 13. Dec 18 13. Dec 18 6,300 NOK41.00 NOK258,300
13. Dec 18 Buy Konstanse Kjøle Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Jan Gresaker Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Anne Flaten Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Christian Granlund Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Erlend Stefansson Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Bjørn Delbæk Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
13. Dec 18 Buy Erik Hagen Individual 13. Dec 18 13. Dec 18 359 NOK41.70 NOK14,970
X
Management checks
We assess Arcus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arcus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why You Should Care About Arcus ASA’s (OB:ARCUS) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

A Note On Arcus ASA's (OB:ARCUS) ROE and Debt To Equity

Arcus has a ROE of 13%, based on the last twelve months. … Another way to think of that is that for every NOK1 worth of equity in the company, it was able to earn NOK0.13. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Arcus ASA (OB:ARCUS): A Look At Return On Capital

and want to better understand how you can grow your money by investing in Arcus ASA (OB:ARCUS). … Thus, to understand how your money can grow by investing in Arcus, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Calculating Return On Capital Employed for ARCUS

Simply Wall St -

Who Owns Most Of Arcus ASA (OB:ARCUS)?

In this article, I'm going to take a look at Arcus ASA’s (OB:ARCUS) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Check out our latest analysis for Arcus … OB:ARCUS Ownership Summary August 20th 18

Simply Wall St -

An Intrinsic Calculation For Arcus ASA (OB:ARCUS) Shows It's 34.59% Undervalued

In this article I am going to calculate the intrinsic value of Arcus ASA (OB:ARCUS). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Arcus ASA (OB:ARCUS) A Financially Sound Company?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Should You Be Tempted To Sell Arcus ASA (OB:ARCUS) At Its Current PE Ratio?

which is -148.89770273997357 lower than 25.22x average multiple of the NO Beverage. … However, a static multiple such as PE is never conclusive on its own. … This article will cover some key aspects we should consider in order to determine the best multiple to be used for

Simply Wall St -

Is June The Month To Buy Arcus ASA (OB:ARCUS)?

Growth expectations for Arcus ASA (OB:ARCUS) are high, but many investors are starting to ask whether its last close at NOK42.3 can still be rationalized by the future potential. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Analysts are predicting good growth prospects for Arcus over the next couple of years

Simply Wall St -

Is Arcus ASA (OB:ARCUS) A Smart Pick For Income Investors?

Recently, Arcus ASA (OB:ARCUS) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … 5 questions to ask before buying a dividend stock … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Arcus ASA (OB:ARCUS) Is Trading At A 36% Discount

Today, I will calculate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (NOK, Millions) NOK279.00 NOK276.00 NOK288.79 NOK302.17 NOK316.18 Source Analyst x1 Analyst x1 Extrapolated @ (4.63%) Extrapolated @ (4.63%) Extrapolated @ (4.63%) Present Value Discounted @ 8.4% NOK257.38 NOK234.89 NOK226.73 NOK218.86 NOK211.26 Present Value of 5-year Cash Flow (PVCF)= NOK1,149 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … OB:ARCUS Intrinsic Value May 9th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Company Info

Description

Arcus ASA, together with its subsidiaries, imports, produces, markets, sells, and distributes wine and spirits. The company offers its products under various brands, such as Lysholm Linie, Løiten Linie, Gammel Opland, Gilde, Aalborg, Malteserkreutz and Snälleröds, Gammel Dansk, Braastad cognac, Vikingfjord, Amundsen, Brennevin Seksti, Vanlig, Dworek, Hammer, Kalinka, Dobra, Doppio Passo, Pietro de Campo, Hot n’Sweet, Dooley’s, Eau de Vie, Golden Cock, St. Hallvard, Upper Ten, Dry Anis, Star Gin, Vanlig, Akvavit, Gammel Dans, and others. It also provides logistics services for alcoholic drinks. The company sells its products in Norway, Sweden, Finland, Denmark, Germany, the United States, and internationally. Arcus ASA is based in Hagan, Norway.

Details
Name: Arcus ASA
ARCUS
Exchange: OB
Founded:
NOK2,536,891,390
68,013,174
Website: http://www.arcus.no
Address: Arcus ASA
Destilleriveien 11,
Postbox 64,
Hagan,
Akershus, 1483,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB ARCUS Ordinary Shares Oslo Bors NO NOK 01. Dec 2016
DB A48 Ordinary Shares Deutsche Boerse AG DE EUR 01. Dec 2016
LSE 0RMY Ordinary Shares London Stock Exchange GB NOK 01. Dec 2016
BATS-CHIXE ARCUSO Ordinary Shares BATS 'Chi-X Europe' GB NOK 01. Dec 2016
Number of employees
Current staff
Staff numbers
429
Arcus employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/21 21:50
End of day share price update: 2019/09/20 00:00
Last estimates confirmation: 2019/08/27
Last earnings filing: 2019/08/15
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.