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Orkla

OB:ORK
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ORK
OB
NOK79B
Market Cap
  1. Home
  2. NO
  3. Food, Beverage & Tobacco
Company description

Orkla ASA engages in the branded consumer goods, renewable energy, real estate, and financial investment businesses. The last earnings update was 64 days ago. More info.


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ORK Share Price and Events
7 Day Returns
-3.9%
OB:ORK
-4.8%
NO Food
2.6%
NO Market
1 Year Returns
16%
OB:ORK
3.4%
NO Food
-9.1%
NO Market
ORK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Orkla (ORK) -3.9% 1.5% 3.5% 16% 2.3% 34.1%
NO Food -4.8% -6.4% 1.7% 3.4% 41.6% 115.5%
NO Market 2.6% 8% 2.6% -9.1% 31.3% 13.2%
1 Year Return vs Industry and Market
  • ORK outperformed the Food industry which returned 3.4% over the past year.
  • ORK outperformed the Market in Norway which returned -9.1% over the past year.
Price Volatility
ORK
Industry
5yr Volatility vs Market

Value

 Is Orkla 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 Orkla 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 Orkla.

OB:ORK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
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:ORK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.546 (1 + (1- 23%) (13.39%))
0.734
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (0.8 * 5.96%)
6.53%

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

The calculations below outline how an intrinsic value for Orkla 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:ORK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 6.53%)
2020 3,262.67 Analyst x3 3,062.73
2021 3,530.00 Analyst x3 3,110.62
2022 4,756.00 Analyst x1 3,934.15
2023 5,441.57 Est @ 14.41% 4,225.41
2024 6,019.37 Est @ 10.62% 4,387.65
2025 6,498.57 Est @ 7.96% 4,446.67
2026 6,895.02 Est @ 6.1% 4,428.83
2027 7,225.87 Est @ 4.8% 4,356.92
2028 7,506.73 Est @ 3.89% 4,248.90
2029 7,750.61 Est @ 3.25% 4,118.11
Present value of next 10 years cash flows NOK40,320.00
OB:ORK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NOK7,750.61 × (1 + 1.76%) ÷ (6.53% – 1.76%)
NOK165,415.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK165,415.74 ÷ (1 + 6.53%)10
NOK87,889.92
OB:ORK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK40,320.00 + NOK87,889.92
NOK128,209.92
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK128,209.92 / 1,000.31
NOK128.17
OB:ORK Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK128.17
Current discount Discount to share price of NOK78.78
= -1 x (NOK78.78 - NOK128.17) / NOK128.17
38.5%

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

Current Discount
Amount off the current price Orkla is available for.
Intrinsic value
39%
Share price is NOK78.78 vs Future cash flow value of NOK128.17
Current Discount Checks
For Orkla to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Orkla's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Orkla'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 Orkla's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Orkla's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:ORK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in NOK NOK3.40
OB:ORK Share Price ** OB (2019-09-13) in NOK NOK78.78
Norway Food Industry PE Ratio Median Figure of 9 Publicly-Listed Food Companies 15.79x
Norway Market PE Ratio Median Figure of 149 Publicly-Listed Companies 13.32x

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

** Primary Listing of Orkla.

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

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

= 78.78 ÷ 3.40

23.2x

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

  • Orkla is overvalued based on earnings compared to the NO Food industry average.
  • Orkla is overvalued based on earnings compared to the Norway market.
Price based on expected Growth
Does Orkla's expected growth come at a high price?
Raw Data
OB:ORK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
5.7%per year
Norway Food Industry PEG Ratio Median Figure of 9 Publicly-Listed Food Companies 0.94x
Norway Market PEG Ratio Median Figure of 110 Publicly-Listed Companies 0.72x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.2x ÷ 5.7%

4.07x

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

  • Orkla is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Orkla's assets?
Raw Data
OB:ORK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in NOK NOK32.07
OB:ORK Share Price * OB (2019-09-13) in NOK NOK78.78
Norway Food Industry PB Ratio Median Figure of 11 Publicly-Listed Food Companies 3.57x
Norway Market PB Ratio Median Figure of 238 Publicly-Listed Companies 1.13x
OB:ORK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 78.78 ÷ 32.07

2.46x

* Primary Listing of Orkla.

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

  • Orkla is good value based on assets compared to the NO Food industry average.
X
Value checks
We assess Orkla'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 Food 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 Food industry average (and greater than 0)? (1 check)
  5. Orkla has a total score of 2/6, 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 Orkla expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

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
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Orkla expected to grow at an attractive rate?
  • Orkla's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • Orkla's earnings growth is positive but not above the Norway market average.
  • Orkla's revenue growth is positive but not above the Norway market average.
Annual Growth Rates Comparison
Raw Data
OB:ORK Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:ORK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 5.7%
OB:ORK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2.6%
Norway Food Industry Earnings Growth Rate Market Cap Weighted Average 13%
Norway Food Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
Norway Market Earnings Growth Rate Market Cap Weighted Average 15.1%
Norway Market Revenue Growth Rate Market Cap Weighted Average 4%

*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:ORK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:ORK Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 46,274 6,825 4,502 2
2021-12-31 45,204 5,828 4,273 8
2020-12-31 44,155 5,624 3,997 9
2019-12-31 43,025 5,193 3,869 8
2019-09-14
OB:ORK Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-06-30 41,827 4,892 3,396
2019-03-31 41,302 5,315 3,325
2018-12-31 40,837 4,388 3,272
2018-09-30 40,705 3,708 3,509
2018-06-30 40,437 3,891 3,492
2018-03-31 40,191 5,406 3,421
2017-12-31 39,561 6,067 3,516
2017-09-30 38,996 6,347 3,457
2017-06-30 38,567 6,184 3,359
2017-03-31 38,229 4,461 3,091
2016-12-31 37,758 4,118 3,403
2016-09-30 37,043 4,168 3,245

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Orkla's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Orkla's revenue is expected to grow by 2.6% 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:ORK 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 9 Analyst Estimates (S&P Global) See Below

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

OB:ORK Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 4.50 4.76 4.25 2.00
2021-12-31 4.24 4.62 3.96 8.00
2020-12-31 3.96 4.37 3.71 9.00
2019-12-31 3.84 4.18 3.58 9.00
2019-09-14
OB:ORK Past Financials Data
Date (Data in NOK Millions) EPS *
2019-06-30 3.40
2019-03-31 3.30
2018-12-31 3.24
2018-09-30 3.47
2018-06-30 3.43
2018-03-31 3.36
2017-12-31 3.46
2017-09-30 3.40
2017-06-30 3.31
2017-03-31 3.04
2016-12-31 3.34
2016-09-30 3.19

*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.
  • Orkla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Orkla'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 Norway market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Norway 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.
Orkla has a total score of 1/6, 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 Orkla 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 Orkla's growth in the last year to its industry (Food).
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.
  • Orkla's year on year earnings growth rate has been positive over the past 5 years.
  • Orkla's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Orkla's 1-year earnings growth is negative, it can't be compared to the NO Food industry average.
Earnings and Revenue History
Orkla'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 Orkla Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:ORK 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 41,827.00 3,396.00 9,787.00
2019-03-31 41,302.00 3,325.00 9,778.00
2018-12-31 40,837.00 3,272.00 9,754.00
2018-09-30 40,705.00 3,509.00 9,614.00
2018-06-30 40,437.00 3,492.00 9,614.00
2018-03-31 40,191.00 3,421.00 9,613.00
2017-12-31 39,561.00 3,516.00 9,612.00
2017-09-30 38,996.00 3,457.00 9,327.00
2017-06-30 38,567.00 3,359.00 9,327.00
2017-03-31 38,229.00 3,091.00 9,328.00
2016-12-31 37,758.00 3,403.00 9,329.00
2016-09-30 37,043.00 3,245.00 8,366.00
2016-06-30 35,995.00 3,158.00 8,384.00
2016-03-31 34,267.00 3,778.00 8,361.00
2015-12-31 33,198.00 3,312.00 8,360.00
2015-09-30 31,746.00 2,874.00 7,473.00
2015-06-30 30,636.00 2,736.00 7,452.00
2015-03-31 30,127.00 2,330.00 7,474.00
2014-12-31 29,599.00 2,144.00 7,523.00
2014-09-30 28,891.00 2,593.00 7,004.00
2014-06-30 29,128.00 2,368.00 6,996.00
2014-03-31 27,809.00 1,954.00 6,985.00
2013-12-31 28,015.00 2,237.00 6,926.00
2013-09-30 29,025.00 1,980.00 6,556.00
2013-06-30 28,710.00 2,473.00 6,556.00
2013-03-31 30,046.00 2,967.00 6,556.00
2012-12-31 24,595.00 3,215.00 5,865.00
2012-09-30 29,599.00 3,928.00 6,828.00

*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.
  • Orkla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Orkla used its assets less efficiently than the NO Food industry average last year based on Return on Assets.
  • Orkla has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Orkla'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 Food 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.
Orkla has a total score of 2/6, 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 Orkla'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 Orkla's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Orkla is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Orkla's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Orkla'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 1.6x 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 Orkla Company Filings, last reported 2 months ago.

OB:ORK Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 32,506.00 8,971.00 954.00
2019-03-31 34,138.00 5,466.00 1,265.00
2018-12-31 34,080.00 5,472.00 1,991.00
2018-09-30 32,313.00 5,350.00 1,281.00
2018-06-30 32,068.00 4,975.00 887.00
2018-03-31 34,821.00 5,007.00 4,141.00
2017-12-31 34,838.00 5,491.00 4,851.00
2017-09-30 37,984.00 9,809.00 1,556.00
2017-06-30 34,019.00 10,641.00 1,048.00
2017-03-31 35,113.00 9,220.00 1,064.00
2016-12-31 33,876.00 10,065.00 1,311.00
2016-09-30 32,532.00 10,978.00 1,115.00
2016-06-30 32,284.00 11,700.00 1,242.00
2016-03-31 33,958.00 10,317.00 1,838.00
2015-12-31 33,746.00 9,599.00 2,097.00
2015-09-30 32,112.00 10,680.00 2,297.00
2015-06-30 30,516.00 8,856.00 2,126.00
2015-03-31 31,902.00 9,168.00 2,807.00
2014-12-31 31,304.00 9,707.00 3,448.00
2014-09-30 29,849.00 10,401.00 2,479.00
2014-06-30 29,599.00 11,647.00 2,612.00
2014-03-31 31,104.00 10,538.00 3,438.00
2013-12-31 30,780.00 10,878.00 2,856.00
2013-09-30 29,773.00 11,879.00 2,329.00
2013-06-30 28,425.00 14,839.00 3,425.00
2013-03-31 31,371.00 11,684.00 8,580.00
2012-12-31 30,439.00 12,812.00 10,811.00
2012-09-30 31,173.00 14,361.00 6,549.00
  • Orkla's level of debt (27.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (38.2% vs 27.6% today).
  • Debt is well covered by operating cash flow (54.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 29.2x coverage).
X
Financial health checks
We assess Orkla'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. Orkla has a total score of 6/6, 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 Orkla'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
3.3%
Current annual income from Orkla dividends. Estimated to be 3.46% next year.
If you bought NOK2,000 of Orkla shares you are expected to receive NOK66 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?
  • Orkla's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.49%).
  • Orkla's dividend is below the markets top 25% of dividend payers in Norway (6.47%).
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:ORK 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 9 Analyst Estimates (S&P Global) See Below
Norway Food Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.2%
Norway Market Average Dividend Yield Market Cap Weighted Average of 115 Stocks 4.5%
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 6.5%

Industry and Market average data is calculated daily.

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

OB:ORK Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.95 2.00
2021-12-31 2.78 8.00
2020-12-31 2.72 9.00
2019-12-31 2.63 9.00
2019-09-14
OB:ORK Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-03-13 2.600 3.505
2017-10-02 2.600 3.479
2017-04-11 2.600 3.183
2016-02-11 2.500 3.304
2015-04-17 2.500 3.858
2014-03-20 2.500 4.583
2014-02-06 2.500 5.262
2013-02-07 2.500 5.271
2012-03-29 2.500 5.663
2012-02-09 2.500 5.456
2011-02-10 2.500 5.270
2010-04-22 2.250 4.368
2009-02-19 2.250 4.510

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Orkla's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Orkla'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 Orkla afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Orkla has a total score of 5/6, 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 Orkla'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
Jaan Semlitsch
AGE 47
TENURE AS CEO 0.1 years
CEO Bio

Mr. Jaan Ivar Semlitsch is the President and CEO at Orkla ASA since August 2019. He was the CEO of Elkjop Nordic. For the past year, he has also been in charge and CEO of Dixons Carphone's International operations. He served as CEO of Rema Industrier from 2009 to 2013 and as CEO of Plantasjen from 2007 to 2009, and was chief operating officer at Statoil Retail Europe from 2004 to 2007. From 2001 to 2004, he was CEO of Expert Denmark. From 1995 to 2001, he worked for McKinsey & Company as a consultant on assignments for a range of companies in the grocery sector. He is a director of DnB and Brav Norway (formerly Swix Sport). He holds an economics degree from the Norwegian School of Economics and an MBA from Kellogg School of Management

CEO Compensation
  • Insufficient data for Jaan to compare compensation growth.
  • Insufficient data for Jaan to establish whether their remuneration is reasonable compared to companies of similar size in Norway.
Management Team Tenure

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

5
Average Tenure
52
Average Age
  • The average tenure for the Orkla management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jens Staff

TITLE
CFO, Executive VP & Member of Group Executive Board
COMPENSATION
NOK5M
AGE
52
TENURE
5.3 yrs

Karl Tveter

TITLE
Executive VP of Strategy
COMPENSATION
NOK6M
AGE
55
TENURE
7.6 yrs

Atle Nagel-Johansen

TITLE
Executive VP of Supply Chain & Member of Group Executive Board
COMPENSATION
NOK7M
AGE
56
TENURE
7.3 yrs

Johan Clarin

TITLE
Executive VP
COMPENSATION
NOK6M
AGE
48
TENURE
6 yrs

Christer Gronberg

TITLE
Executive VP of Corporate Functions
COMPENSATION
NOK5M
AGE
58
TENURE
4.8 yrs

Ann-Beth Freuchen

TITLE
Executive VP
COMPENSATION
NOK7M
AGE
48
TENURE
4.2 yrs

Jeanette Fladby

TITLE
Executive VP
COMPENSATION
NOK4M
AGE
51
TENURE
1.7 yrs

Johan Wilhelmsson

TITLE
Executive VP
COMPENSATION
NOK5M
AGE
52
TENURE
1.7 yrs

Jaan Semlitsch

TITLE
President & CEO
AGE
47
TENURE
0.1 yrs

Håkon Mageli

TITLE
Group Director of Corporate Communications & Corporate Affairs and Member of Group Executive Board
COMPENSATION
NOK3M
AGE
55
TENURE
7.3 yrs
Board of Directors Tenure

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

5.4
Average Tenure
56.5
Average Age
  • The tenure for the Orkla board of directors is about average.
Board of Directors

Stein Hagen

TITLE
Chairman of the Board
COMPENSATION
NOK918K
AGE
63
TENURE
13.3 yrs

Grace Skaugen

TITLE
Deputy Chair of the Board
COMPENSATION
NOK794K
AGE
66

Nils Selte

TITLE
Member of the Board
COMPENSATION
NOK693K
AGE
54
TENURE
5.4 yrs

Terje Utstrand

TITLE
Director
COMPENSATION
NOK1M
AGE
55
TENURE
7.7 yrs

Roger Vangen

TITLE
Director
COMPENSATION
NOK1M
AGE
54
TENURE
3.4 yrs

Sverre Josvanger

TITLE
Director
COMPENSATION
NOK1M
AGE
56
TENURE
7.7 yrs

Ingrid Blank

TITLE
Member of the Board
COMPENSATION
NOK635K
AGE
57
TENURE
6.3 yrs

Lars Dahlgren

TITLE
Member of the Board
COMPENSATION
NOK518K
AGE
49
TENURE
5.4 yrs

Karin Hansson

TITLE
Director
COMPENSATION
NOK793K
AGE
59
TENURE
3.4 yrs

Liselott Kilaas

TITLE
Member of the Board
COMPENSATION
NOK518K
AGE
60
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Orkla individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
15. Jul 19 Buy Lars Dahlgren Individual 15. Jul 19 15. Jul 19 2,500 NOK75.76 NOK189,400
15. Jul 19 Buy Liselott Kilaas Individual 15. Jul 19 15. Jul 19 2,600 NOK76.12 NOK197,912
28. May 19 Buy Johan Wilhelmsson Individual 28. May 19 28. May 19 1,506 NOK75.20 NOK113,251
21. Mar 19 Buy Johan Wilhelmsson Individual 21. Mar 19 21. Mar 19 4,000 NOK66.94 NOK267,760
12. Feb 19 Buy Infovidi Board Services Limited Company 12. Feb 19 12. Feb 19 9,600 NOK67.13 NOK644,448
12. Feb 19 Buy Ingrid Blank Individual 12. Feb 19 12. Feb 19 2,750 NOK67.00 NOK184,250
12. Feb 19 Buy Håkon Mageli Individual 12. Feb 19 12. Feb 19 15,000 NOK67.01 NOK1,005,150
12. Feb 19 Buy Lars Dahlgren Individual 12. Feb 19 12. Feb 19 1,000 NOK67.10 NOK67,100
10. Dec 18 Buy Johan Wilhelmsson Individual 10. Dec 18 10. Dec 18 3,500 NOK68.21 NOK238,735
X
Management checks
We assess Orkla'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. Orkla 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

Should We Worry About Orkla ASA's (OB:ORK) P/E Ratio?

See our latest analysis for Orkla How Do I Calculate Orkla's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Orkla: P/E of 22.86 = NOK77.62 ÷ NOK3.4 (Based on the year to June 2019.) Is A High P/E Ratio Good? … Orkla shrunk earnings per share by 1.0% last year.

Simply Wall St -

How Orkla ASA (OB:ORK) Could Add Value To Your Portfolio

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … Flawless balance sheet established dividend payer ORK's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … OB:ORK Historical Dividend Yield, August 5th 2019 Next Steps: For Orkla, I've put together three fundamental factors you should further research: Future Outlook: What are well-informed industry analysts predicting for ORK’s future growth?

Simply Wall St -

Would Orkla ASA (OB:ORK) Be Valuable To Income Investors?

Dividend paying stocks like Orkla ASA (OB:ORK) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Orkla has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Orkla has grown its earnings per share at 9.0% per annum over the past five years. Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

What Do Analysts Think About Orkla ASA's (OB:ORK) Future?

Since Orkla ASA (OB:ORK) released its earnings in March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 18% next year relative to the past 5-year average growth rate of 8.5%. … To get an idea of the overall earnings growth trend for ORK, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … OB:ORK Past and Future Earnings, July 11th 2019 This results in an annual growth rate of 6.8% based on the most recent earnings level of øre3.3b to the final forecast of øre4.4b by 2022.

Simply Wall St -

Should You Be Concerned With Orkla ASA's (OB:ORK) -2.8% Earnings Drop?

ORK's trailing twelve-month earnings (from 31 March 2019) of øre3.3b has declined by -2.8% compared to the previous year. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.5%, indicating the rate at which ORK is growing has slowed down. … I recommend you continue to research Orkla to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ORK’s future growth?

Simply Wall St -

Should Orkla (OB:ORK) Be Disappointed With Their 40% Profit?

To wit, the Orkla share price has climbed 40% in five years, easily topping the market return of 7.3% (ignoring dividends). … During five years of share price growth, Orkla achieved compound earnings per share (EPS) growth of 12% per year. … We note that for Orkla the TSR over the last 5 years was 78%, which is better than the share price return mentioned above.

Simply Wall St -

Is Orkla ASA (OB:ORK) As Strong As Its Balance Sheet Indicates?

With this increase in debt, the current cash and short-term investment levels stands at øre1.3b to keep the business going. … Moreover, ORK has produced cash from operations of øre5.3b over the same time period, resulting in an operating cash to total debt ratio of 75%, indicating that ORK’s current level of operating cash is high enough to cover debt. … With current liabilities at øre10b, it appears that the company has been able to meet these obligations given the level of current assets of øre14b, with a current ratio of 1.38x.

Simply Wall St -

Are Investors Undervaluing Orkla ASA (OB:ORK) By 41%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Orkla ASA (OB:ORK) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (NOK, Millions) NOK2.83k NOK3.26k NOK3.57k NOK5.06k NOK5.77k NOK6.36k NOK6.84k NOK7.25k NOK7.59k NOK7.87k Growth Rate Estimate Source Analyst x2 Analyst x4 Analyst x4 Analyst x1 Est @ 13.87% Est @ 10.23% Est @ 7.69% Est @ 5.91% Est @ 4.67% Est @ 3.79% Present Value (NOK, Millions) Discounted @ 6.53% NOK2.66k NOK2.87k NOK2.96k NOK3.93k NOK4.20k NOK4.35k NOK4.40k NOK4.37k NOK4.29k NOK4.18k Present Value of 10-year Cash Flow (PVCF)= NOK38.21b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = øre7.9b × (1 + 1.8%) ÷ (6.5% – 1.8%) = øre168b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = NOKøre168b ÷ ( 1 + 6.5%)10 = NOK89.30b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is NOK127.51b.

Simply Wall St -

Have Insiders Been Buying Orkla ASA (OB:ORK) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Orkla ASA (OB:ORK). … View our latest analysis for Orkla Orkla Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Group Director of Corporate Communications &amp; Corporate Affairs and Member of Group Executive Board Håkon Mageli bought øre1.0m worth of shares at a price of øre67.01 per share. … Orkla Insiders Bought Stock Recently Over the last three months, we've seen a bit of insider buying at Orkla.

Simply Wall St -

Is Orkla ASA's (OB:ORK) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Orkla's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Orkla ASA engages in the branded consumer goods, renewable energy, real estate, and financial investment businesses. The company offers branded products, including pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery retail trade, as well as the out-of-home, convenience store, and petrol station sectors. It also provides confectionery, biscuit, and snack products; and develops bran and crispbread products, as well as snack meals. In addition, the company offers cleaning products, toothbrushes, and personal hygiene products; hygiene and cleaning solutions to the professional market; dietary supplements and health products; basic garments through the grocery channel; painting tools and cleaning products; and wound care products, as well as operates Gymgrossisten and Bodystore e-commerce portals for health and sports nutrition products. Further, it supplies margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan, and ice cream ingredients; produces and supplies power to the Nordic power market; and undertakes industrial property and real estate development projects. The company offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Abba, Kalles, Beauvais, Den Gamle Fabrik, Spilva, Vitana and MTR brands; snacks and confectionery products under the KiMs, Nidar, Göteborgs Kex, Sætre, OLW, Panda, Laima, Selga, Adazu, and Kalev brands; wound care and health products under the Möller’s, Collett, Salvequick, Nutrilett, Maxim, Riemann, Define, Sunsilk, Blenda, Jif, Sun, Zalo, Jordan, and Pierre Robert brands; and food ingredients under the Mors Hjemmebakte, Bakke Dal, and Naturli’ brands. It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally. The company is headquartered in Oslo, Norway.

Details
Name: Orkla ASA
ORK
Exchange: OB
Founded:
NOK78,804,128,895
1,000,306,282
Website: http://www.orkla.com
Address: Orkla ASA
Nedre Skøyenvei 26,
Oslo,
Oslo, 0276,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB ORK Ordinary Shares Oslo Bors NO NOK 02. Jan 1992
OTCPK ORKL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB OKL Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0FIN Ordinary Shares London Stock Exchange GB NOK 02. Jan 1992
BATS-CHIXE ORKO Ordinary Shares BATS 'Chi-X Europe' GB NOK 02. Jan 1992
OTCPK ORKL.Y SPON ADR A Pink Sheets LLC US USD 26. Oct 1995
Number of employees
Current staff
Staff numbers
18,510
Orkla employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/14 21:17
End of day share price update: 2019/09/13 00:00
Last estimates confirmation: 2019/09/11
Last earnings filing: 2019/07/12
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.