Fjordkraft Holding ASA, together with its subsidiaries, engages in the purchase, sale, and portfolio management of electrical power to households, private and public companies, and municipalities in Norway.
The last earnings update was 30 days ago.
Discounted Cash Flow Calculation for OB:FKRAFT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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:FKRAFT DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Fjordkraft Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
Fjordkraft Holding'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
is considered below, and whether this is a fair price.
Price based on past earnings
Fjordkraft Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Fjordkraft Holding's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Fjordkraft Holding's revenue is expected to grow by 4.4% 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.
Fjordkraft Holding's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Fjordkraft Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
Fjordkraft Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Fjordkraft Holding's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Fjordkraft Holding'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 10.6x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Rolf Barmen has been the Chief Executive Officer at Fjordkraft Holding ASA since 2013 and serves as its President. Mr. Barmen has been Chairman of Trondheim Kraft AS since 2013 He has extensive experience as the Chief Executive Officer within the telecommunication industry including with Telering AS from 1999 until 2008, Chess Communication from 2008 until 2011 and NextGenTel from 2011 until 2013. Furthermore, he has experience as Regional Director at Telenor Telehus and operations manager at IKEA Bergen, as well as the Chairman of Sportsklubben Brann. Mr. Barmen holds a Master of Science in Economics and Business Administration (siviløkonom) from the Norwegian School of Economics (NHH).
Rolf's compensation has been consistent with company performance over the past year, both up more than 20%.
Rolf's remuneration is about average for companies of similar size in Norway.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Fjordkraft Holding management team is about average.
President & CEO
Executive VP & CFO
Ingeborg Cecilie Morken
Executive VP & COO
EVP & Head of Technology and Digitalisation
Executive VP and Head of Group Marketing
Executive VP and Head of Strategy & M&A
Executive VP and Head of Power Trading & Alliances
Executive VP & Head of Alliances
Senior Advisor & Employee Representative Director
Morten A. Opdal
Head of Controlling & Investor Relations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Fjordkraft Holding board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Senior Advisor & Employee Representative Director
Employee Representative Director
Employee Representative Director
Live Haukvik Aker
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Here's What You Should Know About Fjordkraft Holding ASA's (OB:FKRAFT) 4.7% Dividend Yield
Dividend paying stocks like Fjordkraft Holding ASA (OB:FKRAFT) 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. … It's positive to see that Fjordkraft Holding's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … First, we think Fjordkraft Holding has an acceptable payout ratio and its dividend is well covered by cashflow.
Is Fjordkraft Holding ASA's (OB:FKRAFT) 28% ROE Better Than Average?
The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Fjordkraft Holding: 28% = øre286m ÷ øre1.0b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. … Combining Fjordkraft Holding's Debt And Its 28% Return On Equity Although Fjordkraft Holding does use debt, its debt to equity ratio of 0.18 is still low.
Is Fjordkraft Holding (OB:FKRAFT) Using Too Much Debt?
OB:FKRAFT Historical Debt, July 17th 2019 A Look At Fjordkraft Holding's Liabilities Zooming in on the latest balance sheet data, we can see that Fjordkraft Holding had liabilities of øre1.76b due within 12 months and liabilities of øre304.8m due beyond that. … This surplus suggests that Fjordkraft Holding has a conservative balance sheet, and could probably eliminate its debt without much difficulty. … While Fjordkraft Holding has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.
Do Institutions Own Shares In Fjordkraft Holding ASA (OB:FKRAFT)?
View our latest analysis for Fjordkraft Holding OB:FKRAFT Ownership Summary, July 5th 2019 What Does The Institutional Ownership Tell Us About Fjordkraft Holding? … Insider Ownership Of Fjordkraft Holding The definition of company insiders can be subjective, and does vary between jurisdictions. … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Is Fjordkraft Holding ASA's (OB:FKRAFT) Stock Available For A Good Price After Accounting For Growth?
Fjordkraft Holding ASA (OB:FKRAFT) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of NOK43 is based on unrealistic expectations. … Fjordkraft Holding is available at a price-to-earnings ratio of 15.69x, showing us it is overvalued compared to the NO market average ratio of 12.88x , and overvalued based on current earnings compared to the Electric Utilities industry average of 12.01x. … So, when we include the growth factor in our analysis, Fjordkraft Holding appears slightly overvalued , based on fundamental analysis.
Fjordkraft Holding (OB:FKRAFT) Shareholders Have Enjoyed A 19% Share Price Gain
Fjordkraft Holding ASA (OB:FKRAFT) shareholders might be concerned after seeing the share price drop 11% in the last week. … During the last year Fjordkraft Holding grew its earnings per share (EPS) by 14%. … It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually).
Are Fjordkraft Holding ASA’s (OB:FKRAFT) High Returns Really That Great?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fjordkraft Holding: 0.28 = øre368m ÷ (øre3.1b - øre1.8b) (Based on the trailing twelve months to March 2019.) So, Fjordkraft Holding has an ROCE of 28%. … How Fjordkraft Holding's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.
Should We Worry About Fjordkraft Holding ASA's (OB:FKRAFT) P/E Ratio?
We'll look at Fjordkraft Holding ASA's (OB:FKRAFT) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Fjordkraft Holding: P/E of 16.28 = NOK39.5 ÷ NOK2.43 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation.
Do Institutions Own Fjordkraft Holding ASA (OB:FKRAFT) Shares?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Fjordkraft Holding is not a large company by global standards. … institutions own shares in the company.
Fjordkraft Holding ASA, together with its subsidiaries, engages in the purchase, sale, and portfolio management of electrical power to households, private and public companies, and municipalities in Norway. It operates through two segments, Consumer and Business. The Consumer segment sells electrical power and related services to private consumers. The Business segment sells electrical power and related services to business consumers. The company also provides mobile phone services to private customers. Fjordkraft Holding ASA was founded in 2001 and is headquartered in Bergen, Norway.
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