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1. Company Snapshot

1.a. Company Description

Arendals Fossekompani ASA, an industrial investment company, owns and operates hydropower plants.It also provides business-critical software and technology services for power generation, power transmission and distribution, and infrastructure.In addition, the company manufactures and sells materials for 3D printing in the aerospace, medical, and automotive sectors; and nanomaterials for electronics and batteries industries, as well as offers satellite communications and IT solutions.


Further, it delivers green power technology based on induction technology; offers voice and data services; and owns and develops various properties.The company operates in Norway, rest of Europe, Asia, and North America.Arendals Fossekompani ASA was founded in 1896 and is headquartered in Arendal, Norway.

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1.b. Last Insights on AFK

Arendals Fossekompani ASA's recent performance was driven by strong performances in key segments, despite a dip in total revenue. The company showcased resilience through strategic investments for future growth, highlighting its ability to navigate challenging market conditions. Additionally, insider activity in April 2025 suggests that company executives are confident in its prospects, potentially indicating a buy signal for investors. The company's focus on growth-oriented initiatives positions it well for long-term success, despite short-term market volatility.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.83%)

6. Segments

ENRX

Expected Growth: 8.23%

ENRX's 8.23% growth is driven by increasing demand for renewable energy, government incentives for green projects, and Arendals Fossekompani ASA's strategic expansion into new markets, leveraging its expertise in hydroelectric power generation and grid infrastructure development.

Volue

Expected Growth: 10.27%

Arendals Fossekompani ASA's 10.27% growth is driven by increasing demand for renewable energy, government incentives for hydroelectric power, and strategic expansion into new markets. Additionally, the company's focus on operational efficiency and cost reduction has contributed to improved profitability, enabling investments in growth initiatives.

NSSL Global

Expected Growth: 8.97%

NSSL Global's 8.97% growth is driven by increasing demand for satellite communication services, expansion into new markets, and strategic partnerships. The company's focus on innovation, cost-effective solutions, and strong relationships with key customers also contribute to its growth. Additionally, the acquisition by Arendals Fossekompani ASA provides access to new resources and expertise, further fueling growth.

Hydropower

Expected Growth: 6.47%

Arendals Fossekompani ASA's 6.47% hydropower growth is driven by increasing demand for renewable energy, favorable government policies, and declining production costs. Additionally, Norway's abundant water resources and existing infrastructure support the growth of hydropower generation. Furthermore, the company's focus on operational efficiency and capacity upgrades also contribute to its growth momentum.

Tekna

Expected Growth: 10.27%

Tekna's 10.27% growth is driven by increasing demand for its specialized alloy powders in the 3D printing industry, coupled with its strategic expansion into the Asian market. Additionally, the company's focus on research and development has led to the introduction of new products, further boosting revenue growth.

Ampwell

Expected Growth: 10.98%

Ampwell's 10.98% growth is driven by increasing demand for renewable energy solutions, strategic partnerships, and expansion into new markets. Additionally, Arendals Fossekompani ASA's strong financial position and commitment to innovation have enabled Ampwell to invest in R&D, enhancing its product offerings and competitiveness.

Alytic

Expected Growth: 10.27%

Alytic's 10.27% growth is driven by increasing demand for renewable energy solutions, strategic partnerships, and expansion into new markets. The company's focus on innovation, cost reduction, and operational efficiency also contribute to its growth. Additionally, the rising need for sustainable and environmentally friendly practices in the industry supports Alytic's growth momentum.

Eliminations

Expected Growth: 4.83%

Arendals Fossekompani ASA's 4.83% growth is driven by increasing demand for renewable energy, favorable regulatory policies, and strategic investments in hydroelectric power plants. Additionally, the company's focus on operational efficiency and cost reduction initiatives have contributed to the growth.

Property

Expected Growth: 6.4%

Arendals Fossekompani ASA's 6.4% growth is driven by increasing demand for renewable energy, government incentives for hydropower production, and strategic expansion into new markets. Additionally, the company's focus on operational efficiency and cost reduction measures have contributed to its growth momentum.

Group Management

Expected Growth: 8.5%

Arendals Fossekompani ASA's Group Management drives 8.5% growth through strategic investments in renewable energy, efficient operations, and cost reductions. Strong leadership and a focused organizational structure enable effective resource allocation, while a commitment to innovation and R&D fuels long-term expansion.

Vergia

Expected Growth: 4.73%

Vergia's 4.73% growth is driven by increasing demand for renewable energy, government incentives for green infrastructure, and strategic partnerships. Additionally, Arendals Fossekompani ASA's focus on sustainable operations and cost reductions have improved efficiency, contributing to the segment's growth.

7. Detailed Products

Hydroelectric Power

Arendals Fossekompani ASA generates and sells hydroelectric power to the Norwegian power grid, providing clean and renewable energy to households and businesses.

Water Management

The company offers water management services, including water storage, flood control, and irrigation systems, to support agriculture, industry, and municipal water supply.

Real Estate Development

Arendals Fossekompani ASA develops and manages commercial and residential properties, including office spaces, apartments, and recreational areas.

Tourism and Recreation

The company offers tourism and recreational activities, such as hiking, fishing, and skiing, in the surrounding areas of its hydroelectric power plants.

8. Arendals Fossekompani ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Arendals Fossekompani ASA operates in the renewable energy sector, which has a moderate threat of substitutes. While there are alternative energy sources, the company's focus on hydroelectric power provides a unique selling proposition.

Bargaining Power Of Customers

Arendals Fossekompani ASA's customers are primarily industrial and commercial entities, which have limited bargaining power due to the company's dominant market position and lack of alternative suppliers.

Bargaining Power Of Suppliers

Arendals Fossekompani ASA relies on a few key suppliers for equipment and services, which gives them some bargaining power. However, the company's scale and reputation mitigate this risk.

Threat Of New Entrants

The renewable energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge Arendals Fossekompani ASA's market position.

Intensity Of Rivalry

Arendals Fossekompani ASA operates in a moderately competitive market, with a few established players. While there is some rivalry, the company's strong brand and market position help to mitigate this risk.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.27%
Debt Cost 8.43%
Equity Weight 53.73%
Equity Cost 8.43%
WACC 8.43%
Leverage 86.11%

11. Quality Control: Arendals Fossekompani ASA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
GPI

A-Score: 6.1/10

Value: 4.8

Growth: 6.8

Quality: 3.1

Yield: 7.5

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Nolato

A-Score: 5.4/10

Value: 3.7

Growth: 4.3

Quality: 5.7

Yield: 6.9

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Arendals Fossekompani

A-Score: 5.1/10

Value: 5.4

Growth: 4.8

Quality: 7.5

Yield: 6.9

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Volati

A-Score: 4.8/10

Value: 4.0

Growth: 6.3

Quality: 4.1

Yield: 5.6

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Bergman & Beving

A-Score: 4.1/10

Value: 4.8

Growth: 3.3

Quality: 3.8

Yield: 2.5

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
BayWa

A-Score: 3.7/10

Value: 10.0

Growth: 4.3

Quality: 5.4

Yield: 1.2

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

135.0$

Current Price

135$

Potential

-0.00%

Expected Cash-Flows