| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4.40 | -98 |
| Intrinsic value (DCF) | 56.28 | -70 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 3.50 | -98 |
AF Gruppen ASA is a leading Norwegian contracting and industrial company specializing in civil engineering, construction, property development, energy, environmental services, and offshore operations. Headquartered in Oslo, Norway, and listed on the London Stock Exchange, AF Gruppen operates primarily in Norway and Sweden, delivering infrastructure, commercial, and residential projects. The company's diversified business model includes civil engineering (roads, railways, tunnels), construction (residential, commercial, public buildings), property development, and energy-efficient solutions. Its offshore segment focuses on decommissioning, recycling, and maintenance of oil and gas installations. Founded in 1985, AF Gruppen has established itself as a key player in Scandinavia's engineering and construction sector, leveraging its expertise in sustainable and innovative project execution. With a market cap of approximately NOK 16.1 billion, the company plays a vital role in Norway's infrastructure development while expanding its environmental and energy services.
AF Gruppen ASA presents a stable investment opportunity within the Scandinavian construction and engineering sector, supported by its diversified operations and strong regional presence. The company's revenue of NOK 30.6 billion and net income of NOK 708 million reflect steady performance, while its low beta (0.72) suggests lower volatility compared to the broader market. A dividend yield of approximately 3.1% (based on a NOK 5 dividend per share) adds income appeal. However, risks include exposure to cyclical construction demand, regulatory changes in Norway's oil and gas sector (affecting offshore operations), and potential margin pressures from rising labor and material costs. The company's solid operating cash flow (NOK 2.2 billion) and manageable debt (NOK 1.3 billion) provide financial flexibility, but investors should monitor its ability to maintain profitability amid competitive bidding environments.
AF Gruppen ASA holds a competitive advantage through its vertically integrated operations, spanning civil engineering, construction, and property development, allowing for cross-business synergies. Its strong reputation in Norway's infrastructure sector and expertise in sustainable practices (e.g., energy-efficient buildings, recycling services) differentiate it from pure-play contractors. The company's offshore segment benefits from Norway's stringent environmental regulations, positioning it as a preferred partner for oil and gas decommissioning. However, AF Gruppen faces intense competition from larger European construction firms and regional players. Its focus on Scandinavia limits geographic diversification, exposing it to local economic cycles. While its Betonmast division strengthens its residential construction capabilities, rivals with broader European operations may have better economies of scale. AF Gruppen's competitive positioning relies on its ability to secure high-margin projects and maintain cost efficiency in a labor-intensive industry.