Wide-moat Kongsberg reported strong first-quarter results. We are increasing our fair value estimate to NOK 850 from NOK 630 on the back of higher budgeted defense spending by Norway and Europe.
KOG is trading within a range we consider fairly valued.
Price
NOK 786.00
Fair Value
NOK 855.00
Uncertainty
Medium
1-Star Price
NOK 3,473.10
5-Star Price
NOK 626.00
Economic Moat
Jsdr
Capital Allocation
Ncbpktty
Bulls Say, Bears Say
Bulls
Kongsberg's marine revenue and operating margins will continue to trend higher, largely due to the successful scaling and integration of Rolls-Royce Commercial Marine.
Bears
New shipbuilding activities continue to be subdued due to increased costs and uncertainty regarding the commercial viability of various zero-emission fuels.
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if KOG is a good fit for your portfolio.
Kongsberg Gruppen is an international technology company that supplies products and services to the defense, maritime, oil, gas, and aerospace industries. The company is divided into two business segments: the maritime segment and defense and aerospace systems. Maritime, which earns most of the firm's revenue, creates navigation, automation, monitoring, and positioning products for commercial ships and offshore industries. The defense and aerospace segment provides defense and space-related products and systems. Outside of the two main segments, the firm operates Kongsberg Digital, which produces digital solutions for oil, gas, wind, and merchant marine markets. Products are delivered globally, with North America accounting for about one third of total revenue.