ASX:ABV

Stock Analysis Report

Advanced Braking Technology

Executive Summary

Advanced Braking Technology Limited researches, designs, develops, engineers, manufactures, commercializes, and sells braking systems and brake parts in Australia and internationally.

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (A$14M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Advanced Braking Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.2%

ABV

-2.0%

AU Auto Components

1.9%

AU Market


1 Year Return

72.2%

ABV

12.8%

AU Auto Components

21.4%

AU Market

Return vs Industry: ABV exceeded the Australian Auto Components industry which returned 16.4% over the past year.

Return vs Market: ABV exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

ABVIndustryMarket
7 Day-16.2%-2.0%1.9%
30 Day10.7%3.3%5.2%
90 Day6.9%8.6%6.2%
1 Year72.2%72.2%16.8%12.8%26.9%21.4%
3 Year-55.7%-55.7%39.2%27.5%40.1%21.3%
5 Year-60.3%-61.3%90.0%62.6%61.8%25.3%

Price Volatility Vs. Market

How volatile is Advanced Braking Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Advanced Braking Technology undervalued compared to its fair value and its price relative to the market?

4.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ABV's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ABV's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ABV is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: ABV is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABV is good value based on its PB Ratio (4.5x) compared to the AU Auto Components industry average (5x).


Next Steps

Future Growth

How is Advanced Braking Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.8%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Advanced Braking Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Advanced Braking Technology performed over the past 5 years?

39.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABV is currently unprofitable.

Growing Profit Margin: ABV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ABV is unprofitable, but has reduced losses over the past 5 years at a rate of 39.5% per year.

Accelerating Growth: Unable to compare ABV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ABV is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-10.7%).


Return on Equity

High ROE: ABV has a negative Return on Equity (-84.22%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanced Braking Technology's financial position?


Financial Position Analysis

Short Term Liabilities: ABV's short term assets (A$4.5M) exceed its short term liabilities (A$3.6M).

Long Term Liabilities: ABV's short term assets (A$4.5M) exceed its long term liabilities (A$63.0K).


Debt to Equity History and Analysis

Debt Level: ABV's debt to equity ratio (103.8%) is considered high.

Reducing Debt: ABV's debt to equity ratio has increased from 86.1% to 103.8% over the past 5 years.


Balance Sheet

Inventory Level: ABV has a high level of physical assets or inventory.

Debt Coverage by Assets: ABV's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ABV has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ABV has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.4% each year


Next Steps

Dividend

What is Advanced Braking Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ABV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ABV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABV's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Advanced Braking Technology's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

John Annand 0

1.1yrs

Tenure

AU$262,000

Compensation

Mr. John Douglas Annand has been Chief Executive Officer of Advanced Braking Technology Limited since December 3, 2018. Mr. Annand served as the Chief Financial Officer of Advanced Braking Technology Limit ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD180.81K) is below average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: ABV's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

Experienced Board: ABV's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: ABV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$40,41728 Nov 19
Parks Australia Proprietary Limited
EntityCompany
Shares1,400,000
Max PriceAU$0.029
BuyAU$53,72328 Nov 19
Keith Knowles
EntityIndividual
Shares2,027,008
Max PriceAU$0.03
SellAU$6,29010 Oct 19
Keith Knowles
EntityIndividual
Shares285,503
Max PriceAU$0.022
BuyAU$180,75110 Oct 19
Keith Knowles
EntityIndividual
Shares7,500,000
Max PriceAU$0.024
BuyAU$164,13629 Mar 19
Parks Australia Proprietary Limited
EntityCompany
Shares58,249,928
Max PriceAU$0.02
BuyAU$121,12729 Mar 19
Keith Knowles
EntityIndividual
Shares7,007,510
Max PriceAU$0.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.4%.


Management Team

  • Sarah Murdoch

    Manager of Supply Chain

    • Tenure: 2.1yrs
    • Compensation: AU$125.88k
  • John Annand

    Chief Executive Officer

    • Tenure: 1.1yrs
    • Compensation: AU$262.00k
  • Kaitlin Smith

    Company Secretary

    • Tenure: 1.4yrs
  • Geoff Lewis

    Sales Director

    • Tenure: 1yrs
    • Compensation: AU$266.00k
  • Paige Exley

    Chief Financial Officer

    • Tenure: 0.3yrs
    • Compensation: AU$116.77k

Board Members

  • David Slack

    Non-Executive Director

    • Tenure: 10.3yrs
  • Mark Lindh

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: AU$60.00m
  • Adam Levine

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$60.00m
  • Dagmar Parsons

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: AU$94.00m

Company Information

Advanced Braking Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Braking Technology Limited
  • Ticker: ABV
  • Exchange: ASX
  • Founded: 1999
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: AU$11.754m
  • Shares outstanding: 379.15m
  • Website: https://www.advancedbraking.com

Number of Employees


Location

  • Advanced Braking Technology Limited
  • 19 Creative Street
  • Wangara
  • Western Australia
  • 6065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2002
ABVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2002

Biography

Advanced Braking Technology Limited researches, designs, develops, engineers, manufactures, commercializes, and sells braking systems and brake parts in Australia and internationally. The company offers service, parking, and emergency sealed integrated braking systems for light commercial, underground mining, and heavy vehicles under the Terra Dura, ABT Failsafe, and ABT Failsafe Emergency brand names. It also provides installation and maintenance services. The company was founded in 1999 and is headquartered in Wangara, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 10:35
End of Day Share Price2020/01/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.