ASX:ABV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Advanced Braking Technology

Executive Summary

Advanced Braking Technology Limited researches, designs, develops, manufactures, commercializes, and sells braking systems and brake parts worldwide. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

ABV

-3.0%

AU Auto Components

-3.5%

AU Market


1 Year Return

16.7%

ABV

40.7%

AU Auto Components

-9.2%

AU Market

Return vs Industry: ABV underperformed the Australian Auto Components industry which returned 42.7% over the past year.

Return vs Market: ABV exceeded the Australian Market which returned -8.3% over the past year.


Shareholder returns

ABVIndustryMarket
7 Day2.9%-3.0%-3.5%
30 Day6.1%8.9%0.5%
90 Day-10.3%39.4%2.3%
1 Year16.7%16.7%43.7%40.7%-6.0%-9.2%
3 Year-30.0%-30.0%61.0%48.4%12.4%-1.8%
5 Year-50.0%-50.0%128.7%99.8%39.6%10.8%

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?

71.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABV (A$0.04) is trading above our estimate of fair value (A$0.01)

Significantly Below Fair Value: ABV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABV is poor value based on its PE Ratio (71.6x) compared to the AU Auto Components industry average (40x).

PE vs Market: ABV is poor value based on its PE Ratio (71.6x) compared to the Australian market (21x).


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 (3.3x) compared to the AU Auto Components industry average (4.3x).


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?

38.9%

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?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABV has a large one-off gain of A$124.0K impacting its June 30 2020 financial results.

Growing Profit Margin: ABV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ABV has become profitable over the past 5 years, growing earnings by 16.6% per year.

Accelerating Growth: ABV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ABV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (-28%).


Return on Equity

High ROE: ABV's Return on Equity (4.3%) is considered low.


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$1.5M).

Long Term Liabilities: ABV's short term assets (A$4.5M) exceed its long term liabilities (A$486.0K).


Debt to Equity History and Analysis

Debt Level: ABV is debt free.

Reducing Debt: ABV has no debt compared to 5 years ago when its debt to equity ratio was 168.5%.

Debt Coverage: ABV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ABV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

John Annand

1.83yrs

Tenure

AU$382,000

Compensation

Mr. John Douglas Annand B.Bus, CA, AGIA ACG, A Fin has been Chief Executive Officer of Advanced Braking Technology Limited since December 3, 2018. Mr. Annand served as the Chief Financial Officer of Advanc ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD269.83K) is about average for companies of similar size in the Australian market ($USD279.08K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Annand
Chief Executive Officer1.83yrsAU$382.00kno data
Paige Exley
Chief Financial Officer1yrAU$198.00k0.0095%
A$ 1.2k
Ben Suda
Director of Sales & Marketing0.33yrAU$218.00kno data
Kaitlin Smith
Company Secretary2.17yrsno datano data
Sarah Murdoch
Manager of Supply Chain2.83yrsAU$125.88kno data

1.8yrs

Average Tenure

Experienced Management: ABV's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Slack
Non-Executive Director11.08yrsAU$30.00k18.24%
A$ 2.3m
Mark Lindh
Independent Non-Executive Director3.33yrsAU$60.00k0.80%
A$ 100.1k
Adam Levine
Non-Executive Director7.5yrsAU$60.00k0.21%
A$ 25.7k
Dagmar Parsons
Independent Chairman of the Board2.33yrsAU$93.00k0.22%
A$ 27.7k

5.4yrs

Average Tenure

Experienced Board: ABV's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.9%.


Top Shareholders

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:
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: AU$12.512m
  • 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, manufactures, commercializes, and sells braking systems and brake parts worldwide. The company offers service, parking, and emergency seal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:33
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.