ASX:ANG

Stock Analysis Report

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Executive Summary

Austin Engineering Limited, together with its subsidiaries, manufactures, repairs, overhauls, and supplies mining attachment products, and other associated products and services for the industrial and resources-related business sectors. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Austin Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ANG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.8%

ANG

-4.9%

AU Machinery

-3.9%

AU Market


1 Year Return

-21.1%

ANG

-2.3%

AU Machinery

-9.6%

AU Market

Return vs Industry: ANG underperformed the Australian Machinery industry which returned -2.3% over the past year.

Return vs Market: ANG underperformed the Australian Market which returned -9.6% over the past year.


Shareholder returns

ANGIndustryMarket
7 Day-11.8%-4.9%-3.9%
30 Day-3.2%12.8%1.8%
90 Day7.1%42.1%1.7%
1 Year-18.0%-21.1%-0.7%-2.3%-6.4%-9.6%
3 Year-44.4%-46.4%2.8%0.03%12.3%-1.9%
5 Year-41.4%-53.8%153.2%112.2%40.0%11.3%

Price Volatility Vs. Market

How volatile is Austin Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Austin Engineering undervalued compared to its fair value and its price relative to the market?

19.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANG (A$0.15) is trading above our estimate of fair value (A$0.08)

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


Price To Earnings Ratio

PE vs Industry: ANG's PE Ratio (19.1x) is in line with the AU Machinery industry average.

PE vs Market: ANG is good value based on its PE Ratio (19.1x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: ANG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ANG is good value based on its PB Ratio (0.9x) compared to the AU Machinery industry average (1.9x).


Next Steps

Future Growth

How is Austin Engineering forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

43.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANG's forecast earnings growth (43.6% per year) is above the savings rate (2.3%).

Earnings vs Market: ANG's earnings (43.6% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ANG's revenue (7.7% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: ANG's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANG's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Austin Engineering performed over the past 5 years?

69.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANG has high quality earnings.

Growing Profit Margin: ANG's current net profit margins (2%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: ANG has become profitable over the past 5 years, growing earnings by 69.5% per year.

Accelerating Growth: ANG's earnings growth over the past year (86.7%) exceeds its 5-year average (69.5% per year).

Earnings vs Industry: ANG earnings growth over the past year (86.7%) exceeded the Machinery industry 39.3%.


Return on Equity

High ROE: ANG's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Austin Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: ANG's short term assets (A$96.6M) exceed its short term liabilities (A$67.0M).

Long Term Liabilities: ANG's short term assets (A$96.6M) exceed its long term liabilities (A$14.9M).


Debt to Equity History and Analysis

Debt Level: ANG's debt to equity ratio (9.4%) is considered satisfactory.

Reducing Debt: ANG's debt to equity ratio has reduced from 74.6% to 9.4% over the past 5 years.

Debt Coverage: ANG's debt is well covered by operating cash flow (261%).

Interest Coverage: ANG's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Austin Engineering current dividend yield, its reliability and sustainability?

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANG's dividend (4%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: ANG's dividend (4%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).


Stability and Growth of Payments

Stable Dividend: ANG's dividend payments have been volatile in the past 10 years.

Growing Dividend: ANG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.8%), ANG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANG's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Peter Forsyth

4yrs

Tenure

AU$725,191

Compensation

Mr. Peter Forsyth has been Chief Executive Officer at Austin Engineering Limited since October 12, 2016 and has been its Managing Director and Director since August 18, 2017. Mr. Forsyth has senior executi ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD510.37K) is above average for companies of similar size in the Australian market ($USD274.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Forsyth
CEO, MD & Director4yrsAU$725.19k0.20%
A$ 172.5k
Sam Cruickshank
CFO & Group Financial Controller1.83yrsAU$404.72k0.019%
A$ 16.2k
Jesus Laureano
Chief of Engineering at Peruvian Operationno datano datano data
Charles Louis Rottier
Chief Strategic Officer4.58yrsAU$251.96kno data
Steve Shellenberger
CEO & President of Western Technology Svcs International Incno dataAU$370.44kno data
Warren Arthur
Chief Executive Officer of COR Cooling Pty Ltd7.58yrsAU$433.53kno data
Rochelle Oberholzer
Company Secretary and Global Governance & IT Manager1.83yrsno datano data
Sophie Raven
Joint Company Secretary1.58yrsno datano data
Steve Warner
Operations Executiveno dataAU$255.84kno data

2.9yrs

Average Tenure

Experienced Management: ANG's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Forsyth
CEO, MD & Director4yrsAU$725.19k0.20%
A$ 172.5k
David Patrick Singleton
Independent Non-Executive Director1.42yrsAU$97.32k0.023%
A$ 20.0k
Christopher Indermaur
Independent Non-Executive Director4.25yrsAU$97.32k0.035%
A$ 30.0k
James Walker
Non-Executive Independent Chairman3.83yrsAU$119.06k0.029%
A$ 24.9k
Sybrandt van Dyk
Independent Non-Executive Director2.58yrsAU$97.32k0.037%
A$ 32.0k

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: ANG's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Austin Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Austin Engineering Limited
  • Ticker: ANG
  • Exchange: ASX
  • Founded: 1982
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: AU$86.917m
  • Shares outstanding: 579.45m
  • Website: https://www.austineng.com

Number of Employees


Location

  • Austin Engineering Limited
  • Kings Row 1
  • Level G
  • Milton
  • Queensland
  • 4064
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2004
AUST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
ANGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2004
RZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004

Biography

Austin Engineering Limited, together with its subsidiaries, manufactures, repairs, overhauls, and supplies mining attachment products, and other associated products and services for the industrial and reso ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:39
End of Day Share Price2020/10/30 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.