ASX:ASB

Stock Analysis Report

Executive Summary

Austal Limited designs, manufactures, constructs, and supports defense and commercial vessels in North America, Europe, Australia, Asia, South and Central America, and the Middle East.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

ASB

1.0%

AU Aerospace & Defense

0.4%

AU Market


1 Year Return

132.8%

ASB

110.5%

AU Aerospace & Defense

9.8%

AU Market

Return vs Industry: ASB exceeded the Australian Aerospace & Defense industry which returned 110.5% over the past year.

Return vs Market: ASB exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

ASBIndustryMarket
7 Day0.2%1.0%0.4%
30 Day-1.9%1.8%-1.3%
90 Day4.0%22.9%-0.5%
1 Year137.5%132.8%114.3%110.5%16.1%9.8%
3 Year191.2%171.2%184.4%170.4%36.1%17.9%
5 Year270.2%228.6%267.3%234.4%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASB (A$4.19) is trading below our estimate of fair value (A$37.24)

Significantly Below Fair Value: ASB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASB is good value based on its PE Ratio (23.9x) compared to the Aerospace & Defense industry average (31.5x).

PE vs Market: ASB is poor value based on its PE Ratio (23.9x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ASB is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ASB is good value based on its PB Ratio (2.3x) compared to the AU Aerospace & Defense industry average (4.5x).


Next Steps

Future Growth

How is Austal forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASB's forecast earnings growth (8.3% per year) is above the savings rate (2.3%).

Earnings vs Market: ASB's earnings (8.3% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: ASB's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASB's revenue (0.2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: ASB's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASB's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Austal performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASB's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: ASB's earnings growth over the past year (63.5%) exceeds its 5-year average (4% per year).

Earnings vs Industry: ASB earnings growth over the past year (63.5%) exceeded the Aerospace & Defense industry 16.5%.


Return on Equity

High ROE: ASB's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: ASB's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: ASB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Austal's financial position?


Financial Position Analysis

Short Term Liabilities: ASB's short term assets (A$681.1M) exceeds its short term liabilities (A$474.7M)

Long Term Liabilities: ASB's short term assets (681.1M) exceeds its long term liabilities (221.9M)


Debt to Equity History and Analysis

Debt Level: ASB's debt to equity ratio (27.1%) is considered satisfactory

Reducing Debt: ASB's debt to equity ratio has reduced from 35.8% to 27.1% over the past 5 years.

Debt Coverage: ASB's debt is well covered by operating cash flow (96.2%).

Interest Coverage: ASB's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASB's debt is covered by short term assets (assets are 3.981010x debt).


Next Steps

Dividend

What is Austal's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.4%markettop25%5.6%industryaverage1.8%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ASB's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ASB's dividend (1.43%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: ASB is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: ASB is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ASB is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASB'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 Austal's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

John Singleton (59yo)

3.5yrs

Tenure

AU$3,708,694

Compensation

Mr. David Patrick Alexander Singleton, B.Sc. (Hons), is also kown as John has been the Chief Executive Officer and Managing Director of Austal Limited since April 4, 2016. He has spent much of his career i ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD2.54M) is about average for companies of similar size in the Australian market ($USD992.67K).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: ASB's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

Experienced Board: ASB's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$23,593,91022 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares5,810,431
Max PriceAU$4.06
BuyAU$41,210,46822 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares10,160,574
Max PriceAU$4.06
SellAU$1,927,70622 Sep 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares479,847
Max PriceAU$4.02
BuyAU$63,40822 Sep 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares16,085
Max PriceAU$3.94
BuyAU$72,36126 Aug 19
Charles Roland Everist
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,441
Max PriceAU$3.54
BuyAU$8,041,70308 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,443,103
Max PriceAU$3.29
SellAU$2,829,02902 Aug 19
Orbis Investment Management Limited
EntityCompany
Shares698,474
Max PriceAU$4.06
SellAU$15,626,53831 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares3,833,858
Max PriceAU$4.08
BuyAU$2,297,84728 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares732,606
Max PriceAU$3.14
SellAU$14,060,23428 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares4,536,442
Max PriceAU$3.13
SellAU$15,541,76622 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares3,951,509
Max PriceAU$3.93
SellAU$17,363,93621 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares4,790,995
Max PriceAU$3.68
SellAU$17,165,12124 May 19
Orbis Investment Management Limited
EntityCompany
Shares6,203,711
Max PriceAU$2.78
SellAU$10,582,68817 May 19
Orbis Investment Management Limited
EntityCompany
Shares4,051,391
Max PriceAU$2.61
SellAU$11,942,07815 May 19
Orbis Investment Management Limited
EntityCompany
Shares4,564,933
Max PriceAU$2.62
BuyAU$3,823,95315 May 19
Pendal Group Limited
EntityCompany
Shares1,742,838
Max PriceAU$2.19
SellAU$5,198,10915 May 19
Pendal Group Limited
EntityCompany
Shares2,048,697
Max PriceAU$2.54
SellAU$9,633,43130 Apr 19
Orbis Investment Management Limited
EntityCompany
Shares3,817,997
Max PriceAU$2.53
SellAU$8,804,81116 Apr 19
Orbis Investment Management Limited
EntityCompany
Shares3,766,983
Max PriceAU$2.34
SellAU$10,709,58815 Mar 19
Orbis Investment Management Limited
EntityCompany
Shares4,595,163
Max PriceAU$2.34
BuyAU$1,133,32008 Mar 19
Pendal Group Limited
EntityCompany
Shares503,898
Max PriceAU$2.25
SellAU$1,857,58207 Mar 19
Pendal Group Limited
EntityCompany
Shares846,167
Max PriceAU$2.20
BuyAU$1,107,55907 Mar 19
Pendal Group Limited
EntityCompany
Shares586,427
Max PriceAU$1.89
BuyAU$34,084,75427 Feb 19
Vinva Investment Management
EntityCompany
Shares15,635,410
Max PriceAU$2.18
SellAU$14,849,33025 Feb 19
Orbis Investment Management Limited
EntityCompany
Shares7,094,857
Max PriceAU$2.26
BuyAU$6,078,72725 Feb 19
Orbis Investment Management Limited
EntityCompany
Shares3,679,189
Max PriceAU$1.83
BuyAU$7,648,57520 Dec 18
Pendal Group Limited
EntityCompany
Shares4,126,936
Max PriceAU$1.86
SellAU$930,00011 Dec 18
enX Group Limited
EntityCompany
Shares500,000
Max PriceAU$1.86
BuyAU$4,594,43428 Nov 18
Renaissance Smaller Companies Pty Ltd
EntityCompany
Shares2,583,291
Max PriceAU$1.78
SellAU$5,575,82928 Nov 18
Renaissance Smaller Companies Pty Ltd
EntityCompany
Shares2,941,945
Max PriceAU$1.90
BuyAU$18,70016 Nov 18
Sarah Adam-Gedge
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$1.87

Ownership Breakdown


Management Team

  • John Singleton (59yo)

    CEO, MD & Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$3.71m
  • Glenn Williams

    Sales Manager

    • Tenure: 0yrs
    • Compensation: AU$307.74k
  • Stewart Hill

    Manufacturing Manager

    • Tenure: 0yrs
    • Compensation: AU$175.99k
  • John Van Meekeren

    Operations Manager

    • Tenure: 0yrs
    • Compensation: AU$190.91k
  • Craig Perciavalle

    President of USA Operations

    • Tenure: 6.9yrs
    • Compensation: AU$2.08m
  • Greg Jason

    Group Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: AU$1.25m
  • Adrian Strang

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Wayne Murray

    President of Philippines

    • Tenure: 3.3yrs
  • Paddy Gregg

    Chief Operating Officer

    • Tenure: 2.7yrs
    • Compensation: AU$960.45k

Board Members

  • John Rothwell

    Non-Executive Chairman

    • Tenure: 21.8yrs
    • Compensation: AU$200.00k
  • John Singleton (59yo)

    CEO, MD & Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$3.71m
  • Charles Roland Everist

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$122.50k
  • Chris Indermaur (61yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$72.81k
  • Sarah Adam-Gedge

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$117.73k

Company Information

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


Key Information

  • Name: Austal Limited
  • Ticker: ASB
  • Exchange: ASX
  • Founded: 1988
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: AU$1.489b
  • Shares outstanding: 355.36m
  • Website: https://www.austal.com

Number of Employees


Location

  • Austal Limited
  • 100 Clarence Beach Road
  • Henderson
  • Western Australia
  • 6166
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUTL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1998
ASBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1998
LX6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1998
ASBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1998
AUTL.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDFeb 2005

Biography

Austal Limited designs, manufactures, constructs, and supports defense and commercial vessels in North America, Europe, Australia, Asia, South and Central America, and the Middle East. The company designs, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:32
End of Day Share Price2019/10/18 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.