ASX:ASB

Stock Analysis Report

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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 Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.4%

ASB

4.2%

AU Aerospace & Defense

-0.1%

AU Market


1 Year Return

-11.1%

ASB

10.5%

AU Aerospace & Defense

-12.0%

AU Market

Return vs Industry: ASB underperformed the Australian Aerospace & Defense industry which returned 15.4% over the past year.

Return vs Market: ASB matched the Australian Market which returned -10.5% over the past year.


Shareholder returns

ASBIndustryMarket
7 Day-3.4%4.2%-0.1%
30 Day-7.7%-4.6%-1.3%
90 Day0.3%5.0%11.8%
1 Year-9.5%-11.1%12.1%10.5%-8.4%-12.0%
3 Year82.9%70.6%79.6%72.1%17.0%1.5%
5 Year94.0%71.5%149.0%127.0%29.6%1.6%

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?

13.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASB (A$3.13) is trading above our estimate of fair value (A$1.41)

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


Price To Earnings Ratio

PE vs Industry: ASB is good value based on its PE Ratio (14x) compared to the Aerospace & Defense industry average (19.6x).

PE vs Market: ASB is good value based on its PE Ratio (14x) compared to the Australian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: ASB is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: ASB is good value based on its PB Ratio (1.7x) compared to the AU Aerospace & Defense industry average (3.1x).


Next Steps

Future Growth

How is Austal forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASB's forecast earnings growth (2.1% per year) is below the savings rate (2.3%).

Earnings vs Market: ASB's earnings (2.1% per year) are forecast to grow slower than the Australian market (15.7% per year).

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

Revenue vs Market: ASB's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: ASB's revenue is forecast to decline over the next 3 years (-1.2% 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 (11.6%).


Next Steps

Past Performance

How has Austal performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASB has high quality earnings.

Growing Profit Margin: ASB's current net profit margins (3.8%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: ASB's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: ASB's earnings growth over the past year (106.4%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: ASB earnings growth over the past year (106.4%) exceeded the Aerospace & Defense industry 11.2%.


Return on Equity

High ROE: ASB's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Austal's financial position?


Financial Position Analysis

Short Term Liabilities: ASB's short term assets (A$628.9M) exceed its short term liabilities (A$331.8M).

Long Term Liabilities: ASB's short term assets (A$628.9M) exceed its long term liabilities (A$265.7M).


Debt to Equity History and Analysis

Debt Level: ASB's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: ASB's debt to equity ratio has reduced from 29.1% to 25% over the past 5 years.

Debt Coverage: ASB's debt is well covered by operating cash flow (50.7%).

Interest Coverage: ASB's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASB's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: ASB's dividend (1.92%) is low compared to the top 25% of dividend payers in the Australian market (6.53%).


Stability and Growth of Payments

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

Growing Dividend: ASB's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), ASB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASB's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

John Singleton (60yo)

4.25yrs

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 ($USD2.59M) is above average for companies of similar size in the Australian market ($USD984.99K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Patrick Singleton
CEO, MD & Executive Director4.25yrsAU$3.71m0.34% A$4.0m
Greg Jason
Group Chief Financial Officer7.5yrsAU$1.25m0.017% A$193.2k
Patrick Gregg
Chief Operating Officer3.42yrsAU$960.45kno data
Craig Perciavalle
President of USA Operations7.67yrsAU$2.08m0.032% A$367.7k
Adrian Strang
General Counsel & Company Secretaryno datano datano data
Wayne Murray
President of Philippines4yrsno datano data
Glenn Williams
Sales Managerno dataAU$307.74kno data
Stewart Hill
Manufacturing Managerno dataAU$175.99kno data
John Van Meekeren
Operations Managerno dataAU$190.91kno data

4.3yrs

Average Tenure

Experienced Management: ASB's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Patrick Singleton
CEO, MD & Executive Director4.25yrsAU$3.71m0.34% A$4.0m
John Rothwell
Non-Executive Chairman22.5yrsAU$200.00kno data
Charles Roland Everist
Independent Non-Executive Director6.67yrsAU$122.50k0.0086% A$99.5k
Christopher Indermaur
Independent Non-Executive Director1.75yrsAU$72.81kno data
Sarah Adam-Gedge
Independent Non-Executive Director2.92yrsAU$117.73k0.0028% A$32.7k

6.7yrs

Average Tenure

Experienced Board: ASB's board of directors are considered experienced (6.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 2.1%.


Top Shareholders

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$1.164b
  • Shares outstanding: 355.93m
  • 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, constructs, and supports passenger ferries, vehicle and passenger ferries, and offshore and windfarm vessels; naval vessels; and patrol boats for government law enforcement and border protection agencies. It also develops and integrates advanced vessel control and information management systems, including control and monitoring, and motion control systems. In addition, the company provides life capability management and vessel support services, such as crew training and instruction, vessel servicing, repair and maintenance, integrated logistics support, vessel sustainment, and information management systems support to naval, government, and commercial operators; and comprehensive refit services and management of annual dockings. Austal Limited was founded in 1988 and is headquartered in Henderson, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 10:33
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
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.