ASX:ALQ

Stock Analysis Report

Executive Summary

ALS Limited provides analytical testing services in Australia, Canada, the United States, and internationally.

Snowflake

Fundamentals

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

ALQ

1.0%

AU Professional Services

0.4%

AU Market


1 Year Return

-2.5%

ALQ

10.5%

AU Professional Services

9.8%

AU Market

Return vs Industry: ALQ underperformed the Australian Professional Services industry which returned 10.5% over the past year.

Return vs Market: ALQ underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

ALQIndustryMarket
7 Day-1.7%1.0%0.4%
30 Day-1.6%-1.5%-1.1%
90 Day11.9%4.2%-0.6%
1 Year0.6%-2.5%13.9%10.5%16.1%9.8%
3 Year36.1%26.3%33.4%22.7%36.1%17.9%
5 Year75.5%44.9%51.0%30.0%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ALQ (A$8.07) is trading above our estimate of fair value (A$5.48)

Significantly Undervalued: ALQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALQ is poor value based on its PE Ratio (23.6x) compared to the Professional Services industry average (20.7x).

PE vs Market: ALQ is poor value based on its PE Ratio (23.6x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: ALQ is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ALQ is overvalued based on its PB Ratio (3.6x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

How is ALS forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALQ's forecast earnings growth (10.7% per year) is above the savings rate (2.3%).

Earnings vs Market: ALQ's earnings (10.7% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: ALQ's revenue (5.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ALQ's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ALQ's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has ALS performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALQ's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: ALQ's earnings growth over the past year (153.6%) exceeds its 5-year average (22.3% per year).

Earnings vs Industry: ALQ earnings growth over the past year (153.6%) exceeded the Professional Services industry 26.7%.


Return on Equity

High ROE: ALQ's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: ALQ has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: ALQ has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is ALS's financial position?


Financial Position Analysis

Short Term Liabilities: ALQ's short term assets (A$611.9M) exceeds its short term liabilities (A$541.4M)

Long Term Liabilities: ALQ's short term assets (611.9M) exceeds its long term liabilities (534.1M)


Debt to Equity History and Analysis

Debt Level: ALQ's debt to equity ratio (70.7%) is considered high

Reducing Debt: ALQ's debt to equity ratio has increased from 60.8% to 70.7% over the past 5 years.

Debt Coverage: ALQ's debt is well covered by operating cash flow (28.1%).

Interest Coverage: ALQ's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALQ's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.85%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.4%markettop25%5.6%industryaverage2.7%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ALQ's dividend (2.85%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ALQ's dividend (2.85%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

Growing Dividend: ALQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.7%), ALQ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALQ's dividends in 3 years are forecast to be covered by earnings (57.6% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Raj Naran (57yo)

2.3yrs

Tenure

AU$2,925,910

Compensation

Mr. Raj Naran, BSc (Chemistry), BA (Mathematics), has been Managing Director, Chief Executive Officer and Director at ALS Limited since July 20, 2017. Mr. Naran served as the Group General Manager of Life  ...


CEO Compensation Analysis

Compensation vs. Market: Raj has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: ALQ's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: ALQ's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$112,97216 Jul 19
Raj Naran
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares14,983
Max PriceAU$7.54
BuyAU$71,91528 May 19
Tonianne Dwyer
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$7.19
BuyAU$9,97226 May 19
Melvyn Bridges
EntityIndividual
Shares1,379
Max PriceAU$7.23
SellAU$1,564,23617 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares176,874
Max PriceAU$8.84
BuyAU$14,921,65017 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,652,453
Max PriceAU$9.03

Ownership Breakdown


Management Team

  • Michael Pearson

    General Counsel & Company Secretary

    • Tenure: 1.8yrs
  • Bruce McDonald

    General Manager of Geochemistry

    • Tenure: 7.5yrs
    • Compensation: AU$1.14m
  • Raj Naran (57yo)

    MD, CEO & Director

    • Tenure: 2.3yrs
    • Compensation: AU$2.93m
  • Kristen Walsh

    General Manager of Industrial

    • Tenure: 0yrs
    • Compensation: AU$775.10k
  • Greg Affleck

    Group Financial Controller

    • Tenure: 0yrs
  • Michael Burcham

    Chief Risk Officer

    • Tenure: 0yrs
  • Susan Putters

    Global Head of Human Resources

    • Tenure: 11.8yrs
  • Tim Kilmister

    General Manager of Life Sciences APAC

    • Tenure: 2.5yrs
    • Compensation: AU$748.62k
  • Andreas Jonsson

    General Manager of Life Sciences Europe

    • Tenure: 2.5yrs
    • Compensation: AU$798.35k
  • Luis Damasceno

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: AU$1.08m

Board Members

  • John Mulcahy (69yo)

    Independent Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$182.75k
  • Bruce Phillips (64yo)

    Independent Chairman

    • Tenure: 3.3yrs
    • Compensation: AU$343.25k
  • Charlie Sartain (58yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: AU$189.85k
  • Tonianne Dwyer (57yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$184.46k
  • Raj Naran (57yo)

    MD, CEO & Director

    • Tenure: 2.3yrs
    • Compensation: AU$2.93m
  • Grant Murdoch (67yo)

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$196.35k
  • Siddhartha Kadia (49yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$37.05k

Company Information

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


Key Information

  • Name: ALS Limited
  • Ticker: ALQ
  • Exchange: ASX
  • Founded: 1863
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$3.893b
  • Shares outstanding: 482.39m
  • Website: https://www.alsglobal.com

Number of Employees


Location

  • ALS Limited
  • 32 Shand Street
  • Stafford
  • Brisbane
  • Queensland
  • 4053
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
CPBL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CP4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ALQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

ALS Limited provides analytical testing services in Australia, Canada, the United States, and internationally. The company’s Commodities segment provides testing services for the mining and mineral explora ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:31
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.