ASX:ALQ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with proven track record 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

0%

ASX:ALQ

-0.5%

AU Professional Services

-2.5%

AU Market


1 Year Return

-14.9%

ASX:ALQ

-9.0%

AU Professional Services

-0.6%

AU Market

ALQ underperformed the Professional Services industry which returned -9% over the past year.

ALQ underperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

ALQIndustryMarket
7 Day0%-0.5%-2.5%
30 Day4.6%-6.0%-4.4%
90 Day0%-3.4%-1.1%
1 Year-12.2%-14.9%-6.3%-9.0%5.1%-0.6%
3 Year38.5%28.4%18.5%9.0%30.2%13.1%
5 Year21.5%0.3%15.9%-0.2%36.5%5.9%

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 based on future cash flows and its price relative to the stock market?

22.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

ALS's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

ALS's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

ALS is overvalued based on earnings compared to the AU Professional Services industry average.

ALS is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

ALS is poor value based on expected growth next year.


Price Based on Value of Assets

ALS is overvalued based on assets compared to the AU Professional Services industry average.


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ALS's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

ALS's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

ALS's revenue growth is expected to exceed the Australia market average.

ALS's earnings growth is expected to exceed the Australia market average.

ALS's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

ALS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

ALS has delivered over 20% year on year earnings growth in the past 5 years.

ALS's 1-year earnings growth exceeds its 5-year average (153.6% vs 22.3%)

ALS's earnings growth has exceeded the AU Professional Services industry average in the past year (153.6% vs 12.1%).


Return on Equity

ALS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ALS used its assets less efficiently than the AU Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

ALS has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ALS's financial position?


Financial Position Analysis

ALS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ALS's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ALS's level of debt (70.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (60.8% vs 70.7% today).

Debt is well covered by operating cash flow (28.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

ALS's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).

ALS's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Raj Naran (57yo)

2.1yrs

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

Raj's remuneration is about average for companies of similar size in Australia.

Raj's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

The tenure for the ALS management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

The tenure for the ALS board of directors is about average.


Insider Trading

ALS individual insiders have sold more shares than they have bought 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
Role
Member of the Board of Directors
Independent Non-Executive Director
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: 1.7yrs
  • Bruce McDonald

    General Manager of Geochemistry

    • Tenure: 7.3yrs
    • Compensation: AU$1.14m
  • Raj Naran (57yo)

    MD, CEO & Director

    • Tenure: 2.1yrs
    • Compensation: AU$2.93m
  • Kristen Walsh

    General Manager of Industrial

    • Tenure: 0.0yrs
    • Compensation: AU$775.10k
  • Greg Affleck

    Group Financial Controller

    • Tenure: 0.0yrs
  • Michael Burcham

    Chief Risk Officer

    • Tenure: 0.0yrs
  • Susan Putters

    Global Head of Human Resources

    • Tenure: 11.6yrs
  • Tim Kilmister

    General Manager of Life Sciences APAC

    • Tenure: 2.3yrs
    • Compensation: AU$748.62k
  • Andreas Jonsson

    General Manager of Life Sciences Europe

    • Tenure: 2.3yrs
    • Compensation: AU$798.35k
  • Luis Damasceno

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: AU$1.08m

Board Members

  • John Mulcahy (69yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: AU$182.75k
  • Bruce Phillips (64yo)

    Chairman

    • Tenure: 3.1yrs
    • Compensation: AU$343.25k
  • Mel Bridges (69yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: AU$183.35k
  • Charlie Sartain (58yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$189.85k
  • Tonianne Dwyer (57yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: AU$184.46k
  • Raj Naran (57yo)

    MD, CEO & Director

    • Tenure: 2.1yrs
    • Compensation: AU$2.93m
  • Grant Murdoch (67yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: AU$196.35k
  • Siddhartha Kadia (49yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • 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$3.597b
  • Shares outstanding: 482.11m
  • 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 Analysis2019/08/19 10:33
End of Day Share Price2019/08/19 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.