ASX:AVJ

Stock Analysis Report

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Executive Summary

AVJennings Limited engages in the development of residential properties in Australia. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

AVJ

3.0%

AU Real Estate

0.3%

AU Market


1 Year Return

-9.6%

AVJ

-24.1%

AU Real Estate

-5.4%

AU Market

Return vs Industry: AVJ exceeded the Australian Real Estate industry which returned -23.5% over the past year.

Return vs Market: AVJ underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

AVJIndustryMarket
7 Day-3.7%3.0%0.3%
30 Day-1.9%5.6%6.3%
90 Day-11.9%8.0%3.7%
1 Year-7.7%-9.6%-22.4%-24.1%-2.1%-5.4%
3 Year-15.6%-26.2%-10.3%-18.0%18.3%3.3%
5 Year23.5%-7.1%22.9%2.7%43.1%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVJ (A$0.52) is trading above our estimate of fair value (A$0.32)

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


Price To Earnings Ratio

PE vs Industry: AVJ's PE Ratio (23.4x) is in line with the AU Real Estate industry average.

PE vs Market: AVJ is poor value based on its PE Ratio (23.4x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: AVJ is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AVJ is good value based on its PB Ratio (0.5x) compared to the AU Real Estate industry average (0.9x).


Next Steps

Future Growth

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

45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVJ's forecast earnings growth (45.8% per year) is above the savings rate (2.3%).

Earnings vs Market: AVJ's earnings (45.8% per year) are forecast to grow faster than the Australian market (17.5% per year).

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

Revenue vs Market: AVJ's revenue (16.6% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: AVJ's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVJ's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has AVJennings performed over the past 5 years?

-19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVJ has high quality earnings.

Growing Profit Margin: AVJ's current net profit margins (3.4%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: AVJ's earnings have declined by 19% per year over the past 5 years.

Accelerating Growth: AVJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVJ had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the Real Estate industry average (-39.6%).


Return on Equity

High ROE: AVJ's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is AVJennings's financial position?


Financial Position Analysis

Short Term Liabilities: AVJ's short term assets (A$219.5M) exceed its short term liabilities (A$24.3M).

Long Term Liabilities: AVJ's short term assets (A$219.5M) do not cover its long term liabilities (A$237.7M).


Debt to Equity History and Analysis

Debt Level: AVJ's debt to equity ratio (48.4%) is considered high.

Reducing Debt: AVJ's debt to equity ratio has increased from 37.9% to 48.4% over the past 5 years.

Debt Coverage: AVJ's debt is not well covered by operating cash flow (5.2%).

Interest Coverage: AVJ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.77%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AVJ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVJ's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVJ's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Peter Summers

11.67yrs

Tenure

AU$957,179

Compensation

Mr. Peter K. Summers, BEc., CA has been the Chief Executive Officer and Managing Director of AVJennings Limited, a subsidiary of SC Global Developments Ltd. (formerly AVJennings Homes Ltd.) since February ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD675.02K) is above average for companies of similar size in the Australian market ($USD509.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Summers
MD, CEO & Director11.67yrsAU$957.18k1.22%
A$ 2.6m
Larry Mahaffy
Chief Financial Officer7.92yrsAU$447.46k0.072%
A$ 155.5k
Stenio Orlandi
Chief Operating Officer2.17yrsAU$515.24k0.14%
A$ 299.7k
Carl Thompson
General Counsel & Company Secretary11.75yrsAU$490.28k0.46%
A$ 986.3k
Lisa Hunt
General Manager of Human Resources11.33yrsAU$301.39k0.095%
A$ 204.3k
David Lowden
Head of Corporate Communicationsno datano datano data
Chrishanthi Halliday
Assistant Company Secretaryno datano datano data

11.3yrs

Average Tenure

Experienced Management: AVJ's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Summers
MD, CEO & Director11.67yrsAU$957.18k1.22%
A$ 2.6m
Teck Poh Lai
Non-Executive Director8.92yrsAU$104.20kno data
Sae Peng Cheong
Non-Executive Chairman15yrsno datano data
Boon Leong Tan
Non-Executive Director3.33yrsno datano data
Yoke Choong Chin
Non-Executive Director15yrsAU$116.80kno data
Bruce Hayman
Independent Non-Executive Director15yrsAU$88.93k0.058%
A$ 124.6k
Reginald Rowley
Independent Non-Executive Deputy Chairmanno dataAU$121.80k0.091%
A$ 196.2k
Philip Kearns
Independent Non-Executive Director1.58yrsAU$77.33k0.0062%
A$ 13.2k

15.0yrs

Average Tenure

69yo

Average Age

Experienced Board: AVJ's board of directors are seasoned and experienced ( 15 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: AVJennings Limited
  • Ticker: AVJ
  • Exchange: ASX
  • Founded: 1932
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$215.302m
  • Shares outstanding: 406.23m
  • Website: https://www.avjennings.com.au

Location

  • AVJennings Limited
  • 108 Power Street
  • Level 4
  • Hawthorn
  • Victoria
  • 3122
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A05SGX (Singapore Exchange)YesOrdinary SharesSGAUDFeb 1994
AVJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1994
AVJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1994

Biography

AVJennings Limited engages in the development of residential properties in Australia. It is involved in the land and apartment development, and integrated housing activities. The company was founded in 193 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:42
End of Day Share Price2020/10/21 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.