ASX:AVN

Stock Analysis Report

Executive Summary

Aventus Group comprises Aventus Holdings Limited and Aventus Capital Limited as the responsible entity for Aventus Retail Property Fund.


Snowflake Analysis

Good value average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.2%

AVN

0.7%

AU REITs

0.02%

AU Market


1 Year Return

38.4%

AVN

15.6%

AU REITs

14.6%

AU Market

Return vs Industry: AVN exceeded the Australian REITs industry which returned 15.6% over the past year.

Return vs Market: AVN exceeded the Australian Market which returned 14.6% over the past year.


Shareholder returns

AVNIndustryMarket
7 Day5.2%0.7%0.02%
30 Day4.5%2.5%0.2%
90 Day9.4%6.1%5.7%
1 Year47.9%38.4%21.1%15.6%19.7%14.6%
3 Year58.8%26.8%52.8%30.9%38.7%20.2%
5 Yearn/a89.3%47.0%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVN (A$3.03) is trading below our estimate of fair value (A$4.82)

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


Price To Earnings Ratio

PE vs Industry: AVN is good value based on its PE Ratio (13.8x) compared to the REITs industry average (15.4x).

PE vs Market: AVN is good value based on its PE Ratio (13.8x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AVN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AVN is overvalued based on its PB Ratio (1.2x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVN's forecast earnings growth (11.3% per year) is above the savings rate (1.1%).

Earnings vs Market: AVN's earnings (11.3% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: AVN's revenue (0.01% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: AVN's revenue (0.01% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVN's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Aventus Group performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVN has a large one-off gain of A$32.9M impacting its December 31 2019 financial results.

Growing Profit Margin: AVN's current net profit margins (69.9%) are lower than last year (75%).


Past Earnings Growth Analysis

Earnings Trend: AVN's earnings have grown significantly by 26.1% per year over the past 5 years.

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

Earnings vs Industry: AVN had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the REITs industry average (-3.4%).


Return on Equity

High ROE: AVN's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aventus Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: AVN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: AVN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AVN has a sufficient allowance for bad loans.

Low Risk Liabilities: AVN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AVN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AVN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AVN has an appropriate level of bad loans.


Next Steps

Dividend

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

5.62%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.3%markettop25%5.3%industryaverage4.2%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: AVN's dividend (5.62%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: AVN's dividend (5.62%) is in the top 25% of dividend payers in the Australian market (5.35%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AVN has been paying a dividend for less than 10 years.

Growing Dividend: AVN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69%), AVN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Darren Holland 0

0

Mr. Darren Holland is Chief Executive Officer, Managing Director and Executive Director of Aventus Group Mr. Holland serves as the Chief Executive Officer of Property at BB Retail Capital Pty Ltd. He joine ...


Leadership Team

NamePositionTenureCompensationOwnership
Darren Holland
CEO, MD & Executive Director0yrsno data1.37% A$23.1m
Lawrence Wong
CFO & Company Secretary0yrsno data0.067% A$1.1m
Mary Weaver
Legal Counsel & Company Secretary0yrsno datano data
Sandra Francis
Head of People & Culture2.3yrsno datano data
Jason James
Head of Leasing1.1yrsno datano data
Cameron Male
Head of Acquisitions4.1yrsno datano data
Michael Tye
Head of Development0yrsno datano data

2.3yrs

Average Tenure

Experienced Management: AVN's management team is considered experienced (2.3 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 7.6%.


Top Shareholders

Company Information

Aventus Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aventus Group
  • Ticker: AVN
  • Exchange: ASX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: AU$1.688b
  • Shares outstanding: 557.12m
  • Website: https://www.aventusgroup.com.au

Number of Employees


Location

  • Aventus Group
  • Governor Macquarie Tower
  • Level 33
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVNCHIA (Chi-X Australia)YesUNITS AUAUDOct 2015
AVNASX (Australian Securities Exchange)YesUNITS AUAUDOct 2015

Biography

Aventus Group comprises Aventus Holdings Limited and Aventus Capital Limited as the responsible entity for Aventus Retail Property Fund. We are the largest fully-integrated owner, manager and developer of large format retail centres in Australia, with a portfolio of 20 centres valued at $2.1 billion. Aventus Group portfolio spans 535,000m2 in gross leasable area and features a diverse tenant base of 584 quality tenancies, with national tenants representing 86 per cent of the total portfolio. Our team of more than 60 professionals offer expertise in investment management, asset management and corporate services, delivering operational excellence and value at every stage of the investment cycle. Aventus Group was created in October 2018 on the internalisation and stapling of AHL and the Fund, where each share issued in AHL was stapled to a unit in the Fund. It is listed on the Australian Securities Exchange (ASX:AVN) and designed to ensure the Aventus Board is directly accountable to investors. Our single-sector focus has allowed Aventus to achieve sustainable income growth since the Fund was listed in October 2015, with consistently high occupancy, positive leasing spreads and low incentives across the portfolio. The combination of active portfolio management, value-enhancing developments and strategic acquisitions have contributed to a total Securityholder return of 12.7 per cent since IPO of the Fund in October 2015. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:45
End of Day Share Price2020/02/21 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.