ASX:AVN

Stock Analysis Report

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Executive Summary

Aventus Group is Australia’s largest fully-integrated owner, manager and developer of large format retail centres in Australia with a portfolio of 20 centres valued at $2.2 billion. More Details


Snowflake Analysis

Mediocre balance sheet second-rate 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

0%

AVN

-0.7%

AU REITs

-0.4%

AU Market


1 Year Return

-13.8%

AVN

-16.3%

AU REITs

-7.0%

AU Market

Return vs Industry: AVN exceeded the Australian REITs industry which returned -16.3% over the past year.

Return vs Market: AVN underperformed the Australian Market which returned -7% over the past year.


Shareholder returns

AVNIndustryMarket
7 Day0%-0.7%-0.4%
30 Day-0.4%2.6%4.3%
90 Day10.2%8.9%4.3%
1 Year-9.4%-13.8%-12.8%-16.3%-3.8%-7.0%
3 Year25.7%3.5%19.8%3.6%17.0%2.3%
5 Year67.1%17.8%45.5%13.2%42.9%14.3%

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?

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVN (A$2.38) is trading below our estimate of fair value (A$3.42)

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


Price To Earnings Ratio

PE vs Industry: AVN is poor value based on its PE Ratio (23.2x) compared to the AU REITs industry average (16.4x).

PE vs Market: AVN is poor value based on its PE Ratio (23.2x) compared to the Australian market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: AVN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AVN's PB Ratio (1x) is in line with the AU REITs industry average.


Next Steps

Future Growth

How is Aventus Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVN's forecast earnings growth (10.9% per year) is above the savings rate (2.3%).

Earnings vs Market: AVN's earnings (10.9% per year) are forecast to grow slower than the Australian market (18.3% per year).

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

Revenue vs Market: AVN's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: AVN's revenue is forecast to decline over the next 3 years (-3.3% 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?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVN has a large one-off loss of A$37.3M impacting its June 30 2020 financial results.

Growing Profit Margin: AVN's current net profit margins (33.4%) are lower than last year (66%).


Past Earnings Growth Analysis

Earnings Trend: AVN's earnings have grown by 16.9% 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 (-48.7%) over the past year, making it difficult to compare to the REITs industry average (6.8%).


Return on Equity

High ROE: AVN's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Aventus Group's financial position?


Financial Position Analysis

Short Term Liabilities: AVN's short term assets (A$52.1M) exceed its short term liabilities (A$43.4M).

Long Term Liabilities: AVN's short term assets (A$52.1M) do not cover its long term liabilities (A$752.5M).


Debt to Equity History and Analysis

Debt Level: AVN's debt to equity ratio (56.1%) is considered high.

Reducing Debt: AVN's debt to equity ratio has reduced from 117.6% to 56.1% over the past 5 years.

Debt Coverage: AVN's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: AVN's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVN's dividend (5%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: AVN's dividend (5%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


Stability and Growth of Payments

Stable Dividend: AVN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AVN's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), 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 covered by earnings (88.2% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Darren Holland

no data

Tenure

AU$912,670

Compensation

Mr. Darren Holland is Chief Executive Officer, Managing Director and Executive Director of Aventus Group and is its Founder.Mr. Holland serves as the Chief Executive Officer of Property at BB Retail Capita ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD649.08K) is about average for companies of similar size in the Australian market ($USD924.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darren Holland
CEO, MD & Executive Directorno dataAU$912.67k1.36%
A$ 18.1m
Lawrence Wong
CFO & Company Secretaryno dataAU$732.65k0.086%
A$ 1.1m
Mary Weaver
Legal Counsel & Company Secretaryno datano datano data
Sandra Francis
Head of People & Culture3yrsno datano data
Jason James
Head of Leasing1.75yrsno datano data
Cameron Male
Head of Acquisitions4.75yrsno datano data
Ruth Jothy
Head of Asset Management0.75yrno datano data

2.4yrs

Average Tenure

Experienced Management: AVN's management team is considered experienced (2.4 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

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$1.328b
  • Shares outstanding: 557.96m
  • 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)YesStapled SecuritiesAUAUDOct 2015
AVNASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDOct 2015

Biography

Aventus Group is Australia’s largest fully-integrated owner, manager and developer of large format retail centres in Australia with a portfolio of 20 centres valued at $2.2 billion. Aventus Group portfolio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 10:42
End of Day Share Price2020/10/23 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.