ASX:AVA

Stock Analysis Report

Executive Summary

Ava Risk Group Limited provides risk management services and technologies worldwide.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AVA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.3%

AVA

24.3%

AU Electronic

13.4%

AU Market


1 Year Return

-22.6%

AVA

3.1%

AU Electronic

-18.8%

AU Market

Return vs Industry: AVA underperformed the Australian Electronic industry which returned 3.1% over the past year.

Return vs Market: AVA underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

AVAIndustryMarket
7 Day26.3%24.3%13.4%
30 Day-4.0%-30.7%-20.7%
90 Day-22.6%-38.8%-24.4%
1 Year-22.6%-22.6%5.3%3.1%-15.2%-18.8%
3 Year-14.3%-14.3%14.3%7.9%-2.8%-15.9%
5 Yearn/a69.2%53.0%9.3%-15.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AVA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AVA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AVA is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: AVA is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVA is good value based on its PB Ratio (1.3x) compared to the AU Electronic industry average (2.6x).


Next Steps

Future Growth

How is Ava Risk Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.9%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ava Risk Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ava Risk Group performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVA is currently unprofitable.

Growing Profit Margin: AVA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVA is unprofitable, and losses have increased over the past 5 years at a rate of -14.9% per year.

Accelerating Growth: Unable to compare AVA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVA is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-75.9%).


Return on Equity

High ROE: AVA has a negative Return on Equity (-5.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ava Risk Group's financial position?


Financial Position Analysis

Short Term Liabilities: AVA's short term assets (A$15.4M) exceed its short term liabilities (A$6.8M).

Long Term Liabilities: AVA's short term assets (A$15.4M) exceed its long term liabilities (A$1.1M).


Debt to Equity History and Analysis

Debt Level: AVA is debt free.

Reducing Debt: AVA has not had any debt for past 5 years.


Balance Sheet

Inventory Level: AVA has a low level of unsold assets or inventory.

Debt Coverage by Assets: AVA's debt is covered by short term assets (assets are 1.3895406290288E+17x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AVA has less than a year of cash runway if free cash flow continues to grow at historical rates of 7.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVA'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?

2.0yrs

Average management tenure


CEO

Scott Basham

1

Tenure

AU$273,617

Compensation

Mr. Scott Basham has been Chief Executive Officer and Executive Director of Ava Risk Group Limited since March 12, 2019. As a proven sales and business development executive, in addition to overseeing glob ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD168.54K) is below average for companies of similar size in the Australian market ($USD245.57K).

Compensation vs Earnings: Insufficient data to compare Scott's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Basham
CEO & Executive Director1yrAU$273.62k0.043% A$10.0k
Leigh David
Group CFO & Company Secretary5yrsAU$264.97k0.085% A$20.0k
Robert Broomfield
COO of Technology & Executive Director12yrsAU$348.11k1.28% A$299.4k
Christopher Fergus
Chief Executive Officer of Services Divisionno dataAU$653.94k1.4% A$328.5k
James Alston
COO & CFO of Services Division2yrsno datano data
Gwen Coutinho
Group Human Resources & Administration Manager2.17yrsno datano data
Andrew Hames
Group Head of Extractives & Energy1.83yrsno datano data
Kim Clark
Joint Company Secretary3.17yrsno datano data
Emer Reynolds
Financial Controllerno datano datano data

2.0yrs

Average Tenure

Experienced Management: AVA's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Basham
CEO & Executive Director1yrAU$273.62k0.043% A$10.0k
Robert Broomfield
COO of Technology & Executive Director12yrsAU$348.11k1.28% A$299.4k
David Cronin
Chairman of the Board1.58yrsAU$36.00k0.22% A$51.2k
Mark Stevens
Independent Non-Executive Director5yrsAU$28.91k0.35% A$81.8k
Michael McGeever
Non-Executive Director1.58yrsAU$26.40k2.48% A$580.5k

1.6yrs

Average Tenure

Experienced Board: AVA's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AVA 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 42.1%.


Top Shareholders

Company Information

Ava Risk Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ava Risk Group Limited
  • Ticker: AVA
  • Exchange: ASX
  • Founded: 1994
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$23.412m
  • Shares outstanding: 234.12m
  • Website: https://www.theavagroup.com

Number of Employees


Location

  • Ava Risk Group Limited
  • 10 Hartnett Close
  • Mulgrave
  • Victoria
  • 3170
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2015
AVACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2015

Biography

Ava Risk Group Limited provides risk management services and technologies worldwide. The company operates through Perimeter Security, Access Control Solutions, and International Valuable Logistics segments. It manufactures and sells fiber optic intrusion detection and location systems that are used to detect and locate perimeter intrusion; for data network tapping and tampering, and oil and gas pipeline third party interference detection; and for other applications, including health, safety, and traffic monitoring. The company also provides smart card readers and card systems, biometric solutions, and electric locking and access control products. In addition, it offers international logistics services comprising armored vehicle collection and delivery, storage, commercial and chartered air and sea freight, and customs brokerage services for high-risk valuables, precious metals, and currency. Further, the company provides consultancy services in the areas of risk and vulnerability assessments; incident, emergency, and crisis management; designing, integration, and installation for CCTV, electronic intrusion detection and location, electronic, biometric, smart card, and mechanical access control systems; and cyber security and risk management solutions. Additionally, its consultancy services comprise business continuity planning, cash management strategies and day to day management plans, vendor and service provider assessments, technical tender management with site supervision, specialized security training and skills workshops, distribution and loss prevention plans, and secure transportation management. The company serves architects, commercial and industrial customers, military, and governments. The company has a strategic alliance with CMTE Development Ltd. The company was formerly known as Future Fibre Technologies Limited and changed its name to Ava Risk Group Limited in May 2018. Ava Risk Group Limited was founded in 1994 and is based in Mulgrave, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 11:04
End of Day Share Price2020/03/31 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.