ASX:AVA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

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 is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: AVA's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

7.1%

AVA

2.2%

AU Electronic

-0.3%

AU Market


1 Year Return

303.3%

AVA

35.9%

AU Electronic

-1.6%

AU Market

Return vs Industry: AVA exceeded the Australian Electronic industry which returned 35.9% over the past year.

Return vs Market: AVA exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

AVAIndustryMarket
7 Day7.1%2.2%-0.3%
30 Day5.2%8.2%0.5%
90 Day11.0%10.5%10.1%
1 Year315.6%303.3%39.3%35.9%1.7%-1.6%
3 Year493.6%476.2%132.3%115.9%26.2%10.7%
5 Year-43.1%-44.7%210.5%184.1%68.7%35.5%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVA (A$0.61) is trading below our estimate of fair value (A$1.52)

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


Price To Earnings Ratio

PE vs Industry: AVA is good value based on its PE Ratio (28.7x) compared to the XO Electronic industry average (29.6x).

PE vs Market: AVA is poor value based on its PE Ratio (28.7x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: AVA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AVA is overvalued based on its PB Ratio (5.6x) compared to the AU Electronic industry average (4.2x).


Next Steps

Future Growth

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

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVA's forecast earnings growth (22.6% per year) is above the savings rate (2%).

Earnings vs Market: AVA's earnings (22.6% per year) are forecast to grow faster than the Australian market (18.1% per year).

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

Revenue vs Market: AVA's revenue (17.4% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: AVA's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVA's Return on Equity is forecast to be high in 3 years time (27.8%)


Next Steps

Past Performance

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

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVA has high quality earnings.

Growing Profit Margin: AVA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AVA has become profitable over the past 5 years, growing earnings by 5.3% per year.

Accelerating Growth: AVA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AVA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-0.9%).


Return on Equity

High ROE: AVA's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is Ava Risk Group's financial position?


Financial Position Analysis

Short Term Liabilities: AVA's short term assets (A$20.3M) exceed its short term liabilities (A$7.5M).

Long Term Liabilities: AVA's short term assets (A$20.3M) exceed its long term liabilities (A$762.0K).


Debt to Equity History and Analysis

Debt Level: AVA is debt free.

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

Debt Coverage: AVA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AVA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.96%

Forecast Dividend Yield


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 recent payouts.

High Dividend: Unable to evaluate AVA'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 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?

3.0yrs

Average management tenure


CEO

Rob Broomfield

0.50

Tenure

AU$380,422

Compensation

Mr. Robert Broomfield, also known as Rob, serves as Group Chief Executive Officer at Ava Risk Group Limited since July 10, 2020 and its Chief Operating Officer of Technology Division since February 12, 201...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD293.63K) is about average for companies of similar size in the Australian market ($USD294.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Broomfield
Group CEO0.50yrAU$380.42k1.29%
A$ 1.9m
Leigh Davis
Group CFO & Company Secretary5.92yrsAU$261.79k0.083%
A$ 121.0k
James Alston
COO & CFO of Services Division2.92yrsAU$557.28kno data
Christopher Fergus
Founder & CEO of Services Division of Ava Globalno dataAU$1.17m1.36%
A$ 2.0m
Michael McGeever
Non-Executive Director & Chairman of Services Division2.42yrsAU$68.80k2.49%
A$ 3.6m
Matthew Nye-Hingston
Head of BQT Technology & Director of BQT Operationsno dataAU$182.85kno data
Gwen Coutinho
Group Human Resources & Administration Manager3yrsno datano data
Andrew Hames
Group Head of Extractives & Energy2.67yrsno datano data
Kim Clark
Joint Company Secretary4yrsno datano data
Emer Reynolds
Financial Controllerno datano datano data

3.0yrs

Average Tenure

Experienced Management: AVA's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Broomfield
Group CEO0.50yrAU$380.42k1.29%
A$ 1.9m
Michael McGeever
Non-Executive Director & Chairman of Services Division2.42yrsAU$68.80k2.49%
A$ 3.6m
David Cronin
Non-Executive Chairman2.42yrsAU$71.75k0.29%
A$ 431.0k
Mark Stevens
Independent Non-Executive Director5.83yrsAU$77.62k0.50%
A$ 737.1k

4.1yrs

Average Tenure

Experienced Board: AVA's board of directors are considered experienced (4.1 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 3.2%.


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$146.156m
  • Shares outstanding: 241.58m
  • 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 07:05
End of Day Share Price2021/01/15 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.