ASX:A2B

Stock Analysis Report

Executive Summary

A2B Australia Limited provides personal transport solutions to government and corporate account customers, passengers, drivers, and taxi operators in Australia.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has A2B Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

A2B

-0.7%

AU Transportation

0.4%

AU Market


1 Year Return

-30.7%

A2B

30.7%

AU Transportation

9.8%

AU Market

Return vs Industry: A2B underperformed the Australian Transportation industry which returned 30.7% over the past year.

Return vs Market: A2B underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

A2BIndustryMarket
7 Day2.3%-0.7%0.4%
30 Day2.7%-3.4%-1.3%
90 Day-10.2%4.6%-0.5%
1 Year-27.5%-30.7%37.0%30.7%16.1%9.8%
3 Year-35.2%-56.4%51.9%42.4%36.1%17.9%
5 Year-47.9%-68.7%57.5%40.8%49.4%15.7%

Price Volatility Vs. Market

How volatile is A2B Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A2B Australia undervalued compared to its fair value and its price relative to the market?

15.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A2B (A$1.55) is trading above our estimate of fair value (A$1.21)

Significantly Below Fair Value: A2B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A2B is good value based on its PE Ratio (15.7x) compared to the Transportation industry average (17.5x).

PE vs Market: A2B is good value based on its PE Ratio (15.7x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A2B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A2B is good value based on its PB Ratio (1.1x) compared to the XO Transportation industry average (2.2x).


Next Steps

Future Growth

How is A2B Australia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if A2B's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if A2B's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: A2B's revenue (2.5% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: A2B's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A2B's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has A2B Australia performed over the past 5 years?

-49.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: A2B's earnings have declined by -49.1% per year over the past 5 years.

Accelerating Growth: A2B has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: A2B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Transportation industry (5.1%).


Return on Equity

High ROE: A2B's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: A2B has a higher Return on Assets than the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: A2B has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is A2B Australia's financial position?


Financial Position Analysis

Short Term Liabilities: A2B's short term assets (A$100.5M) exceeds its short term liabilities (A$49.3M)

Long Term Liabilities: A2B's short term assets (100.5M) exceeds its long term liabilities (1.6M)


Debt to Equity History and Analysis

Debt Level: A2B's debt to equity ratio (1.6%) is considered satisfactory

Reducing Debt: A2B's debt to equity ratio has reduced from 43.6% to 1.6% over the past 5 years.

Debt Coverage: A2B's debt is well covered by operating cash flow (977.1%).

Interest Coverage: A2B's interest payments on its debt are well covered by EBIT (29.1x coverage).


Balance Sheet

Inventory Level: A2B has a low level of unsold assets or inventory.

Debt Coverage by Assets: A2B's debt is covered by short term assets (assets are 37.192150x debt).


Next Steps

Dividend

What is A2B Australia's current dividend yield, its reliability and sustainability?

5.18%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years5.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: A2B's dividend (5.18%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: A2B's dividend (5.18%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: A2B's dividend payments have been volatile in the past 10 years.

Growing Dividend: A2B's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.5%), A2B's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A2B's dividends in 3 years are forecast to be covered by earnings (66.4% payout ratio).


Next Steps

Management

What is the CEO of A2B Australia's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Andrew Skelton 0

5.3yrs

Tenure

AU$1,104,426

Compensation

Mr. Andrew Skelton has been the Managing Director of Cabcharge Australia Ltd. since December 2014. Mr. Skelton has been the Chief Executive Officer of Cabcharge Australia Ltd. since June 4, 2014 and also s ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD756.09K) is about average for companies of similar size in the Australian market ($USD257.37K).

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


Management Age and Tenure

4.9yrs

Average Tenure

Experienced Management: A2B's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

Experienced Board: A2B's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: A2B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$1,953,93823 Sep 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares1,270,878
Max PriceAU$1.58
BuyAU$31,12710 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
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Max PriceAU$1.53
SellAU$22,94910 Sep 19
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Shares14,758
Max PriceAU$1.55
SellAU$397,28009 Sep 19
Realindex Investments Pty Limited
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Max PriceAU$1.74
BuyAU$23,80209 Sep 19
Realindex Investments Pty Limited
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Max PriceAU$1.69
BuyAU$2,433,96505 Sep 19
Spheria Asset Management Pty Ltd
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Shares1,530,741
Max PriceAU$1.59
BuyAU$74,72702 Sep 19
Paul Oneile
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares50,000
Max PriceAU$1.52
BuyAU$23,89102 Sep 19
Louise McCann
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$1.59
SellAU$7,93427 Aug 19
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Shares4,552
Max PriceAU$1.74
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SellAU$364,82605 Aug 19
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Max PriceAU$1.76
BuyAU$289,70205 Aug 19
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Shares170,803
Max PriceAU$1.70
BuyAU$2,556,06201 Aug 19
Edgbaston Investment Partners LLP
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Shares1,286,231
Max PriceAU$2.27
SellAU$44,85701 Aug 19
Edgbaston Investment Partners LLP
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Shares20,067
Max PriceAU$2.24
SellAU$576,47920 May 19
Realindex Investments Pty Limited
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Shares289,130
Max PriceAU$1.99
BuyAU$1,299,83120 May 19
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Shares639,525
Max PriceAU$2.03
BuyAU$78,72620 May 19
Colonial First State Asset Management (Australia) Limited
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Shares43,126
Max PriceAU$1.83
BuyAU$3,625,29017 May 19
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Max PriceAU$2.16
SellAU$1,526,85717 May 19
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Max PriceAU$2.16
BuyAU$5,760,68013 May 19
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Max PriceAU$1.95
SellAU$1,501,17313 May 19
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Max PriceAU$2.09
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MAM Pty Limited
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Shares188,779
Max PriceAU$2.18
SellAU$1,113,84517 Apr 19
Wilson Asset Management (International) Pty Limited
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Shares521,349
Max PriceAU$2.14
BuyAU$2,025,70307 Feb 19
Realindex Investments Pty Limited
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Shares949,782
Max PriceAU$2.13
SellAU$1,812,82407 Feb 19
Colonial First State Asset Management (Australia) Limited
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Shares801,733
Max PriceAU$2.26
BuyAU$981,85307 Feb 19
Colonial First State Asset Management (Australia) Limited
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Max PriceAU$2.05
SellAU$1,903,99922 Jan 19
Pinnacle Fund Services Limited
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Max PriceAU$2.22

Ownership Breakdown


Management Team

  • W. Lukabyo

    Chief Operating Officer

    • Tenure: 4.9yrs
    • Compensation: AU$620.83k
  • Andrew Skelton

    CEO, MD & Director

    • Tenure: 5.3yrs
    • Compensation: AU$1.10m
  • Adrian Lucchese

    General Counsel & Company Secretary

    • Tenure: 5yrs
    • Compensation: AU$536.93k
  • Stuart Overell

    Chief Operating Officer of Taxi Networks

    • Tenure: 7.8yrs
    • Compensation: AU$548.47k
  • Ben Wicks

    Executive General Manager of People & Culture

    • Tenure: 4.1yrs
  • Deon Ludick

    Chief Technology Officer

    • Tenure: 3.3yrs
    • Compensation: AU$546.21k
  • Ton van Hoof

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: AU$861.01k

Board Members

  • Paul Oneile (70yo)

    Independent Chairman

    • Tenure: 2.7yrs
    • Compensation: AU$220.00k
  • Andrew Skelton

    CEO, MD & Director

    • Tenure: 5.3yrs
    • Compensation: AU$1.10m
  • Rick Millen

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$130.91k
  • Louise McCann

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$100.99k
  • Cliff Rosenberg (55yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$99.83k

Company Information

A2B Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A2B Australia Limited
  • Ticker: A2B
  • Exchange: ASX
  • Founded: 1976
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: AU$181.850m
  • Shares outstanding: 120.43m
  • Website: https://www.a2baustralia.com

Number of Employees


Location

  • A2B Australia Limited
  • 152-162 Riley Street
  • East Sydney
  • Sydney
  • New South Wales
  • 2010
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A2BASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1999
A2BCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1999
A22DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1999
CGAA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDAug 2011

Biography

A2B Australia Limited provides personal transport solutions to government and corporate account customers, passengers, drivers, and taxi operators in Australia. It provides bookings, trips, and payment fac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:31
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.