ASX:AQZ

Stock Analysis Report

Alliance Aviation Services

Executive Summary

Alliance Aviation Services Limited, an air charter operator, provides aviation services to tourism, resources, mining, education, government, corporate, sporting, and entertainment sectors in Australia and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Alliance Aviation Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

12.9%

AQZ

4.2%

AU Airlines

2.5%

AU Market


1 Year Return

5.0%

AQZ

11.7%

AU Airlines

11.1%

AU Market

Return vs Industry: AQZ underperformed the Australian Airlines industry which returned 11.7% over the past year.

Return vs Market: AQZ underperformed the Australian Market which returned 11.1% over the past year.


Shareholder returns

AQZIndustryMarket
7 Day12.9%4.2%2.5%
30 Day6.8%7.9%0.7%
90 Day-8.0%11.8%1.4%
1 Year11.6%5.0%17.5%11.7%17.5%11.1%
3 Year253.0%210.4%87.2%67.5%37.8%19.4%
5 Year146.3%110.8%135.8%96.4%51.7%17.6%

Price Volatility Vs. Market

How volatile is Alliance Aviation Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alliance Aviation Services undervalued compared to its fair value and its price relative to the market?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AQZ (A$2.53) is trading below our estimate of fair value (A$3.74)

Significantly Undervalued: AQZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AQZ is poor value based on its PE Ratio (13.9x) compared to the Airlines industry average (12.5x).

PE vs Market: AQZ is good value based on its PE Ratio (13.9x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AQZ is overvalued based on its PB Ratio (1.9x) compared to the XO Airlines industry average (1.9x).


Next Steps

Future Growth

How is Alliance Aviation Services forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQZ's forecast earnings growth (10.4% per year) is above the savings rate (2.3%).

Earnings vs Market: AQZ's earnings (10.4% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: AQZ's revenue (6.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: AQZ's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AQZ's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Alliance Aviation Services performed over the past 5 years?

50.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AQZ's earnings have grown significantly by 50.5% per year over the past 5 years.

Accelerating Growth: AQZ's earnings growth over the past year (25.5%) is below its 5-year average (50.5% per year).

Earnings vs Industry: AQZ earnings growth over the past year (25.5%) exceeded the Airlines industry -11.3%.


Return on Equity

High ROE: AQZ's Return on Equity (13.5%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Alliance Aviation Services's financial position?


Financial Position Analysis

Short Term Liabilities: AQZ's short term assets (A$98.6M) exceeds its short term liabilities (A$55.7M)

Long Term Liabilities: AQZ's short term assets (98.6M) exceeds its long term liabilities (76.9M)


Debt to Equity History and Analysis

Debt Level: AQZ's debt to equity ratio (35.6%) is considered satisfactory

Reducing Debt: AQZ's debt to equity ratio has reduced from 64.6% to 35.6% over the past 5 years.

Debt Coverage: AQZ's debt is well covered by operating cash flow (61.6%).

Interest Coverage: AQZ's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: AQZ's debt is covered by short term assets (assets are 1.641860x debt).


Next Steps

Dividend

What is Alliance Aviation Services's current dividend yield, its reliability and sustainability?

6.96%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%2.5%markettop25%5.6%industryaverage2.6%forecastin3Years7.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AQZ's dividend (6.96%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: AQZ's dividend (6.96%) is in the top 25% of dividend payers in the Australian market (5.56%)

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

Growing Dividend: AQZ's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.5%), AQZ's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AQZ's dividends in 3 years are forecast to be covered by earnings (81.2% payout ratio).


Next Steps

Management

What is the CEO of Alliance Aviation Services's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Lee Schofield 0

4.4yrs

Tenure

AU$508,387

Compensation

Mr. Lee Schofield serves as Chief Executive Officer of Alliance Aviation Services Ltd. since May 28, 2015. Mr. Schofield served as the Chief Operating Officer of Alliance Aviation Services Ltd. since May 6 ...


CEO Compensation Analysis

Compensation vs. Market: Lee's total compensation ($USD343.23K) is about average for companies of similar size in the Australian market ($USD450.00K).

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


Management Age and Tenure

4.5yrs

Average Tenure

Experienced Management: AQZ's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

71.5yo

Average Age

Experienced Board: AQZ's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Scott McMillan (56yo)

    MD & Executive Director

    • Tenure: 8yrs
    • Compensation: AU$648.08k
  • Tracie Deegan

    General Manager of Human Resources & Development

    • Tenure: 7.8yrs
    • Compensation: AU$238.65k
  • Lee Schofield

    CEO & Executive Director

    • Tenure: 4.4yrs
    • Compensation: AU$508.39k
  • Matt Hobson

    General Manager of Business Development

    • Tenure: 0yrs
    • Compensation: AU$261.45k
  • Shane Edwards

    General Manager of Commercial

    • Tenure: 4.7yrs
    • Compensation: AU$397.49k
  • Stewart Tully

    General Manager of Operations

    • Tenure: 0yrs
  • Marc Devine

    CFO & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$349.33k
  • Nicola Clark

    Company Secretary

    • Tenure: 2.2yrs
  • Gerard Byrne

    GM of Flight Operations & Chief Pilot

    • Tenure: 0yrs

Board Members

  • David Crombie (75yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: AU$95.38k
  • Peter Housden (72yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: AU$95.38k
  • Scott McMillan (56yo)

    MD & Executive Director

    • Tenure: 8yrs
    • Compensation: AU$648.08k
  • Steve Padgett (71yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$192.78k
  • Lee Schofield

    CEO & Executive Director

    • Tenure: 4.4yrs
    • Compensation: AU$508.39k

Company Information

Alliance Aviation Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alliance Aviation Services Limited
  • Ticker: AQZ
  • Exchange: ASX
  • Founded: 2002
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: AU$317.211m
  • Shares outstanding: 125.88m
  • Website: https://www.allianceairlines.com.au

Number of Employees


Location

  • Alliance Aviation Services Limited
  • 81 Pandanus Avenue
  • Brisbane Airport
  • Brisbane
  • Queensland
  • 4009
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AQZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2011
AQZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2011

Biography

Alliance Aviation Services Limited, an air charter operator, provides aviation services to tourism, resources, mining, education, government, corporate, sporting, and entertainment sectors in Australia and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:34
End of Day Share Price2019/10/17 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.