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AST

AusNet ServicesASX:AST Stock Report

Market Cap

AU$9.9b

7D

30.3%

1Y

33.3%

Updated

23 Sep, 2021

Data

Company Financials +
AST fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends3/6

AST Overview

AusNet Services Ltd owns and operates an electricity transmission network in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for AusNet Services
Historical stock prices
Current Share PriceAU$2.58
52 Week HighAU$1.64
52 Week LowAU$2.60
Beta-0.042
1 Month Change29.98%
3 Month Change44.94%
1 Year Change33.33%
3 Year Change58.77%
5 Year Change57.32%
Change since IPO98.46%

Recent News & Updates

Sep 20
AusNet Services (ASX:AST) Seems To Be Using A Lot Of Debt

AusNet Services (ASX:AST) Seems To Be Using A Lot Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 02
AusNet Services (ASX:AST) Is Reinvesting At Lower Rates Of Return

AusNet Services (ASX:AST) Is Reinvesting At Lower Rates Of Return

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Jun 21
AusNet Services (ASX:AST) Has A Somewhat Strained Balance Sheet

AusNet Services (ASX:AST) Has A Somewhat Strained Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 31
Capital Allocation Trends At AusNet Services (ASX:AST) Aren't Ideal

Capital Allocation Trends At AusNet Services (ASX:AST) Aren't Ideal

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

ASTAU Electric UtilitiesAU Market
7D30.3%4.8%-0.5%
1Y33.3%26.6%24.9%

Return vs Industry: AST exceeded the Australian Electric Utilities industry which returned 26.4% over the past year.

Return vs Market: AST exceeded the Australian Market which returned 25.4% over the past year.

Price Volatility

Is AST's price volatile compared to industry and market?
AST volatility
AST Beta-0.042
Industry Beta0.73
Market Beta1

Stable Share Price: AST is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AST's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20141,500Tony Narvaezhttps://www.ausnetservices.com.au

AusNet Services Ltd owns and operates an electricity transmission network in Australia. It operates through Electricity Distribution, Gas Distribution, Electricity Transmission, and Growth & Future Networks segments. The Electricity Distribution segment carries electricity from the high voltage transmission network to end users, including metering.

AusNet Services Fundamentals Summary

How do AusNet Services's earnings and revenue compare to its market cap?
AST fundamental statistics
Market CapAU$9.87b
Earnings (TTM)AU$302.10m
Revenue (TTM)AU$1.92b

32.7x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AST income statement (TTM)
RevenueAU$1.92b
Cost of RevenueAU$255.50m
Gross ProfitAU$1.67b
ExpensesAU$1.37b
EarningsAU$302.10m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 11, 2021

Earnings per share (EPS)0.08
Gross Margin86.72%
Net Profit Margin15.70%
Debt/Equity Ratio282.9%

How did AST perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

118%

Payout Ratio

Valuation

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

32.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AST (A$2.58) is trading above our estimate of fair value (A$1.4)

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


Price To Earnings Ratio

PE vs Industry: AST is good value based on its PE Ratio (32.7x) compared to the Oceanic Electric Utilities industry average (63.4x).

PE vs Market: AST is poor value based on its PE Ratio (32.7x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: AST's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AST is overvalued based on its PB Ratio (2.9x) compared to the XO Electric Utilities industry average (2.2x).


Future Growth

How is AusNet Services forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AST's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: AST's earnings are forecast to decline over the next 3 years (-5.6% per year).

High Growth Earnings: AST's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AST's revenue (1.4% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: AST's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AST's Return on Equity is forecast to be low in 3 years time (6.9%).


Past Performance

How has AusNet Services performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AST has high quality earnings.

Growing Profit Margin: AST's current net profit margins (15.7%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: AST's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: AST's earnings growth over the past year (3.9%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: AST earnings growth over the past year (3.9%) exceeded the Electric Utilities industry -13%.


Return on Equity

High ROE: AST's Return on Equity (8.8%) is considered low.


Financial Health

How is AusNet Services's financial position?


Financial Position Analysis

Short Term Liabilities: AST's short term assets (A$1.8B) exceed its short term liabilities (A$763.3M).

Long Term Liabilities: AST's short term assets (A$1.8B) do not cover its long term liabilities (A$10.4B).


Debt to Equity History and Analysis

Debt Level: AST's debt to equity ratio (282.9%) is considered high.

Reducing Debt: AST's debt to equity ratio has increased from 199.3% to 282.9% over the past 5 years.

Debt Coverage: AST's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: AST's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

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

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AST's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: AST's dividend (3.68%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).


Stability and Growth of Payments

Stable Dividend: AST's dividends per share have been stable in the past 10 years.

Growing Dividend: AST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.2%), AST's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AST's dividends in 3 years are not forecast to be well covered by earnings (145.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tony Narvaez

1.83yrs

Tenure

AU$2,295,467

Compensation

Mr. Tony Narvaez serves as a Managing Director and Director of AusNet Services Ltd and AusNet Services Holdings Pty Ltd since November 01, 2019. Mr. Narvaez had been Chief Executive Officer at Endeavour En...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.67M) is about average for companies of similar size in the Australian market ($USD2.28M).

Compensation vs Earnings: Tony's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AST's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AST's board of directors are considered experienced (4.8 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 2.1%.


Top Shareholders

Company Information

AusNet Services Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: AusNet Services Ltd
  • Ticker: AST
  • Exchange: ASX
  • Founded: 2014
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: AU$9.874b
  • Shares outstanding: 3.83b
  • Website: https://www.ausnetservices.com.au

Number of Employees


Location

  • AusNet Services Ltd
  • 2 Southbank Boulevard
  • Level 31
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 16:00
End of Day Share Price2021/09/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.