TSX:AAB

Stock Analysis Report

Executive Summary

Aberdeen International Inc. operates as a resource investment company and a merchant bank focusing on small capitalization companies in the metals and mining sector.

Risk Analysis

Earnings have declined by -2.69% per year over past 5 years

Makes less than USD$1m in revenue (CA$-5M)

Does not have a meaningful market cap (CA$3M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

How has Aberdeen International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AAB

-1.4%

CA Capital Markets

0.6%

CA Market


1 Year Return

-36.4%

AAB

18.7%

CA Capital Markets

5.8%

CA Market

Return vs Industry: AAB underperformed the Canadian Capital Markets industry which returned 18.7% over the past year.

Return vs Market: AAB underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

AABIndustryMarket
7 Day0%-1.4%0.6%
30 Day0%0.3%0.5%
90 Day0%3.4%3.6%
1 Year-36.4%-36.4%24.2%18.7%9.1%5.8%
3 Year-76.7%-76.7%25.9%10.1%15.4%5.0%
5 Year-75.9%-75.9%50.2%18.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aberdeen International undervalued compared to its fair value and its price relative to the market?

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AAB is good value based on its PB Ratio (0.2x) compared to the CA Capital Markets industry average (0.9x).


Next Steps

Future Growth

How is Aberdeen International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials 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 Aberdeen International 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 Aberdeen International performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAB is currently unprofitable.

Growing Profit Margin: AAB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAB is unprofitable, and losses have increased over the past 5 years at a rate of -2.7% per year.

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

Earnings vs Industry: AAB is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-13.4%).


Return on Equity

High ROE: AAB has a negative Return on Equity (-29.43%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aberdeen International's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: AAB's debt is covered by short term assets (assets are 45x 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: AAB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AAB has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -10.2% each year


Financial Institutions Analysis

Asset Level: AAB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AAB has a sufficient allowance for bad loans.

Low Risk Liabilities: AAB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AAB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AAB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AAB has an appropriate level of bad loans.


Next Steps

Dividend

What is Aberdeen International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%5.3%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AAB'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 AAB's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: AAB is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAB's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Stan Bharti (67yo)

3.5yrs

Tenure

CA$374,892

Compensation

Mr. Stan Bharti P.Eng, M.Sc., DIC, C.Eng, M. Eng. serves as Director at Fura Gems Inc. since August 2, 2019. He serves as strategic Consultant of Desert Lion Energy Inc. since January 1, 2017. Mr. Bharti s ...


CEO Compensation Analysis

Compensation vs Market: Stan's total compensation ($USD282.89K) is above average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stan Bharti
Executive Chairman3.5yrsCA$374.89k19.83% CA$666.8k
Ryan Ptolemy
CFO & Corporate Secretary9.3yrsCA$38.72kno data
David Stein
Consultant3yrsCA$312.38kno data

3.5yrs

Average Tenure

43yo

Average Age

Experienced Management: AAB's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stan Bharti
Executive Chairman3.5yrsCA$374.89k19.83% CA$666.8k
Maurice Colson
Independent Director5.1yrsCA$25.00kno data
Bernard Wilson
Lead Director5.1yrsCA$22.50k0.010% CA$350.0
Lewis MacKenzie
Independent Director2.9yrsCA$22.50kno data
Wen Ye
Independent Director1.6yrsno datano data

5.1yrs

Average Tenure

76yo

Average Age

Experienced Board: AAB's board of directors are considered experienced (5.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aberdeen International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aberdeen International Inc.
  • Ticker: AAB
  • Exchange: TSX
  • Founded: 1987
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$3.362m
  • Shares outstanding: 96.05m
  • Website: https://www.aberdeeninternational.ca

Number of Employees


Location

  • Aberdeen International Inc.
  • 65 Queen Street West
  • Suite 815
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AABTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1990
A8HDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1990
AABV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1990

Biography

Aberdeen International Inc. operates as a resource investment company and a merchant bank focusing on small capitalization companies in the metals and mining sector. It seeks to acquire equity participation in pre-IPO and early stage public resource companies with undeveloped or undervalued resources. It holds interests in Kalplats PGM development project located in Johannesburg, South Africa; and the Sal de Los Angeles project, which comprises 32 mining claims covering an area of approximately 8,156 hectares located in Salta, Argentina. The company was formerly known as International Catalyst Ventures Inc. and changed its name to Aberdeen International Inc. in November 2001. Aberdeen International Inc. was incorporated in 1987 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:42
End of Day Share Price2020/02/12 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.