DB:4A4B

Stock Analysis Report

Executive Summary

Aggreko Plc supplies modular, mobile power, heating, cooling, and related services worldwide.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4A4B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.0%

4A4B

-5.6%

DE Commercial Services

-3.0%

DE Market


1 Year Return

-45.5%

4A4B

-33.4%

DE Commercial Services

-20.6%

DE Market

Return vs Industry: 4A4B underperformed the German Commercial Services industry which returned -32% over the past year.

Return vs Market: 4A4B underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

4A4BIndustryMarket
7 Day7.0%-5.6%-3.0%
30 Day-34.2%-24.5%-19.1%
90 Day-47.1%-34.8%-26.2%
1 Year-43.6%-45.5%-31.0%-33.4%-18.3%-20.6%
3 Year-44.7%-49.9%-30.3%-36.4%-18.8%-25.6%
5 Year-72.4%-76.1%-38.5%-47.1%-19.9%-30.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Aggreko 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: 4A4B (€5.2) is trading below our estimate of fair value (€21.44)

Significantly Below Fair Value: 4A4B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4A4B is good value based on its PE Ratio (9.4x) compared to the Commercial Services industry average (96x).

PE vs Market: 4A4B is good value based on its PE Ratio (9.4x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 4A4B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 4A4B is good value based on its PB Ratio (0.9x) compared to the DE Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is Aggreko forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4A4B's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: 4A4B's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: 4A4B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 4A4B's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: 4A4B's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4A4B's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Aggreko performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4A4B has high quality earnings.

Growing Profit Margin: 4A4B's current net profit margins (8%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: 4A4B's earnings have declined by -11.7% per year over the past 5 years.

Accelerating Growth: 4A4B's earnings growth over the past year (3.2%) exceeds its 5-year average (-11.7% per year).

Earnings vs Industry: 4A4B earnings growth over the past year (3.2%) underperformed the Commercial Services industry 8.9%.


Return on Equity

High ROE: 4A4B's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Aggreko's financial position?


Financial Position Analysis

Short Term Liabilities: 4A4B's short term assets (£1.0B) exceed its short term liabilities (£528.0M).

Long Term Liabilities: 4A4B's short term assets (£1.0B) exceed its long term liabilities (£624.0M).


Debt to Equity History and Analysis

Debt Level: 4A4B's debt to equity ratio (41.9%) is considered high.

Reducing Debt: 4A4B's debt to equity ratio has reduced from 49.9% to 41.9% over the past 5 years.

Debt Coverage: 4A4B's debt is well covered by operating cash flow (89.5%).

Interest Coverage: 4A4B's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: 4A4B has a low level of unsold assets or inventory.

Debt Coverage by Assets: 4A4B's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

5.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4A4B's dividend (5.82%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: 4A4B's dividend (5.82%) is in the top 25% of dividend payers in the German market (4.87%)


Stability and Growth of Payments

Stable Dividend: 4A4B's dividends per share have been stable in the past 10 years.

Growing Dividend: 4A4B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.6%), 4A4B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4A4B's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Chris Weston (55yo)

5.25s

Tenure

UK£1,538,725

Compensation

Mr. Chris Weston has been the Chief Executive Officer of Aggreko plc since January 2, 2015. Mr. Weston served as Managing Director of British Gas Trading Limited until December 31, 2014. Mr. Weston was the ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.92M) is about average for companies of similar size in the German market ($USD1.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chris Weston
CEO & Director5.25yrsUK£1.54m0.034% £463.7k
Heath Drewett
CFO & Director2.25yrsUK£900.43kno data
Dan Ibbetson
Managing Director of Global Products & Technologyno datano datano data
Grant Nairn
Group Chief Information Officer2.42yrsno datano data
Peter Kennerley
Group Legal Director & Company Secretary11.5yrsno datano data
Anna Filipopoulos
Group Human Resources Director4yrsno datano data
Ana Amicarella
Managing Director of Americas Power Projects6.25yrsno datano data
Stephen Beynon
President & MD of Power Solutions2.92yrsno datano data
Bruce Pool
President of Rental Solutions4.33yrsno datano data

4.2yrs

Average Tenure

53yo

Average Age

Experienced Management: 4A4B's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chris Weston
CEO & Director5.25yrsUK£1.54m0.034% £463.7k
Heath Drewett
CFO & Director2.25yrsUK£900.43kno data
Kenneth Hanna
Independent Chairman8yrsUK£343.93k0.0062% £83.4k
Barbara Jeremiah
Independent Non-Executive Director3.08yrsUK£82.76k0.00039% £5.3k
Diana Layfield
Independent Non-Executive Director7.92yrsUK£61.00k0.0011% £15.1k
Miles Roberts
Independent Non-Executive Director3.08yrsUK£61.00kno data
Ian Marchant
Independent Non-Executive Director6.42yrsUK£81.00k0.0013% £17.7k
Uwe Krueger
Senior Independent Director2yrsno data0.0012% £16.5k
Nicola Brewer
Independent Non-Executive Director4.17yrsUK£81.00k0.00057% £7.7k
Sarah Kuijlaars
Independent Non-Executive Director0.50yrUK£15.25kno data

3.6yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 4A4B's board of directors are considered experienced (3.6 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

Aggreko Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aggreko Plc
  • Ticker: 4A4B
  • Exchange: DB
  • Founded: 1962
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£1.184b
  • Listing Market Cap: UK£1.350b
  • Shares outstanding: 254.52m
  • Website: https://www.plc.aggreko.com

Number of Employees


Location

  • Aggreko Plc
  • 120 Bothwell Street
  • 8th Floor
  • Glasgow
  • Lanarkshire
  • G2 7JS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1997
AGKLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1997
4A4BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1997
AGKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1997
AGGK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2017

Biography

Aggreko Plc supplies modular, mobile power, heating, cooling, and related services worldwide. The company operates in three segments: Rental Solutions, Power Solutions Industrial, and Power Solutions Utility. It offers power generation products, including diesel generators, G3+ generators, and gas generators, as well as Solar-diesel hybrid power plants; cooling systems, such as cooling towers, chillers, heat exchangers, and air handlers and conditioners; and desiccant and refrigerated dehumidifiers to prevent metal corrosion, aid processes, preserve equipment on cold stacked offshore rigs, reduce mold and mildew growth during production processes, and dry out water-damaged buildings, as well as to reduce drying times for concrete, insulation, and fireproofing. The company also provides electric heaters, indirect fired heaters, and heat exchangers; and load banks that are used to test generators and turbines, uninterrupted power systems, electrical distribution panels and systems, data center power systems, combined heat and power systems, and simulation of heat loads. In addition, it offers battery storage solutions; and power to national utility customers. The company operates 195 sales and service centers. It serves the agriculture, construction, contracting, data centers, events, facilities management, food and beverage, government, manufacturing, mining, oil and gas, petrochemical and refining, pharmaceuticals, renewable energy, shipping, telecommunications, and utilities sectors. Aggreko Plc was founded in 1962 and is headquartered in Glasgow, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 21:56
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.