DB:AX6

Stock Analysis Report

Executive Summary

AVX Corporation, together with its subsidiaries, manufactures, supplies, and resells various electronic components, interconnect devices, sensing and control devices, and related products worldwide.

Rewards

PE ratio (16.9x) is below the German market (20.9x)

Pays a reliable dividend of 2.24%

Risk Analysis

Earnings are forecast to decline by an average of -20% per year for the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AX6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

AX6

-0.4%

DE Electronic

0.1%

DE Market


1 Year Return

15.7%

AX6

10.9%

DE Electronic

14.1%

DE Market

Return vs Industry: AX6 matched the German Electronic industry which returned 13.4% over the past year.

Return vs Market: AX6 matched the German Market which returned 15.1% over the past year.


Shareholder returns

AX6IndustryMarket
7 Day1.1%-0.4%0.1%
30 Day2.7%7.3%0.2%
90 Day44.3%6.3%3.3%
1 Year19.7%15.7%13.4%10.9%17.6%14.1%
3 Year35.8%25.3%47.9%43.0%14.8%4.8%
5 Year78.9%54.9%113.8%98.5%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

16.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AX6 (€18.7) is trading above our estimate of fair value (€6.95)

Significantly Below Fair Value: AX6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AX6 is good value based on its PE Ratio (16.9x) compared to the Electronic industry average (34.4x).

PE vs Market: AX6 is good value based on its PE Ratio (16.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: AX6's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AX6 is good value based on its PB Ratio (1.4x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is AVX forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AX6's earnings are forecast to decline over the next 3 years (-20% per year).

Earnings vs Market: AX6's earnings are forecast to decline over the next 3 years (-20% per year).

High Growth Earnings: AX6's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AX6's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: AX6's revenue is forecast to decline over the next 3 years (-3.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AX6's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AVX performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AX6 has high quality earnings.

Growing Profit Margin: AX6's current net profit margins (13.2%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: AX6's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: AX6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AX6 had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: AX6's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AVX's financial position?


Financial Position Analysis

Short Term Liabilities: AX6's short term assets ($1.7B) exceed its short term liabilities ($252.9M).

Long Term Liabilities: AX6's short term assets ($1.7B) exceed its long term liabilities ($122.2M).


Debt to Equity History and Analysis

Debt Level: AX6 is debt free.

Reducing Debt: AX6 has not had any debt for past 5 years.

Debt Coverage: AX6 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AX6 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AX6 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AX6's debt is covered by short term assets.


Next Steps

Dividend

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

2.24%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: AX6's dividend (2.24%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AX6's dividend (2.24%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: AX6's dividends per share have been stable in the past 10 years.

Growing Dividend: AX6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), AX6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

John Sarvis (69yo)

4.8yrs

Tenure

US$1,351,431

Compensation

Mr. John Sarvis has been the Chief Executive Officer and President of AVX Corp. since April 1, 2015 and has been its Chairman of the Board since July 25, 2016. Mr. Sarvis joined AVX Corporation in 1973. Mr ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.35M) is below average for companies of similar size in the German market ($USD2.02M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Sarvis
Chairman4.8yrsUS$1.35m0.018% $583.8k
Michael Hufnagel
Senior VP1.6yrsUS$673.60k0.0026% $84.0k
John Lawing
Senior VP & CTO5.8yrsUS$945.50k0.0054% $172.6k
Evan Slavitt
Senior VP3.6yrsUS$975.14k0.0084% $269.8k
Jeff Schmersal
Senior VP & COO1.8yrsno data0.016% $520.0k
Eric Pratt
Senior Vice President of Marketing2.8yrsno data0.010% $331.1k
Alexander Schenkel
Senior Vice President of Sales1.8yrsno data0.0037% $120.3k
Karen Smith
Senior Vice President of Global Human Resources0.6yrsno data0.0015% $48.1k
S. King
Senior Vice President of Tantalum Products4.5yrsno data0.014% $464.8k
Steve Sturgeon
Senior Vice President of Connector Products2.8yrsno data0.016% $529.0k

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: AX6's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Sarvis
Chairman4.8yrsUS$1.35m0.018% $583.8k
Kazuo Inamori
Director Emeritus3.6yrsno datano data
Donald Christiansen
Presiding Director12.1yrsUS$136.13k0.0033% $105.2k
Goro Yamaguchi
Director6.6yrsUS$69.13k0.0032% $101.0k
Shoichi Aoki
Director7.6yrsUS$69.13k0.0032% $101.0k
David DeCenzo
Independent Director12.6yrsUS$136.13k0.0024% $77.0k
Hiroshi Fure
Director2.5yrsUS$69.13k0.0013% $43.0k
Koichi Kano
Director3.6yrsUS$69.13k0.0021% $68.0k
Hideo Tanimoto
Director2.5yrsUS$69.13k0.0018% $59.0k
John Ballato
Independent Director1yrsUS$20.00kno data

3.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AX6'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

AVX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AVX Corporation
  • Ticker: AX6
  • Exchange: DB
  • Founded: 1972
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$3.463b
  • Listing Market Cap: US$3.208b
  • Shares outstanding: 169.18m
  • Website: https://www.avx.com

Number of Employees


Location

  • AVX Corporation
  • One AVX Boulevard
  • Fountain Inn
  • South Carolina
  • 29644
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVXNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1995
AX6DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995

Biography

AVX Corporation, together with its subsidiaries, manufactures, supplies, and resells various electronic components, interconnect devices, sensing and control devices, and related products worldwide. The company operates through Electronic Components; and Interconnect, Sensing and Control Devices segments. The Electronic Components segment primarily offers surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters, thick and thin film packages of various electronic integrated components, varistors, thermistors, inductors, and resistive products. The Interconnect, Sensing and Control Devices segment provides automotive sensing and control devices, as well as automotive, telecom, and memory connectors. The company serves various industries, such as telecommunications, information technology hardware, automotive electronics, medical devices and instrumentation, industrial instrumentation, transportation, energy harvesting, defense and aerospace electronic systems, and consumer electronics industries. It markets its products through its direct sales force and independent manufacturers’ representatives to multi-national original equipment manufacturers, independent electronic component distributors, and electronic manufacturing service providers. The company was founded in 1972 and is headquartered in Fountain Inn, South Carolina. AVX Corporation is a subsidiary of Kyocera Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:11
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.