AIM:AFS

Stock Analysis Report

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Executive Summary

Amiad Water Systems Ltd., together with its subsidiaries, produces and supplies water filters and filtration systems for the industrial, municipal, ballast water, oil and gas, and irrigation markets worldwide. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Amiad Water Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

AFS

0.2%

GB Machinery

0.1%

GB Market


1 Year Return

-7.7%

AFS

20.0%

GB Machinery

-15.4%

GB Market

Return vs Industry: AFS underperformed the UK Machinery industry which returned 19.1% over the past year.

Return vs Market: AFS exceeded the UK Market which returned -16.6% over the past year.


Shareholder returns

AFSIndustryMarket
7 Day2.1%0.2%0.1%
30 Day2.6%10.4%1.1%
90 Day2.1%11.8%-2.0%
1 Year-7.7%-7.7%21.7%20.0%-12.1%-15.4%
3 Year68.8%66.7%16.4%8.6%-8.4%-19.7%
5 Year55.2%45.5%102.3%77.7%16.4%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Amiad Water Systems 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: AFS (£2.4) is trading below our estimate of fair value (£37.85)

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


Price To Earnings Ratio

PE vs Industry: AFS is poor value based on its PE Ratio (377.2x) compared to the GB Machinery industry average (22.2x).

PE vs Market: AFS is poor value based on its PE Ratio (377.2x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: AFS is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: AFS is good value based on its PB Ratio (1.2x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

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

80.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFS's forecast earnings growth (80.9% per year) is above the savings rate (1.2%).

Earnings vs Market: AFS's earnings (80.9% per year) are forecast to grow faster than the UK market (24% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFS's revenue (1.3% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: AFS's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Amiad Water Systems performed over the past 5 years?

-31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFS has high quality earnings.

Growing Profit Margin: AFS's current net profit margins (0.2%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: AFS's earnings have declined by 31.6% per year over the past 5 years.

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

Earnings vs Industry: AFS had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Machinery industry average (-13%).


Return on Equity

High ROE: AFS's Return on Equity (1.6%) is considered low.


Next Steps

Financial Health

How is Amiad Water Systems's financial position?


Financial Position Analysis

Short Term Liabilities: AFS's short term assets ($96.2M) exceed its short term liabilities ($33.5M).

Long Term Liabilities: AFS's short term assets ($96.2M) exceed its long term liabilities ($29.5M).


Debt to Equity History and Analysis

Debt Level: AFS's debt to equity ratio (19.5%) is considered satisfactory.

Reducing Debt: AFS's debt to equity ratio has reduced from 59.5% to 19.5% over the past 5 years.

Debt Coverage: AFS's debt is well covered by operating cash flow (102.1%).

Interest Coverage: AFS's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Next Steps

Dividend

What is Amiad Water Systems's current dividend yield, its reliability and sustainability?

0.25%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AFS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AFS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: AFS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Dori Ivzori (55 yo)

3.92yrs

Tenure

US$371,611

Compensation

Mr. Dori Ivzori has been the Chief Executive Officer of Amiad Water Systems Ltd. since November 3, 2016 and served as its Director since November 3, 2016 until May 1, 2020. Mr. Ivzori joined Amiad from Tam ...


CEO Compensation Analysis

Compensation vs Market: Dori's total compensation ($USD371.61K) is about average for companies of similar size in the UK market ($USD359.64K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dori Ivzori
Chief Executive Officer3.92yrsUS$371.61kno data
Noam Shlasky
COO & VP8yrsUS$238.45kno data
Michael Poth
President of Amiad USA2.42yrsUS$315.93kno data
Issey Ende
Vice President of Marketing of BD & Technologies1yrUS$256.53k0%
$ 0
Nir Lang
VP & APAC Region Sales Manager2.83yrsUS$290.10k0.022%
$ 16.0k
Avishay Afriat
VP of Finance & CFO1.58yrsno datano data
Irit Ben-Dov
Head of EMEA5.67yrsno datano data
Ben Gilad
Company Secretaryno datano datano data

2.8yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Ishay Davidi
Non-Executive Director0.42yrno datano data
Ran Shahor
Non-Executive Independent Director0.50yrno datano data
Derek Zissman
Independent Statutory External Director5.58yrsUS$68.65k0.041%
$ 30.0k
Lilach Asher-Topilsky
Non-Executive Director0.50yrno datano data
Oded Rosen
Non-Executive Director5.25yrsUS$22.14kno data
Arie Schor
Independent Statutory External Director2.5yrsUS$30.13kno data
Yariv Avisar
Non-Executive Chairman2.08yrsUS$121.80kno data

2.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AFS's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 33.8%.


Top Shareholders

Company Information

Amiad Water Systems Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amiad Water Systems Ltd.
  • Ticker: AFS
  • Exchange: AIM
  • Founded: 1962
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£72.842m
  • Shares outstanding: 30.35m
  • Website: https://www.amiad.com

Location

  • Amiad Water Systems Ltd.
  • D.N. Galil Elyon 1
  • Upper Galilee
  • 12335
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2005
A5FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005

Biography

Amiad Water Systems Ltd., together with its subsidiaries, produces and supplies water filters and filtration systems for the industrial, municipal, ballast water, oil and gas, and irrigation markets worldw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 21:23
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.