AIM:AVG

Stock Analysis Report

Executive Summary

Avingtrans plc manufactures and sells engineered components, systems, and services to the energy, medical, and infrastructure industries worldwide.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

AVG

-0.4%

GB Machinery

1.9%

GB Market


1 Year Return

25.0%

AVG

-7.6%

GB Machinery

2.4%

GB Market

Return vs Industry: AVG exceeded the UK Machinery industry which returned -7.6% over the past year.

Return vs Market: AVG exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

AVGIndustryMarket
7 Day3.8%-0.4%1.9%
30 Day12.5%-9.2%-1.1%
90 Day13.0%-8.9%-1.8%
1 Year27.1%25.0%-4.9%-7.6%7.4%2.4%
3 Year43.9%37.1%15.8%7.2%18.2%3.7%
5 Year117.1%97.8%21.2%4.7%35.7%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AVG (£2.7) is trading below our estimate of fair value (£2.74)

Significantly Undervalued: AVG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVG is poor value based on its PE Ratio (33.6x) compared to the Machinery industry average (17.7x).

PE vs Market: AVG is poor value based on its PE Ratio (33.6x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: AVG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AVG is good value based on its PB Ratio (1.2x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

How is Avingtrans forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVG's forecast earnings growth (36.6% per year) is above the savings rate (1.2%).

Earnings vs Market: AVG's earnings (36.6% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: AVG's revenue (12.1% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: AVG's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AVG's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Avingtrans performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVG's earnings have declined by -25.6% per year over the past 5 years.

Accelerating Growth: AVG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AVG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (8%).


Return on Equity

High ROE: AVG's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: AVG's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: AVG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Avingtrans's financial position?


Financial Position Analysis

Short Term Liabilities: AVG's short term assets (£55.1M) exceeds its short term liabilities (£42.6M)

Long Term Liabilities: AVG's short term assets (55.1M) exceeds its long term liabilities (10.4M)


Debt to Equity History and Analysis

Debt Level: AVG's debt to equity ratio (12.6%) is considered satisfactory

Reducing Debt: AVG's debt to equity ratio has reduced from 26.7% to 12.6% over the past 5 years.

Debt Coverage: AVG's debt is well covered by operating cash flow (103%).

Interest Coverage: AVG's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: AVG's debt is covered by short term assets (assets are 6.292280x debt).


Next Steps

Dividend

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

1.41%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Avingtrans before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AVG's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: AVG's dividend (1.41%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: Whilst dividend payments have been stable, AVG has been paying a dividend for less than 10 years.

Growing Dividend: AVG's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), AVG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVG's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

What is the CEO of Avingtrans's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Steve McQuillan (58yo)

11yrs

Tenure

UK£357,000

Compensation

Mr. Stephen McQuillan, also known as Steve, has been the Chief Executive Officer at Avingtrans PLC since October 1, 2008 and serves as its Managing Director. Mr. McQuillan has an extensive expertise to Avi ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD458.16K) is about average for companies of similar size in the UK market ($USD320.04K).

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


Management Age and Tenure

5.9yrs

Average Tenure

Experienced Management: AVG's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: AVG's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Stephen King

    CFO, Company Secretary & Director

    • Tenure: 0yrs
    • Compensation: UK£288.00k
  • Steve McQuillan (58yo)

    CEO, MD & Director

    • Tenure: 11yrs
    • Compensation: UK£357.00k
  • Austen Adams

    Managing Director of Process Solutions & Rotating Equipment

    • Tenure: 5.9yrs
  • Mike Turmelle

    Managing Director of Engineered Pumps & Motors Division

    • Tenure: 1.8yrs

Board Members

  • Roger McDowell (64yo)

    Independent Non-Executive Chairman

    • Tenure: 11.6yrs
    • Compensation: UK£71.00k
  • Les Thomas (61yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£34.00k
  • Stephen King

    CFO, Company Secretary & Director

    • Tenure: 0yrs
    • Compensation: UK£288.00k
  • Graham Thornton (71yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£34.00k
  • Steve McQuillan (58yo)

    CEO, MD & Director

    • Tenure: 11yrs
    • Compensation: UK£357.00k
  • John Clarke (60yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£11.00k

Company Information

Avingtrans plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avingtrans plc
  • Ticker: AVG
  • Exchange: AIM
  • Founded: 1985
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£84.678m
  • Shares outstanding: 31.36m
  • Website: https://www.avingtrans.plc.uk

Number of Employees


Location

  • Avingtrans plc
  • Chatteris Business Park
  • Chatteris
  • Cambridgeshire
  • PE16 6SA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Avingtrans plc manufactures and sells engineered components, systems, and services to the energy, medical, and infrastructure industries worldwide. It operates in three segments: Energy-EPM, Energy-PSRE, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:40
End of Day Share Price2019/10/16 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


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.