AIM:AVG

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 41.09% per year

Risk Analysis

No risks detected for AVG from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate 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

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


Market Performance


7 Day Return

-3.4%

AVG

-0.1%

GB Machinery

-1.9%

GB Market


1 Year Return

7.9%

AVG

19.9%

GB Machinery

-14.5%

GB Market

Return vs Industry: AVG underperformed the UK Machinery industry which returned 19.9% over the past year.

Return vs Market: AVG exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

AVGIndustryMarket
7 Day-3.4%-0.1%-1.9%
30 Day15.7%8.5%-1.7%
90 Day4.5%12.0%-4.4%
1 Year8.9%7.9%21.6%19.9%-11.3%-14.5%
3 Year30.4%25.0%18.2%10.2%-9.0%-20.3%
5 Year155.0%135.3%98.6%74.4%15.3%-10.6%

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?

36.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVG (£2.8) is trading above our estimate of fair value (£2.66)

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


Price To Earnings Ratio

PE vs Industry: AVG is poor value based on its PE Ratio (36.7x) compared to the GB Machinery industry average (21.4x).

PE vs Market: AVG is poor value based on its PE Ratio (36.7x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

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 (1.3x) compared to the GB Machinery industry average (1.6x).


Next Steps

Future Growth

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

41.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVG's forecast earnings growth (41.1% per year) is above the savings rate (1.2%).

Earnings vs Market: AVG's earnings (41.1% per year) are forecast to grow faster than the UK market (24.2% per year).

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

Revenue vs Market: AVG's revenue (5.1% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: AVG's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVG's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Avingtrans performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVG has high quality earnings.

Growing Profit Margin: AVG's current net profit margins (2.1%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: AVG has become profitable over the past 5 years, growing earnings by 30.9% per year.

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

Earnings vs Industry: AVG had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Machinery industry average (-13%).


Return on Equity

High ROE: AVG's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Avingtrans's financial position?


Financial Position Analysis

Short Term Liabilities: AVG's short term assets (£56.6M) exceed its short term liabilities (£44.1M).

Long Term Liabilities: AVG's short term assets (£56.6M) exceed its long term liabilities (£17.3M).


Debt to Equity History and Analysis

Debt Level: AVG's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: AVG's debt to equity ratio has reduced from 31.5% to 14.3% over the past 5 years.

Debt Coverage: AVG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AVG's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.52%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVG'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?

6.9yrs

Average management tenure


CEO

Steve McQuillan (59 yo)

12yrs

Tenure

UK£333,000

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 ($USD431.55K) is about average for companies of similar size in the UK market ($USD356.88K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen McQuillan
CEO, MD & Director12yrsUK£333.00k0.94%
£ 829.5k
Stephen King
CFO, Company Secretary & Directorno dataUK£273.00k0.83%
£ 726.7k
Austen Adams
Managing Director of Process Solutions & Rotating Equipment6.92yrsno data0.016%
£ 14.0k
Mike Turmelle
Managing Director of Engineered Pumps & Motors Division2.75yrsno datano data

6.9yrs

Average Tenure

Experienced Management: AVG's management team is seasoned and experienced (6.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£87.894m
  • Shares outstanding: 31.39m
  • 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 through three segments: Energy-EPM, Energy-PS ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 22:08
End of Day Share Price2020/10/20 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.