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.


Snowflake Analysis

Flawless balance sheet with solid track record.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

AVG

3.7%

GB Machinery

2.0%

GB Market


1 Year Return

8.4%

AVG

-7.0%

GB Machinery

-12.5%

GB Market

Return vs Industry: AVG exceeded the UK Machinery industry which returned -7.2% over the past year.

Return vs Market: AVG exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

AVGIndustryMarket
7 Day7.4%3.7%2.0%
30 Day8.4%7.1%3.8%
90 Day-18.2%-4.4%-7.3%
1 Year9.4%8.4%-5.7%-7.0%-8.3%-12.5%
3 Year3.4%-0.9%2.7%-4.1%-5.9%-17.4%
5 Year127.5%109.9%20.7%5.5%12.9%-12.4%

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?

31.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVG (£2.33) is trading above our estimate of fair value (£2.06)

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 (31.2x) compared to the Machinery industry average (14.1x).

PE vs Market: AVG is poor value based on its PE Ratio (31.2x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: AVG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: AVG is good value based on its PB Ratio (1.1x) 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?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVG's forecast earnings growth (52.2% per year) is above the savings rate (1.2%).

Earnings vs Market: AVG's earnings (52.2% per year) are forecast to grow faster than the UK market (20.3% per year).

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

Revenue vs Market: AVG's revenue (11.1% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: AVG's revenue (11.1% 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 AVG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Avingtrans performed over the past 5 years?

12.1%

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 higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: AVG's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: AVG's earnings growth over the past year (765.3%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: AVG earnings growth over the past year (765.3%) exceeded the Machinery industry 0.3%.


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 (£54.4M) exceed its short term liabilities (£44.1M).

Long Term Liabilities: AVG's short term assets (£54.4M) exceed its long term liabilities (£18.3M).


Debt to Equity History and Analysis

Debt Level: AVG's debt to equity ratio (13.8%) is considered satisfactory.

Reducing Debt: AVG's debt to equity ratio has reduced from 30.7% to 13.8% over the past 5 years.

Debt Coverage: AVG's debt is well covered by operating cash flow (54.3%).

Interest Coverage: AVG's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVG's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: AVG's dividend (1.63%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), AVG's dividend payments are 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?

6.4yrs

Average management tenure


CEO

Steve McQuillan (58yo)

11.58yrs

Tenure

UK£424,000

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 ($USD523.32K) is above average for companies of similar size in the UK market ($USD335.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen McQuillan
CEO, MD & Director11.58yrsUK£424.00k0.93% £690.2k
Stephen King
CFO, Company Secretary & Directorno dataUK£344.00k0.69% £512.1k
Austen Adams
Managing Director of Process Solutions & Rotating Equipment6.42yrsno data0.016% £11.7k
Mike Turmelle
Managing Director of Engineered Pumps & Motors Division2.33yrsno datano data

6.4yrs

Average Tenure

Experienced Management: AVG's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen McQuillan
CEO, MD & Director11.58yrsUK£424.00k0.93% £690.2k
Stephen King
CFO, Company Secretary & Directorno dataUK£344.00k0.69% £512.1k
Roger McDowell
Independent Non-Executive Chairman12.17yrsUK£72.00k4.43% £3.3m
Leslie Thomas
Independent Non-Executive Director5.58yrsUK£35.00k0.050% £37.3k
John Clarke
Independent Non-Executive Director2.17yrsUK£33.00kno data

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AVG's board of directors are considered experienced (5.7 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£73.984m
  • Shares outstanding: 31.75m
  • 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, and Medical. The company designs, manufactures, integrates, and services electric motors and pumps, steam turbines, gas compressors, pressure vessels, containers, and skidded systems; and fabricated poles and cabinets for roadside safety cameras and rail track signaling. It also designs and manufactures equipment for the medical, science and research communities, including products for medical diagnostic equipment; high performance pressure, vacuum vessels, and composite materials for research organizations; and superconducting magnets and helium-free cryogenic systems for use in magnetic resonance imaging and nuclear magnetic resonance. The company was incorporated in 1985 and is based in Chatteris, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 20:48
End of Day Share Price2020/05/29 00:00
Earnings2019/11/30
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.