LSE:AVAP

Stock Analysis Report

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Executive Summary

Avation PLC, together with its subsidiaries, leases commercial passenger aircraft to airlines worldwide. More Details


Snowflake Analysis

Good value with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.5%

AVAP

0.2%

GB Trade Distributors

0.07%

GB Market


1 Year Return

-62.2%

AVAP

15.8%

GB Trade Distributors

-15.4%

GB Market

Return vs Industry: AVAP underperformed the UK Trade Distributors industry which returned 15.8% over the past year.

Return vs Market: AVAP underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

AVAPIndustryMarket
7 Day-9.5%0.2%0.07%
30 Day-12.5%8.5%2.2%
90 Day-33.5%13.6%-2.1%
1 Year-62.0%-62.2%16.8%15.8%-12.1%-15.4%
3 Year-50.3%-53.1%33.4%24.0%-8.4%-19.7%
5 Year-14.9%-22.5%89.4%67.8%16.4%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVAP (£1.05) is trading below our estimate of fair value (£1.14)

Significantly Below Fair Value: AVAP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVAP is good value based on its PE Ratio (1.8x) compared to the GB Trade Distributors industry average (19.4x).

PE vs Market: AVAP is good value based on its PE Ratio (1.8x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVAP is good value based on its PB Ratio (0.3x) compared to the GB Trade Distributors industry average (1.4x).


Next Steps

Future Growth

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

8.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AVAP's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if AVAP's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: AVAP's revenue (8.3% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: AVAP's revenue (8.3% 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 AVAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Avation performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVAP has a large one-off gain of $37.3M impacting its March 31 2020 financial results.

Growing Profit Margin: AVAP's current net profit margins (37%) are higher than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: AVAP's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: AVAP's earnings growth over the past year (122.1%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: AVAP earnings growth over the past year (122.1%) exceeded the Trade Distributors industry -14.9%.


Return on Equity

High ROE: AVAP's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is Avation's financial position?


Financial Position Analysis

Short Term Liabilities: AVAP's short term assets ($245.7M) exceed its short term liabilities ($113.8M).

Long Term Liabilities: AVAP's short term assets ($245.7M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: AVAP's debt to equity ratio (440.4%) is considered high.

Reducing Debt: AVAP's debt to equity ratio has increased from 313.3% to 440.4% over the past 5 years.

Debt Coverage: AVAP's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: AVAP's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Avation current dividend yield, its reliability and sustainability?

9.23%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.6yrs

Average management tenure


CEO

Avation has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Jeffries Chatfield
Executive Chairman14.75yrsUS$803.00k17.8%
$ 11.7m
Roderick Douglas Mahoney
Chief Commercial Officer & Executive Director8.83yrsUS$637.00k1.21%
$ 794.5k
Iain Cawte
Chief Financial Officer2.25yrsno datano data
Ashley Nicholas
Director of Corporate Finance3.92yrsno datano data
Magdalene Ang
Technical Manager7.25yrsno datano data
Duncan Gerard Stephen Scott
Group General Counsel & Company Secretaryno datano datano data
Karl Ryan
Vice President of Marketing2.92yrsno datano data
Angus Greene
Senior Vice President of Marketing for the Europe1.75yrsno datano data
Fui San Siow
Company Secretary1.42yrsno datano data
Richard Wolanski
Finance Directorno datano datano data
Scott Lyall
Chief Financial Officer of Capital Lease Aviation PLCno datano datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: AVAP's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Jeffries Chatfield
Executive Chairman14.75yrsUS$803.00k17.8%
$ 11.7m
Roderick Douglas Mahoney
Chief Commercial Officer & Executive Director8.83yrsUS$637.00k1.21%
$ 794.5k
Stephen John Fisher
Independent Non-Executive Director6.5yrsUS$45.00k0.0080%
$ 5.3k
Derek Sharples
Independent Non-Executive Director3.92yrsUS$45.00k0.016%
$ 10.5k

7.7yrs

Average Tenure

56yo

Average Age

Experienced Board: AVAP's board of directors are considered experienced (7.7 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

Avation PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avation PLC
  • Ticker: AVAP
  • Exchange: LSE
  • Founded: 2006
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£65.803m
  • Shares outstanding: 62.67m
  • Website: https://www.avation.net

Number of Employees


Location

  • Avation PLC
  • No.01-01, 65 Kampong Bahru Road
  • Singapore
  • 169370
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVAPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 2007

Biography

Avation PLC, together with its subsidiaries, leases commercial passenger aircraft to airlines worldwide. As of June 30, 2018, the company managed a fleet of 38 aircraft. It is also involved in the financin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 22:11
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.