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AVAP

Avation LSE:AVAP Stock Report

Last Price

UK£0.80

Market Cap

UK£55.5m

7D

2.6%

1Y

-8.0%

Updated

14 Aug, 2022

Data

Company Financials +
AVAP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health0/6
Dividends0/6

AVAP Stock Overview

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

Avation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Avation
Historical stock prices
Current Share PriceUK£0.80
52 Week HighUK£1.13
52 Week LowUK£0.61
Beta1.4
1 Month Change5.96%
3 Month Change20.30%
1 Year Change-8.05%
3 Year Change-71.43%
5 Year Change-65.37%
Change since IPO171.19%

Recent News & Updates

Aug 09
Investors Met With Slowing Returns on Capital At Avation (LON:AVAP)

Investors Met With Slowing Returns on Capital At Avation (LON:AVAP)

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

AVAPGB Trade DistributorsGB Market
7D2.6%1.1%0.4%
1Y-8.0%-9.9%-9.0%

Return vs Industry: AVAP exceeded the UK Trade Distributors industry which returned -9.9% over the past year.

Return vs Market: AVAP matched the UK Market which returned -9% over the past year.

Price Volatility

Is AVAP's price volatile compared to industry and market?
AVAP volatility
AVAP Average Weekly Movement6.5%
Trade Distributors Industry Average Movement4.8%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: AVAP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AVAP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200623n/ahttps://www.avation.net

Avation PLC, together with its subsidiaries, leases commercial passenger aircraft to airlines worldwide. As of June 30, 2021, the company owned and managed a fleet of 44 aircraft. It is also involved in the financing business.

Avation Fundamentals Summary

How do Avation's earnings and revenue compare to its market cap?
AVAP fundamental statistics
Market CapUS$67.30m
Earnings (TTM)-US$38.82m
Revenue (TTM)US$114.30m

0.6x

P/S Ratio

-1.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVAP income statement (TTM)
RevenueUS$114.30m
Cost of RevenueUS$2.83m
Gross ProfitUS$111.47m
Other ExpensesUS$150.29m
Earnings-US$38.82m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Oct 06, 2022

Earnings per share (EPS)-0.56
Gross Margin97.52%
Net Profit Margin-33.96%
Debt/Equity Ratio581.5%

How did AVAP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AVAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AVAP?

Other financial metrics that can be useful for relative valuation.

AVAP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA8.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AVAP's PS Ratio compare to its peers?

AVAP PS Ratio vs Peers
The above table shows the PS ratio for AVAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.8x
FLO Flowtech Fluidpower
0.7x5.3%UK£74.3m
DNA3 Doric Nimrod Air Three
1.4xn/aUK£104.5m
HSS HSS Hire Group
0.3x5.3%UK£101.2m
BMT Braime Group
0.8xn/aUK£26.4m
AVAP Avation
0.6x23.6%UK£55.5m

Price-To-Sales vs Peers: AVAP is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does AVAP's PE Ratio compare vs other companies in the GB Trade Distributors Industry?

Price-To-Sales vs Industry: AVAP is good value based on its Price-To-Sales Ratio (0.6x) compared to the UK Trade Distributors industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is AVAP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AVAP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio12.7x

Price-To-Sales vs Fair Ratio: AVAP is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (12.7x).


Share Price vs Fair Value

What is the Fair Price of AVAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVAP (£0.8) is trading above our estimate of fair value (£0.53)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


122.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: AVAP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVAP is expected to become profitable in the next 3 years.

Revenue vs Market: AVAP's revenue (23.6% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: AVAP's revenue (23.6% per year) is forecast to grow faster 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


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Past Performance

How has Avation performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-53.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVAP is currently unprofitable.

Growing Profit Margin: AVAP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVAP is unprofitable, and losses have increased over the past 5 years at a rate of 53% per year.

Accelerating Growth: Unable to compare AVAP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVAP is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (56.2%).


Return on Equity

High ROE: AVAP has a negative Return on Equity (-25.16%), as it is currently unprofitable.


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Financial Health

How is Avation's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AVAP's short term assets ($190.1M) do not cover its short term liabilities ($249.0M).

Long Term Liabilities: AVAP's short term assets ($190.1M) do not cover its long term liabilities ($804.1M).


Debt to Equity History and Analysis

Debt Level: AVAP's net debt to equity ratio (503%) is considered high.

Reducing Debt: AVAP's debt to equity ratio has increased from 402.2% to 581.5% over the past 5 years.

Debt Coverage: AVAP's debt is not well covered by operating cash flow (7.1%).

Interest Coverage: AVAP's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


15.60%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AVAP has not reported any payouts.


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Management

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

3.4yrs

Average management tenure


CEO

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


Leadership Team

Experienced Management: AVAP's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: AVAP's board of directors are considered experienced (9.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Avation PLC's 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
  • Implied Market Cap: UK£55.510m
  • Shares outstanding: 69.39m
  • Website: https://www.avation.net

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.