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 reasonable growth potential.

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 is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: AVAP's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

0%

AVAP

1.3%

GB Trade Distributors

0.9%

GB Market


1 Year Return

-48.6%

AVAP

11.7%

GB Trade Distributors

-9.1%

GB Market

Return vs Industry: AVAP underperformed the UK Trade Distributors industry which returned 16.3% over the past year.

Return vs Market: AVAP underperformed the UK Market which returned -9.6% over the past year.


Shareholder returns

AVAPIndustryMarket
7 Day0%1.3%0.9%
30 Day34.3%2.9%9.2%
90 Day9.7%9.8%6.6%
1 Year-48.3%-48.6%13.2%11.7%-5.5%-9.1%
3 Year-32.4%-36.2%39.7%29.2%1.4%-11.0%
5 Year17.8%7.2%84.9%63.5%26.5%-2.2%

Long-Term 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?

12.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVAP (£1.41) is trading above our estimate of fair value (£1.22)

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


Price To Earnings Ratio

PE vs Industry: AVAP is good value based on its PE Ratio (12.2x) compared to the GB Trade Distributors industry average (22x).

PE vs Market: AVAP is good value based on its PE Ratio (12.2x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: AVAP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AVAP is good value based on its PB Ratio (0.5x) compared to the GB Trade Distributors industry average (1.7x).


Next Steps

Future Growth

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

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAP's forecast earnings growth (30.1% per year) is above the savings rate (1.2%).

Earnings vs Market: AVAP's earnings (30.1% per year) are forecast to grow faster than the UK market (27.9% per year).

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

Revenue vs Market: AVAP's revenue (8.9% per year) is forecast to grow faster than the UK market (7.1% per year).

High Growth Revenue: AVAP's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVAP's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Avation performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVAP has a large one-off loss of $5.3M impacting its June 30 2020 financial results.

Growing Profit Margin: AVAP's current net profit margins (7.2%) are lower than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: AVAP's earnings have grown by 18.3% per year over the past 5 years.

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

Earnings vs Industry: AVAP had negative earnings growth (-62.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-24.2%).


Return on Equity

High ROE: AVAP's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Avation's financial position?


Financial Position Analysis

Short Term Liabilities: AVAP's short term assets ($232.1M) do not cover its short term liabilities ($562.3M).

Long Term Liabilities: AVAP's short term assets ($232.1M) do not cover its long term liabilities ($632.2M).


Debt to Equity History and Analysis

Debt Level: AVAP's debt to equity ratio (497.5%) is considered high.

Reducing Debt: AVAP's debt to equity ratio has increased from 335.3% to 497.5% over the past 5 years.

Debt Coverage: AVAP's debt is not well covered by operating cash flow (8%).

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?

7.49%

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?

2.7yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Jeffries Chatfield
Executive Chairman14.83yrsUS$908.00k17.8%
$ 15.7m
Roderick Douglas Mahoney
Chief Commercial Officer & Executive Director8.92yrsUS$736.00k1.21%
$ 1.1m
Iain Cawte
Chief Financial Officer2.33yrsno datano data
Ashley Nicholas
Director of Corporate Finance4yrsno datano data
Magdalene Ang
Technical Manager7.33yrsno datano data
Duncan Gerard Stephen Scott
Group General Counsel & Company Secretaryno datano datano data
Karl Ryan
Vice President of Marketing3yrsno datano data
Angus Greene
Senior Vice President of Marketing for the Europe1.83yrsno datano data
Fui San Siow
Company Secretary1.5yrsno datano data
Richard Wolanski
Finance Directorno datano datano data
Scott Lyall
Chief Financial Officer of Capital Lease Aviation PLCno datano datano data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Management: AVAP's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Jeffries Chatfield
Executive Chairman14.83yrsUS$908.00k17.8%
$ 15.7m
Roderick Douglas Mahoney
Chief Commercial Officer & Executive Director8.92yrsUS$736.00k1.21%
$ 1.1m
Stephen John Fisher
Independent Non-Executive Director6.58yrsUS$45.00k0.0080%
$ 7.1k
Derek Sharples
Independent Non-Executive Director4yrsUS$45.00k0.016%
$ 14.1k

7.8yrs

Average Tenure

56yo

Average Age

Experienced Board: AVAP's board of directors are considered experienced (7.8 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£88.365m
  • 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, 2020, the company owned and managed a fleet of 48 aircraft. It is also involved in th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 20:46
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.