AIM:AUG

Stock Analysis Report

Executive Summary

Augean plc engages in the waste management businesses in the United Kingdom.

Snowflake

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.4%

AUG

0.8%

GB Commercial Services

-0.4%

GB Market


1 Year Return

311.2%

AUG

17.5%

GB Commercial Services

4.4%

GB Market

Return vs Industry: AUG exceeded the UK Commercial Services industry which returned 17.5% over the past year.

Return vs Market: AUG exceeded the UK Market which returned 4.4% over the past year.


Shareholder returns

AUGIndustryMarket
7 Day6.4%0.8%-0.4%
30 Day13.7%-0.09%1.8%
90 Day94.7%4.8%3.8%
1 Year311.2%311.2%21.1%17.5%9.9%4.4%
3 Year217.9%212.8%24.5%13.7%22.4%6.9%
5 Year293.2%278.3%31.9%10.6%33.0%2.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AUG (£1.83) is trading below our estimate of fair value (£10.87)

Significantly Below Fair Value: AUG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AUG is good value based on its PE Ratio (17.5x) compared to the Commercial Services industry average (18.7x).

PE vs Market: AUG is poor value based on its PE Ratio (17.5x) compared to the UK market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: AUG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AUG is overvalued based on its PB Ratio (2.8x) compared to the GB Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUG's forecast earnings growth (18.8% per year) is above the savings rate (1.2%).

Earnings vs Market: AUG's earnings (18.8% per year) are forecast to grow faster than the UK market (12.5% per year).

High Growth Earnings: AUG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AUG's revenue (9.9% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: AUG's revenue (9.9% 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 AUG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Augean performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUG has high quality earnings.

Growing Profit Margin: AUG's current net profit margins (11.3%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: AUG's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: AUG's earnings growth over the past year (73.6%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: AUG earnings growth over the past year (73.6%) exceeded the Commercial Services industry 14.9%.


Return on Equity

High ROE: AUG's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Augean's financial position?


Financial Position Analysis

Short Term Liabilities: AUG's short term assets (£46.1M) exceeds its short term liabilities (£31.7M)

Long Term Liabilities: AUG's short term assets (£46.1M) exceeds its long term liabilities (12.0M)


Debt to Equity History and Analysis

Debt Level: AUG's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: AUG's debt to equity ratio has reduced from 17.9% to 4.3% over the past 5 years.

Debt Coverage: AUG's debt is well covered by operating cash flow (846.6%).

Interest Coverage: AUG's interest payments on its debt are well covered by EBIT (31.1x coverage).


Balance Sheet

Inventory Level: AUG has a high level of physical assets or inventory.

Debt Coverage by Assets: AUG's debt is covered by short term assets (assets are 15.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.3%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AUG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AUG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AUG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Augean's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

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


Management Age and Tenure

2.9yrs

Average Tenure

Experienced Management: AUG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

64yo

Average Age

Experienced Board: AUG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£20,16120 Dec 18
Harwood Capital LLP
EntityCompany
Shares31,501
Max PriceUK£0.64
BuyUK£149,45017 Dec 18
Harwood Capital LLP
EntityCompany
Shares245,000
Max PriceUK£0.61
BuyUK£76,25007 Dec 18
Harwood Capital LLP
EntityCompany
Shares125,000
Max PriceUK£0.61
BuyUK£803,33005 Dec 18
Harwood Capital LLP
EntityCompany
Shares1,340,000
Max PriceUK£0.60
BuyUK£315,44830 Nov 18
Harwood Capital LLP
EntityCompany
Shares573,333
Max PriceUK£0.55
BuyUK£153,00026 Nov 18
Harwood Capital LLP
EntityCompany
Shares300,000
Max PriceUK£0.51
BuyUK£383,84122 Nov 18
Harwood Capital LLP
EntityCompany
Shares755,166
Max PriceUK£0.51

Ownership Breakdown

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


Management Team

  • Mark Rupert Fryer (52yo)

    Group Finance Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£354.00k
  • Jim Meredith (58yo)

    Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: UK£271.00k
  • Simon Gibb

    Managing Director of North Sea Services

    • Tenure: 7.5yrs
  • John Rauch

    Group Operating Officer

    • Tenure: 2.9yrs
  • Angela McGhin

    Group General Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • Chris Mills (65yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£31.00k
  • Mark Rupert Fryer (52yo)

    Group Finance Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£354.00k
  • John Albert Grant (73yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£34.00k
  • Roger McDowell (64yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£34.00k
  • Jim Meredith (58yo)

    Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: UK£271.00k

Company Information

Augean plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Augean plc
  • Ticker: AUG
  • Exchange: AIM
  • Founded: 2004
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£190.476m
  • Shares outstanding: 104.09m
  • Website: https://www.augeanplc.com

Number of Employees


Location

  • Augean plc
  • 4 Rudgate Court
  • Walton
  • Wetherby
  • West Yorkshire
  • LS23 7BF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2004

Biography

Augean plc engages in the waste management businesses in the United Kingdom. It operates in five segments: Energy and Construction, Radioactive Waste Services, Augean Integrated Services, Augean North Sea  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 20:34
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.