AIM:AUG

Stock Analysis Report

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Executive Summary

Augean plc engages in the waste management business in the United Kingdom. More Details

Rewards

Trading at 43.4% below our estimate of its fair value

Earnings are forecast to grow 52.22% per year

Risk Analysis

No risks detected for AUG from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

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

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


Market Performance


7 Day Return

1.3%

AUG

2.0%

GB Commercial Services

1.3%

GB Market


1 Year Return

17.1%

AUG

-8.3%

GB Commercial Services

-6.4%

GB Market

Return vs Industry: AUG exceeded the UK Commercial Services industry which returned -8.3% over the past year.

Return vs Market: AUG exceeded the UK Market which returned -6.4% over the past year.


Shareholder returns

AUGIndustryMarket
7 Day1.3%2.0%1.3%
30 Day11.9%8.7%14.1%
90 Day15.7%8.1%9.6%
1 Year17.1%17.1%-4.9%-8.3%-2.7%-6.4%
3 Year616.8%616.8%2.4%-8.7%3.9%-8.6%
5 Year284.3%273.3%25.2%0.7%34.6%4.4%

Long-Term 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?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AUG (£2.03) is trading below our estimate of fair value (£3.58)

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


Price To Earnings Ratio

PE vs Industry: AUG is unprofitable, so we can't compare its PE Ratio to the GB Commercial Services industry average.

PE vs Market: AUG is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AUG is overvalued based on its PB Ratio (3.9x) compared to the GB Commercial Services industry average (2.1x).


Next Steps

Future Growth

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

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

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

High Growth Earnings: AUG's is expected to become profitable in the next 3 years.

Revenue vs Market: AUG's revenue (6.8% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: AUG's revenue (6.8% 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

  • Explore growth companies in the Commercial Services industry.

Past Performance

How has Augean performed over the past 5 years?

-31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUG is currently unprofitable.

Growing Profit Margin: AUG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AUG is unprofitable, and losses have increased over the past 5 years at a rate of 31% per year.

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

Earnings vs Industry: AUG is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-10%).


Return on Equity

High ROE: AUG has a negative Return on Equity (-24.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Augean's financial position?


Financial Position Analysis

Short Term Liabilities: AUG's short term assets (£48.0M) exceed its short term liabilities (£38.1M).

Long Term Liabilities: AUG's short term assets (£48.0M) exceed its long term liabilities (£20.9M).


Debt to Equity History and Analysis

Debt Level: AUG's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: AUG's debt to equity ratio has increased from 7.8% to 39.9% over the past 5 years.

Debt Coverage: AUG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AUG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.56%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AUG'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 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

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

4.0yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
James Meredith
Executive Chairman8.5yrsUK£3.55m2.39%
£ 4.9m
Mark Rupert Fryer
Group Finance Director & Executive Director2.92yrsUK£1.54m0.096%
£ 197.9k
John Rauch
COO & Executive Director0.50yrno data0.086%
£ 176.8k
Angela McGhin
Group General Counsel & Company Secretaryno datano datano data
Simon Gibb
Managing Director of North Sea Services8.58yrsno datano data

4.0yrs

Average Tenure

Experienced Management: AUG's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Meredith
Executive Chairman8.5yrsUK£3.55m2.39%
£ 4.9m
Mark Rupert Fryer
Group Finance Director & Executive Director2.92yrsUK£1.54m0.096%
£ 197.9k
John Rauch
COO & Executive Director0.50yrno data0.086%
£ 176.8k
Christopher Mills
Non-Executive Director3.17yrsUK£31.00kno data
John Albert Grant
Senior Independent Director5.08yrsUK£37.00k0.096%
£ 197.5k
Roger McDowell
Non-Executive Director3.17yrsUK£37.00k2.87%
£ 5.9m

3.2yrs

Average Tenure

65yo

Average Age

Experienced Board: AUG's board of directors are considered experienced (3.2 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

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£206.508m
  • Shares outstanding: 104.56m
  • 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 business in the United Kingdom. It operates in two segments, Treatment & Disposal and Augean North Sea Services. The Treatment & Disposal segment provides waste r...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 18:57
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.