AIREA (AIM:AIEA) - Share price, News & Analysis

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

AIEA (£0.26) is trading above our estimate of [[fair value]] (£0.06)

AIEA fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

AIEA Stock Overview

AIREA plc, together with its subsidiaries, designs, manufactures, markets, and distributes floor coverings in the United Kingdom, rest of Europe, and internationally.

Rewards

Price-To-Earnings ratio (8.1x) is below the UK market (12x)

Earnings grew by 46.5% over the past year

Trading at good value vs. industry average Price-To-Earnings ratio

Risk Analysis

Earnings have declined by 27.4% per year over past 5 years

Large one-off items impacting financial results

Does not have a meaningful market cap (£10M)

AIREA Competitors

Colefax Group

AIM:CFX

UK£51.9m

Sanderson Design Group

AIM:SDG

UK£69.2m

DFS Furniture

LSE:DFS

UK£264.2m

Pittards

AIM:PTD

UK£7.0m

Price History & Performance

Summary of all time highs, changes and price drops for AIREA
Historical stock prices
Current Share Price	UK£0.26
52 Week High	UK£0.33
52 Week Low	UK£0.23
Beta	1.0
1 Month Change	-8.93%
3 Month Change	-7.27%
1 Year Change	-13.56%
3 Year Change	-37.04%
5 Year Change	-34.28%
Change since IPO	-71.67%

Shareholder Returns

	AIEA	GB Consumer Durables	GB Market
7D	-7.3%	-3.3%	-1.4%
1Y	-13.6%	-43.4%	-14.4%

Return vs Industry: AIEA exceeded the UK Consumer Durables industry which returned -43.4% over the past year.

Return vs Market: AIEA matched the UK Market which returned -14.4% over the past year.

Price Volatility

Is AIEA's price volatile compared to industry and market?
AIEA volatility
AIEA Average Weekly Movement	2.9%
Consumer Durables Industry Average Movement	6.2%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.9%

Stable Share Price: AIEA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AIEA's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1953	104	Mederic Robert Payne	https://www.aireaplc.com

AIREA plc, together with its subsidiaries, designs, manufactures, markets, and distributes floor coverings in the United Kingdom, rest of Europe, and internationally. The company’s products portfolio includes tufted loop pile, tufted cut pile, fiber bonded, structure bonded, and entrance matting carpet tiles, as well as a range of carpet planks for architects, specifiers and contractors in the education, leisure, commercial, healthcare, and public sectors under the burmatex brand name. It also offers sheets and hard-wearing performance barrier system products range; and engages in the property holding activities.

AIREA Fundamentals Summary

How do AIREA's earnings and revenue compare to its market cap?
AIEA fundamental statistics
Market Cap	UK£9.84m
Earnings (TTM)	UK£1.21m
Revenue (TTM)	UK£16.99m

8.1x

P/E Ratio

0.6x

P/S Ratio

Is AIEA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIEA income statement (TTM)
Revenue	UK£16.99m
Cost of Revenue	UK£7.32m
Gross Profit	UK£9.66m
Other Expenses	UK£8.45m
Earnings	UK£1.21m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.031
Gross Margin	56.89%
Net Profit Margin	7.14%
Debt/Equity Ratio	17.7%

How did AIEA perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

13%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 AIEA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AIEA. This is calculated by dividing AIEA's market cap by their current preferred multiple.
What is AIEA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£9.84m

AIEA 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/Revenue	0.5x
Enterprise Value/EBITDA	5.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does AIEA's PE Ratio compare to its peers?

AIEA PE Ratio vs Peers

The above table shows the PE ratio for AIEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.6x
CFX Colefax Group	6.1x	n/a	UK£51.9m
SDG Sanderson Design Group	8.9x	5.4%	UK£69.2m
DFS DFS Furniture	6x	18.5%	UK£264.2m
PTD Pittards	17.5x	n/a	UK£7.0m
AIEA AIREA	8.1x	n/a	UK£9.8m

Price-To-Earnings vs Peers: AIEA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (9.6x).

Price to Earnings Ratio vs Industry

How does AIEA's PE Ratio compare vs other companies in the GB Consumer Durables Industry?

Price-To-Earnings vs Industry: AIEA is expensive based on its Price-To-Earnings Ratio (8.1x) compared to the European Consumer Durables industry average (8.1x)

Price to Earnings Ratio vs Fair Ratio

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

AIEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AIEA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: AIEA (£0.26) is trading above our estimate of fair value (£0.06)

Significantly Below Fair Value: AIEA 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 AIREA forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.8%

Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AIREA has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine AIREA's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
AIREA competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has AIREA performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-27.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AIEA has a large one-off gain of £275.0K impacting its June 30 2022 financial results.

Growing Profit Margin: AIEA's current net profit margins (7.1%) are higher than last year (5.6%).

Past Earnings Growth Analysis

Earnings Trend: AIEA's earnings have declined by 27.4% per year over the past 5 years.

Accelerating Growth: AIEA's earnings growth over the past year (46.5%) exceeds its 5-year average (-27.4% per year).

Earnings vs Industry: AIEA earnings growth over the past year (46.5%) exceeded the Consumer Durables industry 18.4%.

Return on Equity

High ROE: AIEA's Return on Equity (7.2%) is considered low.

Discover strong past performing companies

Financial Health

How is AIREA's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AIEA's short term assets (£14.0M) exceed its short term liabilities (£4.7M).

Long Term Liabilities: AIEA's short term assets (£14.0M) exceed its long term liabilities (£3.5M).

Debt to Equity History and Analysis

Debt Level: AIEA has more cash than its total debt.

Reducing Debt: AIEA's debt to equity ratio has increased from 0.01% to 17.7% over the past 5 years.

Debt Coverage: AIEA's debt is well covered by operating cash flow (40.7%).

Interest Coverage: AIEA's interest payments on its debt are well covered by EBIT (13.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.57%

Current Dividend Yield

Dividend Yield vs Market

AIREA Dividend Yield vs Market

How does AIREA dividend yield compare to the market?
Segment	Dividend Yield
Company (AIREA)	1.6%
Market Bottom 25% (GB)	2.1%
Market Top 25% (GB)	6.0%
Industry Average (Consumer Durables)	9.0%
Analyst forecast in 3 Years (AIREA)	n/a

Notable Dividend: AIEA's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.08%).

High Dividend: AIEA's dividend (1.57%) is low compared to the top 25% of dividend payers in the UK market (6.02%).

Stability and Growth of Payments

Stable Dividend: AIEA's dividend payments have been volatile in the past 10 years.

Growing Dividend: AIEA's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.7%), AIEA's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.9%), AIEA's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.3yrs

Average board tenure

CEO

Mederic Robert Payne (47 yo)

0.17yr

Tenure

Mr. Médéric Robert George Payne serves as Chief Executive Officer & Director of AIREA plc since August 2022. He is an experienced business leader with a strong background in multinational home improvement...

Board Members

Experienced Board: AIEA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

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

What is the ownership structure of AIEA?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	137,288	0.4%
Public Companies	402,044	1.0%
Employee Share Scheme	2,777,600	7.2%
General Public	8,089,638	21.0%
Individual Insiders	13,500,366	35.0%
Institutions	13,669,817	35.4%

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

Top Shareholders

Top 25 shareholders own 77.35% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
10.69%	Janus Henderson Group plc	4,125,000	£1.1m	0%	no data
10.54%	Carolyn Tobin	4,066,952	£1.0m	0%	no data
9.21%	David Newlands	3,552,000	£905.8k	0.91%	no data
7.2%	Airea Plc., Employee Benefit Trust	2,777,600	£708.3k	0%	no data
5.44%	Martin Toogood	2,100,361	£535.6k	0%	no data
5.1%	Gerald Upsdell	1,968,513	£502.0k	0%	no data
4.7%	M. Yeadon	1,812,540	£462.2k	0%	no data
3.23%	A J Bell Holdings Limited, Asset Management Arm	1,246,161	£317.8k	4.74%	no data
3.2%	Barclays Bank PLC, Wealth and Investment Management Division	1,236,295	£315.3k	1.67%	no data
2.61%	HBOS Investment Fund Managers Limited	1,005,604	£256.4k	8.41%	no data
2.13%	London Wealth Management Limited	820,000	£209.1k	0%	0.01%
1.99%	Canaccord Genuity Wealth (International) Limited	769,500	£196.2k	14.68%	no data
1.53%	Investec Wealth & Investment Limited	590,444	£150.6k	0%	no data
1.28%	Hurley Partners Limited	493,326	£125.8k	0%	0.11%
1.26%	Charles Stanley & Co. Ltd, Asset Management Arm	486,294	£124.0k	4.29%	no data
1.25%	Equiniti Group Limited, Asset Management Arm	481,937	£122.9k	41.91%	0.01%
1.04%	Lloyds Banking Group plc	402,044	£102.5k	109.33%	no data
0.81%	James Brearley & Sons Limited	311,960	£79.5k	0%	0.04%
0.8%	Brewin Dolphin Limited	310,403	£79.2k	-3.12%	no data
0.69%	Close Asset Management Limited	267,049	£68.1k	39.59%	no data
0.65%	GHC Capital Markets Ltd	250,000	£63.8k	0%	0.25%
0.58%	James Sharp & Co., Asset Management Arm	225,147	£57.4k	-16.66%	0.01%
0.55%	HSBC Global Asset Management (UK) Limited	212,389	£54.2k	-25.69%	no data
0.43%	Jarvis Securities plc, Asset Management Arm	166,781	£42.5k	31.55%	no data
0.41%	Nordea Investment Management AB	160,000	£40.8k	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/10/04 00:00
End of Day Share Price	2022/10/04 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31