AIM:AIEA

Stock Analysis Report

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Executive Summary

AIREA plc, together with its subsidiaries, manufactures, markets, and distributes floor coverings in the United Kingdom, the Republic of Ireland, rest of Europe, North America, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AIEA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AIEA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

25.9%

AIEA

-3.3%

GB Consumer Durables

-0.4%

GB Market


1 Year Return

-15.0%

AIEA

-5.1%

GB Consumer Durables

-10.0%

GB Market

Return vs Industry: AIEA underperformed the UK Consumer Durables industry which returned -5.1% over the past year.

Return vs Market: AIEA underperformed the UK Market which returned -10% over the past year.


Shareholder returns

AIEAIndustryMarket
7 Day25.9%-3.3%-0.4%
30 Day25.9%25.0%13.7%
90 Day30.8%17.0%6.4%
1 Year-15.0%-15.0%-3.4%-5.1%-6.4%-10.0%
3 Year21.7%3.0%10.2%-4.7%1.6%-10.9%
5 Year148.1%91.5%35.1%5.3%27.5%-1.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AIREA 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: AIEA (£0.34) is trading below our estimate of fair value (£1.36)

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


Price To Earnings Ratio

PE vs Industry: AIEA is poor value based on its PE Ratio (22.4x) compared to the GB Consumer Durables industry average (18.5x).

PE vs Market: AIEA is poor value based on its PE Ratio (22.4x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AIEA's PB Ratio (1.2x) is in line with the GB Consumer Durables industry average.


Next Steps

Future Growth

How is AIREA forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

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.


Next Steps

Past Performance

How has AIREA performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIEA has a large one-off gain of £200.0K impacting its June 30 2020 financial results.

Growing Profit Margin: AIEA's current net profit margins (3.3%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: AIEA's earnings have grown by 15.9% per year over the past 5 years.

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

Earnings vs Industry: AIEA had negative earnings growth (-80.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-44.6%).


Return on Equity

High ROE: AIEA's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is AIREA's financial position?


Financial Position Analysis

Short Term Liabilities: AIEA's short term assets (£13.1M) exceed its short term liabilities (£3.6M).

Long Term Liabilities: AIEA's short term assets (£13.1M) exceed its long term liabilities (£9.0M).


Debt to Equity History and Analysis

Debt Level: AIEA's debt to equity ratio (35.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AIEA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AIEA's debt is well covered by operating cash flow (95.3%).

Interest Coverage: AIEA's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AIEA'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 AIEA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIEA'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?

11.0yrs

Average board tenure


CEO

Neil Rylance (63 yo)

12.42yrs

Tenure

UK£276,000

Compensation

Mr. Neil Rylance has been the Chief Executive Officer of AIREA plc., since June 13, 2008. Mr. Rylance joined AIREA plc., as Managing Director of the Group's floor coverings business on June 2, 2008. He ser...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD367.87K) is about average for companies of similar size in the UK market ($USD345.39K).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Neil Rylance
CEO & Director12.42yrsUK£276.00kno data
Paul Stevenson
Group Finance Director2.33yrsUK£127.00kno data
Martin Toogood
Independent Non-Executive Chairman11yrsUK£52.00k5.44%
£ 714.1k

11.0yrs

Average Tenure

63yo

Average Age

Experienced Board: AIEA's board of directors are seasoned and experienced ( 11 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

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


Key Information

  • Name: AIREA plc
  • Ticker: AIEA
  • Exchange: AIM
  • Founded: 1953
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: UK£13.116m
  • Shares outstanding: 38.58m
  • Website: https://www.aireaplc.com

Number of Employees


Location

  • AIREA plc
  • Victoria Mills
  • The Green
  • Ossett
  • West Yorkshire
  • WF5 0AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIEAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

AIREA plc, together with its subsidiaries, manufactures, markets, and distributes floor coverings in the United Kingdom, the Republic of Ireland, rest of Europe, North America, and internationally. The com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 18:48
End of Day Share Price2020/11/27 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.