LSE:AA.

Stock Analysis Report

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Executive Summary

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. More Details


Snowflake Analysis

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AA. is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: AA.'s weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

16.5%

AA.

-1.7%

GB Consumer Services

1.2%

GB Market


1 Year Return

-26.9%

AA.

36.3%

GB Consumer Services

-9.6%

GB Market

Return vs Industry: AA. underperformed the UK Consumer Services industry which returned 36.3% over the past year.

Return vs Market: AA. underperformed the UK Market which returned -9.1% over the past year.


Shareholder returns

AA.IndustryMarket
7 Day16.5%-1.7%1.2%
30 Day32.6%3.3%8.6%
90 Day-13.8%17.5%5.4%
1 Year-26.9%-26.9%38.1%36.3%-6.1%-9.6%
3 Year-76.8%-77.8%12.8%6.8%-0.6%-12.6%
5 Year-85.8%-87.5%30.4%-2.4%23.3%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AA 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: AA. (£0.34) is trading below our estimate of fair value (£2.45)

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


Price To Earnings Ratio

PE vs Industry: AA. is good value based on its PE Ratio (2.8x) compared to the XE Consumer Services industry average (16.4x).

PE vs Market: AA. is good value based on its PE Ratio (2.8x) compared to the UK market (20.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AA. has negative assets, so we can't compare its PB Ratio to the XE Consumer Services industry average.


Next Steps

Future Growth

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

3.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AA.'s forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if AA.'s earnings are forecast to grow faster than the UK market

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

Revenue vs Market: AA.'s revenue (3.6% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: AA.'s revenue (3.6% 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 AA.'s Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AA performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AA. has high quality earnings.

Growing Profit Margin: AA.'s current net profit margins (7.5%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: AA. has become profitable over the past 5 years, growing earnings by 14.9% per year.

Accelerating Growth: AA.'s earnings growth over the past year (39.1%) exceeds its 5-year average (14.9% per year).

Earnings vs Industry: AA. earnings growth over the past year (39.1%) exceeded the Consumer Services industry 22.8%.


Return on Equity

High ROE: AA.'s liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is AA's financial position?


Financial Position Analysis

Short Term Liabilities: AA. has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AA. has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AA. has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AA.'s has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: AA.'s debt is not well covered by operating cash flow (10.8%).

Interest Coverage: AA.'s interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.55%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.0yrs

Average management tenure


CEO

Simon Breakwell (55 yo)

3.25yrs

Tenure

UK£1,611,000

Compensation

Mr. Simon J. Breakwell serves as the Chief Operating Officer of Trove, Inc. Mr. Breakwell has been the Chief Executive Officer of AA plc since September 25, 2017 and served as its Acting Chief Executive si...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD2.14M) is above average for companies of similar size in the UK market ($USD621.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simon Breakwell
CEO & Executive Director3.25yrsUK£1.61m0.12%
£ 241.5k
Kevin Dangerfield
CFO & Director0.83yrUK£431.24kno data
Edmund King
President12.83yrsno datano data
Zeeshan Maqbool
Head of Investor Relations & Corporate Financeno datano datano data
Ollie Holden
Chief Information Officer3yrsno datano data
Nadia Hoosen
Chief Legal Officer & Company Secretary2.33yrsno datano data
Louise Benford
Chief People Officer0.33yrno datano data
Gareth Kirkwood
Managing Director of Roadside Services3yrsno datano data
David Coughlan
Managing Director of Insurance0.42yrno datano data
Rob Scott
Financial Controller8.83yrsno datano data

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: AA.'s management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Breakwell
CEO & Executive Director3.25yrsUK£1.61m0.12%
£ 241.5k
Kevin Dangerfield
CFO & Director0.83yrUK£431.24kno data
Cathryn Riley
Independent Non-Executive Director2.75yrsUK£95.00kno data
Suzi Williams
Independent Non-Executive Director5.08yrsUK£102.00k0.0025%
£ 5.0k
Stephen Barber
Independent Non-Executive Director2.42yrsUK£95.00k0.033%
£ 67.1k
Andrew Blowers
Senior Independent Director3.25yrsUK£137.00k0.011%
£ 21.5k
John Leach
Independent Chairman of the Board3.25yrsUK£275.00k0.015%
£ 30.2k
Mark David Brooker
Independent Non-Executive Director2.33yrsUK£83.00k0.0032%
£ 6.5k

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: AA.'s board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AA. 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

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


Key Information

  • Name: AA plc
  • Ticker: AA.
  • Exchange: LSE
  • Founded: 1905
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: UK£200.962m
  • Shares outstanding: 598.99m
  • Website: https://www.theaa.com

Number of Employees


Location

  • AA plc
  • Fanum House
  • Basing View
  • Basingstoke
  • Hampshire
  • RG21 4EA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AA.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2014
2XADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
AALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2014
AATD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014

Biography

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/22 22:34
End of Day Share Price2020/11/20 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.