LSE:AVST

Stock Analysis Report

Executive Summary

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, AVG, and CCleaner brands worldwide.

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.6%

LSE:AVST

-1.4%

GB Software

-1.7%

GB Market


1 Year Return

59.7%

LSE:AVST

2.5%

GB Software

-5.7%

GB Market

AVST outperformed the Software industry which returned 2.4% over the past year.

AVST outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

AVSTIndustryMarket
7 Day12.6%-1.4%-1.7%
30 Day9.5%-6.5%-4.6%
90 Day20.0%-4.3%-3.2%
1 Year63.2%59.7%7.1%2.5%-1.3%-5.7%
3 Yearn/a13.5%-4.3%17.8%4.0%
5 Yearn/a91.3%54.7%26.9%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Avast undervalued based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Avast's share price is below the future cash flow value, and at a moderate discount (> 20%).

Avast's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Avast is good value based on earnings compared to the GB Software industry average.

Avast is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Avast is poor value based on expected growth next year.


Price Based on Value of Assets

Avast is overvalued based on assets compared to the GB Software industry average.


Next Steps

Future Growth

How is Avast expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Avast's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Avast's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

Avast's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Avast's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Avast's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Avast is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Avast performed over the past 5 years?

43.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Avast has delivered over 20% year on year earnings growth in the past 5 years.

Avast's 1-year earnings growth is less than its 5-year average (8.8% vs 43.4%)

Avast's earnings growth has not exceeded the GB Software industry average in the past year (8.8% vs 8.8%).


Return on Equity

Whilst Avast has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Avast used its assets more efficiently than the GB Software industry average last year based on Return on Assets.


Return on Capital Employed

Avast has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Avast's financial position?


Financial Position Analysis

Avast's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Avast's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Avast's level of debt (120.8%) compared to net worth is high (greater than 40%).

Unable to establish if Avast's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (33.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

3.09%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Avast before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Avast's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).

Avast's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

It is too early to tell whether Avast has stable dividend payments.

Avast only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Ondrej Vlcek (42yo)

0.2yrs

Tenure

Mr. Ondrej Vlcek has been the Chief Operations Officer at Avast Software B.V. since January 2014. Mr. Vlcek serves as President of Consumer and Director at Avast Plc. He served as EVP and GM for the Consum ...


Management Age and Tenure

1.5yrs

Average Tenure

49yo

Average Age

The average tenure for the Avast management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Avast board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Eduard Kucera

    Co Founder & Non-Executive Director

  • Jim Holden

    Senior Vice President of Strategy & Corporate Development

  • Pavel Baudis

    Co Founder & Director

  • Kelby Barton

    General Counsel

    • Tenure: 1.6yrs
  • Robin Selden

    Chief Marketing Officer

  • Detlef Steinmetz (52yo)

    Chief Information Officer

  • Stephanie Kane

    Vice President of PR & Corporate Communications

  • Ondrej Vlcek (42yo)

    Chief Executive Officer

    • Tenure: 0.2yrs
  • Phil Marshall (49yo)

    CFO & Director

    • Tenure: 1.5yrs
  • Peter Russell

    Director of Investor Relations


Board Members

  • John Schwarz (68yo)

    Chairman of the Board

  • Eduard Kucera

    Co Founder & Non-Executive Director

  • Ernie Gunst (59yo)

    Independent Non-Executive Director

  • Pavel Baudis

    Co Founder & Director

  • Ulf Claesson

    Independent Non-Executive Director

  • Belinda Richards (60yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
  • Ondrej Vlcek (42yo)

    Chief Executive Officer

  • Phil Marshall (49yo)

    CFO & Director

    • Tenure: 1.5yrs
  • Warren Finegold (62yo)

    Senior Independent Non-Executive Director

  • Maggie Chan Jones

    Independent Non-Executive Director

    • Tenure: 0.4yrs

Company Information

Avast Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avast Plc
  • Ticker: AVST
  • Exchange: LSE
  • Founded: 1988
  • Industry: systems software
  • Sector: software
  • Market Cap: UK£3.607b
  • Shares outstanding: 977.50m
  • Website: Click here

Number of Employees


Location

  • Avast Plc
  • Pikrtova 1737/1A
  • Prague 4
  • Prague
  • 140 00
  • Czech Republic

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AV2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2018
AVSTLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2018
AVSTSEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary SharesCZCZKMay 2018
AVSTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2018
AVAS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2018

Biography

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, AVG, and CCleaner brands worldwide. It operates through two segments, Consumer and Small and Medium Business ( ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company AnalysisN/A
End of Day Share Price2019/08/16 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.