Avast Plc, together with its subsidiaries, provides digital security products under the Avast, HMA, AVG, and CCleaner brands worldwide. More Details
Reasonable growth potential and slightly overvalued.
Share Price & News
How has Avast's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AVST is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: AVST's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: AVST underperformed the UK Software industry which returned 5.3% over the past year.
Return vs Market: AVST underperformed the UK Market which returned 20.2% over the past year.
Long-Term 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
6 days ago | Simply Wall StAvast (LON:AVST) Is Doing The Right Things To Multiply Its Share Price
3 weeks ago | Simply Wall StCalculating The Fair Value Of Avast Plc (LON:AVST)
1 month ago | Simply Wall StIs Avast Plc's (LON:AVST) Latest Stock Performance A Reflection Of Its Financial Health?
Is Avast undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVST (£5.8) is trading below our estimate of fair value (£6.18)
Significantly Below Fair Value: AVST is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AVST is good value based on its PE Ratio (48.7x) compared to the UK Software industry average (56x).
PE vs Market: AVST is poor value based on its PE Ratio (48.7x) compared to the UK market (23.4x).
Price to Earnings Growth Ratio
PEG Ratio: AVST is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: AVST is overvalued based on its PB Ratio (7x) compared to the GB Software industry average (4.5x).
How is Avast forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVST's forecast earnings growth (18.1% per year) is above the savings rate (0.9%).
Earnings vs Market: AVST's earnings (18.1% per year) are forecast to grow faster than the UK market (13.8% per year).
High Growth Earnings: AVST's earnings are forecast to grow, but not significantly.
Revenue vs Market: AVST's revenue (5.6% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: AVST's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AVST's Return on Equity is forecast to be high in 3 years time (26.4%)
How has Avast performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVST has high quality earnings.
Growing Profit Margin: AVST's current net profit margins (19%) are lower than last year (28.5%).
Past Earnings Growth Analysis
Earnings Trend: AVST's earnings have grown significantly by 25.9% per year over the past 5 years.
Accelerating Growth: AVST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AVST had negative earnings growth (-31.8%) over the past year, making it difficult to compare to the Software industry average (3.6%).
Return on Equity
High ROE: AVST's Return on Equity (14.2%) is considered low.
How is Avast's financial position?
Financial Position Analysis
Short Term Liabilities: AVST's short term assets ($289.2M) do not cover its short term liabilities ($623.0M).
Long Term Liabilities: AVST's short term assets ($289.2M) do not cover its long term liabilities ($888.7M).
Debt to Equity History and Analysis
Debt Level: AVST's debt to equity ratio (69.8%) is considered high.
Reducing Debt: AVST's debt to equity ratio has increased from 39% to 69.8% over the past 5 years.
Debt Coverage: AVST's debt is well covered by operating cash flow (54.7%).
Interest Coverage: AVST's interest payments on its debt are well covered by EBIT (9.9x coverage).
What is Avast current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AVST's dividend (1.98%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).
High Dividend: AVST's dividend (1.98%) is low compared to the top 25% of dividend payers in the UK market (3.86%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AVST has been paying a dividend for less than 10 years.
Growing Dividend: AVST's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.4%), AVST's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVST's dividends in 3 years are forecast to be well covered by earnings (46% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ondrej Vlcek (44 yo)
Mr. Ondrej Vlcek serves as a Director at Avast Plc. since May 09, 2018. Mr. Vlcek serves as Chief Executive Officer of AVAST Software s.r.o. since January 2014 and served as its Chief Operations Officer si...
CEO Compensation Analysis
Compensation vs Market: Ondrej's total compensation ($USD2.62M) is about average for companies of similar size in the UK market ($USD2.22M).
Compensation vs Earnings: Ondrej's compensation has been consistent with company performance over the past year.
Experienced Management: AVST's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: AVST's board of directors are considered experienced (3.3 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Avast Plc's company bio, employee growth, exchange listings and data sources
- Name: Avast Plc
- Ticker: AVST
- Exchange: LSE
- Founded: 1988
- Industry: Systems Software
- Sector: Software
- Market Cap: UK£5.984b
- Shares outstanding: 1.03b
- Website: https://www.avast.com
Number of Employees
- Avast Plc
- Pikrtova 1737/1A
- Prague 4
- 140 00
- Czech Republic
Avast Plc, together with its subsidiaries, provides digital security products under the Avast, HMA, AVG, and CCleaner brands worldwide. It operates through two segments, Consumer and Small to Mid-Sized Bus...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/05 21:08|
|End of Day Share Price||2021/08/05 00:00|
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.