AVST

AvastLSE:AVST Stock Report

Market Cap

UK£6.0b

7D

-1.6%

1Y

11.1%

Updated

16 Sep, 2021

Data

Company Financials +
AVST fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance6/6
Financial Health3/6
Dividends3/6

AVST Overview

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

Avast Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Avast
Historical stock prices
Current Share PriceUK£5.79
52 Week HighUK£4.18
52 Week LowUK£6.11
Beta0.41
1 Month Change-3.73%
3 Month Change17.13%
1 Year Change11.06%
3 Year Change108.35%
5 Year Changen/a
Change since IPO135.20%

Recent News & Updates

Jul 30
Avast (LON:AVST) Is Doing The Right Things To Multiply Its Share Price

Avast (LON:AVST) Is Doing The Right Things To Multiply Its Share Price

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...

Shareholder Returns

AVSTGB SoftwareGB Market
7D-1.6%0.3%-0.2%
1Y11.1%7.2%19.4%

Return vs Industry: AVST exceeded the UK Software industry which returned 6.4% over the past year.

Return vs Market: AVST underperformed the UK Market which returned 19.2% over the past year.

Price Volatility

Is AVST's price volatile compared to industry and market?
AVST volatility
AVST Beta0.41
Industry Beta0.73
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
19881,699Ondrej Vlcekhttps://www.avast.com

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 Business (SMB). The company offers desktop security and mobile device protection products; value-added solutions for performance, privacy, and other tools; dynamic secure search solution, including browser toolbar; and big data and marketing analytics solutions, as well as security and protection solutions for small and medium-sized business.

Valuation

Is Avast undervalued compared to its fair value and its price relative to the market?

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVST (£5.79) is trading below our estimate of fair value (£6.82)

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 (28.5x) compared to the UK Software industry average (60.4x).

PE vs Market: AVST is poor value based on its PE Ratio (28.5x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVST is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AVST is overvalued based on its PB Ratio (6.3x) compared to the GB Software industry average (5.4x).


Future Growth

How is Avast forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVST's forecast earnings growth (12.4% per year) is above the savings rate (0.9%).

Earnings vs Market: AVST's earnings (12.4% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: AVST's earnings are forecast to grow, but not significantly.

Revenue vs Market: AVST's revenue (5.5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: AVST's revenue (5.5% 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 (27.4%)


Past Performance

How has Avast performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVST has high quality earnings.

Growing Profit Margin: AVST's current net profit margins (31%) are higher than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: AVST's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: AVST's earnings growth over the past year (29.8%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: AVST earnings growth over the past year (29.8%) exceeded the Software industry -1.9%.


Return on Equity

High ROE: AVST's Return on Equity (22.1%) is considered high.


Financial Health

How is Avast's financial position?


Financial Position Analysis

Short Term Liabilities: AVST's short term assets ($458.7M) do not cover its short term liabilities ($620.4M).

Long Term Liabilities: AVST's short term assets ($458.7M) do not cover its long term liabilities ($887.7M).


Debt to Equity History and Analysis

Debt Level: AVST's debt to equity ratio (62.8%) is considered high.

Reducing Debt: AVST's debt to equity ratio has reduced from 128.4% to 62.8% over the past 5 years.

Debt Coverage: AVST's debt is well covered by operating cash flow (59.5%).

Interest Coverage: AVST's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVST's dividend (2.01%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: AVST's dividend (2.01%) is low compared to the top 25% of dividend payers in the UK market (4%).


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 reasonable payout ratio (57%), AVST's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVST's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Ondrej Vlcek (44 yo)

2.17yrs

Tenure

US$2,620,652

Compensation

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.


Leadership Team

Experienced Management: AVST's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: AVST's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Avast Plc's 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£5.984b
  • Shares outstanding: 1.03b
  • Website: https://www.avast.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 21:35
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.