LSE:AVST

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with moderate growth potential.


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

Stable Share Price: AVST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

AVST

-1.7%

GB Software

-1.9%

GB Market


1 Year Return

21.2%

AVST

6.1%

GB Software

-16.2%

GB Market

Return vs Industry: AVST exceeded the UK Software industry which returned 7.1% over the past year.

Return vs Market: AVST exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

AVSTIndustryMarket
7 Day-6.6%-1.7%-1.9%
30 Day-3.8%-1.5%0.7%
90 Day-15.9%0.7%-4.8%
1 Year24.1%21.2%7.5%6.1%-13.0%-16.2%
3 Yearn/a-25.1%-34.5%-9.4%-20.6%
5 Yearn/a29.0%6.5%13.5%-12.0%

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 compared to its fair value and its price relative to the market?

29.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVST (£4.94) is trading above our estimate of fair value (£4.94)

Significantly Below Fair Value: AVST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVST is good value based on its PE Ratio (29.2x) compared to the GB Software industry average (33.5x).

PE vs Market: AVST is poor value based on its PE Ratio (29.2x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AVST is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AVST is overvalued based on its PB Ratio (5.8x) compared to the GB Software industry average (3.7x).


Next Steps

Future Growth

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

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVST's forecast earnings growth (20% per year) is above the savings rate (1.2%).

Earnings vs Market: AVST's earnings (20% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: AVST's revenue (6% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: AVST's revenue (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 (27.2%)


Next Steps

Past Performance

How has Avast performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVST has high quality earnings.

Growing Profit Margin: AVST's current net profit margins (25.3%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: AVST's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: AVST's earnings growth over the past year (14.8%) is below its 5-year average (33.6% per year).

Earnings vs Industry: AVST earnings growth over the past year (14.8%) exceeded the Software industry 7.7%.


Return on Equity

High ROE: AVST's Return on Equity (19.5%) is considered low.


Next Steps

Financial Health

How is Avast's financial position?


Financial Position Analysis

Short Term Liabilities: AVST's short term assets ($275.6M) do not cover its short term liabilities ($606.5M).

Long Term Liabilities: AVST's short term assets ($275.6M) do not cover its long term liabilities ($979.7M).


Debt to Equity History and Analysis

Debt Level: AVST's debt to equity ratio (78.8%) is considered high.

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

Debt Coverage: AVST's debt is well covered by operating cash flow (49.9%).

Interest Coverage: AVST's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVST's dividend (2.26%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AVST's dividend (2.26%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AVST's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AVST's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68%), 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 (44.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Ondrej Vlcek (43 yo)

1.25yrs

Tenure

US$6,933,411

Compensation

Mr. Ondrej Vlcek has been the Chief Operations Officer of Avast Software B.V. since January 2014. Mr. Vlcek has been the Chief Executive Officer at Avast Plc since July 2019 and served as its President of ...


CEO Compensation Analysis

Compensation vs Market: Ondrej's total compensation ($USD6.93M) is above average for companies of similar size in the UK market ($USD2.79M).

Compensation vs Earnings: Ondrej's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ondrej Vlcek
Chief Executive Officer1.25yrsUS$6.93m2.31%
$ 117.2m
Pavel Baudis
Co-Founder & Non-Executive Directorno dataUS$112.99kno data
Eduard Kucera
Co-Founder & Non-Executive Directorno dataUS$113.07kno data
Philip Marshall
CFO & Director2.67yrsUS$1.27m0.031%
$ 1.6m
Michal Pechoucek
Chief Technology Officer1.08yrsno datano data
Detlef Steinmetz
Chief Information Officerno datano datano data
Peter Russell
Director of Investor Relationsno datano datano data
Kelby Barton
Company Secretary & General Counsel2.75yrsno datano data
Stephanie Kane
Vice President of PR & Corporate Communicationsno datano datano data
Jim Holden
Senior Vice President of Strategy & Corporate Developmentno datano datano data
Rebecca Grattan
Chief People & Culture Officer0.67yrno datano data
Kevin Chapman
Senior VP & GM of Avast Business Divisionno datano datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: AVST's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ondrej Vlcek
Chief Executive Officer1.25yrsUS$6.93m2.31%
$ 117.2m
Pavel Baudis
Co-Founder & Non-Executive Directorno dataUS$112.99kno data
Eduard Kucera
Co-Founder & Non-Executive Directorno dataUS$113.07kno data
Philip Marshall
CFO & Director2.67yrsUS$1.27m0.031%
$ 1.6m
John Schwarz
Independent Chairman of the Board6.75yrsUS$370.00k0%
$ 0
Warren Finegold
Senior Independent Non-Executive Directorno dataUS$137.50k0.011%
$ 534.2k
Ulf Claesson
Independent Non-Executive Director8yrsUS$122.50k0.12%
$ 6.0m
Tamara Minick-Scokalo
Independent Non-Executive Director1.58yrsUS$84.85kno data
Erwin Gunst
Independent Non-Executive Director8yrsUS$117.91kno data
Belinda Richards
Independent Non-Executive Director2.33yrsUS$115.00kno data
Maggie Chan Jones
Independent Non-Executive Director1.58yrsUS$109.42kno data

2.7yrs

Average Tenure

61yo

Average Age

Experienced Board: AVST's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

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£5.078b
  • 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

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
AVSTKBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBCZKMay 2018

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:23
End of Day Share Price2020/10/21 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.