LSE:AVV

Stock Analysis Report

Executive Summary

AVEVA Group Plc, through its subsidiaries, provides engineering and industrial software for process and hybrid industries in the Asia Pacific, Europe, the Middle East, Africa, and the Americas.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

AVV

-0.5%

GB Software

0.08%

GB Market


1 Year Return

55.3%

AVV

9.6%

GB Software

3.5%

GB Market

Return vs Industry: AVV exceeded the UK Software industry which returned 9.6% over the past year.

Return vs Market: AVV exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

AVVIndustryMarket
7 Day3.2%-0.5%0.08%
30 Day6.6%1.2%-1.3%
90 Day-0.1%-10.2%-2.2%
1 Year57.3%55.3%16.0%9.6%9.0%3.5%
3 Yearn/a2.8%-13.8%18.1%3.1%
5 Yearn/a66.7%34.0%36.2%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

188.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVV (£39.54) is trading above our estimate of fair value (£21.25)

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


Price To Earnings Ratio

PE vs Industry: AVV is poor value based on its PE Ratio (188.4x) compared to the Software industry average (27.5x).

PE vs Market: AVV is poor value based on its PE Ratio (188.4x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: AVV is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: AVV is overvalued based on its PB Ratio (3.3x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

How is AVEVA Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

38.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVV's forecast earnings growth (38.6% per year) is above the savings rate (1.2%).

Earnings vs Market: AVV's earnings (38.6% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: AVV's revenue (6% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: AVV'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: AVV's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has AVEVA Group performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVV's earnings have declined by -2.9% per year over the past 5 years.

Accelerating Growth: AVV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVV had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Software industry average (7%).


Return on Equity

High ROE: AVV's Return on Equity (1.8%) is considered low.


Return on Assets

ROA vs Industry: AVV's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: AVV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AVEVA Group's financial position?


Financial Position Analysis

Short Term Liabilities: AVV's short term assets (£477.8M) exceeds its short term liabilities (£346.2M)

Long Term Liabilities: AVV's short term assets (477.8M) exceeds its long term liabilities (130.1M)


Debt to Equity History and Analysis

Debt Level: AVV is debt free.

Reducing Debt: AVV had no debt 5 years ago.

Debt Coverage: AVV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AVV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AVV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AVV's debt is covered by short term assets.


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AVV's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: AVV's dividend (1.09%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (204.9%), AVV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVV's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Craig Hayman (56yo)

1.7yrs

Tenure

UK£7,345,000

Compensation

Mr. Craig Hayman is the Chief Executive Officer and Executive Director of AVEVA Group plc since February 19, 2018. He had served as Chief Operating Officer and Executive Vice President at PTC Inc. from Nov ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Craig's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.6yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AVV's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AVV insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUK£42,25201 Aug 19
James Kidd
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO
Shares1,060
Max PriceUK£39.86
SellUK£379,16131 Jul 19
Jennifer Allerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares9,300
Max PriceUK£40.77
BuyUK£3,452,90021 Mar 19
Aveva Group Plc Employee Benefit Trust 2008
EntityCompany
Shares110,000
Max PriceUK£31.39
BuyUK£1,347,38621 Mar 19
Aveva Group Plc Employee Benefit Trust 2008
EntityCompany
Shares43,075
Max PriceUK£31.28
BuyUK£102,77007 Dec 18
Jennifer Allerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,300
Max PriceUK£23.90
BuyUK£34,80329 Nov 18
David Ward
EntityIndividual
Role
Secretary
Finance Director & Company Secretary
Shares1,466
Max PriceUK£23.74
BuyUK£62,49226 Nov 18
James Kidd
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO
Shares2,618
Max PriceUK£23.87

Ownership Breakdown


Management Team

  • Mark Cooper

    Chief Human Resources Officer

    • Tenure: 1.6yrs
  • Ravi Gopinath (53yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
  • Clare Bye

    Head of Global Talent & HR Services

    • Tenure: 0yrs
  • Matthew Springett

    Head of Investor Relations

    • Tenure: 0yrs
  • James Kidd (49yo)

    Deputy CEO

    • Tenure: 8.8yrs
    • Compensation: UK£3.07m
  • Craig Hayman (56yo)

    CEO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£7.35m
  • David Ward

    Finance Director & Company Secretary

    • Tenure: 1.7yrs
  • Steen Lomholt-Thomsen

    Chief Revenue Officer

    • Tenure: 2.3yrs
  • Andrew McCloskey

    Head of Research & Development

    • Tenure: 1.5yrs
  • Lisa Johnston

    Chief Marketing Officer

    • Tenure: 0.9yrs

Board Members

  • Phil Aiken (70yo)

    Non-Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: UK£270.00k
  • Emmanuel Babeau (52yo)

    Vice Chairman

    • Tenure: 1.6yrs
  • Chris Humphrey (62yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£83.00k
  • Ron Mobed (59yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£60.00k
  • Peter Herweck (52yo)

    Non-Executive Director

    • Tenure: 1.6yrs
  • Jennifer Allerton (68yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£71.50k
  • James Kidd (49yo)

    Deputy CEO

    • Tenure: 8.8yrs
    • Compensation: UK£3.07m
  • Craig Hayman (56yo)

    CEO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£7.35m
  • Paula Dowdy

    Independent Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£10.00k

Company Information

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


Key Information

  • Name: AVEVA Group plc
  • Ticker: AVV
  • Exchange: LSE
  • Founded: 1967
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£6.397b
  • Shares outstanding: 161.15m
  • Website: https://www.aveva.com

Number of Employees


Location

  • AVEVA Group plc
  • High Cross Madingley Road
  • Cambridge
  • Cambridgeshire
  • CB3 0HB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVVLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2018
4A91DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2018
AVEV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2018
AVVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2018
AVVY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2018

Biography

AVEVA Group Plc, through its subsidiaries, provides engineering and industrial software for process and hybrid industries in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. It provides ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:57
End of Day Share Price2019/10/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.