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AVEVA Group

LSE:AVV
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVV
LSE
£5B
Market Cap
  1. Home
  2. GB
  3. Software
Company description

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. The last earnings update was 151 days ago. More info.


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AVV Share Price and Events
7 Day Returns
2.3%
LSE:AVV
2.1%
GB Software
0.6%
GB Market
1 Year Returns
56.5%
LSE:AVV
15%
GB Software
1.1%
GB Market
AVV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AVEVA Group (AVV) 2.3% 8.6% 17.1% 56.5% - -
GB Software 2.1% 3.8% 15.6% 15% 31.3% 73.7%
GB Market 0.6% 2.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • AVV outperformed the Software industry which returned 15% over the past year.
  • AVV outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AVEVA Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AVEVA Group.

LSE:AVV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:AVV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 19%) (0.22%))
1.091
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.091 * 6.65%)
8.48%

Discounted Cash Flow Calculation for LSE:AVV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AVEVA Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:AVV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.48%)
2019 112.65 Analyst x4 103.84
2020 144.74 Analyst x5 122.99
2021 191.79 Analyst x5 150.23
2022 230.07 Est @ 19.96% 166.13
2023 263.05 Est @ 14.34% 175.09
2024 290.42 Est @ 10.4% 178.20
2025 312.64 Est @ 7.65% 176.83
2026 330.54 Est @ 5.72% 172.34
2027 345.00 Est @ 4.37% 165.81
2028 356.83 Est @ 3.43% 158.09
Present value of next 10 years cash flows £1,569.56
LSE:AVV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £356.83 × (1 + 1.23%) ÷ (8.48% – 1.23%)
£4,979.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,979.18 ÷ (1 + 8.48%)10
£2,206.00
LSE:AVV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,569.56 + £2,206.00
£3,775.55
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,775.55 / 160.93
£23.46
LSE:AVV Discount to Share Price
Calculation Result
Value per share (GBP) From above. £23.46
Current discount Discount to share price of £33.42
= -1 x (£33.42 - £23.46) / £23.46
-42.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AVEVA Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AVEVA Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AVEVA Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AVV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.26
LSE:AVV Share Price ** LSE (2019-04-18) in GBP £33.42
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 33 Publicly-Listed Software Companies 30.32x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AVEVA Group.

LSE:AVV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AVV Share Price ÷ EPS (both in GBP)

= 33.42 ÷ 0.26

127.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVEVA Group is overvalued based on earnings compared to the GB Software industry average.
  • AVEVA Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does AVEVA Group's expected growth come at a high price?
Raw Data
LSE:AVV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 127.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
36.7%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 21 Publicly-Listed Software Companies 1.64x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:AVV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 127.62x ÷ 36.7%

3.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVEVA Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AVEVA Group's assets?
Raw Data
LSE:AVV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £11.85
LSE:AVV Share Price * LSE (2019-04-18) in GBP £33.42
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 72 Publicly-Listed Software Companies 2.94x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:AVV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AVV Share Price ÷ Book Value per Share (both in GBP)

= 33.42 ÷ 11.85

2.82x

* Primary Listing of AVEVA Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVEVA Group is good value based on assets compared to the GB Software industry average.
X
Value checks
We assess AVEVA Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. AVEVA Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AVEVA Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AVEVA Group expected to grow at an attractive rate?
  • AVEVA Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • AVEVA Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • AVEVA Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AVV Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AVV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 36.7%
LSE:AVV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6.3%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:AVV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AVV Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 872 273 199 2
2021-03-31 849 224 128 10
2020-03-31 803 195 105 11
2019-03-31 757 154 60 11
LSE:AVV Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 620 80 35
2018-06-30 560 71 41
2018-03-31 499 63 48
2017-12-31 462 67 38
2017-09-30 441 82 34
2017-06-30 434 91 36
2017-03-31 433 101 38
2016-03-31 417 87 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AVEVA Group's earnings are expected to grow significantly at over 20% yearly.
  • AVEVA Group's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:AVV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from AVEVA Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AVV Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 0.69 0.93 0.52 6.00
2020-03-31 0.56 0.77 0.35 7.00
2019-03-31 0.35 0.49 0.25 5.00
LSE:AVV Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.26
2018-06-30 0.35
2018-03-31 0.47
2017-12-31
2017-09-30 0.36
2017-06-30 0.38
2017-03-31 0.40
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AVEVA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AVEVA Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AVEVA Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AVEVA Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AVEVA Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AVEVA Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • AVEVA Group's 1-year earnings growth exceeds its 5-year average (2.2% vs 1.2%)
  • AVEVA Group's earnings growth has not exceeded the GB Software industry average in the past year (2.2% vs 14.8%).
Earnings and Revenue History
AVEVA Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AVEVA Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AVV Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 620.46 35.09 249.13 130.91
2018-06-30 559.78 41.37 211.80 115.81
2018-03-31 499.10 47.66 174.46 100.70
2017-12-31 462.09 38.14 172.75 115.21
2017-09-30 441.08 34.34 162.49 115.00
2017-06-30 433.61 36.20 152.33 105.82
2017-03-31 432.83 38.40 144.10 97.84
2016-03-31 417.27 40.69 99.84 63.67
2015-03-31 404.54 37.09 102.78 57.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AVEVA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AVEVA Group used its assets less efficiently than the GB Software industry average last year based on Return on Assets.
  • AVEVA Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AVEVA Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AVEVA Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AVEVA Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AVEVA Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AVEVA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AVEVA Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AVEVA Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 31.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AVEVA Group Company Filings, last reported 6 months ago.

LSE:AVV Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,908.86 11.93 93.46
2018-06-30 1,908.86 11.93 93.46
2018-03-31 1,926.22 10.00 105.65
2017-12-31 1,926.22 10.00 105.65
2017-09-30 -55.64 0.00 21.26
2017-06-30 -57.44 0.00 21.94
2017-03-31 171.96 0.00 22.43
2016-03-31 205.44 0.00 11.39
2015-03-31 235.79 0.00 10.30
  • AVEVA Group's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if AVEVA Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (672.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.1x coverage).
X
Financial health checks
We assess AVEVA Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AVEVA Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.81%
Current annual income from AVEVA Group dividends. Estimated to be 1.52% next year.
If you bought £2,000 of AVEVA Group shares you are expected to receive £16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AVEVA Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • AVEVA Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:AVV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:AVV Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.58 2.00
2021-03-31 0.52 11.00
2020-03-31 0.48 12.00
2019-03-31 0.45 11.00
LSE:AVV Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-07-11 0.270 0.987

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVEVA Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • AVEVA Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of AVEVA Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of AVEVA Group's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess AVEVA Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AVEVA Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AVEVA Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig Hayman
AGE 55
TENURE AS CEO 1.2 years
CEO Bio

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 November 23, 2015 to February 2018. Mr. Hayman served as Group President of Solutions Group at PTC Inc. since November 23, 2015 until February 16, 2017. He served as the President of eBay Enterprise business at eBay Inc until November, 2015. from June 2014 to November 2015. He served as General Manager of Industry Cloud Solutions at International Business Machines Corporation. He has more than 30 years of enterprise technology leadership including executive positions at IBM's Industry Cloud Solutions and WebSphere businesses. He joined International Business Machines Corporation from IBM where he spent the past 15 years in leadership roles. Mr. Hayman led the IBM's transformation to become a SaaS provider and was the worldwide leader for enterprise SaaS solutions targeted at CMOs and ecommerce professionals. He led IBM's acquisitions of over a dozen companies including Sterling Commerce and Coremetrics and built a partner network that included global and regional system integrators. Mr. Hayman holds a BSc. in Computer Science and Electronics from the University of London.

CEO Compensation
  • Insufficient data for Craig to compare compensation growth.
  • Insufficient data for Craig to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the AVEVA Group management team in years:

1.1
Average Tenure
52
Average Age
  • The average tenure for the AVEVA Group management team is less than 2 years, this suggests a new team.
Management Team

Craig Hayman

TITLE
CEO & Executive Director
AGE
55
TENURE
1.2 yrs

James Kidd

TITLE
Deputy CEO
AGE
48
TENURE
1.2 yrs

Ravi Gopinath

TITLE
Chief Operating Officer
AGE
52
TENURE
1.1 yrs

Matthew Springett

TITLE
Head of Investor Relations

Lisa Johnston

TITLE
Chief Marketing Officer
TENURE
0.4 yrs

Mark Cooper

TITLE
Chief Human Resources Officer
TENURE
1.1 yrs

Steen Lomholt-Thomsen

TITLE
Chief Revenue Officer
TENURE
1.8 yrs

Andrew McCloskey

TITLE
Head of Research & Development
TENURE
1 yrs

David Ward

TITLE
Deputy CFO & Company Secretary
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the AVEVA Group board of directors in years:

1.8
Average Tenure
56.5
Average Age
  • The average tenure for the AVEVA Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Phil Aiken

TITLE
Non-Executive Chairman
AGE
69
TENURE
6.9 yrs

Craig Hayman

TITLE
CEO & Executive Director
AGE
55
TENURE
1.2 yrs

Emmanuel Babeau

TITLE
Vice Chairman
AGE
51
TENURE
1.1 yrs

James Kidd

TITLE
Deputy CEO
AGE
48
TENURE
8.3 yrs

Jennifer Allerton

TITLE
Independent Non-Executive Director
AGE
67
TENURE
5.8 yrs

Chris Humphrey

TITLE
Senior Independent Non-Executive Director
AGE
61
TENURE
1.8 yrs

Ron Mobed

TITLE
Non-Executive Director
AGE
58
TENURE
2.1 yrs

Peter Herweck

TITLE
Non-Executive Director
AGE
51
TENURE
1.1 yrs

Paula Dowdy

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
21. Mar 19 Buy Aveva Group Plc Employee Benefit Trust 2008 Company 15. Mar 19 15. Mar 19 43,075 £31.28 £1,347,386
21. Mar 19 Buy Aveva Group Plc Employee Benefit Trust 2008 Company 19. Mar 19 19. Mar 19 110,000 £31.39 £3,452,900
07. Dec 18 Buy Jennifer Allerton Individual 06. Dec 18 06. Dec 18 4,300 £23.90 £102,770
29. Nov 18 Buy David Ward Individual 27. Nov 18 27. Nov 18 1,466 £23.74 £34,803
26. Nov 18 Buy James Kidd Individual 23. Nov 18 23. Nov 18 2,618 £23.87 £62,492
21. Sep 18 Buy Aveva Group Plc Employee Benefit Trust 2008 Company 20. Sep 18 20. Sep 18 45,627 £29.56 £1,348,876
13. Aug 18 Buy Aveva Group Plc Employee Benefit Trust 2008 Company 09. Aug 18 09. Aug 18 13,209 £26.98 £356,338
05. Jul 18 Buy Aveva Group Plc Employee Benefit Trust 2008 Company 04. Jul 18 04. Jul 18 30,863 £25.99 £802,129
18. Jun 18 Sell Jennifer Allerton Individual 18. Jun 18 18. Jun 18 -6,000 £26.90 £-161,400
X
Management checks
We assess AVEVA Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AVEVA Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What You Must Know About AVEVA Group plc's (LON:AVV) Financial Health

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like AVEVA Group plc (LON:AVV), with a market cap of UK£5.3b, are often out of the spotlight. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … View our latest analysis for AVEVA Group

Simply Wall St -

A Closer Look At AVEVA Group plc's (LON:AVV) Uninspiring ROE

We'll use ROE to examine AVEVA Group plc (LON:AVV), by way of a worked example. … That means that for every £1 worth of shareholders' equity, it generated £0.018 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

AVEVA Group Shareholders Have Enjoyed A 57% Share Price Gain

For example, the AVEVA Group plc (LON:AVV) share price is up 57% in the last year, clearly besting than the market return of around -1.3% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the last year, AVEVA Group actually saw its earnings per share drop 27%.

Simply Wall St -

Should AVEVA Group plc’s (LON:AVV) Weak Investment Returns Worry You?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is AVEVA Group plc (LON:AVV) Potentially Underrated?

AVEVA Group plc (LON:AVV) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company with

Simply Wall St -

Is AVEVA Group plc (LON:AVV) A Financially Strong Company?

Let’s take a look at AVV’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further. … Check out our latest analysis for AVEVA Group

Simply Wall St -

Should We Worry About AVEVA Group plc's (LON:AVV) P/E Ratio?

We'll look at AVEVA Group plc's (LON:AVV) P/E ratio and reflect on what it tells us about the company's share price. … AVEVA Group has a P/E ratio of 97.3, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

AVEVA Group plc (LON:AVV) Delivered A Weaker ROE Than Its Industry

Our data shows AVEVA Group has a return on equity of 2.5% for the last year. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.025 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About AVEVA Group plc's (LON:AVV) Return On Capital?

and want to begin learning the link between AVEVA Group plc (LON:AVV)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in AVEVA Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

These Factors Make AVEVA Group plc (LON:AVV) An Interesting Investment

Attractive stocks have exceptional fundamentals. … In the case of AVEVA Group plc (LON:AVV), there's … financial health as well as

Simply Wall St -

Company Info

Description

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 solutions covering various aspects of the asset life cycle, including conceptual modeling and 3D design, process simulation, optimization, and manufacturing operations management. The company’s solutions include engineering, procurement, and construction; asset performance; monitoring and control; planning and scheduling; and operation and optimization solutions. It also provides AVEVA Connect, a unified industrial software platform; and engages in the licensing, maintenance, support, and servicing of software, as well as the provision of consultancy, implementation, and training services. The company serves customers in the oil and gas, food and beverage, pharma, marine, building and infrastructure, mining, chemicals, life sciences, power and utilities, pulp and paper, steel fabrication, and water and wastewater industries in approximately 40 countries. AVEVA Group Plc was founded in 1967 and is headquartered in Cambridge, the United Kingdom. AVEVA Group plc operates as a subsidiary of Schneider Electric S.E.

Details
Name: AVEVA Group plc
AVV
Exchange: LSE
Founded: 1967
£5,378,298,780
160,930,544
Website: http://www.aveva.com
Address: AVEVA Group plc
High Cross Madingley Road,
Cambridge,
Cambridgeshire, CB3 0HB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AVV Ordinary Shares London Stock Exchange GB GBP 02. Mar 2018
OTCPK AVEV.F Ordinary Shares Pink Sheets LLC US USD 02. Mar 2018
BATS-CHIXE AVVL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Mar 2018
Number of employees
Current staff
Staff numbers
4,400
AVEVA Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 22:14
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2018/11/20
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.