LSE:AVV

Stock Analysis Report

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Executive Summary

AVEVA Group plc, through its subsidiaries, provides engineering and industrial software solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. More Details


Snowflake Analysis

Excellent 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

Stable Share Price: AVV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AVV's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

AVV

1.4%

GB Software

-0.5%

GB Market


1 Year Return

-25.3%

AVV

-15.3%

GB Software

-8.2%

GB Market

Return vs Industry: AVV underperformed the UK Software industry which returned -15.2% over the past year.

Return vs Market: AVV underperformed the UK Market which returned -8.2% over the past year.


Shareholder returns

AVVIndustryMarket
7 Day0.7%1.4%-0.5%
30 Day20.3%7.4%2.9%
90 Day-15.0%-0.1%15.2%
1 Year-5.8%-25.3%-7.1%-15.3%-4.5%-8.2%
3 Yearn/a-23.9%-33.4%3.7%-9.0%
5 Yearn/a22.6%0.04%42.1%14.4%

Long-Term 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?

195.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVV (£38.3) is trading above our estimate of fair value (£15.56)

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 (195.9x) compared to the GB Software industry average (54.3x).

PE vs Market: AVV is poor value based on its PE Ratio (195.9x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: AVV is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: AVV is good value based on its PB Ratio (3.3x) compared to the GB Software industry average (4.1x).


Next Steps

Future Growth

How is AVEVA Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVV's forecast earnings growth (45.8% per year) is above the savings rate (1%).

Earnings vs Market: AVV's earnings (45.8% per year) are forecast to grow faster than the UK market (25.3% per year).

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

Revenue vs Market: AVV's revenue (11.9% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: AVV's revenue (11.9% 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 (14%).


Next Steps

Past Performance

How has AVEVA Group performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVV has a large one-off loss of £54.6M impacting its September 30 2020 financial results.

Growing Profit Margin: AVV's current net profit margins (4.1%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: AVV's earnings have grown by 10.1% 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 (-45.4%) over the past year, making it difficult to compare to the Software industry average (-3.2%).


Return on Equity

High ROE: AVV's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is AVEVA Group's financial position?


Financial Position Analysis

Short Term Liabilities: AVV's short term assets (£452.0M) exceed its short term liabilities (£304.3M).

Long Term Liabilities: AVV's short term assets (£452.0M) exceed its long term liabilities (£186.2M).


Debt to Equity History and Analysis

Debt Level: AVV's debt to equity ratio (1.1%) is considered satisfactory.

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

Debt Coverage: AVV's debt is well covered by operating cash flow (593%).

Interest Coverage: AVV's interest payments on its debt are well covered by EBIT (43.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVV's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.53%).

High Dividend: AVV's dividend (1.16%) is low compared to the top 25% of dividend payers in the UK market (4.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AVV has been paying a dividend for less than 10 years.

Growing Dividend: AVV's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (227.6%), 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 (44.3% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Craig Hayman (57 yo)

2.92yrs

Tenure

UK£5,427,000

Compensation

Mr. Craig Hayman was 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 No...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD7.42M) is above average for companies of similar size in the UK market ($USD3.74M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Hayman
CEO & Executive Director2.92yrsUK£5.43m0.024%
£ 2.7m
James Kidd
Deputy CEO10yrsUK£3.59m0.018%
£ 2.0m
Ravi Gopinath
Chief Operating Officer2.83yrsno data0.0023%
£ 250.6k
Andrew McCloskey
CTO and Executive VP of R&D1.25yrsno data0.00021%
£ 23.1k
Matthew Springett
Head of Investor Relationsno datano datano data
Claire Denton
Group General Counsel & Deputy Company Secretaryno datano datano data
Lisa Johnston
Chief Marketing Officer2.17yrsno data0.00010%
£ 11.0k
Mark Cooper
Chief Human Resources Officer2.83yrsno datano data
Steen Lomholt-Thomsen
Chief Revenue Officer3.58yrsno data0.0013%
£ 138.5k
Clare Bye
Head of Global Talent & HR Servicesno datano datano data
David Ward
Finance Director & Company Secretary2.92yrsUK£677.05k0.0038%
£ 415.5k

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: AVV's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Hayman
CEO & Executive Director2.92yrsUK£5.43m0.024%
£ 2.7m
James Kidd
Deputy CEO10yrsUK£3.59m0.018%
£ 2.0m
Philip Aiken
Independent Non-Executive Chairman8.67yrsUK£277.00k0.0014%
£ 159.4k
Christopher Humphrey
Senior Independent Non-Executive Director3.5yrsUK£85.55k0.0025%
£ 272.6k
Rohinton Mobed
Independent Non-Executive Director3.83yrsUK£61.50k0.0019%
£ 204.4k
Peter Herweck
Non-Executive Vice Chairman0.75yrno data0%
£ 0
Jennifer Allerton
Independent Non-Executive Director7.5yrsUK£73.75k0.0062%
£ 680.4k
Olivier Pascal Blum
Non-Executive Director0.75yrno datano data
Paula Dowdy
Independent Non-Executive Director1.92yrsUK£61.50kno data

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: AVV's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AVV 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 substantially diluted in the past year, with total shares outstanding growing by 78.1%.


Top Shareholders

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£10.991b
  • Shares outstanding: 286.98m
  • 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
AVV NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 2018
AVVFLSE (London Stock Exchange)ORD GBP0.03555 FPD 09/12/2020GBGBPDec 2020

Biography

AVEVA Group plc, through its subsidiaries, provides engineering and industrial software solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company offers engineering, pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 01:30
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.