AVEVA Group (LSE:AVV) - Share price, News & Analysis

AVV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

AVV Stock Overview

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

Rewards

Trading at 20.8% below our estimate of its fair value

Earnings are forecast to grow 41.28% per year

Risk Analysis

Significant insider selling over the past 3 months

AVEVA Group Competitors

Apple

NasdaqGS:AAPL

US$2.4t

Microsoft

NasdaqGS:MSFT

US$2.0t

Alphabet

NasdaqGS:GOOGL

US$1.5t

Adobe

NasdaqGS:ADBE

US$191.6b

Price History & Performance

Summary of all time highs, changes and price drops for AVEVA Group
Historical stock prices
Current Share Price	UK£21.30
52 Week High	UK£42.42
52 Week Low	UK£18.00
Beta	0.72
1 Month Change	-11.84%
3 Month Change	-20.46%
1 Year Change	-33.40%
3 Year Change	-37.72%
5 Year Change	n/a
Change since IPO	16.65%

Recent News & Updates

Apr 18

AVEVA Group (LON:AVV) Could Be Struggling To Allocate Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Shareholder Returns

	AVV	GB Software	GB Market
7D	-0.7%	-1.2%	0.2%
1Y	-33.4%	-13.8%	-3.8%

Return vs Industry: AVV underperformed the UK Software industry which returned -13.8% over the past year.

Return vs Market: AVV underperformed the UK Market which returned -3.8% over the past year.

Price Volatility

Is AVV's price volatile compared to industry and market?
AVV volatility
AVV Average Weekly Movement	8.1%
Software Industry Average Movement	6.1%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.1%

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.

About the Company

Founded	Employees	CEO	Website
1967	6,250	Peter Herweck	https://www.aveva.com

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, procurement, and construction; asset performance management; monitoring and control; planning and scheduling; and operation and optimization industrial software solutions. It also provides digital transformation solutions covering artificial intelligence, cloud, digital twin, edge, extended reality, and Industrial Internet of Things products; and customer support and training services.

AVEVA Group Fundamentals Summary

How do AVEVA Group's earnings and revenue compare to its market cap?
AVV fundamental statistics
Market Cap	UK£6.42b
Earnings (TTM)	-UK£36.40m
Revenue (TTM)	UK£968.70m

6.6x

P/S Ratio

-176.4x

P/E Ratio

Is AVV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVV income statement (TTM)
Revenue	UK£968.70m
Cost of Revenue	UK£203.40m
Gross Profit	UK£765.30m
Other Expenses	UK£801.70m
Earnings	-UK£36.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 08, 2022

Earnings per share (EPS)	-0.12
Gross Margin	79.00%
Net Profit Margin	-3.76%
Debt/Equity Ratio	13.0%

How did AVV perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-289%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AVV (£21.3) is trading below our estimate of fair value (£26.89)

Significantly Below Fair Value: AVV is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: AVV is unprofitable, so we can't compare its PE Ratio to the UK Software industry average.

PE vs Market: AVV is unprofitable, so we can't compare its PE Ratio to the UK market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVV's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: AVV is good value based on its PB Ratio (1.3x) compared to the GB Software industry average (2.7x).

Future Growth

How is AVEVA Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: AVV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVV's is expected to become profitable in the next 3 years.

Revenue vs Market: AVV's revenue (9.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: AVV's revenue (9.4% 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 (6.4%).

Past Performance

How has AVEVA Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVV is currently unprofitable.

Growing Profit Margin: AVV is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AVV is unprofitable, and losses have increased over the past 5 years at a rate of 16.4% per year.

Accelerating Growth: Unable to compare AVV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVV is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-5.4%).

Return on Equity

High ROE: AVV has a negative Return on Equity (-0.71%), as it is currently unprofitable.

Financial Health

How is AVEVA Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AVV's short term assets (£670.1M) exceed its short term liabilities (£404.9M).

Long Term Liabilities: AVV's short term assets (£670.1M) do not cover its long term liabilities (£862.2M).

Debt to Equity History and Analysis

Debt Level: AVV's net debt to equity ratio (10.4%) 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 operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AVV's interest payments on its debt are well covered by EBIT (9.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AVV's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: AVV's dividend (1.71%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

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 4 years.

Earnings Payout to Shareholders

Earnings Coverage: AVV is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: AVV is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

1.3yrs

Average management tenure

CEO

Peter Herweck (54 yo)

Tenure

Mr. Peter W. Herweck serves as Chief Executive Officer of AVEVA Group plc since May 1, 2021. He served as Executive Vice President of Industrial Automation at Schneider Electric SE since 2019 until May 202...

Leadership Team

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

Board Members

Experienced Board: AVV's board of directors are considered experienced (4.2 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: AVV insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31