OB:AVANCE

Stock Analysis Report

Avance Gas Holding

Executive Summary

Avance Gas Holding Limited, together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) worldwide.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Avance Gas Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVANCE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

AVANCE

-6.0%

NO Oil and Gas

-5.1%

NO Market


1 Year Return

160.4%

AVANCE

-22.0%

NO Oil and Gas

-5.6%

NO Market

Return vs Industry: AVANCE exceeded the Norwegian Oil and Gas industry which returned -22% over the past year.

Return vs Market: AVANCE exceeded the Norwegian Market which returned -5.6% over the past year.


Shareholder returns

AVANCEIndustryMarket
7 Day-4.1%-6.0%-5.1%
30 Day-24.8%-14.4%-5.3%
90 Day-23.3%-12.9%-3.2%
1 Year160.4%160.4%-17.4%-22.0%-0.7%-5.6%
3 Year26.0%26.0%19.9%4.9%25.1%9.4%
5 Year-49.5%-66.3%34.0%7.5%52.3%18.3%

Price Volatility Vs. Market

How volatile is Avance Gas Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avance Gas Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVANCE (NOK38.3) is trading below our estimate of fair value (NOK84.63)

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


Price To Earnings Ratio

PE vs Industry: AVANCE is good value based on its PE Ratio (15.8x) compared to the Oil and Gas industry average (16.1x).

PE vs Market: AVANCE is poor value based on its PE Ratio (15.8x) compared to the Norwegian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: AVANCE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AVANCE is good value based on its PB Ratio (0.7x) compared to the NO Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Avance Gas Holding forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVANCE's forecast earnings growth (29.7% per year) is above the savings rate (0.7%).

Earnings vs Market: AVANCE's earnings (29.7% per year) are forecast to grow faster than the Norwegian market (18.2% per year).

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

Revenue vs Market: AVANCE's revenue (4.1% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: AVANCE's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVANCE's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Avance Gas Holding performed over the past 5 years?

-46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVANCE has high quality earnings.

Growing Profit Margin: AVANCE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AVANCE's earnings have declined by -46.4% per year over the past 5 years.

Accelerating Growth: AVANCE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AVANCE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18%).


Return on Equity

High ROE: AVANCE's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Avance Gas Holding's financial position?


Financial Position Analysis

Short Term Liabilities: AVANCE's short term assets ($125.2M) exceed its short term liabilities ($54.5M).

Long Term Liabilities: AVANCE's short term assets ($125.2M) do not cover its long term liabilities ($467.5M).


Debt to Equity History and Analysis

Debt Level: AVANCE's debt to equity ratio (138%) is considered high.

Reducing Debt: AVANCE's debt to equity ratio has increased from 37.1% to 138% over the past 5 years.

Debt Coverage: AVANCE's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: AVANCE's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: AVANCE has a high level of physical assets or inventory.

Debt Coverage by Assets: AVANCE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Avance Gas Holding's current dividend yield, its reliability and sustainability?

19.23%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVANCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVANCE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVANCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVANCE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AVANCE is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVANCE's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Ulrik Andersen 0

0.5yrs

Tenure

Mr. Ulrik Uhrenfeldt Andersen serves as Chief Executive Officer at Avance Gas Holding Ltd since August 2019. He served as an Assistant General Manager of Fully-Ref of Maersk Tankers A/S. 


Leadership Team

NamePositionTenureCompensationOwnership
Peder Carl Simonsen
Chief Financial Officer6.1yrsno data0.016% $383.0k
Ulrik Andersen
Chief Executive Officer0.5yrsno datano data
Kenneth Aasvang
Operations Manager8.8yrsno datano data
James Ayers
Secretary0yrsno datano data

6.1yrs

Average Tenure

Experienced Management: AVANCE's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jan Kastrup-Nielsen
Independent Director5.8yrsno data0.25% $6.1m
François Sunier
Independent Director9.2yrsUS$10.00kno data
Marius Hermansen
Chairman of the Board1.6yrsno datano data

5.8yrs

Average Tenure

54yo

Average Age

Experienced Board: AVANCE's board of directors are considered experienced (5.8 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Avance Gas Holding Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avance Gas Holding Ltd
  • Ticker: AVANCE
  • Exchange: OB
  • Founded: 2007
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr2.438b
  • Shares outstanding: 63.66m
  • Website: https://www.avancegas.com

Number of Employees


Location

  • Avance Gas Holding Ltd
  • Bryggegata 3
  • PO Box 1327
  • Oslo
  • Oslo
  • 112
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVANCEOB (Oslo Bors)YesCommon SharesNONOKOct 2013
AVAC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2013
0QTXLSE (London Stock Exchange)YesCommon SharesGBNOKOct 2013
AVANCOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKOct 2013

Biography

Avance Gas Holding Limited, together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) worldwide. The company transports LPG from the Middle East Gulf and the United States Gulf/the United States East Coast to destinations in Europe, South America, and Asia. As of August 22, 2019, it operated through a fleet of 14 very large gas carriers. The company was founded in 2007 and is based in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:55
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.