Executive Summary
Avarga Limited, an investment holding company, engages in manufacturing and trading paper products, and providing management services in Canada, the United States, Malaysia, Singapore, Myanmar, Sri Lanka, Australia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
Share Price & News
How has Avarga's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: U09 is more volatile than 75% of SG stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: U09's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of SG stocks.
Market Performance
7 Day Return
13.6%
U09
9.5%
SG Forestry
1.4%
SG Market
1 Year Return
104.3%
U09
23.8%
SG Forestry
-10.9%
SG Market
Return vs Industry: U09 exceeded the SG Forestry industry which returned 23.8% over the past year.
Return vs Market: U09 exceeded the SG Market which returned -10.9% over the past year.
Shareholder returns
| U09 | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.6% | 9.5% | 1.4% |
| 30 Day | 34.0% | 20.3% | 5.4% |
| 90 Day | 31.4% | 23.9% | 17.3% |
| 1 Year | 119.3%104.3% | 26.4%23.8% | -6.1%-10.9% |
| 3 Year | 74.2%26.4% | -1.6%-10.4% | -9.4%-20.5% |
| 5 Year | 217.4%105.5% | 45.9%32.5% | 27.3%3.9% |
Long-Term Price Volatility Vs. Market
How volatile is Avarga's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Who Has Been Selling Avarga Limited (SGX:U09) Shares?2 weeks ago | Simply Wall St
Are Avarga's (SGX:U09) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
We Like These Underlying Trends At Avarga (SGX:U09)Valuation
Is Avarga undervalued compared to its fair value and its price relative to the market?
13.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: U09 (SGD0.34) is trading above our estimate of fair value (SGD0.32)
Significantly Below Fair Value: U09 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: U09 is good value based on its PE Ratio (13.3x) compared to the XA Forestry industry average (17.6x).
PE vs Market: U09 is good value based on its PE Ratio (13.3x) compared to the SG market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate U09's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: U09's PB Ratio (1.5x) is in line with the SG Forestry industry average.
Next Steps
Future Growth
How is Avarga forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
26.1%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Avarga has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine Avarga's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Avarga competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has Avarga performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: U09 has a large one-off gain of SGD11.0M impacting its June 30 2020 financial results.
Growing Profit Margin: U09's current net profit margins (1.7%) are lower than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: U09's earnings have grown significantly by 21.3% per year over the past 5 years.
Accelerating Growth: U09's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: U09 had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Forestry industry average (-4%).
Return on Equity
High ROE: U09's Return on Equity (12.5%) is considered low.
Next Steps
Financial Health
How is Avarga's financial position?
Financial Position Analysis
Short Term Liabilities: U09's short term assets (SGD386.0M) exceed its short term liabilities (SGD243.1M).
Long Term Liabilities: U09's short term assets (SGD386.0M) exceed its long term liabilities (SGD135.2M).
Debt to Equity History and Analysis
Debt Level: U09's debt to equity ratio (57.5%) is considered high.
Reducing Debt: Insufficient data to determine if U09's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: U09's debt is well covered by operating cash flow (40.6%).
Interest Coverage: U09's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Next Steps
Dividend
What is Avarga current dividend yield, its reliability and sustainability?
2.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: U09's dividend (2.15%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.15%).
High Dividend: U09's dividend (2.15%) is low compared to the top 25% of dividend payers in the SG market (5.04%).
Stability and Growth of Payments
Stable Dividend: U09's dividend payments have been volatile in the past 10 years.
Growing Dividend: U09's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.1%), U09's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Ian Tong (32 yo)
0.58
Tenure
S$385,000
Compensation
Mr. Ian Tong is the Founder of Axio Developments Ltd. and serves as its President. Mr. Ian has been Chief Executive Officer of Avarga Limited since June 1, 2020. Mr. Tong was Executive Director of Operatio...
CEO Compensation Analysis
Compensation vs Market: Ian's total compensation ($USD289.65K) is below average for companies of similar size in the SG market ($USD698.36K).
Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive officer & Chairman | 8.67yrs | S$1.04m | 31.73% SGD 98.9m | |
| CEO & Executive Director | 0.58yr | S$385.00k | 0.30% SGD 938.0k | |
| President of Investment & Power Generation | 8.5yrs | S$33.07k | no data | |
| Group Finance Manager | no data | no data | no data | |
| Managing Director of Paper Manufacturing | 0.58yr | no data | 0.0048% SGD 15.1k | |
| CEO & President of Taiga Building Products Ltd. | no data | no data | no data | |
| Joint Company Secretary | 1.08yrs | no data | no data | |
| Joint Company Secretary | 1.08yrs | no data | no data |
0.8yrs
Average Tenure
49yo
Average Age
Experienced Management: U09's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive officer & Chairman | 8.67yrs | S$1.04m | 31.73% SGD 98.9m | |
| CEO & Executive Director | 0.58yr | S$385.00k | 0.30% SGD 938.0k | |
| Non-Executive Independent Director | 1.17yrs | S$9.22k | no data | |
| Non-Executive Non-Independent Director | 1.83yrs | S$49.82k | no data | |
| Lead Independent Director | 10.42yrs | S$70.00k | no data | |
| Independent Director | 7.75yrs | S$70.00k | 0% SGD 0 | |
| Independent Director | 0.58yr | no data | 0.067% SGD 209.4k |
3.8yrs
Average Tenure
58.5yo
Average Age
Experienced Board: U09's board of directors are considered experienced (3.8 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
Avarga Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Avarga Limited
- Ticker: U09
- Exchange: SGX
- Founded: 1967
- Industry: Paper Products
- Sector: Materials
- Market Cap: S$311.820m
- Shares outstanding: 930.81m
- Website: https://www.avarga.com.sg
Location
- Avarga Limited
- No. 13-10, Great World City West Lobby
- 1 Kim Seng Promenade
- Singapore
- 237994
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| U09 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Jan 1992 |
Biography
Avarga Limited, an investment holding company, engages in manufacturing and trading paper products, and providing management services in Canada, the United States, Malaysia, Singapore, Myanmar, Sri Lanka, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 11:10 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.