Executive Summary
Avarga Limited, an investment holding company, engages in manufacturing and trading of 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
Outstanding track record with excellent balance sheet.
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 +/- 9% a week.
Volatility Over Time: U09's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of SG stocks.
Market Performance
7 Day Return
3.1%
U09
4.0%
SG Forestry
0.7%
SG Market
1 Year Return
164.0%
U09
54.2%
SG Forestry
23.3%
SG Market
Return vs Industry: U09 exceeded the SG Forestry industry which returned 54.2% over the past year.
Return vs Market: U09 exceeded the SG Market which returned 23.3% over the past year.
Shareholder returns
| U09 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 4.0% | 0.7% |
| 30 Day | -1.5% | 3.6% | 3.7% |
| 90 Day | 11.9% | 7.8% | 7.4% |
| 1 Year | 183.4%164.0% | 57.3%54.2% | 29.6%23.3% |
| 3 Year | 93.5%40.4% | 9.6%0.6% | -0.9%-13.2% |
| 5 Year | 131.7%50.0% | 41.1%28.0% | 20.9%-1.3% |
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
1 week ago | Simply Wall St
Avarga (SGX:U09) Is Very Good At Capital Allocation3 weeks ago | Simply Wall St
Announcing: Avarga (SGX:U09) Stock Increased An Energizing 133% In The Last Year1 month ago | Simply Wall St
Do Avarga's (SGX:U09) Earnings Warrant Your Attention?Valuation
Is Avarga undervalued compared to its fair value and its price relative to the market?
42.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: U09 (SGD0.33) is trading below our estimate of fair value (SGD0.57)
Significantly Below Fair Value: U09 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: U09 is good value based on its PE Ratio (5.7x) compared to the XA Forestry industry average (18.6x).
PE vs Market: U09 is good value based on its PE Ratio (5.7x) compared to the SG market (16.6x).
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 (1.3x) is in line with the SG Forestry industry average.
Future Growth
How is Avarga forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
24.7%
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.
Past Performance
How has Avarga performed over the past 5 years?
29.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: U09 has high quality earnings.
Growing Profit Margin: U09's current net profit margins (3.2%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: U09's earnings have grown significantly by 29.6% per year over the past 5 years.
Accelerating Growth: U09's earnings growth over the past year (68.8%) exceeds its 5-year average (29.6% per year).
Earnings vs Industry: U09 earnings growth over the past year (68.8%) exceeded the Forestry industry 4.8%.
Return on Equity
High ROE: U09's Return on Equity (24.4%) is considered high.
Financial Health
How is Avarga's financial position?
Financial Position Analysis
Short Term Liabilities: U09's short term assets (SGD393.1M) exceed its short term liabilities (SGD197.3M).
Long Term Liabilities: U09's short term assets (SGD393.1M) exceed its long term liabilities (SGD146.8M).
Debt to Equity History and Analysis
Debt Level: U09's debt to equity ratio (25.8%) is considered satisfactory.
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 (76.8%).
Interest Coverage: U09's interest payments on its debt are well covered by EBIT (10.6x coverage).
Balance Sheet
Dividend
What is Avarga current dividend yield, its reliability and sustainability?
4.55%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: U09's dividend (4.55%) is higher than the bottom 25% of dividend payers in the SG market (1.88%).
High Dividend: U09's dividend (4.55%) is low compared to the top 25% of dividend payers in the SG market (4.59%).
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 (25.9%), 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?
1.1yrs
Average management tenure
CEO
Ian Tong (31 yo)
0.83
Tenure
S$385,000
Compensation
Mr. Ian Tong is the Founder of Axio Developments Ltd. and serves as its President. Mr. Ian has been Chief Executive Officer of Avarga Limited since June 1, 2020. Mr. Tong was Executive Director of Operatio...
CEO Compensation Analysis
Compensation vs Market: Ian's total compensation ($USD287.24K) is below average for companies of similar size in the SG market ($USD690.78K).
Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: U09's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: U09's board of directors are considered experienced (4.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: U09 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$306.166m
- Shares outstanding: 927.77m
- 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
Biography
Avarga Limited, an investment holding company, engages in manufacturing and trading of paper products, and providing management services in Canada, the United States, Malaysia, Singapore, Myanmar, Sri Lank...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 11:02 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.