| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
U09 Stock Overview
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.
Rewards
Risk Analysis
No risks detected for U09 from our risk checks.
Avarga Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | S$0.23 |
| 52 Week High | S$0.32 |
| 52 Week Low | S$0.21 |
| Beta | 1.08 |
| 1 Month Change | 0% |
| 3 Month Change | 0% |
| 1 Year Change | -21.67% |
| 3 Year Change | 25.00% |
| 5 Year Change | -11.32% |
| Change since IPO | -47.19% |
Recent News & Updates
Shareholder Returns
| U09 | SG Forestry | SG Market | |
|---|---|---|---|
| 7D | 2.2% | 0.4% | 0.8% |
| 1Y | -21.7% | -11.3% | -0.6% |
Return vs Industry: U09 underperformed the SG Forestry industry which returned -11.3% over the past year.
Return vs Market: U09 underperformed the SG Market which returned -0.6% over the past year.
Price Volatility
| U09 volatility | |
|---|---|
| U09 Average Weekly Movement | 3.5% |
| Forestry Industry Average Movement | 5.6% |
| Market Average Movement | 4.8% |
| 10% most volatile stocks in SG Market | 12.4% |
| 10% least volatile stocks in SG Market | 2.2% |
Stable Share Price: U09 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: U09's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1967 | n/a | Ian Tong | https://www.avarga.com.sg |
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. The company operates through four segments: Paper Mill, Power Plant, Building Products, and Others. The company manufactures and sells industrial grade paper products, such as test liner, corrugating medium, chipboard, and core boards that are primarily used to manufacture corrugated carton boxes and other finished paper products.
Avarga Fundamentals Summary
| U09 fundamental statistics | |
|---|---|
| Market Cap | S$213.45m |
| Earnings (TTM) | S$73.30m |
| Revenue (TTM) | S$2.44b |
2.9x
P/E Ratio0.1x
P/S RatioIs U09 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| U09 income statement (TTM) | |
|---|---|
| Revenue | S$2.44b |
| Cost of Revenue | S$2.10b |
| Gross Profit | S$334.41m |
| Other Expenses | S$261.11m |
| Earnings | S$73.30m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.081 |
| Gross Margin | 13.73% |
| Net Profit Margin | 3.01% |
| Debt/Equity Ratio | 16.7% |
How did U09 perform over the long term?
See historical performance and comparisonValuation
Is U09 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for U09?
Other financial metrics that can be useful for relative valuation.
| What is U09's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | S$213.45m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.2x |
| Enterprise Value/EBITDA | 2.4x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does U09's PE Ratio compare to its peers?
| U09 PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 8.6x | ||
N08 New Toyo International Holdings | 10.3x | n/a | S$83.9m |
C8R Jiutian Chemical Group | 2.1x | -8.7% | S$186.9m |
OAJ Fortress Minerals | 11.7x | 41.2% | S$175.0m |
DM0 PSC | 10.5x | 5.9% | S$204.8m |
U09 Avarga | 2.9x | n/a | S$213.5m |
Price-To-Earnings vs Peers: U09 is good value based on its Price-To-Earnings Ratio (2.9x) compared to the peer average (8.6x).
Price to Earnings Ratio vs Industry
How does U09's PE Ratio compare vs other companies in the Asian Forestry Industry?
Price-To-Earnings vs Industry: U09 is good value based on its Price-To-Earnings Ratio (2.9x) compared to the Asian Forestry industry average (12.2x)
Price to Earnings Ratio vs Fair Ratio
What is U09's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 2.9x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate U09's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of U09 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: U09 (SGD0.24) is trading below our estimate of fair value (SGD3.34)
Significantly Below Fair Value: U09 is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
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Future Growth
How is Avarga forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
10.4%
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.
Discover growth companies
- Examine whether Avarga is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Avarga competitive advantages and company strategy can generally be found in its financial reports archived here.
Past Performance
How has Avarga performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
44.7%
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%) are lower than last year (3.2%).
Past Earnings Growth Analysis
Earnings Trend: U09's earnings have grown significantly by 44.7% per year over the past 5 years.
Accelerating Growth: U09's earnings growth over the past year (33.7%) is below its 5-year average (44.7% per year).
Earnings vs Industry: U09 earnings growth over the past year (33.7%) exceeded the Forestry industry 33.1%.
Return on Equity
High ROE: U09's Return on Equity (26.7%) is considered high.
Discover strong past performing companies
Financial Health
How is Avarga's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: U09's short term assets (SGD509.9M) exceed its short term liabilities (SGD263.3M).
Long Term Liabilities: U09's short term assets (SGD509.9M) exceed its long term liabilities (SGD127.9M).
Debt to Equity History and Analysis
Debt Level: U09 has more cash than its total debt.
Reducing Debt: U09's debt to equity ratio has increased from 1.6% to 16.7% over the past 5 years.
Debt Coverage: U09's debt is well covered by operating cash flow (203.4%).
Interest Coverage: U09's interest payments on its debt are well covered by EBIT (14.2x coverage).
Balance Sheet
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Dividend
What is Avarga current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate U09's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate U09's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if U09's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if U09's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: U09 is not paying a notable dividend for the SG market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as U09 has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Ian Tong (34 yo)
2.17yrs
Tenure
S$563,522
Compensation
Mr. Ian Tong is the Founder of Axio Developments Ltd. and serves as its President. Mr. Ian has been Chief Executive Officer of Avarga Limited since June 1, 2020.Mr. Tong was Executive Director of Operatio...
CEO Compensation Analysis
Compensation vs Market: Ian's total compensation ($USD408.95K) is below average for companies of similar size in the SG market ($USD712.28K).
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 considered experienced (2.2 years average tenure).
Board Members
Experienced Board: U09's board of directors are considered experienced (5.4 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Avarga Limited's employee growth, exchange listings and data sources
Key Information
- Name: Avarga Limited
- Ticker: U09
- Exchange: SGX
- Founded: 1967
- Industry: Paper Products
- Sector: Materials
- Implied Market Cap: S$213.454m
- Shares outstanding: 908.31m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/09 00:00 |
| End of Day Share Price | 2022/08/08 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.