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.
Snowflake
Fundamentals
Undervalued with solid track record.
Share Price & News
How has Avarga's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-1.7%
U09
0.3%
SG Forestry
1.1%
SG Market
1 Year Return
-17.6%
U09
-9.1%
SG Forestry
2.6%
SG Market
Return vs Industry: U09 underperformed the SG Forestry industry which returned -9.1% over the past year.
Return vs Market: U09 underperformed the SG Market which returned 2.6% over the past year.
Shareholder returns
| U09 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 0.3% | 1.1% |
| 30 Day | -2.9% | -2.8% | -0.3% |
| 90 Day | -11.1% | -4.7% | -5.9% |
| 1 Year | 1.5%-17.6% | -5.6%-9.1% | 6.7%2.6% |
| 3 Year | -18.1%-38.5% | -19.4%-24.5% | 15.5%3.2% |
| 5 Year | 3.5%-29.6% | 9.6%1.9% | 12.0%-6.6% |
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
2 weeks ago | Simply Wall St
Does Avarga Limited (SGX:U09) Have A Good P/E Ratio?1 month ago | Simply Wall St
We Think Avarga (SGX:U09) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
Could Avarga Limited's (SGX:U09) Investor Composition Influence The Stock Price?Valuation
Is Avarga 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: U09 (SGD0.17) is trading below our estimate of fair value (SGD4.56)
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 Forestry industry average (13.6x).
PE vs Market: U09 is good value based on its PE Ratio (5.7x) compared to the SG market (13.4x).
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 is good value based on its PB Ratio (0.8x) compared to the XA Forestry industry average (0.8x).
Next Steps
Future Growth
How is Avarga forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
-2.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: U09's earnings are forecast to decline over the next 3 years (-2.1% per year).
Earnings vs Market: U09's earnings are forecast to decline over the next 3 years (-2.1% per year).
High Growth Earnings: U09's earnings are forecast to decline over the next 3 years.
Revenue vs Market: Insufficient data to determine if U09's revenue is forecast to grow faster than the SG market.
High Growth Revenue: Insufficient data to determine if U09's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if U09's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Avarga performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
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 earnings growth over the past year (67.9%) exceeds its 5-year average (21.3% per year).
Earnings vs Industry: U09 earnings growth over the past year (67.9%) exceeded the Forestry industry 14.3%.
Return on Equity
High ROE: U09's Return on Equity (13.9%) is considered low.
Return on Assets
ROA vs Industry: U09 has a higher Return on Assets than the Forestry industry average last year.
Return on Capital Employed
ROCE Improving: U09 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Avarga's financial position?
Financial Position Analysis
Short Term Liabilities: U09's short term assets (SGD380.0M) exceeds its short term liabilities (SGD262.7M)
Long Term Liabilities: U09's short term assets (380.0M) exceeds its long term liabilities (159.2M)
Debt to Equity History and Analysis
Debt Level: U09's debt to equity ratio (81.3%) is considered high
Reducing Debt: U09's debt to equity ratio has increased from 0.4% to 81.3% over the past 5 years.
Debt Coverage: U09's debt is well covered by operating cash flow (44.2%).
Interest Coverage: U09's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Inventory Level: U09 has a high level of physical assets or inventory.
Debt Coverage by Assets: U09's debt is covered by short term assets (assets are 1.9x debt).
Next Steps
Dividend
What is Avarga's current dividend yield, its reliability and sustainability?
20.71%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: U09's dividend (20.71%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).
High Dividend: U09's dividend (20.71%) is in the top 25% of dividend payers in the SG market (5.69%)
Stable Dividend: Whilst dividend payments have been stable, U09 has been paying a dividend for less than 10 years.
Growing Dividend: U09's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (100.8%), U09's dividend payments are not 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
What is the CEO of Avarga's salary, the management and board of directors tenure and is there insider trading?
7.3yrs
Average management tenure
CEO
Kooi Ong Tong (60yo)
7.4yrs
Tenure
S$833,889
Compensation
Dr. Kooi Ong Tong has been an Executive Chairman and Chief Executive Officer of UPP Holdings Limited since May 2012. Dr. Tong is the Owner at The Edge Publishing Pte Ltd. He serves as the Chief Executive O ...
CEO Compensation Analysis
Compensation vs. Market: Kooi Ong's total compensation ($USD612.19K) is about average for companies of similar size in the SG market ($USD269.41K).
Compensation vs Earnings: Kooi Ong's compensation has been consistent with company performance over the past year.
Management Age and Tenure
7.3yrs
Average Tenure
60yo
Average Age
Experienced Management: U09's management team is seasoned and experienced (7.3 years average tenure).
Board Age and Tenure
6.5yrs
Average Tenure
60yo
Average Age
Experienced Board: U09's board of directors are considered experienced (6.5 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Management Team
Kooi Ong Tong (60yo)
Executive Chairman & CEO
- Tenure: 7.4yrs
- Compensation: S$833.89k
James Koh (61yo)
President of Paper Manufacturing
- Tenure: 11.5yrs
- Compensation: S$379.51k
Trent Balog
CEO & President of Taiga Building Products Ltd.
- Tenure: 0yrs
Lai Yeen Tai
Group Finance Manager
- Tenure: 0yrs
Ian Tong
Executive Director
- Tenure: 2.6yrs
- Compensation: S$329.01k
Kevin Khoo (48yo)
President of Investment & Power Generation
- Tenure: 7.3yrs
- Compensation: S$283.80k
Selena Leong
Company Secretary
- Tenure: 0.3yrs
Board Members
Kooi Ong Tong (60yo)
Executive Chairman & CEO
- Tenure: 7.4yrs
- Compensation: S$833.89k
Kalimullah Bin Masheerul Hassan (61yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: S$70.00k
Lay Hoon Chan (55yo)
Non Executive Non-Independent Director
- Tenure: 0.6yrs
Gary Ho (64yo)
Lead Independent Director
- Tenure: 9.2yrs
- Compensation: S$70.00k
Shin Ein Ng (44yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: S$70.00k
Ian Tong
Executive Director
- Tenure: 2.6yrs
- Compensation: S$329.01k
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$162.896m
- Shares outstanding: 947.07m
- 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 | 2019/10/23 12:34 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.