SGX:A31

Stock Analysis Report

Addvalue Technologies

Executive Summary

Addvalue Technologies Ltd, an investment holding company, provides satellite-based communication terminals and solutions for connectivity between human, machines, and human and machines.

Risk Analysis

Earnings have declined by -13.54% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 2 more risks


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Addvalue Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A31 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

A31

-0.7%

SG Communications

-1.4%

SG Market


1 Year Return

16.7%

A31

29.1%

SG Communications

0.8%

SG Market

Return vs Industry: A31 underperformed the SG Communications industry which returned 30.4% over the past year.

Return vs Market: A31 exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

A31IndustryMarket
7 Day0%-0.7%-1.4%
30 Day-12.5%-4.1%0.3%
90 Day21.7%12.1%1.8%
1 Year16.7%16.7%34.3%29.1%4.9%0.8%
3 Year-22.2%-22.2%3.3%-6.0%13.7%1.6%
5 Year-64.9%-65.4%-34.8%-53.8%10.8%-7.7%

Price Volatility Vs. Market

How volatile is Addvalue Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Addvalue Technologies undervalued compared to its fair value and its price relative to the market?

8.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate A31's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate A31's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: A31 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: A31 is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A31's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A31 is overvalued based on its PB Ratio (9.2x) compared to the SG Communications industry average (1x).


Next Steps

Future Growth

How is Addvalue Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.3%

Forecasted Tech 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 Addvalue Technologies 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

Past Performance

How has Addvalue Technologies performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A31 is currently unprofitable.

Growing Profit Margin: A31 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: A31 is unprofitable, and losses have increased over the past 5 years at a rate of -13.5% per year.

Accelerating Growth: Unable to compare A31's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: A31 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-0.6%).


Return on Equity

High ROE: A31 has a negative Return on Equity (-72.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Addvalue Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: A31's short term assets ($5.3M) do not cover its short term liabilities ($9.1M).

Long Term Liabilities: A31's short term assets ($5.3M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: A31's debt to equity ratio (131%) is considered high.

Reducing Debt: A31's debt to equity ratio has increased from 21.1% to 131% over the past 5 years.


Balance Sheet

Inventory Level: A31 has a high level of physical assets or inventory.

Debt Coverage by Assets: A31's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: A31 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: A31 has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.7% each year.


Next Steps

Dividend

What is Addvalue Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.5%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate A31's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate A31'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 A31's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A31's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of A31's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of Addvalue Technologies's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Colin Chan 0

0yrs

Tenure

0

Dr. Kum Lok Chan, also known as Colin, is the founder of Addvalue Technologies Ltd., and serves as its Chairman and Chief Executive Officer. Dr. Chan has been a Director of Addvalue Technologies Limited si ...


Management Age and Tenure

10.0yrs

Average Tenure

60yo

Average Age

Experienced Management: A31's management team is seasoned and experienced (10 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Soon Soo Foo (60yo)

    Secretary

    • Tenure: 13.8yrs
  • K. Kalaivanan

    Head of Solutions Platform

    • Colin Chan

      Founder

      • Martin Tan

        Co-Founder & Project Director

        • E. M. L. Ekanayake

          Head of Product Development

          • Khai Pang Tan (60yo)

            Co-Founder

            • Tenure: 22.8yrs
          • Jackie Chow (57yo)

            Financial Controller

            • Tenure: 10yrs
          • Edward Fong

            Senior Vice President of Products & Solutions / Managed Services

            • Tenure: 1.8yrs
          • Kim Ho Chong

            Head of Software Development

            • Francis Low

              Head of Advanced Development


              Board Members

              • Michael J. Butler (55yo)

                Independent Non-Executive Director

                • Tenure: 9.3yrs
              • Richard John Denny (66yo)

                Lead Independent Director

                • Colin Chan

                  Founder

                  • Khai Pang Tan (60yo)

                    Co-Founder

                    • Tenure: 22.8yrs

                  Company Information

                  Addvalue Technologies Ltd's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Addvalue Technologies Ltd
                  • Ticker: A31
                  • Exchange: SGX
                  • Founded: 1994
                  • Industry: Communications Equipment
                  • Sector: Tech
                  • Market Cap: S$54.243m
                  • Shares outstanding: 1.87b
                  • Website: https://www.addvaluetech.com

                  Number of Employees


                  Location

                  • Addvalue Technologies Ltd
                  • No. 01-11, 202 Bedok South Avenue 1
                  • Singapore
                  • 469332
                  • Singapore

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  A31SGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2000
                  DDUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2000

                  Biography

                  Addvalue Technologies Ltd, an investment holding company, provides satellite-based communication terminals and solutions for connectivity between human, machines, and human and machines. It operates through three segments: Europe Middle East and Africa, North America, and Asia Pacific. The company develops and manufactures a range of terminals operating on satellite networks for land, maritime, and aeronautical applications; and develops agile communications systems and employs software defined radio and deep machine learning tools for governments and commercial enterprises. It also provides turnkey contracting services for system integration; and managed services that combine edge processing in terminals and cloud-based services platforms. The company markets its products and solutions under the Wideye brand. Addvalue Technologies Ltd was founded in 1994 and is headquartered in Singapore. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/28 12:41
                  End of Day Share Price2020/01/28 00:00
                  Earnings2019/09/30
                  Annual Earnings2019/03/31


                  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.