OTCPK:AUST.F

Stock Analysis Report

Executive Summary

Austin Engineering Limited manufactures, repairs, overhauls, and supplies mining attachment products, and other associated products and services for the industrial and resources-related business sectors.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Austin Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

AUST.F

3.3%

US Machinery

0.07%

US Market


1 Year Return

n/a

AUST.F

15.1%

US Machinery

8.9%

US Market

Return vs Industry: Insufficient data to determine how AUST.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how AUST.F performed against the US Market.


Shareholder returns

AUST.FIndustryMarket
7 Day0%3.3%0.07%
30 Day0%3.5%-0.3%
90 Dayn/a-0.5%-1.6%
1 Yearn/a17.5%15.1%11.3%8.9%
3 Year-36.7%-36.7%55.1%45.1%46.3%36.8%
5 Yearn/a56.6%37.5%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Austin Engineering 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: AUST.F ($0.1) is trading below our estimate of fair value ($0.83)

Significantly Below Fair Value: AUST.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AUST.F is poor value based on its PE Ratio (67.3x) compared to the Machinery industry average (20.6x).

PE vs Market: AUST.F is poor value based on its PE Ratio (67.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AUST.F is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: AUST.F is good value based on its PB Ratio (1x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Austin Engineering forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

41.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUST.F's forecast earnings growth (41.5% per year) is above the savings rate (2.7%).

Earnings vs Market: AUST.F's earnings (41.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AUST.F's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AUST.F's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AUST.F's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Austin Engineering performed over the past 5 years?

37.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AUST.F's earnings have grown significantly by 37.8% per year over the past 5 years.

Accelerating Growth: AUST.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AUST.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (16.7%).


Return on Equity

High ROE: AUST.F's Return on Equity (1.5%) is considered low.


Return on Assets

ROA vs Industry: AUST.F's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: AUST.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Austin Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: AUST.F's short term assets (A$92.6M) exceeds its short term liabilities (A$70.4M)

Long Term Liabilities: AUST.F's short term assets (92.6M) exceeds its long term liabilities (5.6M)


Debt to Equity History and Analysis

Debt Level: AUST.F's debt to equity ratio (21%) is considered satisfactory

Reducing Debt: AUST.F's debt to equity ratio has reduced from 52.8% to 21% over the past 5 years.

Debt Coverage: AUST.F's debt is well covered by operating cash flow (64.9%).

Interest Coverage: AUST.F's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: AUST.F's debt is covered by short term assets (assets are 4.353880x debt).


Next Steps

Dividend

What is Austin Engineering's current dividend yield, its reliability and sustainability?

3.91%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate AUST.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AUST.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: AUST.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Peter Forsyth 0

3yrs

Tenure

AU$500,000

Compensation

Mr. Peter Forsyth has been Chief Executive Officer at Austin Engineering Ltd. since October 12, 2016 and its Managing Director and Director since August 18, 2017. Mr. Forsyth has senior executive skills an ...


CEO Compensation Analysis

Compensation vs. Market: Peter's total compensation ($USD343.27K) is about average for companies of similar size in the US market ($USD509.30K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: AUST.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

61yo

Average Age

Experienced Board: AUST.F's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$1,528,51221 Oct 19
LIM Advisors Limited
EntityCompany
Shares12,579,210
Max PriceAU$0.12
SellAU$1,846,87428 Jul 19
Discovery Asset Management Pty Ltd
EntityCompany
Shares14,151,096
Max PriceAU$0.13
BuyAU$1,193,27425 Jun 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares10,040,950
Max PriceAU$0.13
BuyAU$38,00103 May 19
Peter Forsyth
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares300,000
Max PriceAU$0.13
SellAU$1,453,67024 Apr 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares9,045,692
Max PriceAU$0.16
BuyAU$1,358,48724 Apr 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares9,930,678
Max PriceAU$0.14
SellAU$1,395,23624 Apr 19
LIM Advisors Limited
EntityCompany
Shares7,806,829
Max PriceAU$0.18
BuyAU$47,61009 Dec 18
Peter Forsyth
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares300,000
Max PriceAU$0.16
BuyAU$949,69812 Nov 18
Perennial Value Management Limited
EntityCompany
Shares6,079,643
Max PriceAU$0.17

Ownership Breakdown


Management Team

  • Steve Shellenberger

    CEO & President of Western Technology Svcs International Inc

    • Tenure: 0yrs
    • Compensation: AU$370.44k
  • Steve Warner

    Operations Executive

    • Tenure: 0yrs
    • Compensation: AU$255.84k
  • Sophie Raven

    Joint Company Secretary

    • Tenure: 0.7yrs
  • Warren Arthur

    Chief Executive Officer of COR Cooling Pty Ltd

    • Tenure: 6.7yrs
    • Compensation: AU$433.53k
  • Jesus Laureano

    Chief of Engineering at Peruvian Operation

    • Tenure: 0yrs
  • Charles Louis Rottier

    Chief Strategic Officer

    • Tenure: 3.7yrs
    • Compensation: AU$251.96k
  • Peter Forsyth

    CEO, MD & Director

    • Tenure: 3yrs
    • Compensation: AU$500.00k
  • Simon Mair

    Global Manager of Operations

    • Tenure: 0yrs
  • Sam Cruickshank

    CFO & Group Financial Controller

    • Tenure: 0.8yrs
  • Rochelle Oberholzer

    Joint Company Secretary and Global Governance & IT Manager

    • Tenure: 0.8yrs

Board Members

  • John Singleton (59yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Chris Indermaur (61yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$96.09k
  • Jim Walker (67yo)

    Non-Executive Independent Chairman

    • Tenure: 2.9yrs
    • Compensation: AU$115.00k
  • Sy van Dyk

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$33.95k
  • Peter Forsyth

    CEO, MD & Director

    • Tenure: 3yrs
    • Compensation: AU$500.00k

Company Information

Austin Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Austin Engineering Limited
  • Ticker: AUST.F
  • Exchange: OTCPK
  • Founded: 1982
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: AU$104.221m
  • Listing Market Cap: AU$71.551m
  • Shares outstanding: 579.01m
  • Website: https://www.austineng.com

Number of Employees


Location

  • Austin Engineering Limited
  • Kings Row 1
  • Level G
  • Milton
  • Queensland
  • 4064
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2004
AUST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
ANGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2004
RZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004

Biography

Austin Engineering Limited manufactures, repairs, overhauls, and supplies mining attachment products, and other associated products and services for the industrial and resources-related business sectors. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:06
End of Day Share Price2019/08/27 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.