AMEX:IAF

Stock Analysis Report

Aberdeen Australia Equity Fund

Executive Summary

Aberdeen Australia Equity Fund, Inc. is a closed ended equity mutual fund launched and managed by Aberdeen Standard Investments (Asia) Limited.

Rewards


Snowflake Analysis

Share Price & News

How has Aberdeen Australia Equity Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IAF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.3%

IAF

19.7%

US Capital Markets

12.5%

US Market


1 Year Return

-33.0%

IAF

-13.2%

US Capital Markets

-12.7%

US Market

Return vs Industry: IAF underperformed the US Capital Markets industry which returned -11.3% over the past year.

Return vs Market: IAF underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

IAFIndustryMarket
7 Day20.3%19.7%12.5%
30 Day-21.6%-16.9%-14.7%
90 Day-33.1%-23.7%-21.5%
1 Year-24.4%-33.0%-11.5%-13.2%-10.9%-12.7%
3 Year-17.9%-41.1%6.8%0.7%12.6%5.4%
5 Year-9.6%-49.2%32.7%20.3%31.9%17.5%

Price Volatility Vs. Market

How volatile is Aberdeen Australia Equity Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aberdeen Australia Equity Fund undervalued compared to its fair value and its price relative to the market?

48.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAF ($3.62) is trading below our estimate of fair value ($7.05)

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


Price To Earnings Ratio

PE vs Industry: IAF is good value based on its PE Ratio (4.3x) compared to the Capital Markets industry average (33.2x).

PE vs Market: IAF is good value based on its PE Ratio (4.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IAF is good value based on its PB Ratio (0.6x) compared to the US Capital Markets industry average (7.1x).

Future Growth

How is Aberdeen Australia Equity Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.9%

Forecasted Diversified Financials 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 Aberdeen Australia Equity Fund 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 Aberdeen Australia Equity Fund performed over the past 5 years?

45.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAF has a large one-off gain of $12.1M impacting its October 31 2019 financial results.

Growing Profit Margin: IAF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IAF has become profitable over the past 5 years, growing earnings by 45.8% per year.

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

Earnings vs Industry: IAF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (9.1%).


Return on Equity

High ROE: IAF's Return on Equity (14.6%) is considered low.

Financial Health

How is Aberdeen Australia Equity Fund's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IAF has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if IAF's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: IAF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IAF has a sufficient allowance for bad loans.

Low Risk Liabilities: IAF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IAF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IAF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IAF has an appropriate level of bad loans.

Dividend

What is Aberdeen Australia Equity Fund's current dividend yield, its reliability and sustainability?

15.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IAF's dividend (15.47%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: IAF's dividend (15.47%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: IAF's dividend payments have been volatile in the past 10 years.

Growing Dividend: IAF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69%), IAF's dividend payments are 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.

Management

How experienced are the management team and are they aligned to shareholders interests?

21.2yrs

Average board tenure


CEO

Aberdeen Australia Equity Fund has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Martin Gilbert
CEO, VP29.17yrsno datano data
Hugh Young
Portfolio Mngr19.17yrsno datano data
Neville Miles
Chairmanno dataUS$61.30kno data
William Potter
Independent Director35.17yrsUS$41.89kno data
Peter Sacks
Independent Director21.17yrsUS$40.23kno data
John Sheehy
Independent Director35.17yrsUS$48.50kno data
P. Malone
Independent Director12.17yrsUS$38.89kno data
Moritz Sell
Director16.17yrsUS$38.39kno data

21.2yrs

Average Tenure

70yo

Average Age

Experienced Board: IAF's board of directors are seasoned and experienced ( 21.2 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

Aberdeen Australia Equity Fund, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aberdeen Australia Equity Fund, Inc.
  • Ticker: IAF
  • Exchange: AMEX
  • Founded: 1985
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$82.327m
  • Shares outstanding: 22.74m
  • Website: https://www.aberdeeniaf.com

Location

  • Aberdeen Australia Equity Fund, Inc.
  • Level 10
  • 255 George Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAFAMEX (NYSE MKT LLC)YesCommon StockUSUSDDec 1985

Biography

Aberdeen Australia Equity Fund, Inc. is a closed ended equity mutual fund launched and managed by Aberdeen Standard Investments (Asia) Limited. The fund is managed by Aberdeen Standard Investments Australia Limited. It invests in the public equity markets of Australia. The fund makes its investments in firms operating across diversified sectors. It employs fundamental analysis with a bottom-up and top-down stock picking approach with focus on factors like growth prospects, competitive positions in domestic and export markets, technology, research and development, productivity, labor and raw material costs, profit margins, return on investment, capital resources, quality of management, and government regulation to create its portfolio. The fund benchmarks the performance of its portfolio against the S&P ASX 200 Accumulation Index. It also uses proprietary research to create its portfolio. The Aberdeen Australia Equity Fund Inc. was previously known as The First Australia Fund, Inc. Aberdeen Australia Equity Fund, Inc. was formed in September 30, 1985 and is domiciled in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:09
End of Day Share Price2020/03/27 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.