OTCPK:AVAS.F

Stock Analysis Report

Executive Summary

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, AVG, and CCleaner brands worldwide.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AVAS.F

2.2%

US Software

0.9%

US Market


1 Year Return

n/a

AVAS.F

39.3%

US Software

16.8%

US Market

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

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


Shareholder returns

AVAS.FIndustryMarket
7 Day0%2.2%0.9%
30 Day0%10.5%4.5%
90 Dayn/a4.6%6.2%
1 Yearn/a41.5%39.3%19.4%16.8%
3 Yearn/a126.3%117.4%47.5%38.0%
5 Yearn/a176.1%156.3%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVAS.F ($4.62) is trading above our estimate of fair value ($4.51)

Significantly Below Fair Value: AVAS.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVAS.F is good value based on its PE Ratio (27.9x) compared to the Software industry average (45.5x).

PE vs Market: AVAS.F is poor value based on its PE Ratio (27.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AVAS.F is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: AVAS.F is good value based on its PB Ratio (5.6x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is Avast forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAS.F's forecast earnings growth (7.2% per year) is above the savings rate (2.7%).

Earnings vs Market: AVAS.F's earnings (7.2% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: AVAS.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: AVAS.F's revenue (6.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AVAS.F's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVAS.F's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Avast performed over the past 5 years?

43.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVAS.F has high quality earnings.

Growing Profit Margin: AVAS.F's current net profit margins (22.9%) are lower than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: AVAS.F's earnings have grown significantly by 43.4% per year over the past 5 years.

Accelerating Growth: AVAS.F's earnings growth over the past year (8.8%) is below its 5-year average (43.4% per year).

Earnings vs Industry: AVAS.F earnings growth over the past year (8.8%) underperformed the Software industry 25.8%.


Return on Equity

High ROE: Whilst AVAS.F's Return on Equity (20.03%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avast's financial position?


Financial Position Analysis

Short Term Liabilities: AVAS.F's short term assets ($279.8M) do not cover its short term liabilities ($554.1M)

Long Term Liabilities: AVAS.F's short term assets ($279.8M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: AVAS.F's debt to equity ratio (120.8%) is considered high.

Reducing Debt: Insufficient data to determine if AVAS.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AVAS.F's debt is well covered by operating cash flow (33.1%).

Interest Coverage: AVAS.F's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: AVAS.F's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

2.41%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: AVAS.F's dividend (2.41%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: AVAS.F's dividend (2.41%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AVAS.F's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AVAS.F's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.2%), AVAS.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVAS.F's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Ondrej Vlcek (42yo)

0.4yrs

Tenure

0

Mr. Ondrej Vlcek has been the Chief Operations Officer at Avast Software B.V. since January 2014. Mr. Vlcek has been the Chief Executive Officer at Avast Plc since June 30, 2019 and served as its President ...


Management Age and Tenure

1.1yrs

Average Tenure

49yo

Average Age

Experienced Management: AVAS.F's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: AVAS.F's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AVAS.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,021,05231 Oct 19
Ulf Claesson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares190,000
Max PriceUS$5.37
SellUS$5,178,59022 Oct 19
Erwin Gunst
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000,000
Max PriceUS$5.18
SellUS$443,31207 Oct 19
Ulf Claesson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares95,000
Max PriceUS$4.67
SellUS$4,345,22023 Aug 19
Erwin Gunst
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares974,728
Max PriceUS$4.46

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Management Team

  • Robin Selden

    Chief Marketing Officer

    • Tenure: 0yrs
  • Ondrej Vlcek (42yo)

    Chief Executive Officer

    • Tenure: 0.4yrs
  • Michal Pechoucek

    Chief Technology Officer

    • Tenure: 0.2yrs
  • Phil Marshall (49yo)

    CFO & Director

    • Tenure: 1.8yrs
  • Detlef Steinmetz (52yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Peter Russell

    Director of Investor Relations

    • Tenure: 0yrs
  • Stephanie Kane

    Vice President of PR & Corporate Communications

    • Tenure: 0yrs
  • Pavel Baudis

    Co Founder & Director

    • Tenure: 0yrs
  • Eduard Kucera

    Co Founder & Non-Executive Director

    • Tenure: 0yrs
  • Kelby Barton

    General Counsel

    • Tenure: 1.8yrs

Board Members

  • John Schwarz (68yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
  • Warren Finegold (62yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
  • Ulf Claesson

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Ernie Gunst (59yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Belinda Richards (60yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Ondrej Vlcek (42yo)

    Chief Executive Officer

    • Tenure: 0.4yrs
  • Phil Marshall (49yo)

    CFO & Director

    • Tenure: 1.8yrs
  • Maggie Chan Jones

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Pavel Baudis

    Co Founder & Director

    • Tenure: 0yrs
  • Eduard Kucera

    Co Founder & Non-Executive Director

    • Tenure: 0yrs

Company Information

Avast Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avast Plc
  • Ticker: AVAS.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£4.325b
  • Listing Market Cap: UK£5.594b
  • Shares outstanding: 990.10m
  • Website: https://www.avast.com

Number of Employees


Location

  • Avast Plc
  • Pikrtova 1737/1A
  • Prague 4
  • Prague
  • 140 00
  • Czech Republic

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AV2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2018
AVSTLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2018
AVSTSEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary SharesCZCZKMay 2018
AVSTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2018
AVAS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2018
AVSTKBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBCZKMay 2018

Biography

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, AVG, and CCleaner brands worldwide. It operates through two segments, Consumer and Small and Medium Business ( ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 01:04
End of Day Share Price2019/10/04 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.