NasdaqGM:AEY

Stock Analysis Report

ADDvantage Technologies Group

Executive Summary

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes and services electronics and hardware for the cable television and telecommunication industries in the United States, Canada, Central America, Asia, Europe, Mexico, South America, and internationally.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

35.8%

AEY

-0.1%

US Electronic

0.06%

US Market


1 Year Return

220.6%

AEY

8.5%

US Electronic

19.3%

US Market

Return vs Industry: AEY exceeded the US Electronic industry which returned 8.5% over the past year.

Return vs Market: AEY exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

AEYIndustryMarket
7 Day35.8%-0.1%0.06%
30 Day100.0%-3.8%1.7%
90 Day100.9%3.0%9.0%
1 Year220.6%220.6%9.6%8.5%21.8%19.3%
3 Year143.6%143.6%37.4%33.7%49.5%39.9%
5 Year82.4%82.4%70.5%62.2%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AEY is good value based on its PB Ratio (1.6x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

21.7%

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 ADDvantage Technologies Group 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 ADDvantage Technologies Group performed over the past 5 years?

-71.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEY is currently unprofitable.

Growing Profit Margin: AEY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AEY is unprofitable, and losses have increased over the past 5 years at a rate of -71% per year.

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

Earnings vs Industry: AEY is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: AEY has a negative Return on Equity (-16.4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ADDvantage Technologies Group's financial position?


Financial Position Analysis

Short Term Liabilities: AEY's short term assets ($18.7M) exceed its short term liabilities ($9.1M).

Long Term Liabilities: AEY's short term assets ($18.7M) exceed its long term liabilities ($4.0M).


Debt to Equity History and Analysis

Debt Level: AEY's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: AEY's debt to equity ratio has reduced from 14.7% to 6.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AEY's debt is covered by short term assets (assets are 11x 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: AEY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AEY has less than a year of cash runway if free cash flow continues to reduce at historical rates of -15.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AEY'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 AEY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Joe Hart (68yo)

1.6yrs

Tenure

US$416,038

Compensation

Mr. Joseph E. Hart, also known as Joe, has been Chief Executive Officer and President of ADDvantage Technologies Group, Inc. since October 8, 2018 and its Director since August 06, 2015.He served its Inter ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD416.04K) is about average for companies of similar size in the US market ($USD521.37K).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Hart
President1.6yrsUS$416.04k0.32% $144.7k
David Chymiak
CTO, VP & Director21.1yrsUS$3.50k25.72% $11.6m
Kevin Brown
Chief Financial Officer0.9yrsUS$297.60kno data
Scott Francis
VP, Chief Accounting Officer & Secretary0.9yrsUS$209.25k0.41% $184.7k
Donald Kinison
President of the Telecommunications Segment1.2yrsUS$246.01kno data
Colby Empey
President of the Wireless Segment0.9yrsUS$268.56k0.11% $48.0k

0.9yrs

Average Tenure

48yo

Average Age

Experienced Management: AEY's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joseph Hart
President1.6yrsUS$416.04k0.32% $144.7k
David Chymiak
CTO, VP & Director21.1yrsUS$3.50k25.72% $11.6m
David Sparkman
Independent Director4.2yrsUS$15.50k0.31% $139.7k
James McGill
Independent Non-Executive Chairman1.3yrsUS$90.00k1.21% $546.0k
John Shelnutt
Independent Director0.6yrsUS$4.25kno data
Thomas Franz
Independent Director12.5yrsUS$15.35k0.68% $305.5k

4.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: AEY's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ADDvantage Technologies Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ADDvantage Technologies Group, Inc.
  • Ticker: AEY
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$45.175m
  • Shares outstanding: 10.36m
  • Website: https://www.addvantagetechnologies.com

Number of Employees


Location

  • ADDvantage Technologies Group, Inc.
  • 13757 North Stemmons Freeway
  • Farmers Branch
  • Texas
  • 75234
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1991

Biography

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes and services electronics and hardware for the cable television and telecommunication industries in the United States, Canada, Central America, Asia, Europe, Mexico, South America, and internationally. The company operates through two segments, Wireless Infrastructure Services and Telecommunications. The Wireless Infrastructure Services segment provides turn-key wireless infrastructure services for U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers. This segment also offers installation, upgradation, and maintenance of technology on cell sites; and the construction of new small cells for 5G. The Telecommunications segment provides central office equipment that include optical transport, switching, and data center equipment for communication networks; customer premise equipment, such as integrated access devices, channel banks, Internet protocol private branch exchange phones, and routers; and decommissioning services for surplus and obsolete telecom equipment. The company was formerly known as ADDvantage Media Group, Inc. and changed its name to ADDvantage Technologies Group, Inc. in December 1999. ADDvantage Technologies Group, Inc. was incorporated in 1989 and is headquartered in Farmers Branch, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:58
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.