company background image
AEG

AvengJSE:AEG Stock Report

Market Cap

R3.2b

7D

20.0%

1Y

100.0%

Updated

22 Oct, 2021

Data

Company Financials
AEG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

AEG Overview

Aveng Limited, together with its subsidiaries, engages in the construction and engineering, and mining businesses South Africa, Rest of Africa, Mauritius, New Zealand, the Pacific Islands, Southeast Asia, and internationally.

Aveng Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aveng
Historical stock prices
Current Share PriceR0.06
52 Week HighR0.02
52 Week LowR0.07
Beta0.35
1 Month Change20.00%
3 Month Change20.00%
1 Year Change100.00%
3 Year Change20.00%
5 Year Change-99.14%
Change since IPO-98.98%

Recent News & Updates

Sep 21
Is Aveng (JSE:AEG) Using Too Much Debt?

Is Aveng (JSE:AEG) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Feb 21
Did Aveng's (JSE:AEG) Share Price Deserve to Gain 100%?

Did Aveng's (JSE:AEG) Share Price Deserve to Gain 100%?

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly...

Shareholder Returns

AEGZA ConstructionZA Market
7D20.0%-5.0%-0.7%
1Y100.0%35.9%19.0%

Return vs Industry: AEG exceeded the ZA Construction industry which returned 35.9% over the past year.

Return vs Market: AEG exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is AEG's price volatile compared to industry and market?
AEG volatility
AEG Beta0.35
Industry Beta0.63
Market Beta1

Stable Share Price: AEG is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 27% a week.

Volatility Over Time: AEG's weekly volatility has decreased from 43% to 27% over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a6,260Sean Flanaganhttps://aveng.co.za

Aveng Limited, together with its subsidiaries, engages in the construction and engineering, and mining businesses South Africa, Rest of Africa, Mauritius, New Zealand, the Pacific Islands, Southeast Asia, and internationally. The company operates as an engineering, construction, building, and maintenance contractor for the building, infrastructure, and resource markets focusing on tunnel and pipeline, railway infrastructure, marine and mechanical, industrial building, oil and gas, and mining and mineral projects. It also provides open cut and underground mining services.

Aveng Fundamentals Summary

How do Aveng's earnings and revenue compare to its market cap?
AEG fundamental statistics
Market CapR3.19b
Earnings (TTM)R314.00m
Revenue (TTM)R21.51b

12.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEG income statement (TTM)
RevenueR21.51b
Cost of RevenueR19.98b
Gross ProfitR1.53b
ExpensesR1.22b
EarningsR314.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0049
Gross Margin7.12%
Net Profit Margin1.46%
Debt/Equity Ratio24.0%

How did AEG perform over the long term?

See historical performance and comparison

Valuation

Is Aveng 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: AEG (ZAR0.06) is trading below our estimate of fair value (ZAR1.16)

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


Price To Earnings Ratio

PE vs Industry: AEG is good value based on its PE Ratio (12.2x) compared to the African Construction industry average (12.9x).

PE vs Market: AEG is poor value based on its PE Ratio (12.2x) compared to the ZA market (11.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AEG's PB Ratio (1.1x) is in line with the ZA Construction industry average.


Future Growth

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

19.1%

Forecasted Capital Goods 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 Aveng 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 Aveng performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEG has a large one-off gain of ZAR128.0M impacting its June 30 2021 financial results.

Growing Profit Margin: AEG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AEG has become profitable over the past 5 years, growing earnings by 33.4% per year.

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

Earnings vs Industry: AEG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-9.2%).


Return on Equity

High ROE: AEG's Return on Equity (9%) is considered low.


Financial Health

How is Aveng's financial position?


Financial Position Analysis

Short Term Liabilities: AEG's short term assets (ZAR8.5B) exceed its short term liabilities (ZAR7.6B).

Long Term Liabilities: AEG's short term assets (ZAR8.5B) exceed its long term liabilities (ZAR1.4B).


Debt to Equity History and Analysis

Debt Level: AEG's debt to equity ratio (24%) is considered satisfactory.

Reducing Debt: AEG's debt to equity ratio has reduced from 24.4% to 24% over the past 5 years.

Debt Coverage: AEG's debt is well covered by operating cash flow (230.9%).

Interest Coverage: AEG's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Dividend

What is Aveng current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: AEG is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Sean Flanagan (61 yo)

2.67yrs

Tenure

R15,840,000

Compensation

Mr. Sean Joseph Flanagan is Group Chief Executive Officer of Aveng Limited since February 1, 2019. Mr. Flanagan serves as Director at McConnell Dowell Corporation Limited. He is Director of Aveng Limited s...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD1.07M) is above average for companies of similar size in the ZA market ($USD509.30K).

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


Leadership Team

Experienced Management: AEG's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: AEG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 228.9%.


Top Shareholders

Company Information

Aveng Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Aveng Limited
  • Ticker: AEG
  • Exchange: JSE
  • Founded: NaN
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: R3.186b
  • Shares outstanding: 63.71b
  • Website: https://aveng.co.za

Number of Employees


Location

  • Aveng Limited
  • Melrose Arch
  • 3rd Floor
  • Johannesburg
  • Gauteng
  • 2076
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 17:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.