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ADH

ADvTECHJSE:ADH Stock Report

Market Cap

R9.9b

7D

16.4%

1Y

110.3%

Updated

20 Oct, 2021

Data

Company Financials
ADH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends0/6

ADH Overview

ADvTECH Limited provides education, training, and staff placement services in South Africa and other African countries.

Price History & Performance

Summary of all time highs, changes and price drops for ADvTECH
Historical stock prices
Current Share PriceR18.11
52 Week HighR7.30
52 Week LowR18.21
Beta0.77
1 Month Change12.42%
3 Month Change27.63%
1 Year Change110.34%
3 Year Change26.73%
5 Year Change5.29%
Change since IPO630.24%

Recent News & Updates

Shareholder Returns

ADHZA Consumer ServicesZA Market
7D16.4%6.1%1.0%
1Y110.3%29.9%20.8%

Return vs Industry: ADH exceeded the ZA Consumer Services industry which returned 29.9% over the past year.

Return vs Market: ADH exceeded the ZA Market which returned 20.8% over the past year.

Price Volatility

Is ADH's price volatile compared to industry and market?
ADH volatility
ADH Beta0.77
Industry Beta0.90
Market Beta1

Stable Share Price: ADH is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ADH's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19787,853Roy Douglashttps://www.advtech.co.za

ADvTECH Limited provides education, training, and staff placement services in South Africa and other African countries. It operates through three divisions: Schools, Tertiary, and Resourcing. The Schools division provides pre-primary, primary, and secondary education services.

ADvTECH Fundamentals Summary

How do ADvTECH's earnings and revenue compare to its market cap?
ADH fundamental statistics
Market CapR9.90b
Earnings (TTM)R589.50m
Revenue (TTM)R5.53b

17.0x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADH income statement (TTM)
RevenueR5.53b
Cost of RevenueR2.90b
Gross ProfitR2.63b
ExpensesR2.04b
EarningsR589.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.07
Gross Margin47.48%
Net Profit Margin10.66%
Debt/Equity Ratio32.9%

How did ADH perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

36%

Payout Ratio

Valuation

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

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADH (ZAR18.11) is trading below our estimate of fair value (ZAR21.89)

Significantly Below Fair Value: ADH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ADH is good value based on its PE Ratio (17x) compared to the African Consumer Services industry average (17.5x).

PE vs Market: ADH is poor value based on its PE Ratio (17x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADH is overvalued based on its PB Ratio (2.5x) compared to the XF Consumer Services industry average (1.8x).


Future Growth

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

31.7%

Forecasted Consumer Services 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 ADvTECH 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 ADvTECH performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADH has high quality earnings.

Growing Profit Margin: ADH's current net profit margins (10.7%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: ADH's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: ADH's earnings growth over the past year (43.1%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: ADH earnings growth over the past year (43.1%) exceeded the Consumer Services industry 36%.


Return on Equity

High ROE: ADH's Return on Equity (14.7%) is considered low.


Financial Health

How is ADvTECH's financial position?


Financial Position Analysis

Short Term Liabilities: ADH's short term assets (ZAR661.1M) do not cover its short term liabilities (ZAR1.9B).

Long Term Liabilities: ADH's short term assets (ZAR661.1M) do not cover its long term liabilities (ZAR1.8B).


Debt to Equity History and Analysis

Debt Level: ADH's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: ADH's debt to equity ratio has reduced from 46.8% to 32.9% over the past 5 years.

Debt Coverage: ADH's debt is well covered by operating cash flow (76.6%).

Interest Coverage: ADH's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADH's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.11%).

High Dividend: ADH's dividend (1.05%) is low compared to the top 25% of dividend payers in the ZA market (8.07%).


Stability and Growth of Payments

Stable Dividend: ADH is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: ADH is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADH'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?

5.9yrs

Average management tenure


CEO

Roy Douglas (63 yo)

5.92yrs

Tenure

R6,198,242

Compensation

Mr. Roy J. Douglas has been the Group Chief Executive Officer and Executive Director of ADvTECH Ltd. since November 27, 2015. Mr. Douglas served as Chief Operating Officer of Tertiary Division at ADvTECH L...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD428.93K) is below average for companies of similar size in the ZA market ($USD905.06K).

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


Leadership Team

Experienced Management: ADH's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: ADH's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADH 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 diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

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


Key Information

  • Name: ADvTECH Limited
  • Ticker: ADH
  • Exchange: JSE
  • Founded: 1978
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: R9.903b
  • Shares outstanding: 552.31m
  • Website: https://www.advtech.co.za

Number of Employees


Location

  • ADvTECH Limited
  • ADvTECH House
  • Building 7, Inanda Greens Office Park
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 17:01
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.