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AVI

AVIJSE:AVI Stock Report

Market Cap

R26.2b

7D

-4.9%

1Y

-0.7%

Updated

21 Oct, 2021

Data

Company Financials +
AVI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

AVI Overview

AVI Limited, together with its subsidiaries, manufactures, processes, markets, and distributes branded consumer products in the food, beverage, footwear, apparel, and cosmetics categories in South Africa and internationally.

AVI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AVI
Historical stock prices
Current Share PriceR79.34
52 Week HighR69.51
52 Week LowR90.57
Beta0.20
1 Month Change-10.81%
3 Month Change8.21%
1 Year Change-0.69%
3 Year Change-19.86%
5 Year Change-14.23%
Change since IPO244.96%

Recent News & Updates

Shareholder Returns

AVIZA FoodZA Market
7D-4.9%-1.5%-0.7%
1Y-0.7%1.8%19.0%

Return vs Industry: AVI underperformed the ZA Food industry which returned 2.8% over the past year.

Return vs Market: AVI underperformed the ZA Market which returned 19.9% over the past year.

Price Volatility

Is AVI's price volatile compared to industry and market?
AVI volatility
AVI Beta0.20
Industry Beta0.32
Market Beta1

Stable Share Price: AVI is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AVI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a9,351Simon Crutchleyhttps://www.avi.co.za

AVI Limited, together with its subsidiaries, manufactures, processes, markets, and distributes branded consumer products in the food, beverage, footwear, apparel, and cosmetics categories in South Africa and internationally. It operates through Entyce Beverages, Snackworks, I&J, Personal Care, and Footwear & Apparel segments. The company provides hot beverages, sweet and savoury biscuits and snacks, frozen convenience foods, out-of-home ranges, personal care products, footwears, accessories, and fashion apparels.

AVI Fundamentals Summary

How do AVI's earnings and revenue compare to its market cap?
AVI fundamental statistics
Market CapR26.22b
Earnings (TTM)R1.65b
Revenue (TTM)R13.27b

15.9x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVI income statement (TTM)
RevenueR13.27b
Cost of RevenueR8.10b
Gross ProfitR5.17b
ExpensesR3.52b
EarningsR1.65b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.98
Gross Margin38.95%
Net Profit Margin12.40%
Debt/Equity Ratio36.6%

How did AVI perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

87%

Payout Ratio

Valuation

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

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVI (ZAR79.34) is trading below our estimate of fair value (ZAR85.26)

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


Price To Earnings Ratio

PE vs Industry: AVI is poor value based on its PE Ratio (15.9x) compared to the ZA Food industry average (11.2x).

PE vs Market: AVI is poor value based on its PE Ratio (15.9x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: AVI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: AVI is overvalued based on its PB Ratio (6x) compared to the ZA Food industry average (1.2x).


Future Growth

How is AVI forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVI's forecast earnings growth (8.1% per year) is below the savings rate (8.8%).

Earnings vs Market: AVI's earnings (8.1% per year) are forecast to grow slower than the ZA market (12.2% per year).

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

Revenue vs Market: AVI's revenue (5.1% per year) is forecast to grow slower than the ZA market (6.3% per year).

High Growth Revenue: AVI's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVI's Return on Equity is forecast to be very high in 3 years time (41.3%).


Past Performance

How has AVI performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVI has high quality earnings.

Growing Profit Margin: AVI's current net profit margins (12.4%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: AVI's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: AVI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVI had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Food industry average (0.6%).


Return on Equity

High ROE: AVI's Return on Equity (37.4%) is considered high.


Financial Health

How is AVI's financial position?


Financial Position Analysis

Short Term Liabilities: AVI's short term assets (ZAR4.5B) exceed its short term liabilities (ZAR3.5B).

Long Term Liabilities: AVI's short term assets (ZAR4.5B) exceed its long term liabilities (ZAR954.3M).


Debt to Equity History and Analysis

Debt Level: AVI's debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: AVI's debt to equity ratio has reduced from 38.7% to 36.6% over the past 5 years.

Debt Coverage: AVI's debt is well covered by operating cash flow (140.4%).

Interest Coverage: AVI's interest payments on its debt are well covered by EBIT (24.3x coverage).


Balance Sheet


Dividend

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

5.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVI's dividend (5.48%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: AVI's dividend (5.48%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

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

Growing Dividend: AVI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.2%), AVI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVI's dividends in 3 years are forecast to be covered by earnings (87.7% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Simon Crutchley (58 yo)

16yrs

Tenure

R29,582,000

Compensation

Mr. Simon Leigh Crutchley, BBusSci (UCT), has been the Chief Executive Officer at Avi Ltd. since October 1, 2005. Mr. Crutchley serves as Acting Managing Director of A&D Spitz Proprietary Limited.He was a...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD2.03M) is above average for companies of similar size in the ZA market ($USD944.32K).

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


Leadership Team

Experienced Management: AVI's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: AVI's board of directors are seasoned and experienced ( 10.8 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

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


Key Information

  • Name: AVI Limited
  • Ticker: AVI
  • Exchange: JSE
  • Founded: NaN
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R26.224b
  • Shares outstanding: 330.53m
  • Website: https://www.avi.co.za

Number of Employees


Location

  • AVI Limited
  • 2 Harries Road
  • Illovo
  • Johannesburg
  • 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 Analysis2021/10/21 20:54
End of Day Share Price2021/10/21 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.