Capitalcube gives Avation Plc a score of 54.
Our analysis is based on comparing Avation Plc with the following peers – Headlam Group plc, FIH Group plc, Inspirit Energy Holdings Plc and DP Poland PLC (HEAD-GB, FIH-GB, INSP-GB and DPP-GB).
Avation Plc has a fundamental score of 54 and has a relative valuation of UNDERVALUED.
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- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It’s current Price/Book of 0.93 is about median in its peer group.
- We classify AVAP-GB as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- AVAP-GB‘s relatively high profit margins are burdened by relative asset inefficiency.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- AVAP-GB‘s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
- While AVAP-GB‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
- The company is likely overinvesting in a business with only median returns.
- AVAP-GB seems too levered to raise additional debt.
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Leverage & Liquidity
AVAP-GB would seem to have a hard time raising additional debt.
- With debt at a relatively high 88.29% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 5.32%), and relatively tight interest coverage level of 1.39x, AVAP-GB would have a hard time raising much additional debt. The company has a Constrained profile in terms of its ability to take on further debt.
- All 4 peers for the company have an outstanding debt balance.
AVAP-GB has maintained its Limited Flexibility profile from the prior year-end.
- AVAP-GB‘s interest coverage is its lowest over the last four years and compares to a high of 2.02x in 2013.
- Compared to 2016, interest coverage has remained relatively stable for both the company (1.39x) and the peer median (1.39x).
- AVAP-GB‘s debt-EV continues to trend downward but is still within one standard deviation above its four-year average debt-EV of 85.86%.
- The decrease in its debt-EV to 88.29% from 92.00% (in 2016) was also accompanied by a decrease in its peer median during this period to 5.32% from 8.77%.
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Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Headlam Group plc||5.32||1.6||46.74||264.07|
|FIH Group plc||28.24||2.48||9.09||43.92|
|Inspirit Energy Holdings Plc||4.81||0.32||-16.13||-331.01|
|DP Poland PLC||0.72||7.16||-137.96||-521.39|
|Best In Class||0.72||7.16||46.74||264.07|
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Avation Plc engages in owning and managing a fleet of aircraft. It operates through the Aircraft Leasing and Business Procurement segments. The company was founded on July 11, 2006 and is headquartered in Singapore.
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