Avingtrans (AVG) AI Stock Analysis

• Market Cap: £138.98M
• Dividend Yield: 96.44%
• Average Volume (3M): 28.38K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.61
• Revenue Growth: 14.30%
• EPS Growth: -25.58%
• Country: UK
• Employees: 941
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): 0.12
• Shares Outstanding: 33,089,924
• 10 Day Avg. Volume: 19,111
• 30 Day Avg. Volume: 28,383
• PEG Ratio: 3.71
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £469.00
• Price Target Upside: 11.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: 466.00p ▲(10.95%Upside)

Avingtrans' overall stock score is driven primarily by its strong technical indicators and positive corporate events outlook, suggesting momentum and strategic growth. Despite challenges in financial performance, particularly in cash flow and profitability, the company's strategic positioning and expected growth provide a favorable outlook. Valuation remains a concern with high P/E ratios, requiring careful consideration by investors.

Avingtrans Business Overview & Revenue Model

Company Description

Avingtrans PLC is a UK-based, global engineering company focused primarily on the design, manufacture, and supply of highly engineered components and systems. The company operates through three main divisions: Energy, Medical, and Industrial. Avingtrans specializes in precision engineering and advanced manufacturing, catering to diverse sectors such as energy, medical and scientific, and industrial markets with its high-performance products and solutions.

How the Company Makes Money

Avingtrans makes money through the sale of its engineered components and systems across its three main divisions. In the Energy sector, it designs and manufactures equipment for the oil and gas, nuclear, and renewable energy markets. For the Medical division, the company produces components and systems for medical and scientific equipment, focusing on high-reliability and precision engineering. The Industrial division provides engineered solutions for various industrial applications. Revenue is generated through a combination of direct sales, long-term supply contracts, and strategic partnerships with key industry players, allowing Avingtrans to leverage its expertise and broaden its market reach.

Avingtrans Financial Statement Overview

Summary

Avingtrans shows robust revenue growth and operational efficiency with improved gross margins. However, profitability pressures are evident with declining net profit and EBIT margins. The balance sheet portrays increased leverage, which requires careful monitoring. Cash flow challenges are significant with negative free cash flow, impacting financial flexibility. Strategic focus on improving cash flow and profitability will be crucial for sustaining growth.

Income Statement

Avingtrans has demonstrated a solid revenue growth rate of 17.34% from 2023 to 2024, indicating a strong growth trajectory. However, the net profit margin decreased to 2.68% in 2024 from 4.46% in 2023, suggesting some pressure on profitability. The gross profit margin improved to 32.24% in 2024, up from 31.67% in 2023, showing efficiency in core operations. Despite a declining EBIT margin from 7.08% to 4.13%, the company maintains a stable EBITDA margin at around 9.26%.

Balance Sheet

The debt-to-equity ratio increased to 0.22 in 2024 from 0.08 in 2023, indicating a rise in leverage which could pose a risk if not managed properly. The return on equity decreased to 3.32% from 4.90%, which could be a concern for investors seeking returns. However, the equity ratio remains strong at 59.27%, reflecting a stable financial position with a solid asset base supported by equity.

Cash Flow

Free cash flow turned negative in 2024 to -11,063,000 from a positive 985,000 in 2023, highlighting a potential cash flow risk. The operating cash flow to net income ratio dropped significantly, indicating that cash generated from operations isn't fully supporting net income. The free cash flow to net income ratio also reflects negative performance, suggesting challenges in converting income into free cash flow.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	136.62M	116.44M	99.08M	98.52M	91.96M
Gross Profit	44.04M	36.86M	32.59M	28.38M	22.21M
EBITDA	12.65M	13.20M	12.02M	11.03M	6.95M
Net Income	3.66M	5.19M	6.48M	3.99M	1.39M
Balance Sheet
Total Assets	186.34M	155.41M	154.69M	142.61M	131.23M
Cash, Cash Equivalents and Short-Term Investments	12.12M	17.72M	24.29M	30.08M	5.09M
Total Debt	23.96M	8.58M	10.96M	9.80M	21.43M
Total Liabilities	73.33M	46.96M	48.88M	43.65M	61.33M
Stockholders Equity	110.44M	106.04M	103.82M	97.30M	69.91M
Cash Flow
Free Cash Flow	-11.06M	985.00K	-1.10M	4.03M	-4.76M
Operating Cash Flow	1.33M	9.68M	3.88M	6.45M	-13.00K
Investing Cash Flow	-13.58M	-12.63M	-9.52M	24.56M	-4.02M
Financing Cash Flow	6.78M	-3.40M	-371.00K	-5.85M	713.00K

Avingtrans Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVG, the sentiment is Positive. The current price of 420 is below the 20-day moving average (MA) of 420.20, above the 50-day MA of 411.08, and above the 200-day MA of 380.42, indicating a neutral trend. The MACD of 2.90 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVG.

Avingtrans Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNO	75 Outperform	£180.62M	10.55	25.68%	0.62%	-6.48%	―
GDWN	74 Outperform	£573.73M	29.41	16.39%	174.08%	3.13%	24.54%
AVG	72 Outperform	£138.98M	32.16	3.87%	96.44%	14.30%	-25.58%
MGAM	72 Outperform	£640.36M	12.98	14.06%	390.16%	-1.26%	6.56%
CGS	71 Outperform	£130.59M	31.30	3.19%	612.31%	-10.79%	-21.64%
Sector *	67 Neutral	£2.83B	10.43	4.69%	215.18%	2.73%	-20.52%
MPAC	60 Neutral	£91.72M	32.14	1.63%	―	7.18%	-28.05%

Avingtrans Corporate Events

Avingtrans PLC Reports Strong Financial Performance and Strategic Growth

Avingtrans PLC announced a positive trading update for the financial year ending 31 May 2025, with revenue, Adjusted EBITDA, and Adjusted PBT meeting upgraded market expectations. The Advanced Engineering Systems division showed strong performance, contributing to the company’s solid financial standing. The Medical & Industrial Imaging Division is progressing as planned, with Adaptix preparing for market entry and Magnetica moving toward regulatory approval. The company is strategically positioned for growth, with substantial order cover and limited exposure to new tariffs, enhancing its market resilience.

Avingtrans Expects Higher Than Anticipated EBITDA for FY25

Avingtrans PLC has announced a trading update indicating that its adjusted EBITDA for the financial year ending May 31, 2025, is expected to surpass market expectations, primarily due to the strong performance of its Advanced Engineering Systems division. The company anticipates that revenues will align with previous forecasts, and a more detailed update will be provided in mid-June 2025. This positive financial outlook suggests a strengthening of Avingtrans’ position in its respective markets, potentially benefiting stakeholders and enhancing its competitive edge.