Avingtrans (AVG) AI Stock Analysis

• Market Cap: £159.03M
• Dividend Yield: 1%
• Average Volume (3M): 61.23K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.62
• Revenue Growth: 14.49%
• EPS Growth: 76.33%
• Country: UK
• Employees: 941
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 33,130,420
• 10 Day Avg. Volume: 57,336
• 30 Day Avg. Volume: 61,226
• PEG Ratio: 0.25
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 15.42
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 539.00p ▲(10.00% Upside)

Avingtrans' overall stock score is driven by strong financial performance and positive corporate events, which enhance its growth prospects. While the technical analysis suggests a neutral trend, the valuation indicates potential overvaluation. The absence of earnings call data limits insights into management's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Avingtrans' products and services, enhancing its market position and long-term viability.

Balance Sheet Health

A low debt-to-equity ratio suggests prudent financial management, providing Avingtrans with financial stability and flexibility for future investments.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing Avingtrans to invest in growth opportunities and manage obligations effectively.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Dividend Yield

A low dividend yield may reduce attractiveness to income-focused investors, potentially impacting stock demand and price stability.

Valuation Concerns

Perceived overvaluation might limit upside potential and increase vulnerability to market corrections, affecting investor sentiment.

Avingtrans Business Overview & Revenue Model

Company Description

Avingtrans plc manufactures and sells engineered components, systems, and services to the energy, medical, and infrastructure industries worldwide. It operates in three segments: Energy-EPM, Energy-PSRE, and Medical-MII. The company designs, manufactures, integrates, and services electric motors and pumps, steam turbines, gas compressors, pressure vessels, blast doors, containers, and skidded systems. It also designs and manufactures equipment for the medical, science and research communities, including products for medical diagnostic equipment; high performance pressure, vacuum vessels, and composite materials for research organizations; and superconducting magnets and helium-free cryogenic systems for use in magnetic resonance imaging and nuclear magnetic resonance. The company was incorporated in 1985 and is based in Chatteris, the United Kingdom.

How the Company Makes Money

Avingtrans generates revenue through multiple streams, primarily by providing component manufacturing and engineering solutions to major customers in the aerospace, defense, and energy sectors. The company earns money by selling high-precision parts and systems, often through long-term contracts with key industry players. Significant partnerships with OEMs (original equipment manufacturers) and other industry leaders enhance its market position and stability of revenue. Additionally, Avingtrans may also benefit from government contracts in the defense sector, which can provide substantial financial support and contribute to its overall earnings.

Avingtrans Financial Statement Overview

Summary

Avingtrans exhibits robust financial performance with consistent revenue growth and improving profitability margins. The balance sheet is strong, characterized by low leverage and effective equity utilization. Cash flow metrics show significant improvement, enhancing the company's financial flexibility. Overall, Avingtrans is well-positioned for future growth, though maintaining margin improvements and cash flow stability will be crucial.

Income Statement

Avingtrans has shown consistent revenue growth over the years, with a notable increase of 3.96% in the latest period. The gross profit margin is healthy at 30.28%, although it has slightly decreased from previous years. The net profit margin has improved to 4.19%, indicating better profitability. EBIT and EBITDA margins have also shown positive trends, reflecting efficient operations.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.23, suggesting prudent financial management. Return on equity has improved to 5.80%, indicating effective use of equity to generate profits. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Avingtrans has demonstrated significant improvement in free cash flow, with a growth rate of 61.75%. The operating cash flow to net income ratio is 0.21, indicating moderate cash generation relative to net income. The free cash flow to net income ratio of 0.76 reflects a strong cash conversion cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.41M	156.41M	136.62M	116.44M	99.08M	98.52M
Gross Profit	48.43M	47.36M	44.04M	36.86M	32.59M	28.38M
EBITDA	15.70M	15.75M	12.54M	13.20M	12.02M	11.03M
Net Income	6.56M	6.56M	3.66M	5.19M	6.48M	3.99M
Balance Sheet
Total Assets	192.76M	192.76M	186.34M	155.41M	154.69M	142.61M
Cash, Cash Equivalents and Short-Term Investments	8.56M	8.56M	12.12M	17.72M	24.29M	30.08M
Total Debt	25.47M	25.47M	23.96M	8.58M	10.96M	9.80M
Total Liabilities	77.53M	77.53M	73.33M	46.96M	48.88M	43.65M
Stockholders Equity	113.14M	113.14M	110.44M	106.04M	103.82M	97.30M
Cash Flow
Free Cash Flow	8.74M	8.80M	-11.06M	985.00K	-1.10M	4.03M
Operating Cash Flow	11.56M	11.61M	1.33M	9.68M	3.88M	6.45M
Investing Cash Flow	-14.29M	-14.29M	-13.58M	-12.52M	-9.35M	24.56M
Financing Cash Flow	-436.00K	-436.00K	6.78M	-3.40M	-371.00K	-5.85M

Avingtrans Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 490.00
• 50DMA: Negative
• 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 Neutral. The current price of 490 is above the 20-day moving average (MA) of 488.25, above the 50-day MA of 488.18, and above the 200-day MA of 426.13, indicating a neutral trend. The MACD of -1.38 indicates Positive momentum. The RSI at 37.99 is Neutral, neither overbought nor oversold. The STOCH value of 33.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AVG.

Avingtrans Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDWN	73 Outperform	£1.46B	36.94	35.23%	1.06%	24.42%	103.25%
CGS	71 Outperform	£119.78M	24.82	3.82%	6.68%	-13.30%	-60.03%
AVG	70 Outperform	£159.03M	24.22	5.87%	1.00%	14.49%	76.33%
RNO	70 Outperform	£164.10M	10.76	25.68%	―	1.53%	-7.99%
MGAM	67 Neutral	£589.38M	21.52	8.04%	4.84%	-7.30%	-59.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MPAC	61 Neutral	£93.68M	-7.50	-17.46%	―	21.17%	-237.25%

Avingtrans Corporate Events

Avingtrans Announces New COO and Strong AGM Results

Avingtrans plc announced the successful passage of all resolutions at its Annual General Meeting, including the appointment of Austen Adams as Group Chief Operating Officer. This appointment aligns with the company’s strong performance and market expectations, potentially enhancing its operational capabilities and industry positioning.

Avingtrans PLC Executives Exercise Share Options

Avingtrans PLC announced the exercise of 591,614 options over ordinary shares by CEO Steve McQuillan and CFO Stephen King as part of the Company’s Executive Shared Ownership Plans. This transaction will not result in the issuance of new shares, maintaining the total number of shares with voting rights at 33,130,422. The exercise of these options reflects the company’s internal management strategies and may have implications for shareholder calculations under the Financial Conduct Authority’s rules.

Avingtrans’ Adaptix Secures FDA Clearance for 3D Orthopaedic Imaging System

Avingtrans plc announced that its subsidiary, Adaptix Limited, has received FDA 510(k) clearance for its Adaptix Ortho350, a 3D imaging system for orthopaedic use. This clearance allows Adaptix to enter the U.S. healthcare market, marking a significant milestone in its mission to transform radiology. The Ortho350 offers low-dose, high-quality imaging at the point-of-care, enhancing diagnostic accuracy and patient outcomes. This achievement is expected to open new opportunities in the substantial U.S. orthopaedic imaging market, validating the commercial potential of Adaptix’s technology.

Avingtrans Announces New Equity Issue Following CSOP Option Exercise

Avingtrans plc announced the exercise of 40,500 CSOP options over ordinary shares by certain employees, leading to the issue of new equity. This move will result in a total of 33,130,422 ordinary shares in circulation, impacting shareholder calculations under FCA’s Disclosure Guidance and Transparency Rules. The admission of these shares to trading on AIM is expected to be effective on 7 October 2025, potentially affecting the company’s market positioning and shareholder interests.

Avingtrans Appoints New CEO for Medical Imaging Division

Avingtrans Plc has appointed Stuart Gall as the Divisional Chief Executive Officer of its medical imaging businesses division, which includes Adaptix Ltd and Magnetica Ltd. Stuart Gall’s extensive experience in medical imaging technologies and leadership in bringing companies from spin-out stages to public markets is expected to aid in the commercialisation efforts of Adaptix and Magnetica, enhancing Avingtrans’ position in the medical imaging sector.

Avingtrans Reports Strong Financial Performance and Strategic Progress

Avingtrans Plc reported a strong financial performance for the year ended 31 May 2025, with a 14.5% increase in revenue to £156.4m and adjusted EBITDA slightly surpassing market expectations at £16.7m. The company’s Advanced Engineering Systems (AES) division achieved record results, driven by global growth in AI, data centers, and nuclear power demands, while the Medical and Industrial Imaging (MII) division made substantial progress in developing new MRI and X-ray products. The company remains optimistic about future growth, supported by a robust order book and strategic investments in key areas.