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Avingtrans plc (GB:AVG)
:AVG

Avingtrans (AVG) AI Stock Analysis

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GB

Avingtrans

(LSE:AVG)

Rating:72Outperform
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 (AVG) vs. iShares MSCI United Kingdom ETF (EWC)

Avingtrans Business Overview & Revenue Model

Company DescriptionAvingtrans 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 MoneyAvingtrans 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
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue150.44M136.62M116.44M99.08M98.52M91.96M
Gross Profit47.14M44.04M36.86M32.59M28.38M22.21M
EBITDA13.90M12.65M13.20M12.02M11.03M6.95M
Net Income4.12M3.66M5.19M6.48M3.99M1.39M
Balance Sheet
Total Assets196.61M186.34M155.41M154.69M142.61M131.23M
Cash, Cash Equivalents and Short-Term Investments10.29M12.12M17.72M24.29M30.08M5.09M
Total Debt25.10M23.96M8.58M10.96M9.80M21.43M
Total Liabilities80.85M73.33M46.96M48.88M43.65M61.33M
Stockholders Equity113.17M110.44M106.04M103.82M97.30M69.91M
Cash Flow
Free Cash Flow5.44M-11.06M985.00K-1.10M4.03M-4.76M
Operating Cash Flow9.90M1.33M9.68M3.88M6.45M-13.00K
Investing Cash Flow-15.16M-13.58M-12.63M-9.52M24.56M-4.02M
Financing Cash Flow1.84M6.78M-3.40M-371.00K-5.85M713.00K

Avingtrans Technical Analysis

Technical Analysis Sentiment
Positive
Last Price420.00
Price Trends
50DMA
390.55
Positive
100DMA
367.68
Positive
200DMA
379.50
Positive
Market Momentum
MACD
8.51
Positive
RSI
62.08
Neutral
STOCH
50.00
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 above the 20-day moving average (MA) of 414.55, above the 50-day MA of 390.55, and above the 200-day MA of 379.50, indicating a bullish trend. The MACD of 8.51 indicates Positive momentum. The RSI at 62.08 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBRNO
75
Outperform
£181.98M11.2527.26%0.62%-6.48%
74
Outperform
£579.74M29.7216.39%1.72%3.13%24.54%
73
Outperform
£617.38M12.5014.06%4.52%-1.26%6.56%
GBAVG
72
Outperform
£138.98M32.163.87%0.90%14.30%-25.58%
GBCGS
71
Outperform
£122.33M29.323.19%60.49%-10.79%-21.64%
68
Neutral
£2.94B10.248.40%3.45%2.87%-9.95%
55
Neutral
£92.63M32.401.63%7.18%-28.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVG
Avingtrans
420.00
56.82
15.65%
GB:MPAC
Mpac Group PLC
307.50
-195.50
-38.87%
GB:RNO
Renold plc
80.40
21.14
35.67%
GB:CGS
Castings
290.00
-43.78
-13.12%
GB:MGAM
Morgan Advanced Materials
225.00
-71.00
-23.99%
GB:GDWN
Goodwin
7,680.00
-660.47
-7.92%

Avingtrans Corporate Events

Business Operations and StrategyFinancial Disclosures
Avingtrans PLC Reports Strong Financial Performance and Strategic Growth
Positive
Jun 25, 2025

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.

Financial Disclosures
Avingtrans Expects Higher Than Anticipated EBITDA for FY25
Positive
May 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025