Addvalue Technologies Ltd (A31) AI Stock Analysis

• Market Cap: S$48.63M
• Dividend Yield: N/A
• Average Volume (3M): 8.12M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.27
• Revenue Growth: 41.55%
• EPS Growth: N/A
• Country: SG
• Employees: 70
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): <0.01
• Shares Outstanding: 3,242,032,000
• 10 Day Avg. Volume: 10,101,570
• 30 Day Avg. Volume: 8,124,226
• PEG Ratio: 0.12
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.87
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

Addvalue Technologies Ltd presents a solid financial recovery with strong revenue growth and improved cash flow, bolstering its financial performance. However, high leverage remains a risk, and incomplete technical data limits a clear view of momentum. The valuation is reasonable at a P/E of 25, though the lack of dividend yield may deter income-focused investors.

Addvalue Technologies Ltd Business Overview & Revenue Model

Company Description

Addvalue Technologies Ltd (A31) is a Singapore-based company that operates in the satellite communications sector. The company specializes in the design and development of advanced satellite-based communication terminals and solutions for a variety of applications, including maritime, aeronautical, and land-based industries. Addvalue Technologies provides innovative and reliable communication products that enable seamless connectivity in remote and challenging environments.

How the Company Makes Money

Addvalue Technologies Ltd generates revenue primarily through the sale of its satellite communication terminals and related services. The company's key revenue streams include hardware sales, which involve the manufacturing and distribution of satellite communication devices, and service revenues, which consist of subscription fees for satellite airtime and value-added services. Addvalue also engages in strategic partnerships with satellite operators and service providers to enhance its product offerings and expand its market reach. These collaborations often contribute to the company's earnings by facilitating access to new markets and customer bases. Additionally, Addvalue may earn income from research and development projects, as well as licensing agreements for its proprietary technologies.

Addvalue Technologies Ltd Financial Statement Overview

Summary

Overall, Addvalue Technologies Ltd has demonstrated a commendable financial recovery with significant improvements in profitability and cash flow metrics. The income statement reflects strong revenue growth and improved margins. The balance sheet, while showing high leverage, presents a solid asset structure with improving equity returns. Cash flow statements highlight a positive shift in free cash flow generation, showcasing the company's ability to manage its operations more efficiently. However, attention should be paid to managing debt levels to ensure sustained financial stability.

Income Statement

Addvalue Technologies Ltd has shown significant improvement in its income statement over the past year. Gross profit margin improved to 52.5%, and net profit margin turned positive at 2.2% from a negative position, indicating improved profitability. Revenue growth rate was substantial at 69.2%, showcasing strong top-line growth. EBIT and EBITDA margins also improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet of Addvalue Technologies Ltd indicates a moderate financial position. The debt-to-equity ratio is relatively high at 0.84, suggesting a considerable amount of leverage. However, the return on equity (ROE) improved to 4.5%, reflecting better returns for shareholders. The equity ratio stands at 32.2%, indicating a balanced asset structure. Overall, the company is managing its liabilities well but needs to be cautious of its debt levels.

Cash Flow

Cash flow analysis reveals a positive shift in Addvalue Technologies Ltd's financial health. Free cash flow growth rate was robust, moving from negative to positive, indicating improved cash generation. The operating cash flow to net income ratio is favorable at 6.39, suggesting efficient cash generation relative to net income. Despite previous periods of negative free cash flow, the recent turnaround is a positive sign.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	17.89M	12.77M	7.55M	5.46M	2.68M	9.63M
Gross Profit	8.74M	6.71M	3.60M	3.77M	730.16K	7.16M
EBITDA	3.26M	2.00M	-1.85M	-5.72M	-3.51M	3.69M
Net Income	968.52K	277.00K	-2.99M	-7.96M	-6.18M	1.83M
Balance Sheet
Total Assets	22.56M	19.01M	16.35M	14.89M	20.19M	19.53M
Cash, Cash Equivalents and Short-Term Investments	748.00K	538.00K	171.11K	900.44K	289.04K	75.06K
Total Debt	5.17M	5.17M	4.36M	5.91M	7.05M	5.59M
Total Liabilities	16.34M	12.88M	10.52M	12.46M	12.33M	11.64M
Stockholders Equity	6.22M	6.13M	5.83M	2.43M	7.86M	7.89M
Cash Flow
Free Cash Flow	1.54M	847.00K	-4.36M	-1.66M	-4.59M	-3.40M
Operating Cash Flow	1.95M	1.77M	-2.73M	434.11K	-2.79M	-924.52K
Investing Cash Flow	-933.05K	-922.00K	-837.08K	-236.79K	-1.13M	-1.21M
Financing Cash Flow	-469.41K	-463.00K	3.09M	160.63K	4.13M	2.06M

Addvalue Technologies Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
C07	76 Outperform	$9.88B	7.81	11.58%	7.66%	-0.21%	-22.52%
BN4	74 Outperform	S$13.51B	14.94	7.90%	7.86%	-5.24%	-77.23%
A31	70 Outperform	S$48.63M	21.43	22.15%	―	41.55%	―
Sector *	65 Neutral	S$582.70M	14.08	-0.76%	6.36%	4.26%	-65.16%

Addvalue Technologies Ltd Corporate Events

Addvalue Technologies Reports Progress Towards Exiting SGX Watch-list

Addvalue Technologies Ltd has been placed on the SGX-ST Watch-list due to financial criteria but is making strides to exit it. The company reported a profit after tax of US$277,500 for FY2024 and has shown improved order fulfillment, indicating positive progress towards meeting the exit criteria from the Watch-list.