Avingtrans (AVG) AI Stock Analysis

• Market Cap: £157.37M
• Dividend Yield: 0.85%
• Average Volume (3M): 61.23K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.72
• 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: £538.00
• Price Target Upside: 13.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: 538.00p ▲(13.26% Upside)

Avingtrans demonstrates strong financial performance with consistent growth and solid balance sheet metrics, which are the most significant factors in its overall score. The technical analysis indicates a strong upward trend, but potential overbought conditions could pose a short-term risk. The valuation suggests the stock may be overvalued, which slightly dampens the overall score.

Avingtrans Business Overview & Revenue Model

Company Description

Avingtrans PLC (AVG) is a UK-based engineering company that operates primarily in two sectors: Aerospace & Defense and Energy. The company specializes in the design, manufacture, and supply of high-precision components and systems, catering to clients across various industries. Its core products and services include thermal management systems, high-integrity components, and engineering solutions that support critical applications in aerospace, defense, and energy sectors.

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: 475.00
• 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 Neutral. The current price of 475 is below the 20-day moving average (MA) of 490.15, above the 50-day MA of 467.10, and above the 200-day MA of 400.45, indicating a neutral trend. The MACD of 6.55 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 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	72 Outperform	£1.03B	41.72	18.87%	1.51%	14.88%	45.73%
CGS	71 Outperform	£110.00M	26.35	3.19%	7.27%	-21.14%	-75.01%
RNO	70 Outperform	£162.16M	10.71	25.68%	0.62%	1.53%	-7.99%
AVG	65 Neutral	£157.37M	23.97	5.87%	0.85%	14.49%	76.33%
MGAM	65 Neutral	£552.42M	20.08	8.04%	4.50%	-7.30%	-59.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MPAC	62 Neutral	£81.95M	30.82	-17.46%	―	21.17%	-237.25%

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.