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ALS

ASX:ALQ
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALQ
ASX
A$4B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

ALS Limited provides analytical testing services in Australia, Canada, the United States, and internationally. The last earnings update was 183 days ago. More info.


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ALQ Share Price and Events
7 Day Returns
-1.6%
ASX:ALQ
0.4%
AU Professional Services
-0.1%
AU Market
1 Year Returns
1.6%
ASX:ALQ
20.6%
AU Professional Services
16.5%
AU Market
ALQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ALS (ALQ) -1.6% 0.1% 6.7% 1.6% 26.8% 61.6%
AU Professional Services 0.4% 3% 7.6% 20.6% 37.9% 39.2%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • ALQ underperformed the Professional Services industry which returned 20.6% over the past year.
  • ALQ underperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
ALQ
Industry
5yr Volatility vs Market

Value

 Is ALS undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ALS to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ALS.

ASX:ALQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:ALQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.828 (1 + (1- 30%) (20.02%))
0.962
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.962 * 5.96%)
8.05%

Discounted Cash Flow Calculation for ASX:ALQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ALS is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:ALQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.05%)
2020 166.35 Analyst x2 153.96
2021 198.60 Analyst x2 170.12
2022 184.20 Analyst x1 146.04
2023 176.55 Est @ -4.15% 129.55
2024 172.64 Est @ -2.21% 117.24
2025 171.16 Est @ -0.86% 107.58
2026 171.32 Est @ 0.09% 99.66
2027 172.62 Est @ 0.76% 92.94
2028 174.74 Est @ 1.23% 87.08
2029 177.45 Est @ 1.55% 81.84
Present value of next 10 years cash flows A$1,186.00
ASX:ALQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$177.45 × (1 + 2.31%) ÷ (8.05% – 2.31%)
A$3,166.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,166.04 ÷ (1 + 8.05%)10
A$1,460.22
ASX:ALQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,186.00 + A$1,460.22
A$2,646.22
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,646.22 / 482.39
A$5.49
ASX:ALQ Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.49
Current discount Discount to share price of A$8.08
= -1 x (A$8.08 - A$5.49) / A$5.49
-47.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ALS is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ALS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ALS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ALQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$0.34
ASX:ALQ Share Price ** ASX (2019-11-19) in AUD A$8.08
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 21.51x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ALS.

ASX:ALQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:ALQ Share Price ÷ EPS (both in AUD)

= 8.08 ÷ 0.34

23.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALS is overvalued based on earnings compared to the AU Professional Services industry average.
  • ALS is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does ALS's expected growth come at a high price?
Raw Data
ASX:ALQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
10.7%per year
Australia Professional Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Professional Services Companies 1.94x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

ASX:ALQ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.59x ÷ 10.7%

2.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ALS's assets?
Raw Data
ASX:ALQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$2.25
ASX:ALQ Share Price * ASX (2019-11-19) in AUD A$8.08
Australia Professional Services Industry PB Ratio Median Figure of 21 Publicly-Listed Professional Services Companies 2.08x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:ALQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ALQ Share Price ÷ Book Value per Share (both in AUD)

= 8.08 ÷ 2.25

3.59x

* Primary Listing of ALS.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALS is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess ALS's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. ALS has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ALS expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ALS expected to grow at an attractive rate?
  • ALS's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • ALS's earnings growth is expected to exceed the Australia market average.
  • ALS's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ALQ Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ALQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 10.7%
ASX:ALQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.4%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 9.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:ALQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ALQ Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,945 297 229 5
2021-03-31 1,890 283 213 8
2020-03-31 1,787 249 215 8
2019-11-19
ASX:ALQ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,665 219 167
2018-09-30 1,556 216 150
2018-06-30 1,502 201 108
2018-03-31 1,447 186 66
2017-12-31 1,398 57
2017-09-30 1,348 154 48
2017-06-30 1,305 165 75
2017-03-31 1,262 175 102
2016-09-30 1,157 179 -230
2016-06-30 1,198 174 -230

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ALS's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • ALS's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:ALQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from ALS Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ALQ Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.48 0.48 0.48 1.00
2021-03-31 0.44 0.45 0.43 2.00
2020-03-31 0.45 0.51 0.39 2.00
2019-11-19
ASX:ALQ Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 0.34
2018-09-30 0.30
2018-06-30 0.22
2018-03-31 0.13
2017-12-31 0.11
2017-09-30 0.10
2017-06-30 0.15
2017-03-31 0.20
2016-09-30 -0.45
2016-06-30 -0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ALS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ALS's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ALS has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ALS performed over the past 5 years?

  • ALS's last earnings update was 183 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ALS's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ALS has delivered over 20% year on year earnings growth in the past 5 years.
  • ALS's 1-year earnings growth exceeds its 5-year average (153.6% vs 22.3%)
  • ALS's earnings growth has exceeded the AU Professional Services industry average in the past year (153.6% vs 26.7%).
Earnings and Revenue History
ALS's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ALS Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ALQ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,664.80 166.90 118.60
2018-09-30 1,556.20 150.10 109.50
2018-06-30 1,501.55 107.95 109.50
2018-03-31 1,446.90 65.80 109.50
2017-12-31 1,397.50 56.90 103.20
2017-09-30 1,348.10 48.00 96.90
2017-06-30 1,304.80 75.15 96.90
2017-03-31 1,261.50 102.30 96.90
2016-09-30 1,157.10 -229.70 -324.40
2016-06-30 1,198.05 -229.75 -112.65
2016-03-31 1,239.00 -229.80 99.10
2015-12-31 1,394.45 -208.20 753.37
2015-09-30 1,424.00 -175.70 746.51
2015-06-30 1,423.10 -174.60 785.25
2015-03-31 1,422.20 -173.50 824.00
2014-12-31 1,415.95 -29.20 897.21
2014-09-30 1,409.70 115.10 970.43
2014-06-30 1,396.85 133.80 953.58
2014-03-31 1,384.00 152.50 936.73
2013-09-30 1,369.20 188.60 880.03
2013-06-30 1,412.40 203.85 875.23
2013-03-31 1,455.60 219.10 870.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ALS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ALS used its assets more efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • ALS has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ALS's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ALS has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ALS's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ALS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ALS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ALS's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ALS's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ALS Company Filings, last reported 7 months ago.

ASX:ALQ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,103.20 779.90 148.30
2018-09-30 1,099.40 740.30 153.40
2018-06-30 1,099.40 740.30 153.40
2018-03-31 1,122.00 697.50 187.60
2017-12-31 1,122.00 697.50 187.60
2017-09-30 1,176.60 727.50 294.10
2017-06-30 1,176.60 727.50 294.10
2017-03-31 1,185.20 741.00 249.30
2016-09-30 1,188.80 744.30 299.40
2016-06-30 1,188.80 744.30 299.40
2016-03-31 1,185.60 747.70 297.90
2015-12-31 1,185.60 747.70 297.90
2015-09-30 1,254.40 1,001.50 156.00
2015-06-30 1,254.40 1,001.50 156.00
2015-03-31 1,228.40 936.40 163.10
2014-12-31 1,228.40 936.40 163.10
2014-09-30 1,445.30 903.30 110.70
2014-06-30 1,445.30 903.30 110.70
2014-03-31 1,419.40 863.20 138.90
2013-09-30 1,364.00 894.50 116.70
2013-06-30 1,364.00 894.50 116.70
2013-03-31 997.10 524.00 115.90
  • ALS's level of debt (70.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (60.8% vs 70.7% today).
  • Debt is well covered by operating cash flow (28.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.2x coverage).
X
Financial health checks
We assess ALS's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ALS has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ALS's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.85%
Current annual income from ALS dividends. Estimated to be 3.12% next year.
If you bought A$2,000 of ALS shares you are expected to receive A$57 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ALS's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • ALS's dividend is below the markets top 25% of dividend payers in Australia (5.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:ALQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:ALQ Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.27 6.00
2021-03-31 0.26 8.00
2020-03-31 0.24 9.00
2019-11-19
ASX:ALQ Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-05-20 0.230 3.020
2018-11-19 0.220 2.911
2018-05-28 0.180 2.209
2017-05-23 0.135 1.810
2016-11-29 0.110 1.807
2016-05-30 0.135 2.436
2015-05-28 0.210 4.666
2014-06-23 0.390 6.720
2013-05-27 0.480 5.562
2012-11-23 0.470 4.557
2012-05-21 0.450 4.691
2011-11-29 0.380 3.362
2011-05-24 0.300 3.324
2010-05-25 0.200 2.787
2009-11-24 0.190 3.255
2009-05-26 0.200 4.222
2008-11-25 0.220 7.590

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ALS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess ALS's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ALS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ALS has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ALS's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Raj Naran
COMPENSATION A$2,925,910
AGE 57
TENURE AS CEO 2.3 years
CEO Bio

Mr. Raj Naran, BSc (Chemistry), BA (Mathematics), has been Managing Director, Chief Executive Officer and Director at ALS Limited since July 20, 2017. Mr. Naran served as the Group General Manager of Life Sciences Division at ALS Limited since April 1, 2012 until July 20, 2017 and as its Deputy Chief Executive Officer since February 27, 2017 until July 20, 2017. Mr. Naran served as Vice President of Environmental Division - North America & Europe at ALS Laboratory Group. Mr. Naran served as Vice President of Environmental Division - North America and Europe at Campbell Brothers Ltd. and served as its Executive Vice President of ALS Life Sciences – North America & Europe. He served as Executive Vice President of North America - Environmental Division at Campbell Brothers Ltd. since April 1, 2008. Mr. Naran served as Vice President of North America - Environmental Division at Campbell Brothers Ltd. He was the Founder and served as President and Chief Executive Officer of e-Lab Analytical Inc. group headquartered in Houston, Texas, which was acquired by ALS in October 2007. He held a number of senior management positions with US based and multinational laboratory companies.

CEO Compensation
  • Raj's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Raj's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the ALS management team in years:

2.6
Average Tenure
  • The tenure for the ALS management team is about average.
Management Team

Raj Naran

TITLE
MD, CEO & Director
COMPENSATION
A$3M
AGE
57
TENURE
2.3 yrs

Luis Damasceno

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
1.2 yrs

Bruce McDonald

TITLE
General Manager of Geochemistry
COMPENSATION
A$1M
TENURE
7.6 yrs

Kristen Walsh

TITLE
General Manager of Industrial
COMPENSATION
A$775K

Tim Kilmister

TITLE
General Manager of Life Sciences APAC
COMPENSATION
A$749K
TENURE
2.6 yrs

Andreas Jonsson

TITLE
General Manager of Life Sciences Europe
COMPENSATION
A$798K
TENURE
2.6 yrs

Michael Pearson

TITLE
General Counsel & Company Secretary
TENURE
1.9 yrs

Susan Putters

TITLE
Global Head of Human Resources
TENURE
11.8 yrs

Michael Burcham

TITLE
Chief Risk Officer

Greg Affleck

TITLE
Group Financial Controller
Board of Directors Tenure

Average tenure and age of the ALS board of directors in years:

3.3
Average Tenure
58
Average Age
  • The tenure for the ALS board of directors is about average.
Board of Directors

Bruce Phillips

TITLE
Independent Chairman
COMPENSATION
A$343K
AGE
64
TENURE
3.3 yrs

Raj Naran

TITLE
MD, CEO & Director
COMPENSATION
A$3M
AGE
57
TENURE
2.3 yrs

Grant Murdoch

TITLE
Independent Non-Executive Director
COMPENSATION
A$196K
AGE
67
TENURE
8.2 yrs

Tonianne Dwyer

TITLE
Independent Non-Executive Director
COMPENSATION
A$184K
AGE
57
TENURE
3.3 yrs

John Mulcahy

TITLE
Independent Non-Executive Director
COMPENSATION
A$183K
AGE
69
TENURE
7.8 yrs

Charlie Sartain

TITLE
Independent Non-Executive Director
COMPENSATION
A$190K
AGE
58
TENURE
4.8 yrs

Siddhartha Kadia

TITLE
Independent Non-Executive Director
COMPENSATION
A$37K
AGE
49
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
16. Jul 19 Sell Raj Naran Individual 10. Jul 19 10. Jul 19 -14,983 A$7.54 A$-112,972
28. May 19 Buy Tonianne Dwyer Individual 23. May 19 23. May 19 10,000 A$7.19 A$71,915
26. May 19 Buy Melvyn Bridges Individual 23. May 19 23. May 19 1,379 A$7.23 A$9,972
17. Dec 18 Sell The Vanguard Group, Inc. Company 15. Aug 18 30. Nov 18 -176,874 A$8.84 A$-1,564,236
17. Dec 18 Buy The Vanguard Group, Inc. Company 13. Aug 18 13. Dec 18 1,652,453 A$9.03 A$14,921,650
X
Management checks
We assess ALS's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ALS has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Care About ALS Limited’s (ASX:ALQ) Investment Potential?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ALS:0.17 = AU$277m ÷ (AU$2.2b - AU$541m) (Based on the trailing twelve months to March 2019.) Therefore, ALS has an ROCE of 17%. … What Are Current Liabilities, And How Do They Affect ALS's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Could ALS Limited's (ASX:ALQ) Investor Composition Influence The Stock Price?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Insider Ownership Of ALS The definition of company insiders can be subjective, and does vary between jurisdictions. … Keep in mind that it's a big company, and the insiders own AU$14m worth of shares.

Simply Wall St -

Should You Be Adding ALS (ASX:ALQ) To Your Watchlist Today?

ALS's earnings per share growth have been levitating higher, like a mountain goat scaling the Alps. … So ALS looks like it could be a good quality growth stock, at first glance. … Although ALS certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

Have Insiders Been Selling ALS Limited (ASX:ALQ) Shares This Year?

View our latest analysis for ALS ALS Insider Transactions Over The Last Year The MD, CEO & Director, Raj Naran, made the biggest insider sale in the last 12 months. … Insider Ownership of ALS Many investors like to check how much of a company is owned by insiders. … We note that there's been a little more insider selling than buying, recently.

Simply Wall St -

Should ALS (ASX:ALQ) Be Disappointed With Their 40% Profit?

However, it's unlikely many shareholders are elated with the share price gain of 40% over that time, given the rising market. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Does ALS (ASX:ALQ) Have A Healthy Balance Sheet?

and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … This free cash flow puts the company in a good position to pay down debt, when appropriate.

Simply Wall St -

With A Return On Equity Of 15%, Has ALS Limited's (ASX:ALQ) Management Done Well?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ALS: 15% = AU$167m ÷ AU$1.1b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … How Does Debt Impact Return On Equity? … In the latter case, the debt used for growth will improve returns, but won't affect the total equity.

Simply Wall St -

How Do Analysts See ALS Limited (ASX:ALQ) Performing Over The Next Few Years?

The latest earnings release ALS Limited's (ASX:ALQ) announced in May 2019 indicated that the business experienced a major tailwind, more than doubling its earnings from the prior year. … Below, I've presented key growth figures on how market analysts predict ALS's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … ASX:ALQ Past and Future Earnings, July 12th 2019 Even though it’s informative knowing the growth each year relative to today’s value, it may be more insightful estimating the rate at which the earnings are moving every year, on average.

Simply Wall St -

Should ALS Limited (ASX:ALQ) Be Your Next Stock Pick?

ASX:ALQ Income Statement, July 4th 2019 Income investors would also be happy to know that ALQ is a great dividend company, with a current yield standing at 3.0%. … ASX:ALQ Historical Dividend Yield, July 4th 2019 Next Steps: For ALS, there are three pertinent factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for ALQ’s future growth? … Take a look at our free research report of analyst consensus for ALQ’s outlook.

Simply Wall St -

How To Take Advantage Of ALS Limited (ASX:ALQ) In A Bear Market

ALS Limited is a financially healthy and robust stock with a proven track record of outperformance. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in ALS as an investment over the long run. … ALS tick the boxes in terms of its scale, financial health and proven track record, but there are a few other things I have yet to consider.

Simply Wall St -

Company Info

Description

ALS Limited provides analytical testing services in Australia, Canada, the United States, and internationally. The company’s Commodities segment provides testing services for the mining and mineral exploration companies in geochemistry, metallurgy, inspection, and coal quality areas. This segment’s services cover the resource life-cycle, including exploration, feasibility, optimization, production, design, development, trade, and rehabilitation. It also provides coal sampling, analysis and certification, formation evaluation, and related analytical testing services; and field and laboratory services, such as bore core, testing, consulting, quality management, and superintendent services to the coal industry. Its Life Sciences segment offers analytical testing and sampling, and remote monitoring services for the environmental, food, pharmaceutical, and consumer products markets. It provides analytical testing data to assist consulting and engineering firms, industries, and governments. The company’s Industrial segment offers diagnostic testing and engineering solutions for the energy, resources, transportation, and infrastructure sectors. This segment serves asset owners, operators, constructors, and equipment manufacturers in the power, petrochemical, mining, minerals processing, water, infrastructure, and transportation industries. The company was formerly known as Campbell Brothers Limited and changed its name to ALS Limited in August 2012. ALS Limited was founded in 1863 and is headquartered in Brisbane, Australia.

Details
Name: ALS Limited
ALQ
Exchange: ASX
Founded: 1863
A$3,897,735,068
482,392,954
Website: http://www.alsglobal.com
Address: ALS Limited
32 Shand Street,
Stafford,
Brisbane,
Queensland, 4053,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ALQ Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK CPBL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CP4 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA ALQ Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
ALS employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:32
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.