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Austal

DB:LX6
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LX6
DB
A$2B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Austal Limited designs, manufactures, constructs, and supports defense and commercial vessels in North America, Europe, Australia, Asia, South and Central America, and the Middle East. The last earnings update was 2 days ago. More info.


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LX6 Share Price and Events
7 Day Returns
7.4%
DB:LX6
-0.7%
Europe Aerospace & Defense
-0.2%
DE Market
1 Year Returns
83.2%
DB:LX6
17.1%
Europe Aerospace & Defense
13.7%
DE Market
LX6 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Austal (LX6) 7.4% 11% 4% 83.2% 110.6% 153.1%
Europe Aerospace & Defense -0.7% -1.6% 1.1% 17.1% 55.7% 81.9%
DE Market -0.2% 0.3% 3.7% 13.7% 5.3% 4.7%
1 Year Return vs Industry and Market
  • LX6 outperformed the Aerospace & Defense industry which returned 17.1% over the past year.
  • LX6 outperformed the Market in Germany which returned 13.7% over the past year.
Price Volatility
LX6
Industry
5yr Volatility vs Market

Value

 Is Austal 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 Austal 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 Austal.

DB:LX6 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in AUD A$ 0.072383333333333
Payout Ratio Company Filings (2019-12-31) 3592.9%
Discount Rate (Cost of Equity) See below 4.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

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 DB:LX6
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.868 (1 + (1- 30%) (11.55%))
0.958
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)
= -0.39% + (0.958 * 5.44%)
4.82%

Discounted Cash Flow Calculation for DB:LX6 using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Austal is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:LX6 Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.07 / (4.82% - -0.39%)
A$0.5
DB:LX6 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LX6 represents 0.59954x of ASX:ASB
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.59954x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 1.39 x 0.59954
€0.83
Value per share (EUR) From above. €0.83
Current discount Discount to share price of €2.62
= -1 x (€2.62 - €0.83) / €0.83
-214.8%

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

  • The current share price of Austal 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 Austal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Austal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LX6 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$0.22
ASX:ASB Share Price ** ASX (2020-02-21) in AUD A$4.37
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 25.66x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 20.9x

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

** Primary Listing of Austal.

DB:LX6 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 4.37 ÷ 0.22

19.5x

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

  • Austal is good value based on earnings compared to the Europe Aerospace & Defense industry average.
  • Austal is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Austal's expected growth come at a high price?
Raw Data
DB:LX6 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
0.8%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 27 Publicly-Listed Aerospace & Defense Companies 2.11x
Germany Market PEG Ratio Median Figure of 260 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

DB:LX6 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.5x ÷ 0.8%

24.68x

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

  • Austal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Austal's assets?
Raw Data
DB:LX6 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$1.88
ASX:ASB Share Price * ASX (2020-02-21) in AUD A$4.37
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 2.17x
Germany Market PB Ratio Median Figure of 575 Publicly-Listed Companies 1.9x
DB:LX6 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.37 ÷ 1.88

2.32x

* Primary Listing of Austal.

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

  • Austal is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess Austal'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 Aerospace & Defense 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 Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Austal has a total score of 2/6, 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 Austal expected to perform in the next 1 to 3 years based on estimates from 4 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
0.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Austal expected to grow at an attractive rate?
  • Austal's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Austal's earnings growth is positive but not above the Germany market average.
  • Austal's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LX6 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LX6 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 0.8%
DB:LX6 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -2.1%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 21.7%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*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
DB:LX6 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LX6 Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,923 148 80 4
2021-06-30 1,940 133 78 4
2020-06-30 2,001 96 79 4
2020-02-21
DB:LX6 Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,040 85 78
2019-09-30 1,946 125 70
2019-06-30 1,852 165 61
2019-03-31 1,722 174 50
2018-12-31 1,593 184 40
2018-09-30 1,493 125 39
2018-06-30 1,390 66 38
2018-03-31 1,351 27 33
2017-12-31 1,311 -11 29
2017-09-30 1,311 -24 22
2017-06-30 1,310 -38 15
2017-03-31 1,276 -16 -38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Austal's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
  • Austal's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
DB:LX6 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Austal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LX6 Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.22 0.24 0.21 2.00
2021-06-30 0.22 0.22 0.21 2.00
2020-06-30 0.22 0.23 0.21 2.00
2020-02-21
DB:LX6 Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 0.22
2019-09-30 0.20
2019-06-30 0.18
2019-03-31 0.14
2018-12-31 0.11
2018-09-30 0.11
2018-06-30 0.11
2018-03-31 0.10
2017-12-31 0.08
2017-09-30 0.06
2017-06-30 0.04
2017-03-31 -0.11

*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.
  • Austal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Austal'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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
Austal has a total score of 1/6, 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 Austal performed over the past 5 years?

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 Austal's growth in the last year to its industry (Aerospace & Defense).
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.
  • Austal has delivered over 20% year on year earnings growth in the past 5 years.
  • Austal's 1-year earnings growth exceeds its 5-year average (98.6% vs 20.5%)
  • Austal's earnings growth has exceeded the Europe Aerospace & Defense industry average in the past year (98.6% vs 12.6%).
Earnings and Revenue History
Austal'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 Austal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LX6 Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,039.58 78.47 124.83
2019-09-30 1,945.70 69.93 117.62
2019-06-30 1,852.07 61.38 110.41
2019-03-31 1,721.87 49.70 98.62
2018-12-31 1,593.19 39.51 86.83
2018-09-30 1,492.58 39.27 83.37
2018-06-30 1,390.46 37.53 79.92
2018-03-31 1,350.82 33.36 77.18
2017-12-31 1,311.18 29.20 74.45
2017-09-30 1,310.66 22.27 73.40
2017-06-30 1,310.13 15.35 72.34
2017-03-31 1,275.97 -38.15 72.43
2016-12-31 1,241.81 -91.65 72.52
2016-09-30 1,290.89 -87.96 74.31
2016-06-30 1,339.97 -84.28 76.10
2016-03-31 1,411.03 -21.64 74.44
2015-12-31 1,482.10 40.99 72.78
2015-09-30 1,448.49 47.11 68.29
2015-06-30 1,414.89 53.23 63.80
2015-03-31 1,356.07 52.15 57.79
2014-12-31 1,297.26 51.08 51.77
2014-09-30 1,210.06 41.32 56.03
2014-06-30 1,122.86 31.55 60.29
2014-03-31 1,069.37 35.71 73.59
2013-12-31 1,015.87 39.87 86.90
2013-09-30 957.68 37.87 84.05
2013-06-30 899.49 35.87 81.20
2013-03-31 837.23 27.66 71.00

*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.
  • Austal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Austal used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • Austal has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Austal'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 Aerospace & Defense 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.
Austal 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 Austal'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 Austal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Austal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Austal's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Austal'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 covered by short term assets, assets are 3.8x 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 Austal Company Filings, last reported 1 month ago.

DB:LX6 Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 667.69 166.96 274.58
2019-09-30 667.69 166.96 274.58
2019-06-30 630.78 171.08 275.67
2019-03-31 630.78 171.08 275.67
2018-12-31 585.19 174.61 233.28
2018-09-30 585.19 174.61 233.28
2018-06-30 545.58 179.75 162.02
2018-03-31 545.58 179.75 162.02
2017-12-31 469.14 177.48 112.00
2017-09-30 469.14 177.48 112.00
2017-06-30 456.91 188.49 150.47
2017-03-31 456.91 188.49 150.47
2016-12-31 475.82 176.40 153.47
2016-09-30 475.82 176.40 153.47
2016-06-30 457.55 161.96 224.32
2016-03-31 457.55 161.96 224.32
2015-12-31 559.78 138.66 181.47
2015-09-30 559.78 138.66 181.47
2015-06-30 512.40 143.19 138.41
2015-03-31 512.40 143.19 138.41
2014-12-31 474.51 138.05 142.20
2014-09-30 474.51 138.05 142.20
2014-06-30 433.23 155.46 74.43
2014-03-31 433.23 155.46 74.43
2013-12-31 428.08 210.55 98.20
2013-09-30 428.08 210.55 98.20
2013-06-30 407.19 244.78 38.03
2013-03-31 407.19 244.78 38.03
  • Austal's level of debt (25%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (29.1% vs 25% today).
  • Debt is well covered by operating cash flow (50.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
X
Financial health checks
We assess Austal'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. Austal has a total score of 6/6, 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 Austal'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
1.37%
Current annual income from Austal dividends. Estimated to be 1.66% next year.
If you bought €2,000 of Austal shares you are expected to receive €27 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?
  • Austal's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.31%).
  • Austal's dividend is below the markets top 25% of dividend payers in Germany (3.65%).
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
DB:LX6 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 4 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

DB:LX6 Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.08 5.00
2021-06-30 0.07 5.00
2020-06-30 0.07 5.00
2020-02-21
DB:LX6 Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2020-02-19 0.060 1.401
2019-08-29 0.060 1.462
2019-02-27 0.060 2.079
2018-08-29 0.060 3.080
2018-02-26 0.040 2.256
2017-08-28 0.040 2.305
2017-02-27 0.040 2.273
2016-08-29 0.040 2.460
2015-08-25 0.060 4.051
2015-02-25 0.020 1.097
2012-08-29 0.000 0.000
2011-08-19 0.060 3.154
2010-08-19 0.060 2.128
2009-08-21 0.060 2.491

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%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Austal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess Austal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - 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 Austal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Austal has a total score of 3/6, 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 Austal'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
John Singleton
COMPENSATION A$3,708,694
AGE 59
TENURE AS CEO 3.8 years
CEO Bio

Mr. David Patrick Alexander Singleton, B.Sc. (Hons), is also kown as John has been the Chief Executive Officer and Managing Director of Austal Limited since April 4, 2016. He has spent much of his career in the Defense industry around the world in roles encompassing design, heavy manufacturing, customer support and international sales. Mr. Singleton served as Chief Operating Officer at Austal Limited. He served as the Chief Executive Officer of Poseidon Nickel Limited since July 2, 2007 until January 31, 2016 and served as its Managing Director since February 2, 2008 until January 31, 2016. Mr. Singleton served as the Chief Executive Officer and Managing Director at Clough Limited from September 8, 2003 to January 1, 2007. He served as Group Head of Strategy and Mergers & Acquisitions (M&A) for BAE Systems (formerly known as British Aerospace) from 1997 to 1998 and again since 2003 and Managing Director of Asset Management from 1998 to 1999. He served as Vice President of Defense at Intellect. He served as the Chief Executive Officer of Alenia Marconi Systems. In 2003, Mr. Singleton returned to BAE after three years as Chief Executive Officer of AMS NV, an Anglo/Italian (BAE-Finmeccanica) joint venture entity specializing in Defense and civil electronics contrActing from 1999 to 2003. He started his career with the UK Ministry of Defense and worked in research, development and manufacturing. Mr. Singleton served as a Group Strategy Director of BAE Systems PLC. He held senior management roles with several British Defense manufacturers, including Business Unit Director of Royal Ordnance Rocket Motors (a wholly-owned subsidiary of British Aerospace and General Manager of Royal Ordnance WFV (a UK-based manufacturer of guns and fighting vehicles for military applications). With 20 years of international business experience in senior executive roles, primarily in Europe and the USA, he has core strengths in the areas of leadership, strategy, finance, mergers and acquisitions. He has been a Director at Austin Engineering Limited since April 15, 2019. He has been an Executive Director of Austal Ltd. since December 21, 2011 and served as its Independent Non-Executive Director from December 21, 2011 to April 04, 2016. Mr. Singleton was a Non-Executive Director of Poseidon Nickel Limited since January 31, 2016 until October 1, 2018 and served as its Executive Director of Poseidon Nickel Limited since February 01, 2008 until January 31, 2016. He served as a Non-Executive Director at Quickstep Holdings Ltd. from October 12, 2010 to January 21, 2016. He served as an Independent Non-Executive Director of Triton Gold Limited since May 18, 2009 until April 27, 2012. He served as Director of Intellect. He served as an Executive Director of Clough Limited. He served as a Commissioner of PT Petrosea Tbk. Mr. Singleton served as Member of the National Defense Industries Council in the UK. He has a BSc degree in Mechanical Engineering from University College London and has an Honorary Doctorate of Engineering from Edith Cowen University in Western Australia.

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

Average tenure of the Austal management team in years:

3.8
Average Tenure
  • The tenure for the Austal management team is about average.
Management Team

John Singleton

TITLE
CEO, MD & Executive Director
COMPENSATION
A$4M
AGE
59
TENURE
3.8 yrs

Greg Jason

TITLE
Group Chief Financial Officer
COMPENSATION
A$1M
TENURE
7.1 yrs

Paddy Gregg

TITLE
Chief Operating Officer
COMPENSATION
A$960K
TENURE
3 yrs

Craig Perciavalle

TITLE
President of USA Operations
COMPENSATION
A$2M
TENURE
7.3 yrs

Adrian Strang

TITLE
General Counsel & Company Secretary

Wayne Murray

TITLE
President of Philippines
TENURE
3.6 yrs

Glenn Williams

TITLE
Sales Manager
COMPENSATION
A$308K

Stewart Hill

TITLE
Manufacturing Manager
COMPENSATION
A$176K

John Van Meekeren

TITLE
Operations Manager
COMPENSATION
A$191K
Board of Directors Tenure

Average tenure of the Austal board of directors in years:

6.3
Average Tenure
  • The tenure for the Austal board of directors is about average.
Board of Directors

John Rothwell

TITLE
Non-Executive Chairman
COMPENSATION
A$200K
TENURE
22.1 yrs

John Singleton

TITLE
CEO, MD & Executive Director
COMPENSATION
A$4M
AGE
59
TENURE
8.2 yrs

Charles Roland Everist

TITLE
Independent Non-Executive Director
COMPENSATION
A$123K
TENURE
6.3 yrs

Sarah Adam-Gedge

TITLE
Independent Non-Executive Director
COMPENSATION
A$118K
TENURE
2.5 yrs

Chris Indermaur

TITLE
Independent Non-Executive Director
COMPENSATION
A$73K
AGE
61
TENURE
1.3 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 (€) Value (€)
22. Sep 19 Sell Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 08. Aug 19 13. Sep 19 -479,847 €2.50 €-1,199,007
22. Sep 19 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 08. Aug 19 05. Sep 19 16,085 €2.43 €39,148
22. Sep 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 17. Sep 19 -5,810,431 €2.52 €-14,631,945
22. Sep 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 17. Sep 19 10,160,574 €2.52 €25,556,989
08. Aug 19 Buy First Sentier Investors (Australia) IM Ltd Company 04. Apr 19 02. Aug 19 2,443,103 €2.01 €4,920,447
26. Aug 19 Buy Charles Roland Everist Individual 06. Aug 19 06. Aug 19 20,441 €2.14 €43,760
02. Aug 19 Sell Orbis Investment Management Limited Company 30. Jul 19 31. Jul 19 -698,474 €2.51 €-1,750,246
31. Jul 19 Sell Orbis Investment Management Limited Company 19. Jul 19 29. Jul 19 -3,833,858 €2.53 €-9,689,446
28. Jul 19 Sell Orbis Investment Management Limited Company 29. May 19 20. Jun 19 -4,536,442 €1.92 €-8,621,796
28. Jul 19 Buy Orbis Investment Management Limited Company 19. Jun 19 20. Jun 19 732,606 €1.92 €1,409,050
22. Jul 19 Sell Orbis Investment Management Limited Company 18. Jul 19 18. Jul 19 -3,951,509 €2.47 €-9,749,722
21. Jul 19 Sell Orbis Investment Management Limited Company 26. Jun 19 17. Jul 19 -4,790,995 €2.30 €-10,844,396
24. May 19 Sell Orbis Investment Management Limited Company 16. May 19 22. May 19 -6,203,711 €1.71 €-10,585,217
17. May 19 Sell Orbis Investment Management Limited Company 14. May 19 15. May 19 -4,051,391 €1.62 €-6,547,520
15. May 19 Sell Pendal Group Limited Company 03. May 19 13. May 19 -2,048,697 €1.57 €-3,214,919
15. May 19 Buy Pendal Group Limited Company 07. Mar 19 17. Apr 19 1,742,838 €1.39 €2,426,545
15. May 19 Sell Orbis Investment Management Limited Company 29. Apr 19 13. May 19 -4,564,933 €1.62 €-7,385,920
30. Apr 19 Sell Orbis Investment Management Limited Company 16. Apr 19 26. Apr 19 -3,817,997 €1.60 €-6,081,914
16. Apr 19 Sell Orbis Investment Management Limited Company 15. Mar 19 12. Apr 19 -3,766,983 €1.49 €-5,588,058
15. Mar 19 Sell Orbis Investment Management Limited Company 22. Feb 19 13. Mar 19 -4,595,163 €1.47 €-6,707,045
08. Mar 19 Buy Pendal Group Limited Company 06. Mar 19 06. Mar 19 503,898 €1.40 €703,528
07. Mar 19 Sell Pendal Group Limited Company 30. Jan 19 05. Mar 19 -846,167 €1.38 €-1,162,877
27. Feb 19 Buy Vinva Investment Management Company 25. Oct 18 25. Feb 19 15,635,410 €1.38 €21,535,445
X
Management checks
We assess Austal'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. Austal 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

Company Info

Description

Austal Limited designs, manufactures, constructs, and supports defense and commercial vessels in North America, Europe, Australia, Asia, South and Central America, and the Middle East. The company designs, constructs, and supports passenger ferries, vehicle and passenger ferries, and offshore and windfarm vessels; naval vessels; and patrol boats for government law enforcement and border protection agencies. It also develops and integrates advanced vessel control and information management systems, including control and monitoring, and motion control systems. In addition, the company provides life capability management and vessel support services, such as crew training and instruction, vessel servicing, repair and maintenance, integrated logistics support, vessel sustainment, and information management systems support to naval, government, and commercial operators; and comprehensive refit services and management of annual dockings. Austal Limited was founded in 1988 and is headquartered in Henderson, Australia.

Details
Name: Austal Limited
LX6
Exchange: DB
Founded: 1988
A$950,097,499
355,924,462
Website: http://www.austal.com
Address: Austal Limited
100 Clarence Beach Road,
Henderson,
Western Australia, 6166,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ASB Ordinary Shares Australian Securities Exchange AU AUD 08. Dec 1998
OTCPK AUTL.F Ordinary Shares Pink Sheets LLC US USD 08. Dec 1998
DB LX6 Ordinary Shares Deutsche Boerse AG DE EUR 08. Dec 1998
CHIA ASB Ordinary Shares Chi-X Australia AU AUD 08. Dec 1998
OTCPK AUTL.Y SPON ADR Pink Sheets LLC US USD 23. Feb 2005
Number of employees
Current staff
Staff numbers
5,700
Austal employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/21 22:40
End of day share price update: 2020/02/21 00:00
Last estimates confirmation: 2020/02/21
Last earnings filing: 2020/02/19
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


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.