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Avast

LSE:AVST
Snowflake Description

Proven track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVST
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Software
Company description

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, HMA, AVG, and CCleaner brands worldwide. The last earnings update was 39 days ago. More info.


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  • Avast has significant price volatility in the past 3 months.
AVST Share Price and Events
7 Day Returns
5.5%
LSE:AVST
-3.8%
GB Software
-2.2%
GB Market
1 Year Returns
35.3%
LSE:AVST
-22.1%
GB Software
-25.9%
GB Market
AVST Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Avast (AVST) 5.5% -4.2% -18.7% 35.3% - -
GB Software -3.8% -20.8% -26.6% -22.1% -32.8% -11.2%
GB Market -2.2% -21.7% -29.6% -25.9% -26.6% -26.2%
1 Year Return vs Industry and Market
  • AVST outperformed the Software industry which returned -22.1% over the past year.
  • AVST outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -25.9% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Avast 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 Avast 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 Avast.

LSE:AVST Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 LSE:AVST
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.3%
Software Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.017 (1 + (1- 19%) (22.77%))
1.137
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.137 * 6.33%)
7.73%

Discounted Cash Flow Calculation for LSE:AVST using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Avast 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.

LSE:AVST DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.73%)
2020 399.90 Analyst x4 371.21
2021 460.02 Analyst x6 396.38
2022 489.48 Analyst x6 391.51
2023 442.15 Analyst x2 328.28
2024 465.65 Analyst x2 320.93
2025 464.26 Est @ -0.3% 297.02
2026 464.02 Est @ -0.05% 275.57
2027 464.60 Est @ 0.12% 256.12
2028 465.74 Est @ 0.25% 238.33
2029 467.28 Est @ 0.33% 221.96
Present value of next 10 years cash flows $3,097.00
LSE:AVST DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $467.28 × (1 + 0.53%) ÷ (7.73% – 0.53%)
$6,525.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,525.89 ÷ (1 + 7.73%)10
$3,099.85
LSE:AVST Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,097.00 + $3,099.85
$6,196.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,196.85 / 1,019.38
$6.08
LSE:AVST Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:AVST)
0.817
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $6.08 x 0.817
£4.96
Value per share (GBP) From above. £4.96
Current discount Discount to share price of £3.85
= -1 x (£3.85 - £4.96) / £4.96
22.4%

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

Current Discount
Amount off the current price Avast is available for.
Intrinsic value
22%
Share price is £3.85 vs Future cash flow value of £4.96
Current Discount Checks
For Avast to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Avast's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Avast's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Avast's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Avast's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AVST PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.26
LSE:AVST Share Price ** LSE (2020-04-03) in GBP £3.85
LSE:AVST Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.224 $4.72
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 32 Publicly-Listed Software Companies 29.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.32x

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

** Primary Listing of Avast.

LSE:AVST PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AVST Share Price ÷ EPS (both in USD)

= 4.72 ÷ 0.26

18.47x

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

  • Avast is good value based on earnings compared to the GB Software industry average.
  • Avast is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Avast's expected growth come at a high price?
Raw Data
LSE:AVST PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
8.4%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 22 Publicly-Listed Software Companies 2.5x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 518 Publicly-Listed Companies 0.97x

*Line of best fit is calculated by linear regression .

LSE:AVST PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.47x ÷ 8.4%

2.2x

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

  • Avast is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Avast's assets?
Raw Data
LSE:AVST PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $1.11
LSE:AVST Share Price * LSE (2020-04-03) in GBP £3.85
LSE:AVST Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.224 $4.72
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 73 Publicly-Listed Software Companies 2.31x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.06x
LSE:AVST PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AVST Share Price ÷ Book Value per Share (both in USD)

= 4.72 ÷ 1.11

4.26x

* Primary Listing of Avast.

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

  • Avast is overvalued based on assets compared to the GB Software industry average.
X
Value checks
We assess Avast'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 Software 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 Software industry average (and greater than 0)? (1 check)
  5. Avast 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 Avast expected to perform in the next 1 to 3 years based on estimates from 11 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
8.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Avast expected to grow at an attractive rate?
  • Avast's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Avast's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Avast's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AVST Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AVST Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 8.4%
LSE:AVST Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 4.3%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 24.6%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*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
LSE:AVST Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AVST Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 997 499 315 7
2021-12-31 937 468 294 10
2020-12-31 896 451 248 11
2020-04-05
LSE:AVST Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 871 399 249
2019-09-30 858 393 221
2019-06-30 845 386 194
2019-03-31 827 381 217
2018-12-31 808 376 241
2018-09-30 778 359 210
2018-06-30 748 343 178
2018-03-31 700 325 72
2017-12-31 653 307 -34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Avast's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
  • Avast's revenue is expected to grow by 4.3% 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
LSE:AVST Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Avast Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AVST Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.33 0.39 0.28 5.00
2021-12-31 0.28 0.35 0.23 7.00
2020-12-31 0.25 0.35 0.20 7.00
2020-04-05
LSE:AVST Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.26
2019-09-30 0.23
2019-06-30 0.20
2019-03-31 0.23
2018-12-31 0.26
2018-09-30 0.24
2018-06-30 0.21
2018-03-31 0.09
2017-12-31 -0.04

*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.
  • Avast is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Avast'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Avast 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 Avast 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 Avast's growth in the last year to its industry (Software).
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.
  • Avast has delivered over 20% year on year earnings growth in the past 5 years.
  • Avast's 1-year earnings growth is less than its 5-year average (3.1% vs 39.4%)
  • Avast's earnings growth has not exceeded the GB Software industry average in the past year (3.1% vs 6.8%).
Earnings and Revenue History
Avast'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 Avast Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AVST Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 871.10 248.70 232.90 82.50
2019-09-30 858.10 221.15 237.30 78.45
2019-06-30 845.10 193.60 241.70 74.40
2019-03-31 826.70 217.40 245.70 71.65
2018-12-31 808.30 241.20 249.70 68.90
2018-09-30 777.90 209.60 246.00 66.75
2018-06-30 747.50 178.00 242.30 64.60
2018-03-31 700.20 72.10 234.90 66.40
2017-12-31 652.90 -33.80 227.50 68.20
2016-12-31 340.70 24.60 91.30 37.40
2015-12-31 251.00 71.50 54.10 23.70

*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.
  • Avast has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Avast used its assets more efficiently than the GB Software industry average last year based on Return on Assets.
  • Avast has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Avast'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 Software 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.
Avast has a total score of 4/6, 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 Avast'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 Avast's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Avast's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Avast's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Avast'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.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x 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 Avast Company Filings, last reported 3 months ago.

LSE:AVST Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,124.40 1,029.80 217.80
2019-09-30 1,124.40 1,029.80 217.80
2019-06-30 966.50 1,167.70 141.00
2019-03-31 966.50 1,167.70 141.00
2018-12-31 900.40 1,392.50 272.70
2018-09-30 900.40 1,392.50 272.70
2018-06-30 810.30 1,434.40 152.30
2018-03-31 810.30 1,434.40 152.30
2017-12-31 435.10 1,784.50 177.30
2016-12-31 724.50 1,558.20 242.70
2015-12-31 694.30 263.60 141.60
  • Avast's level of debt (91.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Avast's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (38.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess Avast'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. Avast has a total score of 2/6, 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 Avast'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
3.12%
Current annual income from Avast dividends. Estimated to be 3.22% next year.
If you bought £2,000 of Avast shares you are expected to receive £62 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?
  • Avast's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.66%).
  • Avast's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.42%).
Upcoming dividend payment

Purchase Avast before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
LSE:AVST 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 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 595 Stocks 5.7%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.4%

Industry and Market average data is calculated daily.

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

LSE:AVST Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.16 7.00
2021-12-31 0.16 9.00
2020-12-31 0.14 9.00
2020-04-05
LSE:AVST Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-26 0.147 3.327
2019-09-27 0.136 2.416
2019-06-06 0.136 3.217

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

  • It is too early to tell whether Avast has stable dividend payments.
  • Avast only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Avast's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Avast's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Avast afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Avast 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 Avast'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
Ondrej Vlcek
COMPENSATION $6,933,411
AGE 42
TENURE AS CEO 0.8 years
CEO Bio

Mr. Ondrej Vlcek has been the Chief Operations Officer at Avast Software B.V. since January 2014. Mr. Vlcek has been the Chief Executive Officer at Avast Plc since June 30, 2019 and served as its President of Consumer until June 30, 2019. He served as EVP and GM for the Consumer business & CTO at Avast Plc. He managed research and development, including the AVAST Virus Lab. He serves as Executive Vice President and General Manager of Consumer, Head of Group Consumer Business at Avast Holding B.V. and has been its Chief Technology Officer since 2009. He served as Chief Technology Officer of Avast Software B.V. since 2007 until January 2014. Mr. Vlcek joined Avast Software B.V. as a software developer in 1995. He was part of the team that developed first antivirus program for Windows in 2003. He serves as a Director of Avast Plc. He serves as a Director of Avast Software B.V. Mr. Vlcek holds an M.S. in Mathematics from Czech Technical University in Prague and commenced post-graduate studies in non-linear optimization at Charles University in Prague's Faculty of Mathematics and Physics.

CEO Compensation
  • Ondrej's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Ondrej's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Avast management team in years:

0.8
Average Tenure
50.5
Average Age
  • The average tenure for the Avast management team is less than 2 years, this suggests a new team.
Management Team

Ondrej Vlcek

TITLE
Chief Executive Officer
COMPENSATION
$7M
AGE
42
TENURE
0.8 yrs

Pavel Baudis

TITLE
Co Founder & Director
COMPENSATION
$113K

Eduard Kucera

TITLE
Co Founder & Non-Executive Director
COMPENSATION
$113K

Phil Marshall

TITLE
CFO & Director
COMPENSATION
$1M
AGE
49
TENURE
2.2 yrs

Vince Steckler

TITLE
COMPENSATION
$811K
AGE
61
TENURE
0.8 yrs

Michal Pechoucek

TITLE
Chief Technology Officer
TENURE
0.6 yrs

Detlef Steinmetz

TITLE
Chief Information Officer
AGE
52

Peter Russell

TITLE
Director of Investor Relations

Kelby Barton

TITLE
General Counsel
TENURE
2.3 yrs

Stephanie Kane

TITLE
Vice President of PR & Corporate Communications
Board of Directors Tenure

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

2
Average Tenure
59.5
Average Age
  • The average tenure for the Avast board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Schwarz

TITLE
Independent Chairman of the Board
COMPENSATION
$370K
AGE
68
TENURE
6.3 yrs

Ondrej Vlcek

TITLE
Chief Executive Officer
COMPENSATION
$7M
AGE
42

Pavel Baudis

TITLE
Co Founder & Director
COMPENSATION
$113K

Eduard Kucera

TITLE
Co Founder & Non-Executive Director
COMPENSATION
$113K

Phil Marshall

TITLE
CFO & Director
COMPENSATION
$1M
AGE
49
TENURE
2.2 yrs

Ulf Claesson

TITLE
Independent Non-Executive Director
COMPENSATION
$123K

Belinda Richards

TITLE
Independent Non-Executive Director
COMPENSATION
$115K
AGE
60
TENURE
1.8 yrs

Warren Finegold

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$138K
AGE
62

Ernie Gunst

TITLE
Independent Non-Executive Director
COMPENSATION
$118K
AGE
59

Maggie Chan Jones

TITLE
Independent Non-Executive Director
COMPENSATION
$109K
TENURE
1.1 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 (£)
06. Dec 19 Sell Ulf Claesson Individual 04. Dec 19 04. Dec 19 -500,000 £4.34 £-2,172,050
31. Oct 19 Sell Ulf Claesson Individual 29. Oct 19 29. Oct 19 -190,000 £4.17 £-792,357
22. Oct 19 Sell Erwin Gunst Individual 21. Oct 19 21. Oct 19 -1,000,000 £3.99 £-3,990,000
07. Oct 19 Sell Ulf Claesson Individual 30. Sep 19 30. Sep 19 -95,000 £3.79 £-360,430
23. Aug 19 Sell Erwin Gunst Individual 21. Aug 19 21. Aug 19 -974,728 £3.67 £-3,579,202
X
Management checks
We assess Avast'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. Avast 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

Independent Non-Executive Director Erwin Gunst Just Sold A Bunch Of Shares In Avast Plc (LON:AVST)

Some Avast Plc (LON:AVST) shareholders may be a little concerned to see that the Independent Non-Executive Director, Erwin Gunst, recently sold a whopping US$3.6m worth of stock at a price of US$3.67 per share. … See our latest analysis for Avast Avast Insider Transactions Over The Last Year Notably, that recent sale by Independent Non-Executive Director Erwin Gunst was not the only time they sold Avast shares this year. … LSE:AVST Recent Insider Trading, August 25th 2019 Insider Ownership of Avast Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Would Avast Plc (LON:AVST) Be Valuable To Income Investors?

LSE:AVST Historical Dividend Yield, August 1st 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 33% of Avast's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Is Avast's Balance Sheet Risky? As Avast has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Avast's earnings per share have shrunk at 19% a year over the past five years. With this kind of significant decline, we always wonder what has changed in the business. Dividends are about stability, and Avast's earnings per share, which support the dividend, have been anything but stable. We'd also point out that Avast issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Unfortunately, there hasn't been any earnings growth, and the company's dividend history has been too short for us to evaluate the consistency of the dividend.

Simply Wall St -

Avast (LON:AVST) Has A Pretty Healthy Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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. … LSE:AVST Historical Debt, July 17th 2019 How Strong Is Avast's Balance Sheet? … Our View Avast's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper.

Simply Wall St -

Why You Should Like Avast Plc’s (LON:AVST) ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … 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 Avast: 0.11 = US$249m ÷ (US$2.9b - US$572m) (Based on the trailing twelve months to December 2018.) Therefore, Avast has an ROCE of 11%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Avast Plc (LON:AVST): Is It A Good Long Term Opportunity?

Below is my commentary, albeit very simple and high-level, on how market analysts predict Avast's earnings growth outlook over the next couple of years and whether the future looks brighter. … View our latest analysis for Avast Market analysts' prospects for the upcoming year seems pessimistic, with earnings falling by a double-digit -18%. … LSE:AVST Past and Future Earnings, June 7th 2019 While it is useful to be aware of the growth rate each year relative to today’s level, it may be more insightful to estimate the rate at which the company is moving on average every year.

Simply Wall St -

Update: Avast (LON:AVST) Stock Gained 35% In The Last Year

For example, the Avast Plc (LON:AVST) share price is up 35% in the last year, clearly besting than the market return of around -5.0% (not including dividends). … During the last year Avast grew its earnings per share, moving from a loss to a profit. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Simply Wall St -

Is Avast Plc (LON:AVST) Trading At A 25% Discount?

by projecting its future cash flows and then discounting them to today's value. … This is done using the Discounted Cash Flow (DCF) model! … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Could Avast Plc's (LON:AVST) Investor Composition Influence The Stock Price?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We'd expect to see both institutions and retail investors owning a portion of the company. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is Avast Plc (LON:AVST) A Great Dividend Stock?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Avast Plc (LON:AVST) has begun paying dividends recently. … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Is There An Opportunity With Avast Plc's (LON:AVST) 41.19% Undervaluation?

In this article I am going to calculate the intrinsic value of Avast Plc (LON:AVST). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

Avast Plc, together with its subsidiaries, provides digital security products under the Avast, HMA, AVG, and CCleaner brands worldwide. It operates through two segments, Consumer and Small to Mid-Sized Business (SMB). The company offers desktop security and mobile device protection products; value-added solutions for performance, privacy, and other tools; dynamic secure search solution, including browser toolbar; and big data and marketing analytics solutions, as well as security and protection solutions for small and medium-sized business. It also provides standalone and managed antivirus products; and managed security platforms, including CloudCare, an online security service for small and medium businesses, as well as Management Console, a cloud-based console that deploys antivirus protection to multiple devices and manage all devices from one place. In addition, the company offers business security services, such as patch management, backup and recovery, email security, content filtering, and secure Web and Internet gateway services. The company primarily sells software licenses through e-commerce services providers, and retailers and resellers. Avast Plc was founded in 1988 and is headquartered in Prague, the Czech Republic.

Details
Name: Avast Plc
AVST
Exchange: LSE
Founded: 1988
£3,926,665,045
1,019,383,449
Website: http://www.avast.com
Address: Avast Plc
Pikrtova 1737/1A,
Prague 4,
Prague,
140 00,
Czech Republic
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AVST Ordinary Shares London Stock Exchange GB GBP 10. May 2018
OTCPK AVAS.F Ordinary Shares Pink Sheets LLC US USD 10. May 2018
DB AV2 Ordinary Shares Deutsche Boerse AG DE EUR 10. May 2018
SEP AVST Ordinary Shares The Stock Exchange Prague Co. Ltd. CZ CZK 10. May 2018
BATS-CHIXE AVSTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 10. May 2018
BATS-CHIXE AVSTK Ordinary Shares BATS 'Chi-X Europe' GB CZK 10. May 2018
Number of employees
Current staff
Staff numbers
1,792
Avast employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 00:30
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.