AEY  Addvantage Technologies Group...

Exchange

NASDAQ

Sector

Consumer Services

Industry

Office Equipment/Supplies/Services

Market Cap.

17.94M

Vuru Grade

58.52/100

Current Price

$1.77
-0.0099 (-0.5562%)

Growth Price

$6.15
Undervalued by 247.63%

Stability Price

$2.75
Undervalued by 55.47%

Company Metrics

  • P/E 36.8771
  • P/S 0.4243
  • P/B 0.4310
  • EPS 0.0480
  • Cash ROIC 7.32%
  • Cash Ratio 0.89
  • Dividend 0 / N/A %
  • Avg. Vol. 26,877.00
  • Shares 10.14M
  • Market Cap. 17.94M

Company Description

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes cable television equipment and hardware to the cable television industry in North America, Central America, and South America. The company offers headend products, which include satellite receivers, integrated receivers/decoders, demodulators, modulators, antennas and antenna mounts, amplifiers, equalizers, and processors t... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

ADDvantage Technologies Group, Inc. to Report Financial Results For the Fiscal ...
GlobeNewswire (press release) - Jan 31, 2017
BROKEN ARROW, Okla., Jan. 31, 2017 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ:AEY), announced today that it will release financial results for the three month period ended December 31, 2016, on Tuesday, February 14th, ...
ADDvantage Technologies Group, Inc. to Report Financial Results For the Fiscal ...
GlobeNewswire (press release) - Nov 29, 2016
BROKEN ARROW, Okla., Nov. 29, 2016 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ:AEY), announced today that it will release financial results for the three month period ended September 30, 2016, on Tuesday, December 13th, ...
ADDvantage Technologies Group Inc.: ADDvantage Technologies Announces ...
The Wall Street Transcript - Feb 14, 2017
BROKEN ARROW, Oklahoma, February 14, 2017 - ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced its financial results for the three month period ended December 31, 2016, which includes the financial results for the Company's ...
Addvantage Technologies Group (AEY) Acquires Triton Datacom
StreetInsider.com - Oct 19, 2016
ADDvantage Technologies Group, Inc. (NASDAQ: AEY) today announced that it has acquired the assets of Triton Miami, Inc. (D/B/A “Triton Datacom”), a leading provider of new and refurbished enterprise networking products, including desktop phones, ...
ADDvantage Technologies Group, Inc. to Report Financial Results For the Fiscal ...
GlobeNewswire (press release) - Jul 26, 2016
BROKEN ARROW, Okla., July 26, 2016 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ:AEY), announced today that it will release financial results for the three month period ended June 30, 2016, on Tuesday, August 9th, before ...
ADDvantage Technologies Q4 Update - Sensible Acquisition Likely To Offset Weak ...
Seeking Alpha - Jan 19, 2017
This distributor of Cable and Telco products has faced negative business outlook in the past year. The Cable division continuously deteriorated, and Telco showcased volatility, which hurt overall profitability.
ADDvantage Technologies Group, Inc. to Report Financial Results for the Fiscal ...
GlobeNewswire (press release) - Jan 26, 2016
BROKEN ARROW, Okla., Jan. 26, 2016 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ:AEY), announced today that it will release financial results for the three month period ended December 31, 2015, on Tuesday, February 9th, ...
ADDvantage Technologies Announces Strategic Joint Venture to Provide ...
GlobeNewswire (press release) - Mar 10, 2016
BROKEN ARROW, Okla., March 10, 2016 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ:AEY), today announced that, through a joint venture, the Company will support the deconstruction work on cell tower sites across 13 states on ...
ADDvantage Technologies Expands Presence in Telecommunications Equipment ...
GlobeNewswire (press release) - Mar 3, 2014
BROKEN ARROW, Okla., March 3, 2014 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. ("ADDvantage") (Nasdaq:AEY), a provider of a comprehensive line of new and used cable television system-critical network equipment and hardware ...
ADDvantage Technologies Acquires Triton Datacom
PR Newswire (press release) - Oct 21, 2016
MIAMI, Oct. 21, 2016 /PRNewswire/ -- ADDvantage Technologies Group, Inc. (AEY), announced that it has acquired the assets of Triton Miami, Inc., a leading provider of new and refurbished enterprise networking products, including desktop phones, ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AEY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AEY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.77 Current Price

$6.15 Growth Price (DCF)

Undervalued by 247.63%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.75 Stability Price (EPV)

Undervalued by 55.47%


Discount Rate: 15.0%

$2.22 NCA Price

Undervalued by 25.27%

$3.06 Book Price

Undervalued by 72.78%


Poor Cash Return on Invested Capital over the past 5 years

AEY has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AEY has only created $7.32 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20122013201420152016
Free Cash Flow 4.73M 3.82M -1.48M 2.67M 3.22M
divided by
Invested Capital 34.19M 32.32M 41.60M 40.74M 40.71M
Cash ROIC 13.84% 11.83% -3.56% 6.56% 7.92%

Poor Return on Equity over the past 5 years

AEY has shown an inability to deliver strong results for shareholders. This could be due to poor management, AEY operating in a highly competitive industry, or having a weak business in general.

AEY has only generated $2.72 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20122013201420152016
Net Income 1.25M 1.67M 659,189.00 1.50M 294,163.00
divided by
Stockholders' Equity 37.82M 39.18M 39.44M 41.13M 41.63M
Return on Equity 3.31% 4.26% 1.67% 3.64% 0.71%

Excellent Business Performance over the past 10 years

AEY has been able to maintain profitability in good times and bad. This could mean AEY has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

AEY has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 1.46M 773,076.00 5.65M 10.00M 4.52M 4.73M 3.82M -1.48M 2.67M 3.22M

Good Balance Sheet

AEY's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash 60,993.00 15,211.00 700,004.00 8.74M 10.94M 5.19M 8.37M 5.29M 6.11M 4.51M
Current Assets 39.07M 41.55M 39.54M 42.77M 42.55M 32.37M 33.58M 36.27M 35.93M 31.12M
Total Assets 49.01M 51.80M 49.43M 52.26M 52.89M 42.03M 43.12M 53.41M 51.97M 50.27M
Current Liabilities 9.01M 9.06M 5.48M 5.91M 5.73M 2.65M 2.43M 6.52M 5.12M 5.05M
Total Liabilities 14.85M 25.22M 20.53M 19.22M 16.93M 4.22M 3.94M 13.97M 10.84M 8.64M
Stockholder' Equity 34.16M 26.58M 28.91M 33.04M 35.96M 37.82M 39.18M 39.44M 41.13M 41.63M
Current Ratio 4.34 4.58 7.21 7.24 7.43 12.21 13.83 5.56 7.02 6.17
TL-to-TA 0.30 0.49 0.42 0.37 0.32 0.10 0.09 0.26 0.21 0.17

Consistent Reinvestment of Profits over the past 10 years

AEY has consistently retained profits. This may put AEY in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, AEY can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings 28.45M 32.99M 36.01M 40.19M 42.73M 43.98M 45.65M 45.64M 47.14M 47.44M
Retained Earnings Growth - 15.94% 9.15% 11.63% 6.31% 2.93% 3.80% -0.02% 3.28% 0.62%

Competitive Industry over the past 10 years

AEY is likely operating in an industry with medium to low barriers to entry. This may mean that AEY doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that AEY invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.68 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income 7.43M 4.67M 3.02M 4.19M 2.54M 1.25M 1.67M 659,189.00 1.50M 294,163.00
divided by
Revenue 65.65M 56.45M 42.24M 47.31M 38.08M 35.22M 33.36M 35.89M 43.73M 38.66M
Net Profit Margin 11.32% 8.27% 7.15% 8.85% 6.66% 3.55% 5.01% 1.84% 3.43% 0.76%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. AEY has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$31.10 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit 21.31M 16.61M 12.93M 14.46M 11.55M 10.36M 9.57M 11.61M 15.30M 12.44M
divided by
Revenue 65.65M 56.45M 42.24M 47.31M 38.08M 35.22M 33.36M 35.89M 43.73M 38.66M
Gross Margin 32.46% 29.42% 30.60% 30.56% 30.33% 29.42% 28.70% 32.34% 34.98% 32.18%

Medium Capital Intensity over the past 10 years

AEY has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

30.68% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure 5.20M 820,353.00 69,544.00 96,821.00 1.50M 207,927.00 211,223.00 43,977.00 172,649.00 317,810.00
divided by
Net Income 7.43M 4.67M 3.02M 4.19M 2.54M 1.25M 1.67M 659,189.00 1.50M 294,163.00
Capital Expenditure Ratio 70.01% 17.57% 2.30% 2.31% 59.07% 16.63% 12.65% 6.67% 11.53% 108.04%

Inconsistent Dividend History over the past 10 years

AEY has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid 840,000.00 343,480.00 - - - - - - - -
divided by
Shares Outstanding 10.25M 10.28M 10.16M 10.14M 10.18M 10.20M 10.05M 10.05M 10.06M 10.11M
Dividend Paid Per Share 0.08 0.03 - - - - - - - -
Price at Year End 6.18 1.89 1.99 3.14 2.10 1.98 2.71 2.43 1.81 1.77
Dividend Yield 1.33% 1.77% - - - - - - - -

History of Stock Buybacks over the past 10 years

AEY has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding 10.25M 10.28M 10.16M 10.14M 10.18M 10.20M 10.05M 10.05M 10.06M 10.11M
Stock Bought Back - -0.29% 1.15% 0.27% -0.41% -0.18% 1.44% 0.03% -0.06% -0.56%
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