Advanced Braking Technology Limited

ASX:ABV

Advanced Braking Technology Limited

ASX:ABV
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$0.080 (+1.3%)
Last close price
#57
Rank
6
Held by
22
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Reports (1) My Report Forum Investors
Forum Topics ABV ABV Thesis

Pinned straw:
CanadianAussie
Last edited one year ago

Why I'm adding ABV - Advanced Braking Technology to my Strawman portfolio


•Blue chip customer base in mining, civil construction and miliary

•Profitable

•Global market leader in a niche market - largest SIBS supplier in the world

•International market, with company exporting to over 40 countries

•Own their IP

•Undemanding PE ratio of 11.6

•David Slack NED owns 19.81%; however, low insider ownership beyond him

•Appear to have a focus on culture, constantly mention team in AR

•ESG and mining tailwinds (e.g. EV metals growth)

•>30% of revenue comes from overseas with ability to grow this

•Strong balance sheet with nearly no debt

•Free cash flow positive

•Healthy and improving gross and net margins

•ROIC of 21%

 

Why I would consider selling


•Overvalued

•Loss of major customer

•No longer profitable or free cash flow positive (excluding acquisitions)

•Single digit revenue growth

•Deteriorating ROIC
Solvetheriddle
Added one year ago

@CanadianAussie good write up. the numbers look encouraging as well. at a $17m mkt cap, potential liquidity has kept me cautious, i say that without examining it in detail

11
JPPicard
Added one year ago

Excellent summary of the important points @CanadianAussie ; I've also taken a small position after reading the full report. Thanks to the team at DMX and to @Noddy74 for putting this one on my radar 6 months ago.

16
edgescape
Added one year ago

Interesting company, I was reading about the DMX report the other day also. Does seem dependent on their past work with Volvo/Glencore which could be lucrative if they can find a partner.

9