Although we don’t believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.
What: Shares of AVEVA (LSE: AVV) — not to be confused with mega-insurer Aviva — soared by 12% this morning after beating market expectations in its annual results.
The company, which provides engineering data software for the likes of Shell and Siemens, boosted revenues by 8% to £237m for the year, generating £52m of cash in the process.
So what: AVEVA may not be a household name, but among investors, its reputation is growing — the company delivered an operating margin of 29% in these results, earning a return on capital of more than 18%.
Apart from a one-year blip during the financial crisis, AVEVA has now grown its sales and profitability every year since 1997, a remarkable feat.
This was just “another year at the office” for AVEVA it seems, which has made a habit out of quietly producing impressive returns for its shareholders.
Now what: That doesn’t mean AVEVA isn’t already highly rated by investors of course. Despite losing nearly 30% of their market value since last summer, the shares have rarely looked inexpensive, and even before today traded on a forward P/E of 22.
According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…
And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...
It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…
But you need to get in before the crowd catches onto this ‘sleeping giant’.
Mark owns no shares mentioned in this article.