This is now available!
As Carl mentioned, AVV is already available
80% growth in the last year. I got a share back at the beginning of December and is up 12%.
Any insight on Aveva?
I’ve been slowly adding Aveva over the last few months. Have been meaning to share thoughts about them for a while.
In many ways Aveva is a ‘boring’ company because it is not consumer-facing, but the long-term investment case is as compelling as any sexy tech company.
Their positioning statement is “driving the digitisation of the industrial world”. There is a clear alignment with global mega trends (internet of things, big data, AI) and the needs of their customers. Companies that are ‘industrial’ or in the B2B market are often way behind B2C companies when it comes to using digital. This diagram from their 2019 annual report summarises their potential nicely:
At work, some of the clients are industrial or have a B2B component, and they are all in this same position. There is massive potential for change in these kind of industries. Having merged with Schneider, they are now the dominant player in this sector.
Aveva also have an increasing amount of recurring revenue. Here is is from the 2019 annual report:
This has now jumped to 61%, as of November interim results:
Also from their interim reports in Nov, you can see revenue up, recurring revenue up significantly, and a return to profit:
The P/E is high at 140, but I think the long-term case is solid.
Thanks for the information!
What are people’s thoughts on Aveva’s potential acquisition of OSIsoft and how it would benefit Aveva? Would the share price drop similar to when Aveva and Schneider Electric merged back in 2018?