Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improved over the past week After last week's 44% share price gain to US$12.79, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 29x in the Capital Markets industry in the US. Total returns to shareholders of 522% over the past three years. Reported Earnings • Mar 17
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: US$1.41 (up from US$0.61 in FY 2020). Revenue: US$145.6m (up 15% from FY 2020). Net income: US$25.1m (up 153% from FY 2020). Profit margin: 17% (up from 7.8% in FY 2020). The increase in margin was driven by higher revenue. Funds under management (FUM) Beginning of period: US$20.1b End of period: US$22.5b Net inflows/outflows: US$600.0m outflow Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) missed analyst estimates by 44%. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 08
Upcoming dividend of US$0.05 per share Eligible shareholders must have bought the stock before 15 March 2022. Payment date: 30 March 2022. Payout ratio is a comfortable 7.1% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of American dividend payers (3.6%). In line with average of industry peers (2.3%). Reported Earnings • Feb 10
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: US$1.41 (up from US$0.61 in FY 2020). Revenue: US$145.6m (up 15% from FY 2020). Net income: US$25.1m (up 153% from FY 2020). Profit margin: 17% (up from 7.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) missed analyst estimates by 44%. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 18% share price gain to US$9.24, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 16x in the Capital Markets industry in the US. Total returns to shareholders of 485% over the past three years. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 18% share price gain to US$9.24, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 16x in the Capital Markets industry in the US. Total returns to shareholders of 485% over the past three years. Reported Earnings • Oct 30
Third quarter 2021 earnings released: EPS US$0.35 (vs US$0.15 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$37.5m (up 17% from 3Q 2020). Net income: US$6.50m (up 162% from 3Q 2020). Profit margin: 17% (up from 7.8% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 68% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 23% share price gain to US$9.74, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 13x in the Capital Markets industry in the US. Total returns to shareholders of 279% over the past three years. Reported Earnings • Jul 31
Second quarter 2021 earnings released: EPS US$0.35 (vs US$0.095 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$36.1m (up 19% from 2Q 2020). Net income: US$5.93m (up 287% from 2Q 2020). Profit margin: 16% (up from 5.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 48% per year, which means it is significantly lagging earnings growth. Executive Departure • Jun 22
Independent Director Robert Kopech has left the company On the 16th of June, Robert Kopech's tenure as Independent Director ended after 2.0 years in the role. As of March 2021, Robert still personally held 42.47k shares (US$275k worth at the time). Robert is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 3.08 years. Recent Insider Transactions Derivative • Jun 17
Chairman of the Board & CEO exercised options and sold US$965k worth of stock On the 11th of June, Marc Mayer exercised 250.00k options at around US$2.01, then sold 161k of the shares acquired at an average of US$8.01 per share and kept the remainder. For the year to December 2020, Marc's total compensation was 25% salary and 75% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2020, Marc's direct individual holding has increased from 633.92k shares to 1.20m. Company insiders have collectively sold US$6.4m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • May 28
Chairman of the Board & CEO exercised options and sold US$576k worth of stock On the 24th of May, Marc Mayer exercised 150.00k options at around US$2.01, then sold 97k of the shares acquired at an average of US$7.97 per share and kept the remainder. For the year to December 2020, Marc's total compensation was 25% salary and 75% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2020, Marc's direct individual holding has increased from 633.92k shares to 1.15m. Company insiders have collectively sold US$5.6m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 19
First quarter 2021 earnings released: EPS US$0.31 (vs US$0.053 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$34.2m (up 9.8% from 1Q 2020). Net income: US$5.20m (up US$4.36m from 1Q 2020). Profit margin: 15% (up from 2.7% in 1Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • May 09
Chairman of the Board & CEO exercised options and sold US$885k worth of stock On the 5th of May, Marc Mayer exercised 250.00k options at around US$2.01, then sold 163k of the shares acquired at an average of US$7.43 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2020, Marc's direct individual holding has increased from 633.92k shares to 1.06m. Company insiders have collectively sold US$5.1m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 01
First quarter 2021 earnings released: EPS US$0.31 (vs US$0.053 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$34.2m (up 9.8% from 1Q 2020). Net income: US$5.24m (up US$4.40m from 1Q 2020). Profit margin: 15% (up from 2.7% in 1Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improved over the past week After last week's 22% share price gain to US$7.81, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 26x in the Capital Markets industry in the US. Total returns to shareholders of 180% over the past three years. Reported Earnings • Mar 20
Full year 2020 earnings released: EPS US$0.61 (vs US$0.10 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: US$127.0m (down 6.6% from FY 2019). Net income: US$9.91m (up US$8.37m from FY 2019). Profit margin: 7.8% (up from 1.1% in FY 2019). The increase in margin was driven by lower expenses. Funds under management (FUM) Beginning of period: US$19.5b End of period: US$20.1b Net inflows/outflows: US$2.30b outflow Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 26% per year. Recent Insider Transactions Derivative • Mar 19
Chairman of the Board & CEO exercised options and sold US$1.1m worth of stock On the 15th of March, Marc Mayer exercised 300.00k options at around US$2.01, then sold 194k of the shares acquired at an average of US$7.82 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since June 2020, Marc's direct individual holding has increased from 286.45k shares to 954.32k. Company insiders have collectively sold US$4.4m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Mar 05
Chairman of the Board & CEO exercised options and sold US$711k worth of stock On the 26th of February, Marc Mayer exercised 200.00k options at around US$2.01, then sold 130k of the shares acquired at an average of US$7.46 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since March 2020, Marc's direct individual holding has increased from 286.45k shares to 884.77k. Company insiders have collectively sold US$3.5m more than they bought, via options and on-market transactions in the last 12 months. Is New 90 Day High Low • Feb 25
New 90-day high: US$7.65 The company is up 61% from its price of US$4.76 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 17% over the same period. Reported Earnings • Feb 11
Full year 2020 earnings released: EPS US$0.62 (vs US$0.10 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: US$127.0m (down 6.6% from FY 2019). Net income: US$10.0m (up US$8.47m from FY 2019). Profit margin: 7.9% (up from 1.1% in FY 2019). The increase in margin was driven by lower expenses. Funds under management (FUM) Beginning of period: US$19.5b End of period: US$20.1b Net inflows/outflows: US$2.30b outflow Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 31% per year. Is New 90 Day High Low • Feb 06
New 90-day high: US$6.51 The company is up 60% from its price of US$4.06 on 06 November 2020. The American market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 23% over the same period. Recent Insider Transactions Derivative • Jan 24
Chairman of the Board & CEO exercised options and sold US$419k worth of stock On the 20th of January, Marc Mayer exercised 150.00k options at around US$2.01, then sold 102.05k of the shares acquired at an average of US$6.12 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since March 2020, Marc's direct individual holding has increased from 286.45k shares to 836.82k. Company insiders have collectively sold US$2.9m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Jan 06
Chairman of the Board & CEO exercised options and sold US$1.4m worth of stock On the 4th of January, Marc Mayer exercised 450.00k options at around US$2.01, then sold 303.12k of the shares acquired at an average of US$6.50 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since March 2020, Marc's direct individual holding has increased from 286.45k shares to 630.45k. Company insiders have collectively sold US$2.6m more than they bought, via options and on-market transactions in the last 12 months. Is New 90 Day High Low • Jan 05
New 90-day high: US$6.50 The company is up 53% from its price of US$4.25 on 06 October 2020. The American market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 19% over the same period. Recent Insider Transactions Derivative • Dec 20
Chairman of the Board & CEO exercised options and sold US$538k worth of stock On the 16th of December, Marc Mayer exercised 200.00k options at around US$2.01, then sold 137.02k of the shares acquired at an average of US$5.94 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since December 2019, Marc's direct individual holding has increased from 411.45k shares to 692.46k. Company insiders have collectively sold US$1.5m more than they bought, via options and on-market transactions in the last 12 months. Is New 90 Day High Low • Dec 10
New 90-day high: US$5.90 The company is up 36% from its price of US$4.34 on 10 September 2020. The American market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 18% over the same period. Recent Insider Transactions Derivative • Dec 09
Chairman of the Board & CEO exercised options and sold US$454k worth of stock On the 3rd of December, Marc Mayer exercised 200.00k options at around US$2.01, then sold 141.46k of the shares acquired at an average of US$5.22 per share and kept the remainder. For the year to December 2019, Marc's total compensation was 9% salary and 91% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since December 2019, Marc's direct individual holding has increased from 411.45k shares to 633.92k. Company insiders have collectively sold US$1.1m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Dec 08
Market bids up stock over the past week After last week's 21% share price gain to US$5.62, the stock is trading at a trailing P/E ratio of 19.6x, up from the previous P/E ratio of 16.1x. This compares to an average P/E of 24x in the Capital Markets industry in the US. Total returns to shareholders over the past three years are 87%. Is New 90 Day High Low • Nov 24
New 90-day high: US$4.67 The company is up 4.0% from its price of US$4.48 on 25 August 2020. The American market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 8.0% over the same period. Reported Earnings • Nov 20
Third quarter 2020 earnings released: EPS US$0.15 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: US$32.1m (down 6.2% from 3Q 2019). Net income: US$2.51m (up 204% from 3Q 2019). Profit margin: 7.8% (up from 2.4% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Recent Insider Transactions • Nov 19
Director of Investments recently bought US$62k worth of stock On the 12th of November, Ebrahim Busheri bought around 16k shares on-market at roughly US$3.85 per share. In the last 3 months, they made an even bigger purchase worth US$111k. Insiders have collectively bought US$273k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 05
Director of Investments recently bought US$111k worth of stock On the 2nd of November, Ebrahim Busheri bought around 29k shares on-market at roughly US$3.87 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$211k more in shares than they have sold in the last 12 months. Reported Earnings • Oct 31
Third quarter earnings released Over the last 12 months the company has reported total profits of US$4.65m, up 98% from the prior year. Total revenue was US$126.3m over the last 12 months, down 10% from the prior year. Is New 90 Day High Low • Oct 10
New 90-day high: US$4.65 The company is up 69% from its price of US$2.75 on 10 July 2020. The American market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 3.0% over the same period.