BST:0JL

Stock Analysis Report

Executive Summary

The Alumasc Group plc, together with its subsidiaries, manufactures and sells building products, systems, and solutions in the United Kingdom, Europe, North America, the Middle East, the Far East, and internationally.

Rewards

Trading at 83.9% below its fair value

Earnings are forecast to grow 60.51% per year

Risk Analysis

Dividend of 7% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (4.6%)

Does not have a meaningful market cap (€38M)



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Alumasc Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0JL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

0JL

-2.2%

DE Building

0.3%

DE Market


1 Year Return

1.3%

0JL

10.0%

DE Building

13.8%

DE Market

Return vs Industry: 0JL underperformed the German Building industry which returned 9.8% over the past year.

Return vs Market: 0JL underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

0JLIndustryMarket
7 Day2.5%-2.2%0.3%
30 Day21.0%1.0%1.7%
90 Day23.5%4.5%5.7%
1 Year9.2%1.3%14.1%10.0%17.4%13.8%
3 Yearn/a21.2%8.8%15.9%5.7%
5 Yearn/a83.5%60.3%27.9%10.6%

Price Volatility Vs. Market

How volatile is Alumasc Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alumasc Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0JL (€1.18) is trading below our estimate of fair value (€7.34)

Significantly Below Fair Value: 0JL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0JL is poor value based on its PE Ratio (51.8x) compared to the Building industry average (19.9x).

PE vs Market: 0JL is poor value based on its PE Ratio (51.8x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0JL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 0JL is overvalued based on its PB Ratio (1.5x) compared to the DE Building industry average (1.3x).


Next Steps

Future Growth

How is Alumasc Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

39.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0JL's forecast earnings growth (60.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 0JL's earnings (60.5% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0JL's revenue (3.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 0JL's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0JL's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Alumasc Group performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0JL has a large one-off loss of £787.0K impacting its June 30 2019 financial results.

Growing Profit Margin: 0JL's current net profit margins (0.8%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 0JL's earnings have declined by -11% per year over the past 5 years.

Accelerating Growth: 0JL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0JL had negative earnings growth (-81.6%) over the past year, making it difficult to compare to the Building industry average (-1.1%).


Return on Equity

High ROE: 0JL's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alumasc Group's financial position?


Financial Position Analysis

Short Term Liabilities: 0JL's short term assets (£34.9M) exceed its short term liabilities (£22.5M).

Long Term Liabilities: 0JL's short term assets (£34.9M) exceed its long term liabilities (£23.0M).


Debt to Equity History and Analysis

Debt Level: 0JL's debt to equity ratio (30.9%) is considered satisfactory.

Reducing Debt: 0JL's debt to equity ratio has reduced from 58.2% to 30.9% over the past 5 years.

Debt Coverage: 0JL's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: 0JL's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: 0JL has a high level of physical assets or inventory.

Debt Coverage by Assets: 0JL's debt is covered by short term assets (assets are 4.4x debt).


Next Steps

Dividend

What is Alumasc Group's current dividend yield, its reliability and sustainability?

6.81%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%1.3%markettop25%3.6%industryaverage2.4%forecastin3Years7.1%

Current dividend yield vs market & industry

Notable Dividend: 0JL's dividend (7%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 0JL's dividend (7%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: 0JL's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0JL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (362.5%), 0JL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0JL's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

What is the CEO of Alumasc Group's salary, the management and board of directors tenure and is there insider trading?

13.3yrs

Average management tenure


CEO

G. Hooper (62yo)

16.8yrs

Tenure

UK£343,000

Compensation

Mr. G. Paul Hooper, B.Sc, MBA, DipM has been the Chief Executive at Alumasc Group Plc since March 2003 and has been its Executive Director since 2003. Mr. Hooper joined Alumasc Group Plc's as Group Managin ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD445.45K) is about average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: G.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

13.3yrs

Average Tenure

57yo

Average Age

Experienced Management: 0JL's management team is seasoned and experienced (13.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 0JL's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€10,57311 Sep 19
Jonathon Pither
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Senior Independent Non-Executive Director
Shares10,000
Max Price€1.06
Buy€21,44709 May 19
Jonathon Pither
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Senior Independent Non-Executive Director
Shares20,000
Max Price€1.07
Sell€18,72103 May 19
Andrew Magson
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares17,742
Max Price€1.07
Buy€18,59703 May 19
Andrew Magson
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares17,364
Max Price€1.11
Buy€39,65023 Apr 19
G. Hooper
EntityIndividual
Role
Chief Executive Officer
Chief Executive & Executive Director
Shares36,266
Max Price€1.09
Sell€58,98823 Apr 19
Andrew Magson
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares45,220
Max Price€1.30
Buy€58,66123 Apr 19
Andrew Magson
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares44,920
Max Price€1.31

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • G. Hooper (62yo)

    Chief Executive & Executive Director

    • Tenure: 16.8yrs
    • Compensation: UK£343.00k
  • Andrew Magson (51yo)

    Group Finance Director & Executive Director

    • Tenure: 13.3yrs
    • Compensation: UK£237.00k
  • Giovanni Simoni

    Managing Director of Levolux

    • Gilbert Jackson (59yo)

      Divisional MD & Executive Director

      • Tenure: 0.3yrs
    • Michael Leaf (55yo)

      Divisional MD of Housebuilding Products Division & Executive Director

      • Tenure: 0.3yrs
    • John Carter

      Managing Director of Insulated Renders

      • Les White

        Managing Director of Precision

        • Kirstan Boynton

          Company Secretary

          • Tenure: 2yrs
        • Helen Ashton

          Group Company Secretary


          Board Members

          • Jon Pither (84yo)

            Deputy Chairman & Senior Independent Non-Executive Director

            • Tenure: 28yrs
            • Compensation: UK£40.00k
          • G. Hooper (62yo)

            Chief Executive & Executive Director

            • Tenure: 16.8yrs
            • Compensation: UK£343.00k
          • John McCall (73yo)

            Chairman

            • Tenure: 36yrs
            • Compensation: UK£104.00k
          • Andrew Magson (51yo)

            Group Finance Director & Executive Director

            • Tenure: 13.3yrs
            • Compensation: UK£237.00k
          • Vijay Thakrar (56yo)

            Independent Non-executive Director

            • Tenure: 1yrs
            • Compensation: UK£18.00k
          • Gilbert Jackson (59yo)

            Divisional MD & Executive Director

            • Tenure: 0.3yrs
          • Michael Leaf (55yo)

            Divisional MD of Housebuilding Products Division & Executive Director

            • Tenure: 0.3yrs
          • David Armfield (56yo)

            Non-Executive Director

            • Tenure: 5.3yrs
            • Compensation: UK£35.00k
          • Steve Beechey

            Non-Executive Director

            • Tenure: 1yrs
            • Compensation: UK£18.00k

          Company Information

          The Alumasc Group plc's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: The Alumasc Group plc
          • Ticker: 0JL
          • Exchange: BST
          • Founded: 1984
          • Industry: Building Products
          • Sector: Capital Goods
          • Market Cap: UK£38.625m
          • Listing Market Cap: UK£45.785m
          • Shares outstanding: 35.76m
          • Website: https://www.alumasc.co.uk

          Number of Employees


          Location

          • The Alumasc Group plc
          • Burton Latimer
          • Kettering
          • Northamptonshire
          • NN15 5JP
          • United Kingdom

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          ALUAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 1993
          0JLBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 1993

          Biography

          The Alumasc Group plc, together with its subsidiaries, manufactures and sells building products, systems, and solutions in the United Kingdom, Europe, North America, the Middle East, the Far East, and internationally. The company offers solar shading, architectural screening, and balcony and balustrading systems; and roofing and water management solutions to manage and attenuate water originating inside or outside of the buildings. It also provides housebuilding products, such as roofline and others, loft doors, air leakage products, cavity trays and closures, access panels, and underfloor products primarily for housebuilding applications. The company was founded in 1984 and is based in Kettering, the United Kingdom. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/24 22:25
          End of Day Share Price2020/01/24 00:00
          Earnings2019/06/30
          Annual Earnings2019/06/30


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.