DB:MZ4

Stock Analysis Report

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Executive Summary

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MZ4 is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: MZ4's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

-0.4%

MZ4

5.2%

DE Commercial Services

1.4%

DE Market


1 Year Return

-72.3%

MZ4

-1.1%

DE Commercial Services

0.9%

DE Market

Return vs Industry: MZ4 underperformed the German Commercial Services industry which returned -2.9% over the past year.

Return vs Market: MZ4 underperformed the German Market which returned 0.6% over the past year.


Shareholder returns

MZ4IndustryMarket
7 Day-0.4%5.2%1.4%
30 Day46.2%18.4%8.7%
90 Day27.0%15.7%2.3%
1 Year-45.8%-72.3%0.8%-1.1%4.1%0.9%
3 Year-62.1%-81.7%2.4%-5.3%3.9%-5.1%
5 Year-79.4%-90.6%-5.5%-16.6%24.8%7.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

9.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MZ4 (€0.42) is trading above our estimate of fair value (€0.23)

Significantly Below Fair Value: MZ4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MZ4 is good value based on its PE Ratio (9x) compared to the XE Commercial Services industry average (18.8x).

PE vs Market: MZ4 is good value based on its PE Ratio (9x) compared to the German market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: MZ4 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: MZ4 is overvalued based on its PB Ratio (1.5x) compared to the DE Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is Mitie Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MZ4's forecast earnings growth (44.4% per year) is above the savings rate (0.2%).

Earnings vs Market: MZ4's earnings (44.4% per year) are forecast to grow faster than the German market (27.3% per year).

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

Revenue vs Market: MZ4's revenue (6.2% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: MZ4's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MZ4's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Mitie Group performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MZ4 has a large one-off loss of £24.1M impacting its September 30 2020 financial results.

Growing Profit Margin: MZ4's current net profit margins (1.4%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: MZ4's earnings have declined by 11.5% per year over the past 5 years.

Accelerating Growth: MZ4's earnings growth over the past year (15%) exceeds its 5-year average (-11.5% per year).

Earnings vs Industry: MZ4 earnings growth over the past year (15%) exceeded the Commercial Services industry -7.3%.


Return on Equity

High ROE: MZ4's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Mitie Group's financial position?


Financial Position Analysis

Short Term Liabilities: MZ4's short term assets (£717.6M) exceed its short term liabilities (£620.6M).

Long Term Liabilities: MZ4's short term assets (£717.6M) exceed its long term liabilities (£338.2M).


Debt to Equity History and Analysis

Debt Level: MZ4's debt to equity ratio (71%) is considered high.

Reducing Debt: MZ4's debt to equity ratio has increased from 70.3% to 71% over the past 5 years.

Debt Coverage: MZ4's debt is well covered by operating cash flow (100.7%).

Interest Coverage: MZ4's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Mitie Group current dividend yield, its reliability and sustainability?

1.80%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MZ4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MZ4's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MZ4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MZ4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MZ4 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MZ4's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Phil Bentley (61 yo)

3.92yrs

Tenure

UK£2,648,469

Compensation

Mr. Phillip Bentley, also known as Phil, has been the Chief Executive Officer of Mitie Group plc since December 12, 2016. Mr. Bentley served as the Chief Executive Officer and Executive Director of Cable &...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD3.53M) is above average for companies of similar size in the German market ($USD1.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phil Bentley
Group CEO & Executive Director3.92yrsUK£2.65m0.52%
£ 3.9m
Andrew Peeler
Group CFO & Director0.83yrUK£402.88kno data
Cijo Joseph
Chief Technology & Information Officerno datano datano data
Anna Gavrilova
Head of Investor Relationsno datano datano data
Peter Dickinson
Chief of Staff & General Counsel3.67yrsno datano data
Chris Copeland
Chief Marketing & Strategy Officer3yrsno datano data
Alison Saunders
Managing Directorno datano datano data
Jason Towse
Managing Director of Soft Servicesno datano datano data
Tim Howell
Managing Director of Landscapes Business7.83yrsno datano data
James Gilding
Managing Director for Total Document Management Business6.5yrsno datano data
Sandip Mahajan
Chief Financial Transformation Officer3yrsUK£368.74kno data
Simon Venn
Chief Government & Strategy Officerno datano datano data

3.7yrs

Average Tenure

Experienced Management: MZ4's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phil Bentley
Group CEO & Executive Director3.92yrsUK£2.65m0.52%
£ 3.9m
Andrew Peeler
Group CFO & Director0.83yrUK£402.88kno data
Roger Yates
Senior Independent Director2.33yrsUK£59.00k0.0096%
£ 72.1k
Derek Mapp
Non-Executive Chairman3.33yrsUK£225.00k0.028%
£ 212.9k
Jennifer Duvalier
Independent Non-Executive Director3.33yrsUK£60.00k0.0038%
£ 28.6k
Mary Reilly
Independent Non-Executive Director3.17yrsUK£60.00k0.0045%
£ 33.6k
Nivedita Bhagat
Independent Non-Executive Director3.42yrsUK£52.00k0.0042%
£ 31.4k
Baroness Couttie
Independent Non-Executive Directorno dataUK£59.00kno data

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MZ4's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 361%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mitie Group plc
  • Ticker: MZ4
  • Exchange: DB
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£670.634m
  • Listing Market Cap: UK£750.961m
  • Shares outstanding: 1.67b
  • Website: https://www.mitie.com

Number of Employees


Location

  • Mitie Group plc
  • The Shard
  • Level 12
  • London
  • Greater London
  • SE1 9SG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MITF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1994
MTOLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1994
MZ4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1994
MTOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1994
MITF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMay 2011

Biography

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. It offers engineering services, such as technical and building maintenance serv...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 20:01
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.