DB:RG8

Stock Analysis Report

Executive Summary

RPS Group plc, a consultancy company, provides advice on the development and management of the built and natural environment; planning and development of strategic infrastructure; and evaluation and development of energy, water, and other resources.

Snowflake

Fundamentals

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.2%

RG8

0.3%

DE Commercial Services

1.4%

DE Market


1 Year Return

-43.0%

RG8

-14.8%

DE Commercial Services

3.8%

DE Market

Return vs Industry: RG8 underperformed the German Commercial Services industry which returned -14.8% over the past year.

Return vs Market: RG8 underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

RG8IndustryMarket
7 Day-4.2%0.3%1.4%
30 Day-14.8%-0.5%1.3%
90 Day-7.0%-0.5%3.1%
1 Year-40.4%-43.0%-11.7%-14.8%7.0%3.8%
3 Year-17.1%-26.7%3.1%-5.7%18.5%8.3%
5 Year-42.8%-53.8%-4.1%-17.6%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RG8 (€1.36) is trading below our estimate of fair value (€2.6)

Significantly Below Fair Value: RG8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RG8 is good value based on its PE Ratio (11.5x) compared to the Commercial Services industry average (16.4x).

PE vs Market: RG8 is good value based on its PE Ratio (11.5x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: RG8 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: RG8 is good value based on its PB Ratio (0.7x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RG8's forecast earnings growth (6.8% per year) is above the savings rate (0.2%).

Earnings vs Market: RG8's earnings (6.8% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: RG8's earnings are forecast to grow, but not significantly.

Revenue vs Market: RG8's revenue is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: RG8's revenue is forecast to decline over the next 3 years (-0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RG8's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has RPS Group performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RG8's earnings have declined by -19.8% per year over the past 5 years.

Accelerating Growth: RG8 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RG8 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.5%).


Return on Equity

High ROE: RG8's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: RG8's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: RG8 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is RPS Group's financial position?


Financial Position Analysis

Short Term Liabilities: RG8's short term assets (£194.1M) exceeds its short term liabilities (£126.0M)

Long Term Liabilities: RG8's short term assets (194.1M) exceeds its long term liabilities (174.4M)


Debt to Equity History and Analysis

Debt Level: RG8's debt to equity ratio (32.3%) is considered satisfactory

Reducing Debt: RG8's debt to equity ratio has increased from 21.9% to 32.3% over the past 5 years.

Debt Coverage: RG8's debt is well covered by operating cash flow (34.7%).

Interest Coverage: RG8's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Inventory Level: RG8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: RG8's debt is covered by short term assets (assets are 1.596540x debt).


Next Steps

Dividend

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

8.25%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RG8's dividend (8.25%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: RG8's dividend (8.25%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: RG8's dividends per share have been stable in the past 10 years.

Growing Dividend: RG8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.3%), RG8's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RG8's dividends in 3 years are forecast to be well covered by earnings (43.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

John Douglas (57yo)

2.1yrs

Tenure

UK£888,000

Compensation

Mr. John Matheson Douglas, BEng (Hons), MBA, MAICD, has been Chief Executive Officer of RPS Group plc since September 1, 2017. Mr. Douglas has been the Managing Director of Coffey International Limited sin ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: RG8's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: RG8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£138,62716 Aug 19
John Douglas
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares100,852
Max PriceUK£1.39
BuyUK£27,14905 Aug 19
John Douglas
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares17,767
Max PriceUK£1.53
BuyUK£22,16701 Jul 19
John Douglas
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares18,211
Max PriceUK£1.22
BuyUK£221,27727 Jun 19
John Douglas
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares181,339
Max PriceUK£1.22
BuyUK£33,06731 Oct 18
Allison Bainbridge
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares18,400
Max PriceUK£1.80
BuyUK£50,26226 Oct 18
Kenneth Lever
EntityIndividual
Role
Chairman of the Board
Group Chairman
Shares30,000
Max PriceUK£1.68
BuyUK£109,43226 Oct 18
Gary Young
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Executive Director
Shares61,800
Max PriceUK£1.77
BuyUK£369,19526 Oct 18
John Douglas
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares207,348
Max PriceUK£1.78

Ownership Breakdown


Management Team

  • Gary Young (60yo)

    Finance Director & Executive Director

    • Tenure: 18.9yrs
    • Compensation: UK£473.00k
  • John Douglas (57yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£888.00k
  • John Chubb (54yo)

    CEO of Consulting UK & Ireland

    • Tenure: 0yrs
  • Kelly Olsen (52yo)

    Chief Information Officer

    • Tenure: 0.9yrs
  • Paul Aitken,

    CEO of Services UK & NL

    • Tenure: 0yrs
  • Peter Fearn

    CEO of North America

    • Tenure: 0yrs
  • Liza Kane

    Group People Director

    • Tenure: 0yrs
  • Halvard Kilde

    CEO Norway

    • Tenure: 0yrs
  • Chantalle Meijer

    Group Marketing Director

    • Tenure: 0yrs
  • Ross Thompson

    CEO of Australia Asia Pacific

    • Tenure: 0yrs

Board Members

  • Ken Lever (66yo)

    Group Chairman

    • Tenure: 2.9yrs
    • Compensation: UK£136.00k
  • Gary Young (60yo)

    Finance Director & Executive Director

    • Tenure: 18.9yrs
    • Compensation: UK£473.00k
  • John Douglas (57yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£888.00k
  • Mike McKelvy (60yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Allison Bainbridge (58yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£55.00k
  • Liz Peace (66yo)

    Independent Non-Executive

    • Tenure: 2.3yrs
    • Compensation: UK£53.00k
  • Catherine Glickman (61yo)

    Independent Non Executive Director

    • Tenure: 1.2yrs

Company Information

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


Key Information

  • Name: RPS Group plc
  • Ticker: RG8
  • Exchange: DB
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£262.183m
  • Listing Market Cap: UK£305.440m
  • Shares outstanding: 218.85m
  • Website: https://www.rpsgroup.com

Number of Employees


Location

  • RPS Group plc
  • 20 Western Avenue
  • Milton Park
  • Abingdon
  • Oxfordshire
  • OX14 4SH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
RPSG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RG8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RPSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

RPS Group plc, a consultancy company, provides advice on the development and management of the built and natural environment; planning and development of strategic infrastructure; and evaluation and develo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:11
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.