DB:5NF

Stock Analysis Report

Executive Summary

Non-Standard Finance plc engages in the unsecured credit business in the United Kingdom.

Rewards

Earnings are forecast to grow 101.23% per year

Risk Analysis

Dividend of 8.33% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Non-Standard Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5NF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

5NF

1.6%

DE Consumer Finance

1.7%

DE Market


1 Year Return

-44.6%

5NF

-11.3%

DE Consumer Finance

15.0%

DE Market

Return vs Industry: 5NF underperformed the German Consumer Finance industry which returned -11.3% over the past year.

Return vs Market: 5NF underperformed the German Market which returned 15% over the past year.


Shareholder returns

5NFIndustryMarket
7 Day2.1%1.6%1.7%
30 Day18.8%-0.2%0.8%
90 Day20.8%9.3%3.7%
1 Year-41.2%-44.6%-7.6%-11.3%18.5%15.0%
3 Year-45.5%-51.5%-23.8%-38.7%17.1%6.9%
5 Yearn/a-10.6%-35.9%24.3%7.3%

Price Volatility Vs. Market

How volatile is Non-Standard Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Non-Standard Finance undervalued compared to its fair value and its price relative to the market?

0.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 5NF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 5NF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 5NF is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: 5NF is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5NF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5NF is good value based on its PB Ratio (0.5x) compared to the XE Consumer Finance industry average (1.3x).


Next Steps

Future Growth

How is Non-Standard Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

101.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5NF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 5NF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 5NF's is expected to become profitable in the next 3 years.

Revenue vs Market: 5NF's revenue (9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 5NF's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5NF's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Non-Standard Finance performed over the past 5 years?

-17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5NF is currently unprofitable.

Growing Profit Margin: 5NF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 5NF is unprofitable, and losses have increased over the past 5 years at a rate of -17.8% per year.

Accelerating Growth: Unable to compare 5NF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 5NF is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (9.2%).


Return on Equity

High ROE: 5NF has a negative Return on Equity (-12.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Non-Standard Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 5NF has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5NF's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 5NF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 5NF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: 5NF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 5NF has a sufficient allowance for bad loans.

Low Risk Liabilities: 5NF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 5NF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 5NF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 5NF has an appropriate level of bad loans.


Next Steps

Dividend

What is Non-Standard Finance's current dividend yield, its reliability and sustainability?

8.33%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%1.3%markettop25%3.6%industryaverage4.2%forecastin3Years11.6%

Current dividend yield vs market & industry

Notable Dividend: 5NF's dividend (8.33%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 5NF's dividend (8.33%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 5NF has been paying a dividend for less than 10 years.

Growing Dividend: 5NF's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: 5NF is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 5NF's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

John Philip de van Kuffeler (70yo)

3.1yrs

Tenure

UK£614,000

Compensation

Mr. John Philip de Blocq van Kuffeler, MA, FCA was a Founder of Huveaux Plc. Mr. de Blocq van Kuffeler has been the Chief Executive Officer of Non-Standard Finance Plc., since January 1, 2017. He served as ...


CEO Compensation Analysis

Compensation vs Market: John Philip de's total compensation ($USD799.85K) is above average for companies of similar size in the German market ($USD412.37K).

Compensation vs Earnings: John Philip de's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Philip de van Kuffeler
CEO & Director3.1yrsUK£614.00k0.68% £792.6k
Nicholas Teunon
CFO & Executive Director5.5yrsUK£520.00k0.041% £48.0k
Peter Reynolds
Director of Investor Relations & Communications0yrsno data0.032% £37.5k
Davie Thompson
Chief Executive Officer of Loans at Home3.1yrsno datano data
Marc Howells
Managing Director of Guarantor Loans Division3.1yrsno datano data
Jono Gillespie
Deputy Group Chief Financial Officer0yrsno data0.045% £52.5k
Sarah Day
Company Secretary2.3yrsno datano data

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: 5NF's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Philip de van Kuffeler
CEO & Director3.1yrsUK£614.00k0.68% £792.6k
Nicholas Teunon
CFO & Executive Director5.5yrsUK£520.00k0.041% £48.0k
Charles Gregson
Non-Executive Chairman3.1yrsUK£125.00k0.13% £153.8k
Niall Scott Brooker
Independent Non-Executive Director2.8yrsUK£75.00k0.14% £160.0k
Heather McGregor
Independent Non-Executive Director5.2yrsUK£75.00k0.042% £49.7k

5.2yrs

Average Tenure

60yo

Average Age

Experienced Board: 5NF's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 5NF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Non-Standard Finance plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Non-Standard Finance plc
  • Ticker: 5NF
  • Exchange: DB
  • Founded: 2014
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£97.480m
  • Listing Market Cap: UK£117.120m
  • Shares outstanding: 312.44m
  • Website: https://www.nsfgroupplc.com

Number of Employees


Location

  • Non-Standard Finance plc
  • 7 Turnberry Park Road
  • Gildersome
  • Morley
  • West Yorkshire
  • LS27 7LE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSFLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2015
5NFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2015
NSFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2015

Biography

Non-Standard Finance plc engages in the unsecured credit business in the United Kingdom. It provides home credit loans; branch-based unsecured consumer loans; and guarantor loans. Non-Standard Finance plc was founded in 2014 and is based in Morley, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:49
End of Day Share Price2020/02/14 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.