DB:GBE

Stock Analysis Report

Executive Summary

Genus plc operates as an animal genetics company in North America, Latin America, rest of Europe, the Middle East, Russia, Africa, and Asia.

Rewards

Earnings are forecast to grow 28.19% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (9.1%)

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

GBE

-1.0%

DE Biotechs

1.7%

DE Market


1 Year Return

47.6%

GBE

6.2%

DE Biotechs

15.0%

DE Market

Return vs Industry: GBE exceeded the German Biotechs industry which returned 6.2% over the past year.

Return vs Market: GBE exceeded the German Market which returned 15% over the past year.


Shareholder returns

GBEIndustryMarket
7 Day3.2%-1.0%1.7%
30 Day6.2%-2.3%0.8%
90 Day7.4%7.8%3.7%
1 Year49.1%47.6%6.4%6.2%18.5%15.0%
3 Year91.5%85.1%49.0%47.3%17.1%6.9%
5 Year134.9%121.1%12.6%10.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

258.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GBE (€38.44) is trading above our estimate of fair value (€21.99)

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


Price To Earnings Ratio

PE vs Industry: GBE is poor value based on its PE Ratio (258.2x) compared to the Biotechs industry average (43.8x).

PE vs Market: GBE is poor value based on its PE Ratio (258.2x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: GBE is poor value based on its PEG Ratio (9.2x)


Price to Book Ratio

PB vs Industry: GBE is overvalued based on its PB Ratio (4.1x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Genus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBE's forecast earnings growth (28.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: GBE's earnings (28.2% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: GBE's revenue (7.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: GBE's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Genus performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBE has a large one-off loss of £36.5M impacting its June 30 2019 financial results.

Growing Profit Margin: GBE's current net profit margins (1.6%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: GBE's earnings have declined by -9.8% per year over the past 5 years.

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

Earnings vs Industry: GBE had negative earnings growth (-81.7%) over the past year, making it difficult to compare to the Biotechs industry average (-4.7%).


Return on Equity

High ROE: GBE's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genus's financial position?


Financial Position Analysis

Short Term Liabilities: GBE's short term assets (£209.2M) exceed its short term liabilities (£104.2M).

Long Term Liabilities: GBE's short term assets (£209.2M) do not cover its long term liabilities (£217.6M).


Debt to Equity History and Analysis

Debt Level: GBE's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: GBE's debt to equity ratio has reduced from 29.6% to 20.7% over the past 5 years.

Debt Coverage: GBE's debt is well covered by operating cash flow (32.1%).

Interest Coverage: GBE's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: GBE's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: GBE's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: GBE's dividend (0.87%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (224.2%), GBE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GBE's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Stephen Wilson (59yo)

0.4yrs

Tenure

UK£1,508,000

Compensation

Mr. Stephen Wilson serves as Chief Executive Officer and Director of Genus plc since September 13, 2019. Mr. Wilson served as Group Finance Director of Genus plc since March 1, 2013 and served as its Execu ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.96M) is about average for companies of similar size in the German market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Wilson
CEO & Director0.4yrsUK£1.51m0.16% £4.0m
Alison Henriksen
CFO & Director0.08yrsno datano data
William Christianson
Chief Operating Officer0yrsno data0.10% £2.6m
Elena Rice
Head of R&D and Chief Scientific Officer0.6yrsno datano data
Dan Hartley
Group General Counsel & Company Secretary5.7yrsno data0.093% £2.3m
Angelle Rosata
Group Human Resources Director2.6yrsno datano data
Jerry Thompson
Chief Operating Officer of Genus ABS Beef7.6yrsno datano data
Nate Zwald
Chief Operating Officer of Genus ABS Dairy3yrsno datano data
Janet Duane
Group Financial Controller0yrsno datano data

2.6yrs

Average Tenure

Experienced Management: GBE's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Wilson
CEO & Director0.4yrsUK£1.51m0.16% £4.0m
Alison Henriksen
CFO & Director0.08yrsno datano data
Ian Charles
Independent Non-Executive Director1.6yrsUK£55.00kno data
Lesley Mary Knox
Senior Independent Non-Executive Director1.3yrsUK£57.00k0.0031% £76.6k
Robert Lawson
Independent Non-Executive Chairman9.3yrsUK£171.00k0.013% £327.9k
Lykele van der Broek
Non-Executive Director5.6yrsUK£60.00k0.0058% £143.8k
Lysanne Gray
Independent Non-Executive Director3.8yrsUK£61.00kno data

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: GBE's board of directors are considered experienced (3.8 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 diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Genus plc
  • Ticker: GBE
  • Exchange: DB
  • Founded: 1994
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£2.063b
  • Listing Market Cap: UK£2.479b
  • Shares outstanding: 64.67m
  • Website: https://www.genusplc.com

Number of Employees


Location

  • Genus plc
  • Matrix House
  • Basing View
  • Basingstoke
  • Hampshire
  • RG21 4DZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1998
GENS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1998
GBEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1998
GNSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1998

Biography

Genus plc operates as an animal genetics company in North America, Latin America, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates in three segments: Genus PIC, Genus ABS, and Research and Development. It sells sows, boars, and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands. In addition, it offers semen sexing, in vitro fertilization, reproductive, and other technical services to farmers. The company has a strategic porcine collaboration with Beijing Capital Agribusiness Co. Ltd to research, develop, register, and market porcine reproductive and respiratory syndrome virus resistant pigs. Genus plc was incorporated in 1994 and is based in Basingstoke, 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 22:15
End of Day Share Price2020/02/14 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.