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NCC Group

BST:NZB
Snowflake Description

Flawless balance sheet with reasonable growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NZB
BST
£540M
Market Cap
  1. Home
  2. DE
  3. Software
Company description

NCC Group plc provides cyber security and risk mitigation services in the United Kingdom, the United States, Europe, and internationally. The last earnings update was 51 days ago. More info.


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Price Volatility
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5yr Volatility vs Market
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Value

 Is NCC Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NCC Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NCC Group.

BST:NZB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BST:NZB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 9.5%
IT Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.59 (1 + (1- 19%) (9.07%))
0.633
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.54% + (0.8 * 9.46%)
8.11%

Discounted Cash Flow Calculation for BST:NZB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NCC Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

BST:NZB DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 23.70 29.50 34.81 40.73 47.24
Source Analyst x1 Analyst x1 Est @ 18%, capped from 20.42% Est @ 17%, capped from 20.42% Est @ 16%, capped from 20.42%
Present Value
Discounted (@ 8.11%)
21.92 25.24 27.55 29.82 31.99
Present value of next 5 years cash flows £136.52
BST:NZB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £47.24 × (1 + 0.54%) ÷ (8.11% – 0.54%)
£627.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £627.78 ÷ (1 + 8.11%)5
£425.12
BST:NZB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £136.52 + £425.12
£561.64
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £561.64 / 277.72
£2.49
BST:NZB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BST:NZB represents 1.23204x of LSE:NCC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.23204x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 2.02 x 1.23204
€2.49
Value per share (EUR) From above. €2.49
Current discount Discount to share price of €2.38
= -1 x (€2.38 - €2.49) / €2.49
4.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NCC Group is available for.
Intrinsic value
4%
Share price is €2.38 vs Future cash flow value of €2.49
Current Discount Checks
For NCC Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NCC Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • NCC Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NCC Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NCC Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BST:NZB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-05-31) in GBP £0.04
LSE:NCC Share Price ** LSE (2018-07-18) in GBP £1.94
Germany IT Industry PE Ratio Median Figure of 20 Publicly-Listed IT Companies 27.69x
Germany Market PE Ratio Median Figure of 407 Publicly-Listed Companies 18.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NCC Group.

BST:NZB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:NCC Share Price ÷ EPS (both in GBP)

= 1.94 ÷ 0.04

43.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC Group is overvalued based on earnings compared to the DE IT industry average.
  • NCC Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does NCC Group's expected growth come at a high price?
Raw Data
BST:NZB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
28.4%per year
Germany IT Industry PEG Ratio Median Figure of 15 Publicly-Listed IT Companies 1.45x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

BST:NZB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.23x ÷ 28.4%

1.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NCC Group's assets?
Raw Data
BST:NZB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-05-31) in GBP £0.75
LSE:NCC Share Price * LSE (2018-07-18) in GBP £1.94
Germany IT Industry PB Ratio Median Figure of 25 Publicly-Listed IT Companies 3.81x
Germany Market PB Ratio Median Figure of 547 Publicly-Listed Companies 1.86x
BST:NZB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:NCC Share Price ÷ Book Value per Share (both in GBP)

= 1.94 ÷ 0.75

2.58x

* Primary Listing of NCC Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC Group is good value based on assets compared to the DE IT industry average.
X
Value checks
We assess NCC Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. NCC Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NCC Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NCC Group expected to grow at an attractive rate?
  • NCC Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • NCC Group's earnings growth is expected to exceed the Germany market average.
  • NCC Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
BST:NZB Future Growth Rates Data Sources
Data Point Source Value (per year)
BST:NZB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 28.4%
BST:NZB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 8.8%
Germany IT Industry Earnings Growth Rate Market Cap Weighted Average 25.5%
Germany IT Industry Revenue Growth Rate Market Cap Weighted Average 18.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 10.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BST:NZB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BST:NZB Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-05-31 332 1
2021-05-31 307 2
2020-05-31 284 39 23 5
2019-05-31 256 36 18 5
BST:NZB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-05-31 233 33 12
2018-02-28 228 32 -18
2017-11-30 252 31 -58
2017-08-31 248 29 -57
2017-05-31 215 28 -47
2017-02-28 221 25 -21
2016-11-30 226 23 5
2016-08-31 217 18 6
2016-05-31 209 14 6
2016-02-29 187 13 10
2015-11-30 165 13 14
2015-08-31 149 16 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NCC Group's earnings are expected to grow significantly at over 20% yearly.
  • NCC Group's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BST:NZB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from NCC Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:NZB Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-05-31
2021-05-31 0.12 0.12 0.12 1.00
2020-05-31 0.08 0.11 0.05 2.00
2019-05-31 0.07 0.09 0.04 3.00
BST:NZB Past Financials Data
Date (Data in GBP Millions) EPS *
2018-05-31 0.04
2018-02-28 -0.06
2017-11-30 -0.21
2017-08-31 -0.21
2017-05-31 -0.17
2017-02-28 -0.08
2016-11-30 0.02
2016-08-31 0.02
2016-05-31 0.02
2016-02-29 0.04
2015-11-30 0.06
2015-08-31 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NCC Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NCC Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NCC Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NCC Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NCC Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NCC Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • NCC Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • NCC Group has become profitable in the last year making it difficult to compare the DE IT industry average.
Earnings and Revenue History
NCC Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NCC Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:NZB Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-05-31 233.20 12.40 65.40
2018-02-28 228.20 -18.00 63.10
2017-11-30 252.40 -58.10 65.20
2017-08-31 248.45 -57.35 61.40
2017-05-31 215.30 -46.90 53.20
2017-02-28 220.60 -20.91 55.46
2016-11-30 225.89 5.09 57.73
2016-08-31 217.50 5.70 50.16
2016-05-31 209.10 6.30 42.60
2016-02-29 186.99 10.37 30.20
2015-11-30 164.88 14.43 17.80
2015-08-31 149.29 15.61 16.63
2015-05-31 133.70 16.79 15.46
2015-02-28 126.34 17.29 14.96
2014-11-30 118.99 17.79 14.45
2014-08-31 114.82 17.95 14.50
2014-05-31 110.66 18.11 14.55
2014-02-28 107.92 17.98 14.35
2013-11-30 105.17 17.85 14.16
2013-08-31 102.20 16.17 13.42
2013-05-31 99.23 14.48 12.67
2013-02-28 96.29 10.95 12.19
2012-11-30 93.36 7.42 11.72
2012-08-31 90.54 7.52 11.42
2012-05-31 87.71 7.62 11.12
2012-02-29 84.05 9.44 10.49
2011-11-30 80.39 11.27 9.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NCC Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NCC Group used its assets less efficiently than the DE IT industry average last year based on Return on Assets.
  • NCC Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess NCC Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NCC Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NCC Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NCC Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NCC Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NCC Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NCC Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NCC Group Company Filings, last reported 4 months ago.

BST:NZB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-05-31 208.20 49.00 21.20
2018-02-28 208.20 49.00 21.20
2017-11-30 207.90 57.80 13.40
2017-08-31 207.90 57.80 13.40
2017-05-31 212.10 56.00 12.30
2017-02-28 212.10 56.00 12.30
2016-11-30 277.56 70.92 22.13
2016-08-31 277.56 70.92 22.13
2016-05-31 262.90 33.40 20.70
2016-02-29 262.90 33.40 20.70
2015-11-30 194.94 95.45 22.22
2015-08-31 194.94 95.45 22.22
2015-05-31 131.73 67.08 16.35
2015-02-28 131.73 67.08 16.35
2014-11-30 84.74 38.29 6.99
2014-08-31 84.74 38.29 6.99
2014-05-31 79.60 34.79 11.21
2014-02-28 79.60 34.79 11.21
2013-11-30 73.58 33.71 7.53
2013-08-31 73.58 33.71 7.53
2013-05-31 70.47 29.85 4.59
2013-02-28 70.47 29.85 4.59
2012-11-30 62.40 34.33 6.19
2012-08-31 62.40 34.33 6.19
2012-05-31 60.36 28.15 5.45
2012-02-29 60.36 28.15 5.45
2011-11-30 59.84 31.20 7.78
  • NCC Group's level of debt (23.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42.4% vs 23.5% today).
  • Debt is well covered by operating cash flow (67.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.2x coverage).
X
Financial health checks
We assess NCC Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NCC Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.4%
Current annual income from NCC Group dividends. Estimated to be 3.07% next year.
If you bought €2,000 of NCC Group shares you are expected to receive €48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NCC Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.51%).
  • NCC Group's dividend is below the markets top 25% of dividend payers in Germany (3.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BST:NZB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany IT Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 0.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BST:NZB Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-05-31 0.09 1.00
2021-05-31 0.07 3.00
2020-05-31 0.06 6.00
2019-05-31 0.05 7.00
BST:NZB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-08-28 0.047 2.251
2018-07-17 0.047 2.111
2018-01-16 0.047 2.310
2017-07-18 0.047 2.171
2017-07-17 0.047 2.626
2016-08-23 0.047 2.640
2016-07-07 0.047 1.446
2015-07-09 0.040 1.490
2015-07-08 0.040 1.815
2014-07-14 0.035 1.690
2014-07-03 0.035 1.788
2013-07-04 0.031 1.822
2013-01-17 0.028 2.222
2012-07-05 0.027 1.835
2011-07-07 0.022 1.713
2010-07-05 0.018 2.073
2010-07-02 0.018 2.547
2009-07-02 0.015 2.402
2009-06-01 0.015 2.783
2009-01-22 0.013 2.418
2008-10-16 0.012 2.211

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NCC Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess NCC Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NCC Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NCC Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adam Palser, image provided by Google.
Adam Palser
TENURE AS CEO 0.8 years
CEO Bio

Mr. Adam Palser has been the Chief Executive Officer and Executive Director of NCC Group plc since December 01, 2017. Mr. Palser served as the Chief Executive Officer of NSL Limited since February 10, 2015. Mr. Palser servesd as the Chief Executive of NSL Services Group Limited. He served as the Managing Director of Consulting at QinetiQ Group Plc. He served as the Managing Director of Technical & Information Services Group. He joined NSL after ten years at the international defence and security firm QinetiQ where he held several senior management positions including Group Business Development Director. He serves as a Director of Commerce Decisions Limited. Mr. Palser has a First Class Degree and a Doctorate in Chemistry from Balliol College, Oxford.

CEO Compensation
  • Insufficient data for Adam to compare compensation growth.
  • Insufficient data for Adam to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure of the NCC Group management team in years:

0.7
Average Tenure
  • The average tenure for the NCC Group management team is less than 2 years, this suggests a new team.
Management Team

Adam Palser

TITLE
CEO & Executive Director
TENURE
0.8 yrs

Tim Kowalski

TITLE
CFO & Executive Director
AGE
59
TENURE
0.3 yrs

Steve Boughton

TITLE
Global Operations Director
TENURE
0.6 yrs

Ollie Whitehouse

TITLE
Chief Technical Officer

Suzy Cross

TITLE
General Counsel & Company Secretary
TENURE
0.8 yrs

Roger Rawlinson

TITLE
Managing Director of Assurance Division - UK & RoW

Sean Preece

TITLE
Head of Specialist Testing

Rob Horton

TITLE
Global Head of Assurance Delivery

Daniel Liptrott

TITLE
Managing Director of Escrow

Ian Robertson

TITLE
Senior VP & COO of Canada
Board of Directors Tenure

Average tenure and age of the NCC Group board of directors in years:

0.8
Average Tenure
59
Average Age
  • The average tenure for the NCC Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chris Stone

TITLE
Non-Executive Chairman
COMPENSATION
£52K
AGE
55
TENURE
1.5 yrs

Adam Palser

TITLE
CEO & Executive Director
TENURE
0.8 yrs

Tim Kowalski

TITLE
CFO & Executive Director
AGE
59
TENURE
0.3 yrs

Chris Batterham

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£38K
AGE
63
TENURE
0.6 yrs

Jonathan Brooks

TITLE
Independent Non-Executive Director
COMPENSATION
£8K
AGE
62
TENURE
1.6 yrs

Mike Ettling

TITLE
Independent Non-Executive Director
AGE
54
TENURE
1.1 yrs

Jenny Duvalier

TITLE
Independent Non-Executive Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
X
Management checks
We assess NCC Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NCC Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

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Company Info

Map
Description

NCC Group plc provides cyber security and risk mitigation services in the United Kingdom, the United States, Europe, and internationally. The company operates through two segments, Escrow and Assurance. It offers software escrow solutions that include escrow agreements, software verification, secure verification, software as a service assured, Internet corporation for assigned names and numbers compliance, and software risk assessment solutions. The company also provides cyber security services, such as penetration testing and security assessments, managed detection and response, vulnerability discovery and management, compliance and accreditations, risk management, products and cloud services, technology solutions, threat intelligence, and specialist practices; and Web performance solutions, including performance review, mobile performance review, third-party tag review, performance workshop, digital performance management, digital performance strategy, and Web performance testing services. It serves customers in transport industry that include automotive, maritime, aerospace, and rail; and oil and gas, Internet of Thing, finance, small business, and retail sectors. NCC Group plc was founded in 1999 and is headquartered in Manchester, the United Kingdom.

Details
Name: NCC Group plc
NZB
Exchange: BST
Founded: 1999
£614,806,122
277,721,515
Website: http://www.nccgroup.trust
Address: NCC Group plc
XYZ Building,
2 Hardman Boulevard,
Manchester,
Greater Manchester, M3 3AQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE NCC Ordinary Shares London Stock Exchange GB GBP 09. Jul 2004
OTCPK NCCG.F Ordinary Shares Pink Sheets LLC US USD 09. Jul 2004
DB NZB Ordinary Shares Deutsche Boerse AG DE EUR 09. Jul 2004
BST NZB Ordinary Shares Boerse-Stuttgart DE EUR 09. Jul 2004
BATS-CHIXE NCCl Ordinary Shares BATS 'Chi-X Europe' GB GBP 09. Jul 2004
Number of employees
Current staff
Staff numbers
1,600
NCC Group employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/15 18:35
End of day share price update: 2018/07/18 00:00
Last estimates confirmation: 2018/10/12
Last earnings filing: 2018/08/25
Last earnings reported: 2018/05/31
Last annual earnings reported: 2018/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.