DB:SG9

Stock Analysis Report

Executive Summary

Strix Group Plc designs, manufactures, and supplies kettle safety controls and other components worldwide.


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SG9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

SG9

4.3%

DE Electronic

7.2%

DE Market


1 Year Return

-14.8%

SG9

-26.3%

DE Electronic

-17.5%

DE Market

Return vs Industry: SG9 exceeded the German Electronic industry which returned -26.3% over the past year.

Return vs Market: SG9 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

SG9IndustryMarket
7 Day-2.3%4.3%7.2%
30 Day-21.3%-25.8%-22.3%
90 Day-31.7%-23.6%-26.1%
1 Year-10.7%-14.8%-24.8%-26.3%-14.9%-17.5%
3 Yearn/a-2.3%-5.5%-18.7%-25.7%
5 Yearn/a55.1%43.8%-17.8%-29.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SG9 (€1.56) is trading below our estimate of fair value (€3.27)

Significantly Below Fair Value: SG9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SG9 is good value based on its PE Ratio (12.5x) compared to the Electronic industry average (16x).

PE vs Market: SG9 is good value based on its PE Ratio (12.5x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: SG9 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SG9 is overvalued based on its PB Ratio (296.2x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

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

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SG9's forecast earnings growth (17.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: SG9's earnings (17.7% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: SG9's earnings are forecast to grow, but not significantly.

Revenue vs Market: SG9's revenue (5.1% per year) is forecast to grow faster than the German market (4.2% per year).

High Growth Revenue: SG9's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SG9's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Strix Group performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SG9 has a large one-off loss of £7.3M impacting its December 31 2019 financial results.

Growing Profit Margin: SG9's current net profit margins (22.2%) are lower than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: SG9's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: SG9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SG9 had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Electronic industry average (-7.4%).


Return on Equity

High ROE: Whilst SG9's Return on Equity (2364.22%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Strix Group's financial position?


Financial Position Analysis

Short Term Liabilities: SG9's short term assets (£32.5M) exceed its short term liabilities (£21.2M).

Long Term Liabilities: SG9's short term assets (£32.5M) do not cover its long term liabilities (£43.0M).


Debt to Equity History and Analysis

Debt Level: SG9's debt to equity ratio (4390.8%) is considered high.

Reducing Debt: SG9's debt to equity ratio has increased from 69.3% to 4390.8% over the past 5 years.

Debt Coverage: SG9's debt is well covered by operating cash flow (85.9%).

Interest Coverage: SG9's interest payments on its debt are well covered by EBIT (24.9x coverage).


Balance Sheet

Inventory Level: SG9 has a high level of physical assets or inventory.

Debt Coverage by Assets: SG9's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

5.42%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMay 07 2020Dividend Pay DateJun 03 202027 days from Ex DividendBuy in the next 39 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SG9's dividend (5.42%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: SG9's dividend (5.42%) is in the top 25% of dividend payers in the German market (4.96%)


Stability and Growth of Payments

Stable Dividend: SG9 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SG9's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.9%), SG9's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SG9's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

2.7yrs

Average board tenure


CEO

Mark Victor Bartlett (54yo)

no data

Tenure

UK£427,000

Compensation

Mr. Mark Victor Edward Bartlett serves as Chief Executive Officer of Strix Group Plc. Mr. Bartlett joined Strix in 2006. He leads the organisation, setting the strategic direction and policy and works clos ...


CEO Compensation Analysis

Compensation vs Market: Mark Victor's total compensation ($USD530.01K) is below average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: Mark Victor's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Mark Victor Bartlett
CEO & Directorno dataUK£427.00k0.16% £476.9k
Raudres Wong
CFO & Director2.67yrsUK£334.00k0.16% £476.9k
Mark Kirkland
Non-Executive Director2.67yrsUK£45.00kno data
Gary Lamb
Non-Executive Chairman2yrsUK£70.00k0.26% £794.8k
Richard Sells
Non-Executive Directorno datano datano data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: SG9's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Strix Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strix Group Plc
  • Ticker: SG9
  • Exchange: DB
  • Founded: 2017
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£269.800m
  • Listing Market Cap: UK£302.036m
  • Shares outstanding: 190.00m
  • Website: https://www.strixplc.com

Number of Employees


Location

  • Strix Group Plc
  • Forrest House
  • Ronaldsway
  • Ballasalla
  • IM9 2RG
  • Isle of Man

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KETLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2017
SG9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2017
STXX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2017

Biography

Strix Group Plc designs, manufactures, and supplies kettle safety controls and other components worldwide. The company offers thermostatic controls, cordless interfaces, water jugs, and filters. It also provides water heating and temperature control, steam management, and water filtration devices. The company offers steam boilers, instant flow heaters, and turbo toasters. It primarily serves original equipment manufacturers, brands, and retailers. The company was incorporated in 2017 and is headquartered in Ballasalla, the Isle of Man. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:14
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.