BST:9ES

Stock Analysis Report

Eddie Stobart Logistics

Executive Summary

Eddie Stobart Logistics plc provides logistics, distribution, and warehousing services for a range of service sectors and industrial clients in the United Kingdom and internationally.

Snowflake

Fundamentals

Undervalued with moderate growth potential.

Risks

  • Eddie Stobart Logistics has significant price volatility in the past 3 months.

Share Price & News

How has Eddie Stobart Logistics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

BST:9ES

-0.8%

DE Transportation

-0.7%

DE Market


1 Year Return

-48.0%

BST:9ES

-23.5%

DE Transportation

-10.8%

DE Market

9ES underperformed the Transportation industry which returned -23.5% over the past year.

9ES underperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

9ESIndustryMarket
7 Day-1.6%-0.8%-0.7%
30 Day-9.5%-10.3%-3.9%
90 Day-19.0%-10.6%-4.3%
1 Year-44.4%-48.0%-21.7%-23.5%-8.0%-10.8%
3 Yearn/a58.0%47.0%9.8%0.3%
5 Yearn/a118.6%91.2%24.0%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Eddie Stobart Logistics undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Eddie Stobart Logistics's share price is below the future cash flow value, and at a moderate discount (> 20%).

Eddie Stobart Logistics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Eddie Stobart Logistics is overvalued based on earnings compared to the Europe Transportation industry average.

Eddie Stobart Logistics is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Eddie Stobart Logistics is good value based on expected growth next year.


Price Based on Value of Assets

Eddie Stobart Logistics is good value based on assets compared to the DE Transportation industry average.


Next Steps

Future Growth

How is Eddie Stobart Logistics expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Eddie Stobart Logistics's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Eddie Stobart Logistics's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).

Eddie Stobart Logistics's revenue growth is expected to exceed the Germany market average.

Eddie Stobart Logistics's earnings growth is expected to exceed the Germany market average.

Eddie Stobart Logistics's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Eddie Stobart Logistics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Eddie Stobart Logistics performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Eddie Stobart Logistics has delivered over 20% year on year earnings growth in the past 5 years.

Eddie Stobart Logistics's 1-year earnings growth exceeds its 5-year average (313.3% vs 27.5%)

Eddie Stobart Logistics's earnings growth has exceeded the Europe Transportation industry average in the past year (313.3% vs 4.7%).


Return on Equity

Eddie Stobart Logistics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Eddie Stobart Logistics used its assets less efficiently than the Europe Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Eddie Stobart Logistics's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Eddie Stobart Logistics's financial position?


Financial Position Analysis

Eddie Stobart Logistics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Eddie Stobart Logistics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Eddie Stobart Logistics's level of debt (65.8%) compared to net worth is high (greater than 40%).

Unable to establish if Eddie Stobart Logistics's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

What is Eddie Stobart Logistics's current dividend yield, its reliability and sustainability?

9.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Eddie Stobart Logistics's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Eddie Stobart Logistics's dividend is above the markets top 25% of dividend payers in Germany (4.22%).

Whilst dividend payments have been stable, Eddie Stobart Logistics has been paying a dividend for less than 10 years.

Dividend payments have increased, but Eddie Stobart Logistics only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Eddie Stobart Logistics's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Alex Laffey (57yo)

4.3yrs

Tenure

UK£470,000

Compensation

Mr. Alexander Laffey, also known as Alex, has been the Chief Executive Officer of Eddie Stobart Logistics plc since May 2015 and it its Director since April 4, 2017. Mr. Laffey is an International Logistic ...


CEO Compensation Analysis

Alex's remuneration is lower than average for companies of similar size in Germany.

Alex's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.3yrs

Average Tenure

65.5yo

Average Age

The average tenure for the Eddie Stobart Logistics board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£22,94215 Apr 19
Stephen Harley
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceUK£1.15
BuyUK£28,23308 Apr 19
Philip Swatman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares25,000
Max PriceUK£1.13
SellUK£67,76417 Sep 18
David Meir
EntityIndividual
Shares50,000
Max PriceUK£1.36

Ownership Breakdown


Management Team

  • Ba Milt Court (58yo)

    Chief Information Officer

    • Tenure: 0.0yrs
  • Dave Pickering (46yo)

    Chief Operating Officer of Transport Operations

    • Tenure: 0.0yrs
  • Anoop Kang (44yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Alex Laffey (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: UK£470.00k
  • Angelina Miley (41yo)

    Human Resource Director

    • Tenure: 0.0yrs
  • Elaine Williams

    Legal Director & Company Secretary

    • Tenure: 0.0yrs
  • Sébastien Desreumaux

    Chief Executive Officer of Contract Logistics & Warehousing Operations

    • Tenure: 0.0yrs
  • Simon Edwards

    Managing Director of Logistics People

    • Tenure: 0.0yrs
  • Raf Hustinx

    Managing Director Europe

    • Tenure: 0.0yrs
  • Dave Simpson

    Special Operations Director

    • Tenure: 0.0yrs

Board Members

  • Philip Swatman (69yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£151.00k
  • Christopher Casey (64yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£70.00k
  • Stephen Harley (67yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£60.00k
  • Alex Laffey (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: UK£470.00k

Company Information

Eddie Stobart Logistics plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eddie Stobart Logistics plc
  • Ticker: 9ES
  • Exchange: BST
  • Founded: 1970
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£268.514m
  • Listing Market Cap: UK£293.775m
  • Shares outstanding: 377.66m
  • Website: https://www.eddiestobart.com

Number of Employees


Location

  • Eddie Stobart Logistics plc
  • Stretton Green Distribution Park
  • Langford Way
  • Warrington
  • Cheshire
  • WA4 4TQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2017
9ESBST (Boerse-Stuttgart)YesOrdinary SharesDEEURApr 2017

Biography

Eddie Stobart Logistics plc provides logistics, distribution, and warehousing services for a range of service sectors and industrial clients in the United Kingdom and internationally. It operates through R ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 22:05
End of Day Share Price2019/08/21 00:00
Earnings2018/11/30
Annual Earnings2018/11/30


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.