AIM:MAB1

Stock Analysis Report

Mortgage Advice Bureau (Holdings)

Executive Summary

Mortgage Advice Bureau (Holdings) PLC, through its subsidiaries, provides mortgage advice in the United Kingdom.

Snowflake

Fundamentals

High growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Mortgage Advice Bureau (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAB1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

MAB1

0.5%

GB Mortgage

-0.5%

GB Market


1 Year Return

13.7%

MAB1

-0.08%

GB Mortgage

3.7%

GB Market

Return vs Industry: MAB1 exceeded the UK Mortgage industry which returned -0.1% over the past year.

Return vs Market: MAB1 exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

MAB1IndustryMarket
7 Day2.6%0.5%-0.5%
30 Day12.5%2.2%2.0%
90 Day7.5%8.9%5.6%
1 Year18.6%13.7%3.1%-0.08%9.2%3.7%
3 Year121.4%95.3%41.4%27.1%23.4%7.7%
5 Year352.2%263.1%59.9%45.2%34.2%3.7%

Price Volatility Vs. Market

How volatile is Mortgage Advice Bureau (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mortgage Advice Bureau (Holdings) undervalued compared to its fair value and its price relative to the market?

24.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAB1 (£6.3) is trading above our estimate of fair value (£3.52)

Significantly Below Fair Value: MAB1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAB1 is poor value based on its PE Ratio (24.2x) compared to the Mortgage industry average (7.9x).

PE vs Market: MAB1 is poor value based on its PE Ratio (24.2x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: MAB1 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MAB1 is overvalued based on its PB Ratio (14.9x) compared to the GB Mortgage industry average (1.2x).


Next Steps

Future Growth

How is Mortgage Advice Bureau (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAB1's forecast earnings growth (21.3% per year) is above the savings rate (1.2%).

Earnings vs Market: MAB1's earnings (21.3% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: MAB1's revenue (16.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: MAB1's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAB1's Return on Equity is forecast to be very high in 3 years time (72.6%).


Next Steps

Past Performance

How has Mortgage Advice Bureau (Holdings) performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if MAB1 has high quality earnings.

Growing Profit Margin: MAB1's current net profit margins (10.5%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: MAB1's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: MAB1's earnings growth over the past year (5.1%) is below its 5-year average (18.4% per year).

Earnings vs Industry: MAB1 earnings growth over the past year (5.1%) exceeded the Mortgage industry 0.8%.


Return on Equity

High ROE: MAB1's Return on Equity (61.7%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mortgage Advice Bureau (Holdings)'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: MAB1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MAB1's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: MAB1's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MAB1 has a sufficient allowance for bad loans.

Low Risk Liabilities: MAB1 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MAB1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MAB1 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MAB1 has an appropriate level of bad loans.


Next Steps

Dividend

What is Mortgage Advice Bureau (Holdings)'s current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.0%markettop25%5.3%industryaverage4.8%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: MAB1's dividend (3.7%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: MAB1's dividend (3.7%) is low compared to the top 25% of dividend payers in the UK market (5.31%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MAB1 has been paying a dividend for less than 10 years.

Growing Dividend: MAB1's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.5%), MAB1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAB1's dividends in 3 years are forecast to be covered by earnings (81.3% payout ratio).


Next Steps

Management

What is the CEO of Mortgage Advice Bureau (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Peter Christopher Brodnicki (56yo)

0yrs

Tenure

UK£498,834

Compensation

Mr. Peter Christopher Steven Brodnicki serves as the Chief Executive Officer of Mortgage Advice Bureau (Holdings) PLC and serves as its Executive Director. 


CEO Compensation Analysis

Compensation vs Market: Peter Christopher's total compensation ($USD640.75K) is about average for companies of similar size in the UK market ($USD894.05K).

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


Management Age and Tenure

4.0yrs

Average Tenure

50yo

Average Age

Experienced Management: MAB1's management team is considered experienced (4 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

56yo

Average Age

Experienced Board: MAB1's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: MAB1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£1,51931 Oct 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares254
Max PriceUK£5.98
BuyUK£29614 Oct 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares52
Max PriceUK£5.70
BuyUK£1,51430 Sep 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares269
Max PriceUK£5.63
BuyUK£1,51430 Aug 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares268
Max PriceUK£5.65
BuyUK£30014 Aug 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares50
Max PriceUK£6.00
BuyUK£1,51607 Aug 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares251
Max PriceUK£6.04
BuyUK£6,12002 Jul 19
Katherine Christina Mary Ker
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000
Max PriceUK£6.12
BuyUK£30014 Jun 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares50
Max PriceUK£6.00
BuyUK£1,51531 May 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares264
Max PriceUK£5.74
BuyUK£29416 May 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares50
Max PriceUK£5.88
BuyUK£30116 Apr 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares52
Max PriceUK£5.78
BuyUK£29814 Mar 19
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares50
Max PriceUK£5.96
BuyUK£1,50831 Jan 19
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares260
Max PriceUK£5.80
BuyUK£1,45231 Dec 18
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares282
Max PriceUK£5.15
BuyUK£30017 Dec 18
Lucy Tilley
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Executive Director
Shares58
Max PriceUK£5.18
BuyUK£1,45330 Nov 18
Nathan James Imlach
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares271
Max PriceUK£5.36

Ownership Breakdown

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


Management Team

  • Ben Thompson (50yo)

    Deputy CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£181.49k
  • Peter Christopher Brodnicki (56yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£498.83k
  • Haythorn Tilley (47yo)

    CFO, Secretary & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£291.55k
  • Gemma Bacon

    Head of Marketing

    • Tenure: 4.1yrs
  • Sharon Trinder

    Compliance Director

    • Tenure: 3.8yrs
  • Don MacPherson

    Chief Commercial Officer

    • Tenure: 0yrs

Board Members

  • Robin Ker (59yo)

    Non-Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: UK£74.00k
  • David Preece (58yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£295.56k
  • Nathan James Imlach (50yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£38.30k
  • Ben Thompson (50yo)

    Deputy CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£181.49k
  • Peter Christopher Brodnicki (56yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£498.83k
  • Haythorn Tilley (47yo)

    CFO, Secretary & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£291.55k
  • Stephen Charles Smith (61yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£31.06k

Company Information

Mortgage Advice Bureau (Holdings) plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mortgage Advice Bureau (Holdings) plc
  • Ticker: MAB1
  • Exchange: AIM
  • Founded: 2000
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: UK£325.157m
  • Shares outstanding: 51.61m
  • Website: https://www.mortgageadvicebureau.com

Number of Employees


Location

  • Mortgage Advice Bureau (Holdings) plc
  • Capital House
  • Pride Place
  • Derby
  • Derbyshire
  • DE24 8QR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAB1AIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2014

Biography

Mortgage Advice Bureau (Holdings) PLC, through its subsidiaries, provides mortgage advice in the United Kingdom. It provides advice on approximately 12,000 residential and buy-to-let mortgage products thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 21:27
End of Day Share Price2019/11/13 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.