AIM:FLO

Stock Analysis Report

Executive Summary

Flowtech Fluidpower plc, together with its subsidiaries, distributes engineering components and assemblies in the areas of fluid power industry in the United Kingdom, Ireland, Benelux, and internationally.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

FLO

0.1%

GB Trade Distributors

-0.4%

GB Market


1 Year Return

-4.4%

FLO

7.8%

GB Trade Distributors

2.9%

GB Market

Return vs Industry: FLO underperformed the UK Trade Distributors industry which returned 7.8% over the past year.

Return vs Market: FLO underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

FLOIndustryMarket
7 Day3.6%0.1%-0.4%
30 Day-14.2%0.5%-1.4%
90 Day-21.5%2.5%-2.1%
1 Year0.4%-4.4%12.4%7.8%7.9%2.9%
3 Year-2.4%-14.1%41.0%28.0%18.0%3.6%
5 Year15.5%-5.8%81.9%58.0%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FLO (£1.09) is trading below our estimate of fair value (£2.05)

Significantly Undervalued: FLO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLO is good value based on its PE Ratio (14.2x) compared to the Trade Distributors industry average (15.8x).

PE vs Market: FLO is good value based on its PE Ratio (14.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FLO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: FLO is good value based on its PB Ratio (0.7x) compared to the GB Trade Distributors industry average (1.9x).


Next Steps

Future Growth

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

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLO's forecast earnings growth (15.5% per year) is above the savings rate (1.2%).

Earnings vs Market: FLO's earnings (15.5% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: FLO's revenue (1.2% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: FLO's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Flowtech Fluidpower performed over the past 5 years?

-39.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FLO's earnings have declined by -39.8% per year over the past 5 years.

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

Earnings vs Industry: FLO had negative earnings growth (-17.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (3.4%).


Return on Equity

High ROE: FLO's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: FLO's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: FLO has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Flowtech Fluidpower's financial position?


Financial Position Analysis

Short Term Liabilities: FLO's short term assets (£60.1M) exceeds its short term liabilities (£41.1M)

Long Term Liabilities: FLO's short term assets (60.1M) exceeds its long term liabilities (13.5M)


Debt to Equity History and Analysis

Debt Level: FLO's debt to equity ratio (24.8%) is considered satisfactory

Reducing Debt: FLO's debt to equity ratio has increased from 17.8% to 24.8% over the past 5 years.

Debt Coverage: FLO's debt is well covered by operating cash flow (46.8%).

Interest Coverage: FLO's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: FLO's debt is covered by short term assets (assets are 2.658790x debt).


Next Steps

Dividend

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

5.58%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.5%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FLO's dividend (5.58%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: FLO's dividend (5.58%) is in the top 25% of dividend payers in the UK market (5.36%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.4%), FLO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FLO's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Bryce Brooks (53yo)

1.1yrs

Tenure

UK£184,000

Compensation

Mr. Bryce Brooks has been the Chief Executive Officer of Flowtech Fluidpower plc since September 18, 2018. He served as the Chief Financial Officer of Flowtech Fluidpower Plc since March 2010 until Novembe ...


CEO Compensation Analysis

Compensation vs. Market: Bryce has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: FLO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

63yo

Average Age

Experienced Board: FLO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£30,71330 Sep 19
Russell Cash
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Director
Shares28,570
Max PriceUK£1.08
BuyUK£20,05815 Aug 19
William Wilson
EntityIndividual
Shares16,870
Max PriceUK£1.19
BuyUK£4,64018 Mar 19
William Wilson
EntityIndividual
Shares4,000
Max PriceUK£1.16

Ownership Breakdown


Management Team

  • John Farmer

    Managing Director of Flowtechnology Uk

    • Tenure: 0yrs
  • Paul McGrady

    Managing Director of Primary Fluid Power

    • Tenure: 0yrs
  • Bryce Brooks (53yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£184.00k
  • Helen Barrat

    Head of Corporate Governance

    • Tenure: 0yrs
  • Jon Burke

    Managing Director of Primary Fluid Power Systems

    • Tenure: 0yrs
  • Anne Fogg

    Head of Business Process

    • Tenure: 0yrs
  • Nick Fossey

    Chief Operating Officer

    • Tenure: 1.1yrs
  • Mark Nelson

    Managing Director of Nelson Hydraulics

    • Tenure: 0yrs
  • Russell Cash (51yo)

    CFO, Company Secretary & Director

    • Tenure: 0yrs
    • Compensation: UK£174.00k
  • Tamara Reiners

    Managing Director of Flowtechnology Benelux

    • Tenure: 1yrs

Board Members

  • Malcolm Diamond (71yo)

    Non-Executive Chairman

    • Tenure: 5.4yrs
    • Compensation: UK£80.00k
  • Nigel Richens (63yo)

    Non-Executive Director & Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£55.00k
  • Bill Wilson (63yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • Bryce Brooks (53yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£184.00k
  • Russell Cash (51yo)

    CFO, Company Secretary & Director

    • Tenure: 0yrs
    • Compensation: UK£174.00k

Company Information

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


Key Information

  • Name: Flowtech Fluidpower plc
  • Ticker: FLO
  • Exchange: AIM
  • Founded: 1983
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£66.508m
  • Shares outstanding: 61.16m
  • Website: https://www.flowtechfluidpower.com

Number of Employees


Location

  • Flowtech Fluidpower plc
  • Bollin House
  • Bollin Walk
  • Wilmslow
  • Cheshire
  • SK9 1DP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2014
FLWT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2014
2FWBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2014

Biography

Flowtech Fluidpower plc, together with its subsidiaries, distributes engineering components and assemblies in the areas of fluid power industry in the United Kingdom, Ireland, Benelux, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:18
End of Day Share Price2019/10/18 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.