Pennant International Group (AIM:PEN) - Share price, News & Analysis

PEN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

PEN Stock Overview

Pennant International Group plc provides integrated training and support solutions, products, and services in the United Kingdom, rest of Europe, the Middle East, North America, and Australia.

Rewards

Revenue is forecast to grow 5.99% per year

Risk Analysis

Earnings have declined by 58.2% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (£14M)

Pennant International Group Competitors

MS INTERNATIONAL

AIM:MSI

UK£44.2m

Velocity Composites

AIM:VEL

UK£6.9m

Nanosynth Group

AIM:NNN

UK£5.3m

Cohort

AIM:CHRT

UK£194.0m

Price History & Performance

Summary of all time highs, changes and price drops for Pennant International Group
Historical stock prices
Current Share Price	UK£0.38
52 Week High	UK£0.42
52 Week Low	UK£0.25
Beta	0.95
1 Month Change	-1.32%
3 Month Change	0%
1 Year Change	-1.32%
3 Year Change	-57.63%
5 Year Change	-58.33%
Change since IPO	-73.12%

Recent News & Updates

Sep 01

Is It Too Late To Consider Buying Pennant International Group plc (LON:PEN)?

Pennant International Group plc ( LON:PEN ), might not be a large cap stock, but it saw significant share price...

Shareholder Returns

	PEN	GB Aerospace & Defense	GB Market
7D	0%	3.0%	2.3%
1Y	-1.3%	37.4%	-8.6%

Return vs Industry: PEN underperformed the UK Aerospace & Defense industry which returned 37.4% over the past year.

Return vs Market: PEN exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is PEN's price volatile compared to industry and market?
PEN volatility
PEN Average Weekly Movement	5.3%
Aerospace & Defense Industry Average Movement	4.1%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: PEN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PEN's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	153	Phil Walker	https://www.pennantplc.co.uk

Pennant International Group plc provides integrated training and support solutions, products, and services in the United Kingdom, rest of Europe, the Middle East, North America, and Australia. It offers generic trainers, such as generic fastener installation, hand skill, stores loading, and flying controls trainers; basic helicopter maintenance trainers; hydraulic system principles trainers; integrated avionics maintenance trainers; crew escape and safety trainers; and engine starting system trainers, as well as wiring boards. The company also provides virtual reality (VR) solutions, including virtual loadmaster and parachute training systems; virtual reality shunter trainers; and synthetic environment cargo compartment and procedural trainers.

Pennant International Group Fundamentals Summary

How do Pennant International Group's earnings and revenue compare to its market cap?
PEN fundamental statistics
Market Cap	UK£13.77m
Earnings (TTM)	-UK£1.61m
Revenue (TTM)	UK£15.97m

0.9x

P/S Ratio

-8.5x

P/E Ratio

Is PEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEN income statement (TTM)
Revenue	UK£15.97m
Cost of Revenue	UK£11.61m
Gross Profit	UK£4.36m
Other Expenses	UK£5.97m
Earnings	-UK£1.61m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.044
Gross Margin	27.28%
Net Profit Margin	-10.11%
Debt/Equity Ratio	39.9%

How did PEN perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PEN. This is calculated by dividing PEN's market cap by their current preferred multiple.
What is PEN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£13.77m

PEN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	-9.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PEN's PS Ratio compare to its peers?

PEN PS Ratio vs Peers

The above table shows the PS ratio for PEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	7x
MSI MS INTERNATIONAL	0.6x	n/a	UK£44.2m
VEL Velocity Composites	0.7x	20.5%	UK£6.9m
NNN Nanosynth Group	25.5x	n/a	UK£5.3m
CHRT Cohort	1.3x	7.6%	UK£194.0m
PEN Pennant International Group	0.9x	6.0%	UK£13.8m

Forward PS

Price-To-Sales vs Peers: PEN is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (7x).

Price to Earnings Ratio vs Industry

How does PEN's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

Price-To-Sales vs Industry: PEN is good value based on its Price-To-Sales Ratio (0.9x) compared to the UK Aerospace & Defense industry average (1.3x)

Price to Sales Ratio vs Fair Ratio

What is PEN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: PEN is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Share Price vs Fair Value

What is the Fair Price of PEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PEN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PEN's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PEN's PEG Ratio to determine if it is good value.

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Future Growth

How is Pennant International Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.0%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PEN's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if PEN's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if PEN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PEN's revenue (6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: PEN's revenue (6% 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 PEN's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Pennant International Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-58.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PEN is currently unprofitable.

Growing Profit Margin: PEN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PEN is unprofitable, and losses have increased over the past 5 years at a rate of 58.2% per year.

Accelerating Growth: Unable to compare PEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PEN is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-20.2%).

Return on Equity

High ROE: PEN has a negative Return on Equity (-14.48%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Pennant International Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PEN's short term assets (£6.6M) do not cover its short term liabilities (£9.0M).

Long Term Liabilities: PEN's short term assets (£6.6M) exceed its long term liabilities (£1.4M).

Debt to Equity History and Analysis

Debt Level: PEN's net debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: PEN's debt to equity ratio has increased from 0% to 39.9% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PEN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PEN has less than a year of cash runway if free cash flow continues to reduce at historical rates of 6.7% each year

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Dividend

What is Pennant International Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PEN's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: PEN is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PEN has not reported any payouts.

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Management

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

5.0yrs

Average management tenure

CEO

Phil Walker (41 yo)

5.33yrs

Tenure

UK£247,000

Compensation

Mr. Philip Henry Walker, also known as Phil, has been Chief Executive Officer of Pennant International Group plc since February 2017 and serves as its Chair of Management Board. Mr. Walker served as Compan...

CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD303.90K) is about average for companies of similar size in the UK market ($USD335.53K).

Compensation vs Earnings: Phil's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: PEN's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: PEN's board of directors are considered experienced (4.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31