AIM:PEN

Stock Analysis Report

Pennant International Group

Executive Summary

Pennant International Group plc, through its subsidiaries, provides integrated training and support solutions, products, and services in the United Kingdom, North America, and Australasia.


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

PEN

1.7%

GB Aerospace & Defense

0.3%

GB Market


1 Year Return

-40.8%

PEN

36.2%

GB Aerospace & Defense

6.5%

GB Market

Return vs Industry: PEN underperformed the UK Aerospace & Defense industry which returned 36.2% over the past year.

Return vs Market: PEN underperformed the UK Market which returned 6.4% over the past year.


Shareholder returns

PENIndustryMarket
7 Day-2.0%1.7%0.3%
30 Day-14.5%2.0%-0.5%
90 Day-15.9%11.1%3.8%
1 Year-40.8%-40.8%40.9%36.2%12.0%6.5%
3 Year-8.1%-8.1%31.3%17.6%18.7%3.8%
5 Year-9.7%-13.5%33.4%6.2%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PEN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PEN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PEN is unprofitable, so we can't compare its PE Ratio to the Aerospace & Defense industry average.

PE vs Market: PEN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PEN is good value based on its PB Ratio (1.8x) compared to the GB Aerospace & Defense industry average (2.6x).


Next Steps

Future Growth

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

23.2%

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 (0.5%).

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 earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PEN's revenue (23.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: PEN's revenue (23.2% per year) is forecast to grow faster 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


Next Steps

Past Performance

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

8.5%

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, but has reduced losses over the past 5 years at a rate of 8.5% 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 (-13.2%).


Return on Equity

High ROE: PEN has a negative Return on Equity (-4.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pennant International Group's financial position?


Financial Position Analysis

Short Term Liabilities: PEN's short term assets (£7.9M) exceed its short term liabilities (£5.1M).

Long Term Liabilities: PEN's short term assets (£7.9M) exceed its long term liabilities (£928.1K).


Debt to Equity History and Analysis

Debt Level: PEN's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: PEN's debt to equity ratio has increased from 0% to 2.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PEN's debt is covered by short term assets (assets are 18.8x debt).


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 been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: PEN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%5.1%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PEN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Phil Walker (39yo)

3yrs

Tenure

UK£208,859

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 ($USD270.81K) is about average for companies of similar size in the UK market ($USD323.65K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philip Walker
CEO, Director & Chair of Management Board3yrsUK£208.86k0.055% £14.7k
David Clements
Commercial & Risk Director2.3yrsUK£131.27k0.050% £13.3k
Gary Barnes
Executive Officer0.3yrsUK£112.50k0.42% £113.1k
Mervyn Skates
Operations Director0.08yrsno data0.069% £18.5k
Brian MacDonald
Member of Management Board0yrsno datano data
Jonathan Patterson
Member of Management Board0yrsno datano data
Simon Witts
Member of Management Board0yrsno datano data

0.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: PEN's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Philip Walker
CEO, Director & Chair of Management Board3yrsUK£208.86k0.055% £14.7k
David Clements
Commercial & Risk Director2.3yrsUK£131.27k0.050% £13.3k
Simon Moore
Independent Chairman3.8yrsUK£65.40k0.22% £58.7k
John Ponsonby
Independent Non-Executive Director1.8yrsUK£34.46k0.038% £10.1k
Philip Cotton
Independent Non-Executive Director0.7yrsno datano data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PEN's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

Pennant International Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pennant International Group plc
  • Ticker: PEN
  • Exchange: AIM
  • Founded: 1996
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£26.725m
  • Shares outstanding: 36.11m
  • Website: https://www.pennantplc.co.uk

Number of Employees


Location

  • Pennant International Group plc
  • Pennant Court
  • Staverton Technology Park
  • Cheltenham
  • Gloucestershire
  • GL51 6TL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PENAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 1998

Biography

Pennant International Group plc, through its subsidiaries, provides integrated training and support solutions, products, and services in the United Kingdom, North America, and Australasia. The company offers generic training equipment, including hydraulic systems principles, generic flying controls, generic hand skill, integrated avionics maintenance, and basic flying control rod trainers, as well as wiring boards for use in aeronautical engineering colleges and academies. It also provides virtual reality solutions; Web and server-based e-learning, computer-based training, and computer aided instruction applications; engineering solutions; simulators and emulators for recruits to train on equipment or systems; and software development services. In addition, the company offers documentation and media services; OmegaPS suite of logistics support analysis software for defense contractors and defense authorities; and on-call, contractor logistic, full contractor support, and service provision contract services. It primarily serves defense, rail, aerospace, and naval sectors, as well as government departments. Pennant International Group plc was incorporated in 1996 and is headquartered in Cheltenham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 20:45
End of Day Share Price2020/02/21 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.