AIM:SFE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Safestyle UK plc designs, manufactures, sells, installs, and maintains windows and doors for the homeowner market in the United Kingdom. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Safestyle UK's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

SFE

2.2%

GB Building

-1.0%

GB Market


1 Year Return

-42.8%

SFE

1.3%

GB Building

-14.8%

GB Market

Return vs Industry: SFE underperformed the UK Building industry which returned 2.6% over the past year.

Return vs Market: SFE underperformed the UK Market which returned -14.5% over the past year.


Shareholder returns

SFEIndustryMarket
7 Day-2.8%2.2%-1.0%
30 Day-12.3%9.0%-1.6%
90 Day5.6%12.0%-3.6%
1 Year-42.8%-42.8%2.4%1.3%-11.6%-14.8%
3 Year-86.1%-86.1%1.0%-6.1%-8.9%-20.2%
5 Year-85.6%-87.1%20.1%4.1%16.2%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Safestyle UK undervalued compared to its fair value and its price relative to the market?

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFE (£0.29) is trading below our estimate of fair value (£0.51)

Significantly Below Fair Value: SFE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFE is unprofitable, so we can't compare its PE Ratio to the GB Building industry average.

PE vs Market: SFE 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 SFE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFE is good value based on its PB Ratio (1x) compared to the GB Building industry average (1.3x).


Next Steps

Future Growth

How is Safestyle UK forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

132.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SFE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SFE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SFE's revenue (12.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: SFE's revenue (12.1% 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 SFE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Safestyle UK performed over the past 5 years?

-56.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFE is currently unprofitable.

Growing Profit Margin: SFE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SFE is unprofitable, and losses have increased over the past 5 years at a rate of 56.2% per year.

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

Earnings vs Industry: SFE is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (-43.8%).


Return on Equity

High ROE: SFE has a negative Return on Equity (-20.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is Safestyle UK's financial position?


Financial Position Analysis

Short Term Liabilities: SFE's short term assets (£19.7M) do not cover its short term liabilities (£25.4M).

Long Term Liabilities: SFE's short term assets (£19.7M) exceed its long term liabilities (£8.4M).


Debt to Equity History and Analysis

Debt Level: SFE's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: SFE's debt to equity ratio has increased from 0% to 13.9% over the past 5 years.

Debt Coverage: SFE's debt is well covered by operating cash flow (69.4%).

Interest Coverage: Insufficient data to determine if SFE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Safestyle UK current dividend yield, its reliability and sustainability?

2.02%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SFE'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 SFE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFE'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?

2.6yrs

Average management tenure


CEO

Mike Gallacher (53 yo)

2.42yrs

Tenure

UK£333,000

Compensation

Mr. Michael James Gallacher, also known as Mike, has been Chief Executive Officer and Director of Safestyle UK plc since May 1, 2018. Mr. Gallacher was Non-Executive Director of National Milk Records plc s ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD431.55K) is about average for companies of similar size in the UK market ($USD356.88K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Gallacher
CEO & Director2.42yrsUK£333.00k0.15%
£ 58.3k
Rob Neale
CFO & Director2.25yrsUK£212.00k0.24%
£ 94.7k
Martin Troughton
Marketing Director2yrsno datano data
Michelle Williams
Human Resource Director3.25yrsno datano data
Azmat Ali
Head of Canvass2.75yrsno datano data
David Clarke
Operations Director of Pre Installations11.75yrsUK£48.00kno data

2.6yrs

Average Tenure

Experienced Management: SFE's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Gallacher
CEO & Director2.42yrsUK£333.00k0.15%
£ 58.3k
Rob Neale
CFO & Director2.25yrsUK£212.00k0.24%
£ 94.7k
Alan Lovell
Independent Non-Executive Chairman2.25yrsUK£231.00k0.34%
£ 131.2k
Fiona Goldsmith
Senior Independent Directorno dataUK£47.00k0.038%
£ 14.6k
Julia Porter
Independent Non-Executive Director1.92yrsUK£44.00k0.022%
£ 8.4k

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SFE'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: SFE 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 substantially diluted in the past year, with total shares outstanding growing by 60.4%.


Top Shareholders

Company Information

Safestyle UK plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safestyle UK plc
  • Ticker: SFE
  • Exchange: AIM
  • Founded: 1992
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£38.714m
  • Shares outstanding: 132.81m
  • Website: https://www.safestyleukplc.co.uk

Number of Employees


Location

  • Safestyle UK plc
  • Style House
  • 14 Eldon Place
  • Bradford
  • West Yorkshire
  • BD1 3AZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFEAIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPDec 2013
73SDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2013

Biography

Safestyle UK plc designs, manufactures, sells, installs, and maintains windows and doors for the homeowner market in the United Kingdom. The company offers domestic, double-glazed, and replacement PVCu win ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:16
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.