AIM:SFE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

SFE

6.3%

GB Building

1.9%

GB Market


1 Year Return

4.9%

SFE

9.9%

GB Building

2.4%

GB Market

Return vs Industry: SFE underperformed the UK Building industry which returned 9.9% over the past year.

Return vs Market: SFE exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

SFEIndustryMarket
7 Day3.5%6.3%1.9%
30 Day3.8%2.7%-1.1%
90 Day-20.6%2.0%-1.8%
1 Year4.9%4.9%14.0%9.9%7.4%2.4%
3 Year-80.4%-81.3%22.6%11.4%18.2%3.7%
5 Year-61.3%-66.8%60.9%37.2%35.7%6.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SFE (£0.51) is trading below our estimate of fair value (£2.28)

Significantly Undervalued: 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 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

Low 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 overvalued based on its PB Ratio (1.5x) compared to the GB Building industry average (1.5x).


Next Steps

Future Growth

How is Safestyle UK forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

151.6%

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 (10.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SFE's revenue (10.2% 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 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?

-38.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SFE is unprofitable, and losses have increased over the past 5 years at a rate of -38.6% 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 (5.7%).


Return on Equity

High ROE: SFE has a negative Return on Equity (-39.58%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SFE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SFE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Safestyle UK's financial position?


Financial Position Analysis

Short Term Liabilities: SFE's short term assets (£15.0M) do not cover its short term liabilities (£19.9M)

Long Term Liabilities: SFE's short term assets (15.0M) exceeds its long term liabilities (13.7M)


Debt to Equity History and Analysis

Debt Level: SFE's debt to equity ratio (21.9%) is considered satisfactory

Reducing Debt: SFE's debt to equity ratio has increased from 0% to 21.9% over the past 5 years.

Debt Coverage: SFE's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet

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

Debt Coverage by Assets: SFE's debt is covered by short term assets (assets are 2.490190x debt).


Next Steps

Dividend

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

1.66%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage3.4%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

1.6yrs

Average management tenure


CEO

Mike Gallacher (53yo)

1.4yrs

Tenure

UK£635,500

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 is Non-Executive Director of National Milk Records plc si ...


CEO Compensation Analysis

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

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: SFE's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

Experienced Board: SFE's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SFE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£7,35130 Jul 19
Julia Porter
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares11,309
Max PriceUK£0.65
BuyUK£33,55025 Jun 19
Rob Neale
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares50,000
Max PriceUK£0.67
BuyUK£7,48725 Jun 19
Julia Porter
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares11,309
Max PriceUK£0.66
BuyUK£16,62010 Dec 18
Fiona Goldsmith
EntityIndividual
Role
Member of the Board of Directors
Non-executive Director
Shares20,000
Max PriceUK£0.83
BuyUK£28,86007 Nov 18
Alan Lovell
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares30,000
Max PriceUK£0.96
BuyUK£39,75030 Oct 18
Michael Gallacher
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUK£0.80

Ownership Breakdown


Management Team

  • Mike Gallacher (53yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£635.50k
  • Dave Clarke (56yo)

    Operations Director of Pre Installations

    • Tenure: 10.8yrs
    • Compensation: UK£48.00k
  • Michelle Williams

    Human Resource Director

    • Tenure: 2.3yrs
  • Rob Neale

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£288.18k
  • Martin Troughton

    Marketing Director

    • Tenure: 1yrs
  • Azmat Ali

    Head of Canvass

    • Tenure: 1.8yrs

Board Members

  • Alan Lovell (65yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: UK£55.00k
  • Fiona Goldsmith (53yo)

    Non-executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£16.00k
  • Mike Gallacher (53yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£635.50k
  • Rob Neale

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£288.18k
  • Julia Porter (59yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£7.00k

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£41.918m
  • Shares outstanding: 82.81m
  • Website: https://www.safestyleukplc.co.uk

Number of Employees


Location

  • Safestyle UK plc
  • 47 Esplanade
  • Saint Helier
  • JE1 0BD
  • Jersey

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, retails, installs, and maintains domestic, double-glazed, replacement PVCu windows and doors for the homeowner replacement in the United Kingdom. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:25
End of Day Share Price2019/10/16 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.