AIM:TFW

Stock Analysis Report

Executive Summary

FW Thorpe Plc, together with its subsidiaries, designs, manufactures, and supplies professional lighting equipment in the United Kingdom, the Netherlands, Europe, and internationally.

Rewards

Revenue is forecast to grow 3.87% per year

Earnings grew by 0.2% over the past year

Risk Analysis

No risks detected for TFW from our risk checks.


Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

How has FW Thorpe's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

TFW

3.6%

GB Electrical

-1.1%

GB Market


1 Year Return

36.7%

TFW

53.7%

GB Electrical

11.8%

GB Market

Return vs Industry: TFW underperformed the UK Electrical industry which returned 45.5% over the past year.

Return vs Market: TFW exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

TFWIndustryMarket
7 Day-0.6%3.6%-1.1%
30 Day1.5%5.0%-0.8%
90 Day21.2%20.2%5.2%
1 Year39.4%36.7%57.1%53.7%17.7%11.8%
3 Year16.7%10.8%31.8%25.0%21.3%5.8%
5 Year169.8%145.0%300.9%-84.7%40.0%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is FW Thorpe undervalued compared to its fair value and its price relative to the market?

24.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TFW (£3.46) is trading above our estimate of fair value (£2.45)

Significantly Below Fair Value: TFW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TFW is poor value based on its PE Ratio (24.9x) compared to the Electrical industry average (24x).

PE vs Market: TFW is poor value based on its PE Ratio (24.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TFW is overvalued based on its PB Ratio (3.3x) compared to the GB Electrical industry average (2.5x).


Next Steps

Future Growth

How is FW Thorpe forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TFW's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if TFW'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: TFW's revenue (3.9% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: TFW's revenue (3.9% 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 TFW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FW Thorpe performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TFW has high quality earnings.

Growing Profit Margin: TFW's current net profit margins (14.6%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: TFW's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: TFW's earnings growth over the past year (0.2%) is below its 5-year average (9.9% per year).

Earnings vs Industry: TFW earnings growth over the past year (0.2%) exceeded the Electrical industry -9.4%.


Return on Equity

High ROE: TFW's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FW Thorpe's financial position?


Financial Position Analysis

Short Term Liabilities: TFW's short term assets (£104.7M) exceed its short term liabilities (£23.8M).

Long Term Liabilities: TFW's short term assets (£104.7M) exceed its long term liabilities (£15.9M).


Debt to Equity History and Analysis

Debt Level: TFW's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TFW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TFW's debt is well covered by operating cash flow (1008%).

Interest Coverage: TFW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: TFW's debt is covered by short term assets (assets are 48.9x debt).


Next Steps

Dividend

What is FW Thorpe's current dividend yield, its reliability and sustainability?

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.8%markettop25%5.0%industryaverage1.9%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: TFW's dividend (1.6%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: TFW's dividend (1.6%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: TFW's dividend payments have been volatile in the past 10 years.

Growing Dividend: TFW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.8%), TFW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TFW'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 FW Thorpe's salary, the management and board of directors tenure and is there insider trading?

10.6yrs

Average board tenure


CEO

Mike Allcock 0

9.6yrs

Tenure

UK£663,755

Compensation

Mr. Michael Allcock, also known as Mike, FIEE has been Group Joint Chief Executive of F.W. Thorpe PLC since June 28, 2010 and its Chairman since July 3, 2017. Mr. Allcock has been the Managing Director of  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD862.01K) is about average for companies of similar size in the UK market ($USD864.74K).

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


Board Age and Tenure

10.6yrs

Average Tenure

56yo

Average Age

Experienced Board: TFW's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Mike Allcock

    Chairman

    • Tenure: 9.6yrs
    • Compensation: UK£663.76k
  • David Taylor (57yo)

    Executive Director & MD of Philip Payne Limited

    • Tenure: 11.7yrs
    • Compensation: UK£398.39k
  • Tony Cooper (56yo)

    Executive Director & Manufacturing Director of Thorlux Lighting

    • Tenure: 11.7yrs
    • Compensation: UK£374.70k
  • Craig Muncaster (45yo)

    Joint Group Chief Executive

    • Compensation: UK£511.88k
  • James Thorpe (42yo)

    Business Development Director of Thorlux Lighting & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£215.88k

Board Members

  • Peter Mason

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: UK£33.00k
  • Mike Allcock

    Chairman

    • Tenure: 9.6yrs
    • Compensation: UK£663.76k
  • Andrew Thorpe

    Non-Executive Director

    • Compensation: UK£328.00k
  • David Taylor (57yo)

    Executive Director & MD of Philip Payne Limited

    • Tenure: 11.7yrs
    • Compensation: UK£398.39k
  • Tony Cooper (56yo)

    Executive Director & Manufacturing Director of Thorlux Lighting

    • Tenure: 11.7yrs
    • Compensation: UK£374.70k
  • Ian Thorpe (73yo)

    Non-Executive Director

    • Tenure: 22.3yrs
    • Compensation: UK£43.00k
  • Craig Muncaster (45yo)

    Joint Group Chief Executive

    • Compensation: UK£511.88k
  • James Thorpe (42yo)

    Business Development Director of Thorlux Lighting & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£215.88k

Company Information

FW Thorpe Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FW Thorpe Plc
  • Ticker: TFW
  • Exchange: AIM
  • Founded: 1936
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: UK£399.014m
  • Shares outstanding: 116.33m
  • Website: https://www.fwthorpe.co.uk

Number of Employees


Location

  • FW Thorpe Plc
  • Merse Road
  • North Moons Moat
  • Redditch
  • Worcestershire
  • B98 9HH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFWAIM (London Stock Exchange AIM Market)ORD GBP0.01 (POST SUBD)GBGBPNo data
TFWAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

FW Thorpe Plc, together with its subsidiaries, designs, manufactures, and supplies professional lighting equipment in the United Kingdom, the Netherlands, Europe, and internationally. The company offers professional lighting and control systems, including recessed, surface, and suspended luminaires; emergency lighting systems; hazardous area lighting; high and low bay luminaires; lighting controls; and exterior lighting products for commercial, industrial, education, healthcare, manufacturing, retail, display, and hospitality markets. It also provides emergency exit signage and lighting systems for commercial, hospitality, and healthcare markets; and clean room lighting equipment and luminaires for laboratories, pharmaceutical, and semiconductor manufacturing areas, including hospitals, kitchens, and food preparation applications. In addition, the company offers lighting products to the advertising, brewery, retail, and sign lighting industries; and street lighting, outdoor wall and ceiling luminaires, amenity lighting products, and LED road and tunnel luminaires for infrastructure, housing, and car parking areas. Further, it provides LED industrial luminaries, LED retail and display luminaries, customized LED solutions, and LED optics for emergency vehicles, general automotive, and other customer applications. The company offers its lighting products under the Thorlux Lighting, Philip Payne, Solite, Portland Lighting, TRT Lighting, Lightronics, Famostar, and Luxintec brands. FW Thorpe Plc was founded in 1936 and is headquartered in Redditch, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 20:45
End of Day Share Price2020/01/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.