AIM:TFW

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TFW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

TFW

4.2%

GB Electrical

2.2%

GB Market


1 Year Return

5.7%

TFW

6.8%

GB Electrical

-5.6%

GB Market

Return vs Industry: TFW underperformed the UK Electrical industry which returned 6.8% over the past year.

Return vs Market: TFW exceeded the UK Market which returned -5.6% over the past year.


Shareholder returns

TFWIndustryMarket
7 Day1.2%4.2%2.2%
30 Day7.4%27.1%12.1%
90 Day8.8%42.7%10.9%
1 Year7.7%5.7%6.9%6.8%-1.8%-5.6%
3 Year9.4%3.3%22.9%17.8%4.8%-7.9%
5 Year53.0%39.0%256.7%-85.5%35.9%5.3%

Long-Term 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?

29.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TFW (£3.33) is trading above our estimate of fair value (£1.27)

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


Price To Earnings Ratio

PE vs Industry: TFW is good value based on its PE Ratio (29.1x) compared to the GB Electrical industry average (29.4x).

PE vs Market: TFW is poor value based on its PE Ratio (29.1x) compared to the UK market (21.5x).


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 (3x) compared to the GB Electrical industry average (2.7x).


Next Steps

Future Growth

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

65.1%

Forecasted Capital Goods industry annual growth in earnings


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 (1.2%).

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: Insufficient data to determine if TFW's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if TFW's revenue 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 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?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TFW has high quality earnings.

Growing Profit Margin: TFW's current net profit margins (11.7%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: TFW's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: TFW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TFW had negative earnings growth (-17.5%) over the past year, making it difficult to compare to the Electrical industry average (-13.9%).


Return on Equity

High ROE: TFW's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is FW Thorpe's financial position?


Financial Position Analysis

Short Term Liabilities: TFW's short term assets (£110.2M) exceed its short term liabilities (£37.2M).

Long Term Liabilities: TFW's short term assets (£110.2M) exceed its long term liabilities (£3.8M).


Debt to Equity History and Analysis

Debt Level: TFW's debt to equity ratio (1.5%) 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 (983.4%).

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


Balance Sheet


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TFW's dividend (1.7%) is higher than the bottom 25% of dividend payers in the UK market (1.67%).

High Dividend: TFW's dividend (1.7%) is low compared to the top 25% of dividend payers in the UK market (4.79%).


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 (49.4%), TFW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

10.5yrs

Average management tenure


CEO

Mike Allcock

10.5yrs

Tenure

UK£399,000

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 ($USD537.51K) is below average for companies of similar size in the UK market ($USD878.83K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Allcock
Chairman10.5yrsUK£399.00k0.16%
£ 637.7k
Craig Muncaster
Joint Group Chief Executiveno dataUK£427.00k0.056%
£ 216.5k
David Taylor
Executive Director & MD of Philip Payne Limited12.58yrsUK£251.00k0.13%
£ 489.2k
James Thorpe
Business Development Director of Thorlux Lighting & Executive Director3.42yrsUK£228.00k1.18%
£ 4.6m

10.5yrs

Average Tenure

46yo

Average Age

Experienced Management: TFW's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Allcock
Chairman10.5yrsUK£399.00k0.16%
£ 637.7k
Craig Muncaster
Joint Group Chief Executiveno dataUK£427.00k0.056%
£ 216.5k
David Taylor
Executive Director & MD of Philip Payne Limited12.58yrsUK£251.00k0.13%
£ 489.2k
James Thorpe
Business Development Director of Thorlux Lighting & Executive Director3.42yrsUK£228.00k1.18%
£ 4.6m
Peter Mason
Non-Executive Director10.5yrsUK£39.00k1.4%
£ 5.4m
Andrew Thorpe
Non-Executive Director1.42yrsUK£48.00k23.75%
£ 92.2m
Antony Cooper
Non-Executive Director12.58yrsUK£159.00k0.096%
£ 373.7k
Ian Thorpe
Non-Executive Director23.17yrsUK£49.00k22.17%
£ 86.0m

10.5yrs

Average Tenure

57yo

Average Age

Experienced Board: TFW's board of directors are seasoned and experienced ( 10.5 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

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£388.076m
  • Shares outstanding: 116.54m
  • 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)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 pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 18:51
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.