AIM:TON

Stock Analysis Report

Executive Summary

Titon Holdings Plc designs, manufactures, and markets ventilation products, and door and window fittings in the United Kingdom, South Korea, North America, and internationally.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has Titon Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

TON

2.0%

GB Building

0.2%

GB Market


1 Year Return

-29.9%

TON

12.1%

GB Building

1.7%

GB Market

Return vs Industry: TON underperformed the UK Building industry which returned 12.1% over the past year.

Return vs Market: TON underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

TONIndustryMarket
7 Day0%2.0%0.2%
30 Day-9.6%2.4%-1.7%
90 Day-21.7%1.8%-3.1%
1 Year-28.0%-29.9%16.2%12.1%6.7%1.7%
3 Year43.4%32.8%25.0%13.6%17.7%3.1%
5 Year130.4%99.2%58.9%35.5%36.1%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Titon Holdings undervalued compared to its fair value and its price relative to the market?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TON (£1.18) is trading below our estimate of fair value (£2.1)

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


Price To Earnings Ratio

PE vs Industry: TON is good value based on its PE Ratio (6.2x) compared to the Building industry average (13.8x).

PE vs Market: TON is good value based on its PE Ratio (6.2x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: TON is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: TON is good value based on its PB Ratio (0.8x) compared to the GB Building industry average (1.5x).


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TON's forecast earnings growth (3.2% per year) is above the savings rate (1.2%).

Earnings vs Market: TON's earnings (3.2% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: TON's earnings are forecast to grow, but not significantly.

Revenue vs Market: TON's revenue (1.9% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: TON's revenue (1.9% 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 TON's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Titon Holdings performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TON's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: TON's earnings growth over the past year (8.5%) is below its 5-year average (19.4% per year).

Earnings vs Industry: TON earnings growth over the past year (8.5%) exceeded the Building industry 5.7%.


Return on Equity

High ROE: TON's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: TON has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: TON has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Titon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TON's short term assets (£15.1M) exceeds its short term liabilities (£5.1M)

Long Term Liabilities: TON's short term assets (15.1M) exceeds its long term liabilities (11.0K)


Debt to Equity History and Analysis

Debt Level: TON is debt free.

Reducing Debt: TON had no debt 5 years ago.

Debt Coverage: TON has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TON has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TON's debt is covered by short term assets.


Next Steps

Dividend

What is Titon Holdings's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%5.4%industryaverage3.4%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TON's dividend (4.04%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: TON's dividend (4.04%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), TON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TON's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

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

15.2yrs

Average management tenure


CEO

David Ruffell (61yo)

17.8yrs

Tenure

UK£180,000

Compensation

Mr. David Alan Ruffell serves as the Secretary of Titon Holdings PLC and has been its Chief Executive since 2002. Mr. Ruffell joined Titon Holdings plc in 1988 at the time of its flotation on the U.S.M. He ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD233.62K) is about average for companies of similar size in the UK market ($USD318.91K).

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


Management Age and Tenure

15.2yrs

Average Tenure

60yo

Average Age

Experienced Management: TON's management team is seasoned and experienced (15.2 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

60yo

Average Age

Experienced Board: TON's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: TON insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£19,99830 Aug 19
Bernd Ratzke
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares14,924
Max PriceUK£1.34
BuyUK£14,00011 Apr 19
Kevin Sargeant
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceUK£1.40

Ownership Breakdown


Management Team

  • David Ruffell (61yo)

    Chief Executive

    • Tenure: 17.8yrs
    • Compensation: UK£180.00k
  • John Anderson (75yo)

    Founder & Deputy Chairman

    • Tenure: 7.3yrs
    • Compensation: UK£37.00k
  • Keith Ritchie (59yo)

    Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: UK£173.00k
  • Tyson Anderson (51yo)

    Sales & Marketing Director and Executive Director

    • Tenure: 15.8yrs
    • Compensation: UK£123.00k
  • Tony Gearey

    Group IT Director & Director

    • Tenure: 2.9yrs
    • Compensation: UK£111.00k

Board Members

  • Kevin Sargeant

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£37.00k
  • David Ruffell (61yo)

    Chief Executive

    • Tenure: 17.8yrs
    • Compensation: UK£180.00k
  • Nick Howlett (57yo)

    Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: UK£62.00k
  • John Anderson (75yo)

    Founder & Deputy Chairman

    • Tenure: 7.3yrs
    • Compensation: UK£37.00k
  • Keith Ritchie (59yo)

    Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: UK£173.00k
  • Tyson Anderson (51yo)

    Sales & Marketing Director and Executive Director

    • Tenure: 15.8yrs
    • Compensation: UK£123.00k
  • Tony Gearey

    Group IT Director & Director

    • Tenure: 2.9yrs
    • Compensation: UK£111.00k
  • Bernd Ratzke (62yo)

    Non-Executive Director

    • Tenure: 0.6yrs

Company Information

Titon Holdings Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Titon Holdings Plc
  • Ticker: TON
  • Exchange: AIM
  • Founded: 1972
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£13.304m
  • Shares outstanding: 11.09m
  • Website: https://www.titonholdings.com

Number of Employees


Location

  • Titon Holdings Plc
  • Colchester Business Park
  • 894 The Crescent
  • Colchester
  • Essex
  • CO4 9YQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TONAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 1988

Biography

Titon Holdings Plc designs, manufactures, and markets ventilation products, and door and window fittings in the United Kingdom, South Korea, North America, and internationally. It offers a range of passive ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:41
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.