LSE:GFRD

Stock Analysis Report

Executive Summary

Galliford Try plc operates as a housebuilding, regeneration, and construction primarily in the United Kingdom.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Galliford Try's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.5%

GFRD

2.7%

GB Construction

2.0%

GB Market


1 Year Return

-21.4%

GFRD

-32.2%

GB Construction

3.3%

GB Market

Return vs Industry: GFRD exceeded the UK Construction industry which returned -32.2% over the past year.

Return vs Market: GFRD underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

GFRDIndustryMarket
7 Day9.5%2.7%2.0%
30 Day3.0%-5.5%-1.0%
90 Day17.2%2.6%-1.7%
1 Year-14.2%-21.4%-29.5%-32.2%8.3%3.3%
3 Year-25.6%-46.7%-33.7%-42.5%19.0%4.5%
5 Year-8.1%-38.2%-14.4%-35.4%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Galliford Try undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GFRD (£7.12) is trading below our estimate of fair value (£11.62)

Significantly Undervalued: GFRD is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: GFRD is good value based on its PE Ratio (9.1x) compared to the Construction industry average (9.2x).

PE vs Market: GFRD is good value based on its PE Ratio (9.1x) compared to the UK market (16.4x).


Price Based on Expected Growth

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


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Galliford Try expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GFRD's forecast earnings growth (2.5% per year) is above the savings rate (1.2%).

Earnings vs Market: GFRD's earnings (2.5% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: GFRD's revenue (2.3% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: GFRD's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GFRD's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Galliford Try performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GFRD's earnings have grown by 1.7% per year over the past 5 years.

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

Earnings vs Industry: GFRD had negative earnings growth (-26.5%) over the past year, making it difficult to compare to the Construction industry average (-9.7%).


Return on Equity

High ROE: GFRD's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: GFRD's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Galliford Try's financial position?


Financial Position Analysis

Short Term Liabilities: GFRD's short term assets (£2.2B) exceeds its short term liabilities (£1.8B)

Long Term Liabilities: GFRD's short term assets (2.2B) exceeds its long term liabilities (203.8M)


Debt to Equity History and Analysis

Debt Level: GFRD's debt to equity ratio (86.2%) is considered high

Reducing Debt: GFRD's debt to equity ratio has increased from 27.1% to 86.2% over the past 5 years.

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

Interest Coverage: GFRD's interest payments on its debt are well covered by EBIT (39.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: GFRD's debt is covered by short term assets (assets are 3.428790x debt).


Next Steps

Dividend

What is Galliford Try's current dividend yield, its reliability and sustainability?

9.59%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Galliford Try before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.2%marketbottom25%2.0%markettop25%5.4%industryaverage4.2%forecastin3Years9.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GFRD's dividend (8.15%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: GFRD's dividend (8.15%) is in the top 25% of dividend payers in the UK market (5.42%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.9%), GFRD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GFRD's dividends in 3 years are forecast to be well covered by earnings (46.5% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Graham Prothero (57yo)

0.6yrs

Tenure

UK£921,000

Compensation

Mr. Graham Prothero has been the Chief Executive Officer of Galliford Try plc since March 26, 2019 and serves as its Member of the Executive Board and has been its Executive Director since February 1, 2013 ...


CEO Compensation Analysis

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

Compensation vs Earnings: Graham's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: GFRD's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: GFRD's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUK£10,27001 Oct 19
Kevin Corbett
EntityIndividual
Role
Member of Management Board
General Counsel
Shares1,534
Max PriceUK£6.70
SellUK£12,32501 Oct 19
Stephen Teagle
EntityIndividual
Role
Member of Management Board
CEO of Partnerships & Regeneration and Member of Executive Board
Shares1,841
Max PriceUK£6.70
SellUK£14,53501 Oct 19
Bill Hocking
EntityIndividual
Role
Member of Management Board
CEO of Construction & Investments and Member of Executive Board
Shares2,171
Max PriceUK£6.70
SellUK£11,54201 Oct 19
Andrew Hammond
EntityIndividual
Role
Member of Management Board
CEO of Linden Homes & Member of the Executive Board
Shares1,724
Max PriceUK£6.70
BuyUK£51,91218 Dec 18
Kevin Corbett
EntityIndividual
Role
Member of Management Board
General Counsel
Shares8,882
Max PriceUK£5.89
BuyUK£56,97011 Dec 18
Stephen Teagle
EntityIndividual
Role
Member of Management Board
CEO of Partnerships & Regeneration and Member of Executive Board
Shares9,000
Max PriceUK£6.33

Ownership Breakdown


Management Team

  • Paul Money

    Assistant Company Secretary

    • Tenure: 0yrs
  • Gill Gillespie (54yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: UK£108.00k
  • Kevin Corbett (59yo)

    General Counsel

    • Tenure: 7.7yrs
  • Graham Prothero (57yo)

    CEO, Member of Executive Board & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£921.00k
  • Stephen Teagle (59yo)

    CEO of Partnerships & Regeneration and Member of Executive Board

    • Tenure: 3.1yrs
  • Ian Jubb

    Managing Director of North & Scotland Building

    • Tenure: 12.8yrs
  • Bill Hocking (54yo)

    CEO of Construction & Investments and Member of Executive Board

    • Tenure: 4.1yrs
  • Andrew Hammond (49yo)

    CEO of Linden Homes & Member of the Executive Board

    • Tenure: 3.1yrs
  • Andrew Duxbury (44yo)

    Group Finance Director & Director

    • Tenure: 0.6yrs

Board Members

  • Gavin Slark (54yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£41.00k
  • Peter Ventress (58yo)

    Non-Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: UK£190.00k
  • Marisa Cassoni (68yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • Jeremy Townsend (55yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Graham Prothero (57yo)

    CEO, Member of Executive Board & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£921.00k
  • Terry Miller (67yo)

    Senior Independent Director

    • Tenure: 2.9yrs
    • Compensation: UK£53.00k
  • Andrew Duxbury (44yo)

    Group Finance Director & Director

    • Tenure: 0.6yrs

Company Information

Galliford Try plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galliford Try plc
  • Ticker: GFRD
  • Exchange: LSE
  • Founded: 1965
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£787.979m
  • Shares outstanding: 110.75m
  • Website: https://www.gallifordtry.co.uk

Number of Employees


Location

  • Galliford Try plc
  • Cowley Business Park
  • Cowley
  • Uxbridge
  • Greater London
  • UB8 2AL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFRDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
GFRDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
GALL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Galliford Try plc operates as a housebuilding, regeneration, and construction primarily in the United Kingdom. It operates through Linden Homes, Partnerships & Regeneration, and Construction & Investments  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 21:32
End of Day Share Price2019/10/11 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.

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