LSE:GFRD

Stock Analysis Report

Executive Summary

Galliford Try plc operates in the construction business in the United Kingdom.


Snowflake Analysis

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

Stable Share Price: GFRD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

GFRD

-2.3%

GB Construction

0.3%

GB Market


1 Year Return

-74.9%

GFRD

-10.1%

GB Construction

6.5%

GB Market

Return vs Industry: GFRD underperformed the UK Construction industry which returned -10.1% over the past year.

Return vs Market: GFRD underperformed the UK Market which returned 6.5% over the past year.


Shareholder returns

GFRDIndustryMarket
7 Day-7.8%-2.3%0.3%
30 Day33.5%8.0%-1.4%
90 Day-76.0%10.8%2.9%
1 Year157.9%-74.9%5.3%-10.1%12.0%6.5%
3 Year56.7%-88.2%-15.5%-38.2%18.7%3.8%
5 Year73.5%-88.3%-3.1%-38.6%35.0%4.1%

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 compared to its fair value and its price relative to the market?

4.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFRD (£1.76) is trading below our estimate of fair value (£1.84)

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


Price To Earnings Ratio

PE vs Industry: GFRD is good value based on its PE Ratio (2.2x) compared to the Construction industry average (11.3x).

PE vs Market: GFRD is good value based on its PE Ratio (2.2x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: GFRD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GFRD is good value based on its PB Ratio (0.3x) compared to the GB Construction industry average (1.6x).


Next Steps

Future Growth

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

-24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFRD's earnings are forecast to decline over the next 3 years (-24.8% per year).

Earnings vs Market: GFRD's earnings are forecast to decline over the next 3 years (-24.8% per year).

High Growth Earnings: GFRD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GFRD's revenue is expected to decline over the next 3 years (-21.9% per year).

High Growth Revenue: GFRD's revenue is forecast to decline over the next 3 years (-21.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GFRD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Galliford Try performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFRD has a high level of non-cash earnings.

Growing Profit Margin: GFRD's current net profit margins (3.2%) are lower than last year (4%).


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 (-13.7%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Galliford Try's financial position?


Financial Position Analysis

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

Long Term Liabilities: GFRD's short term assets (£2.2B) exceed 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 3.4x debt).


Next Steps

Dividend

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

33.05%

Current Dividend Yield


Dividend Yield vs Market

company33.0%marketbottom25%1.8%markettop25%5.1%industryaverage3.9%forecastin3Years7.7%

Current dividend yield vs market & industry

Notable Dividend: GFRD's dividend (33.05%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: GFRD's dividend (33.05%) is in the top 25% of dividend payers in the UK market (5.07%)


Stability and Growth of Payments

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 (36% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Bill Hocking (54yo)

0

Mr. Bill Hocking serves as Chief Executive & Executive Director at Galliford Try Plc. Mr. Hocking had been Chief Executive of Construction & Investments at Galliford Try plc since August 1, 2016 and serves ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Duxbury
Group Finance Director & Director0.9yrsUK£417.25k0.0027% £5.2k
Bill Hocking
Chief Executive0yrsno data0.018% £34.7k
Kevin Corbett
General Counsel8yrsno data0.060% £117.4k
Ian Jubb
Divisional Managing Director & Member of Executive Board0yrsno datano data
Mark Baxter
Divisional Managing Director of Specialist Services & Member of the Executive Board0.08yrsno datano data
Vikki Skene
HR Director & Member Of Executive Board0.08yrsno datano data
Paul Money
Assistant Company Secretary0yrsno datano data

0.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: GFRD's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Duxbury
Group Finance Director & Director0.9yrsUK£417.25k0.0027% £5.2k
Bill Hocking
Chief Executive0yrsno data0.018% £34.7k
Gavin Slark
Non-Executive Director4.8yrsUK£42.00k0.0014% £2.8k
Peter Ventress
Non-Executive Chairman3.3yrsUK£196.00k0.013% £24.7k
Maria-Luisa Cassoni
Non-Executive Director1.4yrsUK£35.00kno data
Jeremy Townsend
Non-Executive Director2.4yrsUK£50.00k0.0030% £5.9k
Terry Miller
Senior Independent Director3.3yrsUK£54.00k0.0019% £3.6k

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: GFRD's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

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£194.401m
  • Shares outstanding: 110.77m
  • 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
3WCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Galliford Try plc operates in the construction business in the United Kingdom. The company operates through Building, Infrastructure, and PPP Investments divisions. The Building division works with clients in the health, education and defense markets, and rail and aviation sectors, as well as serves commercial clients. The Infrastructure division carries out various civil engineering projects that are specialized in the highways and environment sectors. The PPP Investments division delivers various building and infrastructure projects through public private partnerships. The company is also involved in facilities management, dry lining, and piling businesses. Galliford Try plc was incorporated in 1965 and is based in Uxbridge, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:12
End of Day Share Price2020/02/21 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.