LSE:NMCN

Stock Analysis Report

Executive Summary

nmcn plc engages in the civil, building and mechanical, and electrical engineering businesses in the United Kingdom.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.

Risks

  • nmcn is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

LSE:NMCN

0.4%

GB Construction

1.1%

GB Market


1 Year Return

21.0%

LSE:NMCN

-43.3%

GB Construction

-4.8%

GB Market

NMCN outperformed the Construction industry which returned -43.5% over the past year.

NMCN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

NMCNIndustryMarket
7 Day-3.6%0.4%1.1%
30 Day-6.6%-0.04%-3.5%
90 Day-10.5%-12.4%-0.7%
1 Year25.8%21.0%-40.5%-43.3%-0.3%-4.8%
3 Year319.2%283.1%-34.5%-43.6%19.4%5.3%
5 Year408.9%365.1%-30.2%-48.1%27.8%0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

nmcn's share price is below the future cash flow value, and at a moderate discount (> 20%).

nmcn's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

nmcn is overvalued based on earnings compared to the GB Construction industry average.

nmcn is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

nmcn is poor value based on expected growth next year.


Price Based on Value of Assets

nmcn is overvalued based on assets compared to the GB Construction industry average.


Next Steps

Future Growth

How is nmcn expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

nmcn's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

nmcn's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

nmcn's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

nmcn's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

nmcn's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

nmcn is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has nmcn performed over the past 5 years?

60.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

nmcn has delivered over 20% year on year earnings growth in the past 5 years.

nmcn's 1-year earnings growth is negative, it can't be compared to the 5-year average.

nmcn's 1-year earnings growth is negative, it can't be compared to the GB Construction industry average.


Return on Equity

nmcn has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

nmcn used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.


Return on Capital Employed

nmcn has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is nmcn's financial position?


Financial Position Analysis

nmcn's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

nmcn's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

nmcn has no debt.

nmcn has no debt compared to 5 years ago when it was 30%.

nmcn has no debt, it does not need to be covered by operating cash flow.

nmcn has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

nmcn has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

3.94%

Expected Dividend Yield


Dividend Yield and Payments Analysis

nmcn's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.1%).

nmcn's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.72%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

John Homer 0

3.2yrs

Tenure

UK£1,606,000

Compensation

Mr. John Homer, FRICS, serves as Chief Executive of North Midland Construction at Nomenca Limited. Mr. Homer has been Chief Executive Officer of North Midland Construction plc since June 1, 2016. He served ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

59.5yo

Average Age

The tenure for the nmcn management team is about average.


Board Age and Tenure

3.6yrs

Average Tenure

64yo

Average Age

The tenure for the nmcn board of directors is about average.


Insider Trading

nmcn individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUK£4,33825 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares718
Max PriceUK£6.04
SellUK£4,36825 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares728
Max PriceUK£6.00
BuyUK£55,27818 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,233
Max PriceUK£6.07
SellUK£55,65318 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,310
Max PriceUK£6.06
BuyUK£20,10513 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,346
Max PriceUK£6.04
SellUK£20,21613 Jun 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,365
Max PriceUK£6.01
BuyUK£9,98008 Apr 19
Daniel Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUK£4.99

Ownership Breakdown


Management Team

  • Robert Moyle (67yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: UK£449.00k
  • Geoff Poyzer

    Executive Managing Director Highways Division & Divisional Manager of Highways

    • Tenure: 6.3yrs
  • Andy Langman (54yo)

    MD of Water & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£833.00k
  • Mark Hanrahan

    Executive Group Business Development Director & Divisional Manager of Head Office

    • Tenure: 0.0yrs
  • Donald Proud (65yo)

    MD of Water & Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£847.00k
  • Dan Taylor (37yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: UK£881.00k
  • John Homer

    Chief Executive & Director

    • Tenure: 3.2yrs
    • Compensation: UK£1.61m

Board Members

  • Mike Holt (58yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£10.00k
  • Robert Moyle (67yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: UK£449.00k
  • Ian Elliott (72yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£40.00k
  • David Rogers (64yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£40.00k
  • Andy Langman (54yo)

    MD of Water & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£833.00k
  • Donald Proud (65yo)

    MD of Water & Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£847.00k
  • Dan Taylor (37yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: UK£881.00k
  • John Homer

    Chief Executive & Director

    • Tenure: 3.2yrs
    • Compensation: UK£1.61m
  • Margaret Amos

    Independent Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£3.00k

Company Information

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


Key Information

  • Name: nmcn plc
  • Ticker: NMCN
  • Exchange: LSE
  • Founded: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£54.635m
  • Shares outstanding: 10.12m
  • Website: https://www.nmcn.com

Number of Employees


Location

  • nmcn plc
  • Nunn Close
  • The County Estate
  • Sutton-in-Ashfield
  • Nottinghamshire
  • NG17 2HW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMCNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992

Biography

nmcn plc engages in the civil, building and mechanical, and electrical engineering businesses in the United Kingdom. The company’s Building division specializes in the construction of new build and refurbi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:41
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.