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Polypipe Group

LSE:PLP
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PLP
LSE
£734M
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Polypipe Group plc, through its subsidiaries, designs, develops, and manufactures plastic piping systems, water management solutions, and ventilation systems in the United Kingdom, other European countries, and internationally. The last earnings update was 95 days ago. More info.


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PLP Share Price and Events
7 Day Returns
-5.3%
LSE:PLP
-1.2%
GB Building
-1.3%
GB Market
1 Year Returns
-2.2%
LSE:PLP
-7.5%
GB Building
1.4%
GB Market
PLP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Polypipe Group (PLP) -5.3% 15% -0.2% -2.2% 16.6% -
GB Building -1.2% 2.8% -1.5% -7.5% 0.5% 27.6%
GB Market -1.3% -0.2% -5.1% 1.4% 36.2% 32%
1 Year Return vs Industry and Market
  • PLP outperformed the Building industry which returned -7.5% over the past year.
  • PLP underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.4% over the past year.
Price Volatility
PLP
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Polypipe Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Polypipe Group.

LSE:PLP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PLP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Building Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.333 (1 + (1- 19%) (25.34%))
0.401
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.8 * 8.6%)
8.28%

Discounted Cash Flow Calculation for LSE:PLP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Polypipe Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PLP DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 62.40 67.01 71.96 77.28 82.98
Source Analyst x1 Est @ 7.39% Est @ 7.39% Est @ 7.39% Est @ 7.39%
Present Value
Discounted (@ 8.28%)
57.63 57.15 56.68 56.22 55.75
Present value of next 5 years cash flows $283.43
LSE:PLP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $82.98 × (1 + 1.4%) ÷ (8.28% – 1.4%)
$1,222.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,222.59 ÷ (1 + 8.28%)5
$821.39
LSE:PLP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $283.43 + $821.39
$1,104.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,104.82 / 199.77
$5.53
LSE:PLP Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.53
Current discount Discount to share price of £3.67
= -1 x (£3.67 - £5.53) / £5.53
33.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Polypipe Group is available for.
Intrinsic value
34%
Share price is £3.67 vs Future cash flow value of £5.53
Current Discount Checks
For Polypipe Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Polypipe Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Polypipe Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Polypipe Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Polypipe Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PLP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $0.23
LSE:PLP Share Price ** LSE (2018-11-16) in GBP £3.67
United Kingdom of Great Britain and Northern Ireland Building Industry PE Ratio Median Figure of 10 Publicly-Listed Building Companies 13.63x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 812 Publicly-Listed Companies 16.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Polypipe Group.

LSE:PLP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PLP Share Price ÷ EPS (both in USD)

= 3.67 ÷ 0.23

16.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Polypipe Group is overvalued based on earnings compared to the GB Building industry average.
  • Polypipe Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Polypipe Group's expected growth come at a high price?
Raw Data
LSE:PLP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
9.6%per year
United Kingdom of Great Britain and Northern Ireland Building Industry PEG Ratio Median Figure of 8 Publicly-Listed Building Companies 1.06x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 582 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

LSE:PLP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.14x ÷ 9.6%

1.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Polypipe Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Polypipe Group's assets?
Raw Data
LSE:PLP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $1.57
LSE:PLP Share Price * LSE (2018-11-16) in GBP £3.67
United Kingdom of Great Britain and Northern Ireland Building Industry PB Ratio Median Figure of 12 Publicly-Listed Building Companies 2.04x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,342 Publicly-Listed Companies 1.55x
LSE:PLP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PLP Share Price ÷ Book Value per Share (both in USD)

= 3.67 ÷ 1.57

2.33x

* Primary Listing of Polypipe Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Polypipe Group is overvalued based on assets compared to the GB Building industry average.
X
Value checks
We assess Polypipe Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Polypipe Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Polypipe Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Polypipe Group expected to grow at an attractive rate?
  • Polypipe Group's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Polypipe Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Polypipe Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PLP Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PLP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 9.6%
LSE:PLP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5%
United Kingdom of Great Britain and Northern Ireland Building Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Building Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PLP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PLP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 495 72 1
2020-12-31 477 86 63 4
2019-12-31 464 81 60 7
2018-12-31 431 71 57 4
LSE:PLP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 412 71 45
2018-03-31 412 69 45
2017-12-31 412 68 45
2017-06-30 374 65 44
2017-03-31 381 71 44
2016-12-31 387 76 43
2016-09-30 421 77 42
2016-06-30 406 78 40
2016-03-31 379 73 37
2015-12-31 353 67 34
2015-09-30 341 62 35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Polypipe Group's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • Polypipe Group's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PLP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Polypipe Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PLP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.32 0.35 0.29 3.00
2019-12-31 0.30 0.32 0.28 3.00
2018-12-31 0.28 0.28 0.28 2.00
LSE:PLP Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 0.23
2018-03-31 0.23
2017-12-31 0.23
2017-06-30 0.22
2017-03-31 0.22
2016-12-31 0.22
2016-09-30 0.21
2016-06-30 0.20
2016-03-31 0.19
2015-12-31 0.17
2015-09-30 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Polypipe Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Polypipe Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Polypipe Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Polypipe Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Polypipe Group's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Polypipe Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Polypipe Group's 1-year earnings growth is less than its 5-year average (3.2% vs 26.1%)
  • Polypipe Group's earnings growth has exceeded the GB Building industry average in the past year (3.2% vs -1.3%).
Earnings and Revenue History
Polypipe Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Polypipe Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PLP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 411.90 45.20 102.60
2018-03-31 411.80 45.10 102.85
2017-12-31 411.70 45.00 103.10
2017-06-30 373.90 43.80 96.80
2017-03-31 380.55 43.60 98.20
2016-12-31 387.20 43.40 99.60
2016-09-30 421.35 42.05 106.35
2016-06-30 405.80 39.90 102.00
2016-03-31 379.35 37.00 95.35
2015-12-31 352.90 34.10 88.70
2015-09-30 341.05 34.85 84.65
2015-06-30 329.20 35.60 80.60
2015-03-31 328.10 24.75 79.45
2014-12-31 327.00 13.90 78.30
2014-09-30 322.10 11.25 77.05
2014-06-30 317.20 8.60 75.80
2014-03-31 309.00 14.30 74.30
2013-12-31 300.80 20.00 72.80
2012-12-31 282.00 20.60 69.10
2011-12-31 286.40 9.80 69.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Polypipe Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Polypipe Group used its assets more efficiently than the GB Building industry average last year based on Return on Assets.
  • Polypipe Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Polypipe Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Polypipe Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Polypipe Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Polypipe Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Polypipe Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Polypipe Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Polypipe Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Polypipe Group Company Filings, last reported 4 months ago.

LSE:PLP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 313.10 185.90 38.50
2018-03-31 313.10 185.90 38.50
2017-12-31 302.00 186.60 35.70
2017-06-30 300.60 210.30 29.00
2017-03-31 300.60 210.30 29.00
2016-12-31 287.40 195.00 26.50
2016-09-30 287.40 195.00 26.50
2016-06-30 273.50 227.00 30.30
2016-03-31 273.50 227.00 30.30
2015-12-31 261.00 218.00 21.60
2015-09-30 261.00 218.00 21.60
2015-06-30 249.30 120.10 36.40
2015-03-31 249.30 120.10 36.40
2014-12-31 237.70 120.40 43.10
2014-09-30 237.70 120.40 43.10
2014-06-30 227.20 118.40 18.20
2014-03-31 227.20 118.40 18.20
2013-12-31 231.40 150.60 65.90
2012-12-31 211.10 149.70 47.00
2011-12-31 190.60 148.60 37.80
  • Polypipe Group's level of debt (59.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (67.9% vs 59.4% today).
  • Debt is well covered by operating cash flow (38%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).
X
Financial health checks
We assess Polypipe Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Polypipe Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.02%
Current annual income from Polypipe Group dividends. Estimated to be 3.47% next year.
If you bought £2,000 of Polypipe Group shares you are expected to receive £60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Polypipe Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).
  • Polypipe Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.2%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PLP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Building Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 699 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PLP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.15 1.00
2020-12-31 0.14 4.00
2019-12-31 0.13 7.00
2018-12-31 0.12 5.00
LSE:PLP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-03-20 0.111 2.983
2017-03-30 0.101 2.540
2017-03-01 0.101 2.930
2016-08-16 0.086 2.883
2016-04-25 0.078 2.837
2016-03-31 0.078 2.521
2015-04-22 0.060 1.932
2015-03-26 0.060 2.183
2014-08-18 0.030 1.209

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Polypipe Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Polypipe Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Polypipe Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Polypipe Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Polypipe Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Polypipe Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Payne
COMPENSATION $637,000
AGE 52
TENURE AS CEO 1.1 years
CEO Bio

Mr. Martin K. Payne has been Chief Executive Officer of Polypipe Group plc since October 2, 2017. Mr. Payne served as Chief Financial Officer of Polypipe Group plc since May 25, 2016 until October 2, 2017. He served as Group Finance Director of Norcros plc from March 18, 2011 to April 4, 2016. He served as senior financial positions at JCB, the construction equipment manufacturer and previously at IMI plc, the FTSE-100 engineering company. Earlier in his career he spent six years as Finance Director of H&R Johnson Tiles Ltd., a subsidiary of Norcros. He has been a Director at Polypipe Group plc since May 25, 2016. He served as a Director of Norcros plc from March 18, 2011 to May 12, 2016. He is a Fellow of the Chartered Institute of Management Accountants and has a Bachelor of Arts in Economics from Durham University.

CEO Compensation
  • Martin's compensation has been consistent with company performance over the past year.
  • Martin's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Polypipe Group management team in years:

1.3
Average Tenure
52
Average Age
  • The average tenure for the Polypipe Group management team is less than 2 years, this suggests a new team.
Management Team

Martin Payne

TITLE
CEO & Director
COMPENSATION
$637K
AGE
52
TENURE
1.1 yrs

Glen Sabin

TITLE
COO & Director
COMPENSATION
$340K
AGE
60
TENURE
1.1 yrs

Paul James

TITLE
CFO & Director
TENURE
0.7 yrs

Mark Hughes

TITLE
Managing Director of Polypipe Civils
AGE
47
TENURE
4.8 yrs

Simon Howard

TITLE
Managing Director of Polypipe Terrain
AGE
50
TENURE
4.8 yrs

Emma Versluys

TITLE
Company Secretary
TENURE
1.4 yrs

John Fairhurst

TITLE
Senior Director of Polypipe Group
AGE
74
Board of Directors Tenure

Average tenure and age of the Polypipe Group board of directors in years:

3
Average Tenure
54
Average Age
  • The tenure for the Polypipe Group board of directors is about average.
Board of Directors

Ron Marsh

TITLE
Independent Non-Executive Chairman of the Board
COMPENSATION
$140K
AGE
67
TENURE
3.5 yrs

Martin Payne

TITLE
CEO & Director
COMPENSATION
$637K
AGE
52
TENURE
2.5 yrs

Glen Sabin

TITLE
COO & Director
COMPENSATION
$340K
AGE
60
TENURE
1.1 yrs

Paul James

TITLE
CFO & Director
TENURE
0.7 yrs

Paul Dean

TITLE
Senior Independent Director
COMPENSATION
$63K
AGE
57
TENURE
3.5 yrs

Moni Mannings

TITLE
Independent Non-Executive Director
COMPENSATION
$53K
AGE
54
TENURE
4.7 yrs

Mark Hammond

TITLE
Independent Non-Executive Director
COMPENSATION
$45K
AGE
50
TENURE
4.6 yrs

Louise Hardy

TITLE
Non-Executive Director
AGE
51
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
04. Apr 18 Buy Martin Payne Individual 03. Apr 18 03. Apr 18 40,000 £3.46 £138,240
04. Apr 18 Buy Ronald John Marsh Individual 03. Apr 18 03. Apr 18 100,000 £3.51 £350,500
X
Management checks
We assess Polypipe Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Polypipe Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Polypipe Group plc (LON:PLP): Time For A Financial Health Check

While small-cap stocks, such as Polypipe Group plc (LON:PLP) with its market cap of UK£774m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Is Polypipe Group plc (LON:PLP) An Attractive Dividend Stock?

Polypipe Group plc (LON:PLP) has recently paid dividends to shareholders, and currently yields 3.2%. … Does Polypipe Group tick all the boxes of a great dividend stock? … See our latest analysis for Polypipe Group

Simply Wall St -

Is Polypipe Group plc (LON:PLP) Attractive At This PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While this might not seem positive, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Should Income Investors Buy Polypipe Group plc (LON:PLP) Before Its Ex-Dividend?

Investors who want to cash in on Polypipe Group plc's (LON:PLP) upcoming dividend of UK£0.037 per share have only 2 days left to buy the shares before its ex-dividend date, 30 August 2018, in time for dividends payable on the 21 September 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Polypipe Group's latest financial data to analyse its dividend characteristics. … Here's how I find good dividend stocks?

Simply Wall St -

How Do Analysts See Polypipe Group plc (LON:PLP) Performing Over The Next Year?

After Polypipe Group plc's (LON:PLP) earnings announcement in June 2018,. … with earnings expected to grow by 27.87% in the upcoming year … the past 5-year average growth rate of 22.50%

Simply Wall St -

Investors Are Undervaluing Polypipe Group plc (LON:PLP) By 33.39%

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

How Does Polypipe Group plc's (LON:PLP) Earnings Growth Stack Up Against Industry Performance?

Today I will take a look at Polypipe Group plc's (LON:PLP) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the building industry performed. … Check out our latest analysis for Polypipe Group. … PLP's trailing twelve-month earnings (from 31 December 2017) of UK£45.00m has

Simply Wall St -

Is Polypipe Group plc (LON:PLP) Still A Cheap Capital Goods Stock?

is a building product company operating in an industry. … This is because the building sector is predominantly affected by shifts in the housing market, as a result of demand from construction projects … Generally, building product stocks are good buys during the early periods of economic growth due to the anticipated increase in demand

Simply Wall St -

Polypipe Group plc (LON:PLP): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Polypipe Group plc (LON:PLP), with a market cap of UK£767.12m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Does Polypipe Group plc's (LON:PLP) PE Ratio Warrant A Sell?

and want to begin learning the link between Polypipe Group plc (LON:PLP)’s fundamentals and stock market performance. … Polypipe Group plc (LON:PLP) is currently trading at a trailing P/E of 16.7x, which is higher than the industry average of 12.9x. … While PLP might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Company Info

Map
Description

Polypipe Group plc, through its subsidiaries, designs, develops, and manufactures plastic piping systems, water management solutions, and ventilation systems in the United Kingdom, other European countries, and internationally. The company offers above and below ground drainage, and rainwater drainage systems; plumbing tools and accessories, plastic plumbing fittings, and plumbing and heating pipes; underfloor heating products; and ventilation systems, including rigid duct, radial semi-rigid duct, mechanical ventilation with heat recovery, mechanical extract ventilation, intermittent extract fan, and decentralized mechanical extract ventilation systems. It also provides pressure systems, such as water supply, pre-insulated pipe, polypropylene, clamp saddle, PVCu, ABS, and PE100 systems, as well as accessories. In addition, the company offers water management solution, such as rainwater harvesting, geocellular system, rainstream water storage and re-use, rainwater interception system, controlled flow rainwater outlet, pipe system, silt trap, catchpit, flow controller, penstock and valve, manhole, surface water, and rain water re-use solutions. Further, it provides surface water and terrain drainage systems; adoptable sewerage, sewer pipe, pipe, and manhole sewer systems; and cable protection products. The company offers its products for use in the residential, commercial, civil, infrastructure, and public non-housing sectors. Polypipe Group plc was founded in 1980 and is based in Doncaster, the United Kingdom.

Details
Name: Polypipe Group plc
PLP
Exchange: LSE
Founded: 1980
£733,567,271
199,773,222
Website: http://www.polypipe.com
Address: Polypipe Group plc
Broomhouse Lane,
Edlington,
Doncaster,
South Yorkshire, DN12 1ES,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PLP Ordinary Shares London Stock Exchange GB GBP 11. Apr 2014
DB 0P5 Ordinary Shares Deutsche Boerse AG DE EUR 11. Apr 2014
BATS-CHIXE PLPL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. Apr 2014
Number of employees
Current staff
Staff numbers
3,056
Polypipe Group employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/17 20:51
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/11/06
Last earnings filing: 2018/08/14
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.