LSE:PLP

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Executive Summary

Polypipe Group plc manufactures and sells plastic piping, and water and climate management systems in the United Kingdom, other European countries, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PLP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

PLP

2.2%

GB Building

-1.0%

GB Market


1 Year Return

1.0%

PLP

1.3%

GB Building

-14.8%

GB Market

Return vs Industry: PLP matched the UK Building industry which returned 1.3% over the past year.

Return vs Market: PLP exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

PLPIndustryMarket
7 Day-0.2%2.2%-1.0%
30 Day9.9%9.0%-1.6%
90 Day9.5%12.0%-3.6%
1 Year1.0%1.0%2.4%1.3%-11.6%-14.8%
3 Year22.0%15.0%1.0%-6.1%-8.9%-20.2%
5 Year69.1%50.8%20.1%4.1%16.2%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Polypipe Group undervalued compared to its fair value and its price relative to the market?

37.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLP (£4.71) is trading above our estimate of fair value (£3.06)

Significantly Below Fair Value: PLP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PLP is poor value based on its PE Ratio (37.9x) compared to the GB Building industry average (28.2x).

PE vs Market: PLP is poor value based on its PE Ratio (37.9x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: PLP is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PLP is overvalued based on its PB Ratio (2x) compared to the GB Building industry average (1.3x).


Next Steps

Future Growth

How is Polypipe Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

37.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLP's forecast earnings growth (37.2% per year) is above the savings rate (1.2%).

Earnings vs Market: PLP's earnings (37.2% per year) are forecast to grow faster than the UK market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PLP's revenue (7.3% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: PLP's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLP's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Polypipe Group performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLP has high quality earnings.

Growing Profit Margin: PLP's current net profit margins (6.4%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: PLP's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: PLP had negative earnings growth (-49.3%) over the past year, making it difficult to compare to the Building industry average (-43.8%).


Return on Equity

High ROE: PLP's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Polypipe Group's financial position?


Financial Position Analysis

Short Term Liabilities: PLP's short term assets (£320.2M) exceed its short term liabilities (£182.5M).

Long Term Liabilities: PLP's short term assets (£320.2M) exceed its long term liabilities (£195.5M).


Debt to Equity History and Analysis

Debt Level: PLP's debt to equity ratio (56.8%) is considered high.

Reducing Debt: PLP's debt to equity ratio has increased from 49% to 56.8% over the past 5 years.

Debt Coverage: PLP's debt is not well covered by operating cash flow (14%).

Interest Coverage: PLP's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.80%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PLP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PLP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PLP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PLP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PLP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Martin Payne (54 yo)

3yrs

Tenure

UK£930,000

Compensation

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. ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD1.22M) is below average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Payne
CEO & Executive Director3yrsUK£930.00k0.084%
£ 901.3k
Paul James
CFO & Executive Director2.58yrsUK£429.00k0.0096%
£ 103.1k
Glen Sabin
COO & Executive Director3yrsUK£528.00k0.30%
£ 3.2m
Emma Versluys
Group Legal Counsel & Company Secretary3.33yrsno datano data
Mark Hughes
Managing Director of Polypipe Civils6.75yrsno datano data
Simon Howard
Managing Director of Polypipe Terrain6.75yrsno datano data
John Fairhurst
Senior Director of Polypipe Groupno datano datano data

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: PLP's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Payne
CEO & Executive Director3yrsUK£930.00k0.084%
£ 901.3k
Paul James
CFO & Executive Director2.58yrsUK£429.00k0.0096%
£ 103.1k
Glen Sabin
COO & Executive Director3yrsUK£528.00k0.30%
£ 3.2m
Mark Hammond
Senior Independent Director0.33yrUK£51.00k0.0076%
£ 81.2k
Ronald John Marsh
Independent Non-Executive Chairman5.42yrsUK£146.00k0.14%
£ 1.5m
Kevin Boyd
Non-Executive Director0.083yrno datano data
Lisa Scenna
Independent Non-Executive Director1.08yrsUK£13.00k0.0044%
£ 47.6k
Louise Hardy
Independent Non-Executive Director2.33yrsUK£54.00kno data
Louise Brooke-Smith
Independent Non-Executive Director1.08yrsUK£13.00kno data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PLP's board of directors are not considered experienced ( 2.3 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: PLP insiders have only sold shares 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 14.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Polypipe Group plc
  • Ticker: PLP
  • Exchange: LSE
  • Founded: 1980
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£1.070b
  • Shares outstanding: 227.35m
  • Website: https://www.polypipe.com

Number of Employees


Location

  • Polypipe Group plc
  • Broomhouse Lane
  • Edlington
  • Doncaster
  • South Yorkshire
  • DN12 1ES
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLPLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2014
0P5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2014
PLPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2014

Biography

Polypipe Group plc manufactures and sells plastic piping, and water and climate management systems in the United Kingdom, other European countries, and internationally. The company operates through two seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:37
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.