LSE:TRI

Stock Analysis Report

Executive Summary

Trifast plc, together with its subsidiaries, designs, engineers, manufactures, and distributes industrial and category C fasteners, and category C components to distributors and original equipment manufacturer assemblers.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.5%

TRI

-3.4%

GB Machinery

-5.4%

GB Market


1 Year Return

-26.5%

TRI

5.9%

GB Machinery

2.0%

GB Market

Return vs Industry: TRI underperformed the UK Machinery industry which returned 2.2% over the past year.

Return vs Market: TRI underperformed the UK Market which returned 1.4% over the past year.


Shareholder returns

TRIIndustryMarket
7 Day-15.5%-3.4%-5.4%
30 Day-27.6%-2.7%-4.2%
90 Day-21.8%-4.1%-2.6%
1 Year-24.9%-26.5%9.0%5.9%7.6%2.0%
3 Year-28.1%-32.0%18.5%9.2%11.4%-2.7%
5 Year44.4%31.3%41.5%21.6%29.0%-0.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRI (£1.39) is trading below our estimate of fair value (£1.8)

Significantly Below Fair Value: TRI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRI is good value based on its PE Ratio (13.7x) compared to the Machinery industry average (16.7x).

PE vs Market: TRI is good value based on its PE Ratio (13.7x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TRI is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: TRI is good value based on its PB Ratio (1.4x) compared to the GB Machinery industry average (1.5x).


Next Steps

Future Growth

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

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRI's forecast earnings growth (3% per year) is above the savings rate (0.5%).

Earnings vs Market: TRI's earnings (3% per year) are forecast to grow slower than the UK market (13% per year).

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

Revenue vs Market: TRI's revenue (2.9% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: TRI's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRI's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Trifast performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRI has high quality earnings.

Growing Profit Margin: TRI's current net profit margins (5.9%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: TRI's earnings have grown by 10.1% per year over the past 5 years.

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

Earnings vs Industry: TRI had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the Machinery industry average (2.6%).


Return on Equity

High ROE: TRI's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Trifast's financial position?


Financial Position Analysis

Short Term Liabilities: TRI's short term assets (£140.2M) exceed its short term liabilities (£42.9M).

Long Term Liabilities: TRI's short term assets (£140.2M) exceed its long term liabilities (£58.1M).


Debt to Equity History and Analysis

Debt Level: TRI's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: TRI's debt to equity ratio has reduced from 46.6% to 32.9% over the past 5 years.

Debt Coverage: TRI's debt is well covered by operating cash flow (24.4%).

Interest Coverage: TRI's interest payments on its debt are well covered by EBIT (23.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: TRI's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

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

3.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 27 2020Ex Dividend DateMar 12 2020Dividend Pay DateApr 09 202028 days from Ex DividendBuy in the next 13 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: TRI's dividend (3.07%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: TRI's dividend (3.07%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TRI has been paying a dividend for less than 10 years.

Growing Dividend: TRI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42%), TRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRI's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

8.3yrs

Average board tenure


CEO

Mark Belton (49yo)

4.3yrs

Tenure

UK£367,000

Compensation

Mr. Mark Belton, BA (Hons.), ACA has been Chief Executive Officer of Trifast Plc since October 1, 2015. Mr. Belton served as Group Finance Director of Trifast Plc since June 16, 2010 until October 1, 2015. ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD474.36K) is about average for companies of similar size in the UK market ($USD620.57K).

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


Board Members

NamePositionTenureCompensationOwnership
Mark Belton
CEO & Executive Director4.3yrsUK£367.00k0.30% £508.0k
Clare Foster
CFO & Executive Director4.3yrsUK£286.00k0.014% £23.3k
Glenda Roberts
Group Sales Director & Executive Director9.7yrsUK£271.00k0.20% £329.0k
Malcolm Diamond
Non-Executive Chairman2.8yrsUK£125.00k0.68% £1.1m
Neil Warner
Senior Independent Non-Executive Director0yrsUK£60.00k0.019% £31.5k
Jonathan Paul Shearman
Independent Non-Executive Director10.6yrsUK£55.00kno data
Scott Mac Meekin
Independent Non-Executive Director6.8yrsUK£50.00kno data

8.3yrs

Average Tenure

61yo

Average Age

Experienced Board: TRI's board of directors are considered experienced (8.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Trifast plc
  • Ticker: TRI
  • Exchange: LSE
  • Founded: 1973
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£167.987m
  • Shares outstanding: 121.29m
  • Website: https://www.trifast.com

Number of Employees


Location

  • Trifast plc
  • Trifast House
  • Bellbrook Park
  • Uckfield
  • East Sussex
  • TN22 1QW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRILSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 1994
TRIlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 1994

Biography

Trifast plc, together with its subsidiaries, designs, engineers, manufactures, and distributes industrial and category C fasteners, and category C components to distributors and original equipment manufacturer assemblers. It offers screws and bolts, nuts, washers, circlips, seals, rings, spacers, pillars, security fasteners, pins and keys, tooling and driver bits, and fasteners for sheet metal and plastic, as well as enclosure, plastic, and other hardware products. The company serves customers in the automotive, electric vehicle, electronics and telecoms, domestic appliances, aerospace and defense, sheet metal, and other industries. It has operations in the United Kingdom, Europe, the United States, and Asia. The company was founded in 1973 and is headquartered in Uckfield, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:44
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.