AIM:BEG

Stock Analysis Report

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Executive Summary

Begbies Traynor Group plc provides various professional services to businesses, professional advisors, large corporations, and financial institutions in the United Kingdom.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

BEG

5.1%

GB Professional Services

2.8%

GB Market


1 Year Return

6.3%

BEG

2.0%

GB Professional Services

-7.7%

GB Market

Return vs Industry: BEG exceeded the UK Professional Services industry which returned 2% over the past year.

Return vs Market: BEG exceeded the UK Market which returned -7.7% over the past year.


Shareholder returns

BEGIndustryMarket
7 Day-3.0%5.1%2.8%
30 Day-7.4%2.3%2.2%
90 Day-14.5%11.4%9.2%
1 Year9.6%6.3%4.4%2.0%-4.0%-7.7%
3 Year63.2%47.2%32.1%23.1%-3.4%-15.0%
5 Year148.3%104.1%103.8%84.7%20.4%-6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEG (£0.9) is trading below our estimate of fair value (£1.18)

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


Price To Earnings Ratio

PE vs Industry: BEG is poor value based on its PE Ratio (121.2x) compared to the GB Professional Services industry average (15.8x).

PE vs Market: BEG is poor value based on its PE Ratio (121.2x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: BEG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BEG is good value based on its PB Ratio (1.8x) compared to the GB Professional Services industry average (2x).


Next Steps

Future Growth

How is Begbies Traynor Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

54.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEG's forecast earnings growth (54.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BEG's earnings (54.6% per year) are forecast to grow faster than the UK market (23% per year).

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

Revenue vs Market: BEG's revenue (6.5% per year) is forecast to grow faster than the UK market (5.6% per year).

High Growth Revenue: BEG's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Begbies Traynor Group performed over the past 5 years?

57.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEG has high quality earnings.

Growing Profit Margin: BEG's current net profit margins (1.3%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: BEG has become profitable over the past 5 years, growing earnings by 57.6% per year.

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

Earnings vs Industry: BEG had negative earnings growth (-58.7%) over the past year, making it difficult to compare to the Professional Services industry average (-13.4%).


Return on Equity

High ROE: BEG's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Begbies Traynor Group's financial position?


Financial Position Analysis

Short Term Liabilities: BEG's short term assets (£43.7M) exceed its short term liabilities (£27.2M).

Long Term Liabilities: BEG's short term assets (£43.7M) exceed its long term liabilities (£23.8M).


Debt to Equity History and Analysis

Debt Level: BEG's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: BEG's debt to equity ratio has reduced from 36% to 15.3% over the past 5 years.

Debt Coverage: BEG's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: BEG's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BEG's dividend (3.12%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BEG's dividend (3.12%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: BEG's dividend payments have been volatile in the past 10 years.

Growing Dividend: BEG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (377.9%), BEG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEG's dividends in 3 years are forecast to be well covered by earnings (38.2% payout ratio).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Randall Homel

7.42yrs

Tenure

Randall Homel has been the Chief Executive Officer of Begbies Traynor Group plc since March 29, 2013.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Traynor
Executive Chairman16.25yrsUK£575.00k7.13%
£ 8.2m
Edward Taylor
Group Finance Director & Executive Director9.67yrsUK£296.18k0.092%
£ 105.5k
Mark Fry
Head of Business Recovery & Advisory and Director9.08yrsUK£1.00m0.57%
£ 659.5k
Randall Homel
Chief Executive Officer7.42yrsno datano data
Amanda Litchfield
Operations Director1.58yrsno datano data
Graeme Lipman
Director of Business Rescue & Recovery and Corporate Finance2.08yrsno datano data
Andrew Dunn
Group Marketing & Business Development Partner12.42yrsno datano data
Mike Saville
Head of Caymen Islands Operations10.17yrsno datano data
Ken Pattullo
Regional Managing Partnerno datano datano data
Julie Palmer
Regional Managing Partner14.25yrsno datano data
Julian Pitts
Regional Managing Partner of North-East Regionno datano datano data
Paul Stanley
Regional Managing Partnerno datano datano data

9.4yrs

Average Tenure

52yo

Average Age

Experienced Management: BEG's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Traynor
Executive Chairman16.25yrsUK£575.00k7.13%
£ 8.2m
Edward Taylor
Group Finance Director & Executive Director9.67yrsUK£296.18k0.092%
£ 105.5k
Mark Fry
Head of Business Recovery & Advisory and Director9.08yrsUK£1.00m0.57%
£ 659.5k
John May
Independent Non-Executive Director12.83yrsUK£40.00k0.24%
£ 277.5k
Randolph McInnes
Senior Independent Directorno dataUK£40.00k0.72%
£ 823.9k
Mark Stupples
Independent Non-Executive Director3.08yrsUK£40.00k0.024%
£ 27.6k
Peter Wallqvist
Additional Non-Executive Director0.67yrno data0.023%
£ 26.9k

9.4yrs

Average Tenure

58yo

Average Age

Experienced Board: BEG's board of directors are considered experienced (9.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Begbies Traynor Group plc
  • Ticker: BEG
  • Exchange: AIM
  • Founded: 1989
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£114.824m
  • Shares outstanding: 127.87m
  • Website: https://www.begbies-traynorgroup.com

Number of Employees


Location

  • Begbies Traynor Group plc
  • 340 Deansgate
  • Manchester
  • Greater Manchester
  • M3 4LY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2004

Biography

Begbies Traynor Group plc provides various professional services to businesses, professional advisors, large corporations, and financial institutions in the United Kingdom. The company operates in two segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 09:23
End of Day Share Price2020/08/13 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.