AIM:FIH

Stock Analysis Report

Executive Summary

FIH group plc, through its subsidiaries, engages in retailing, property, insurance, hotels, shipping, and fishing agency businesses in the Falkland Islands and the United Kingdom.

Rewards

PE ratio (13.5x) is below the UK market (18.5x)

Revenue is forecast to grow 3.65% per year

Earnings grew by 19% over the past year

Risk Analysis

Earnings have declined by -1.34% per year over past 5 years

High level of non-cash earnings

Does not have a meaningful market cap (£40M)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

FIH

-0.1%

GB Commercial Services

-1.1%

GB Market


1 Year Return

1.6%

FIH

29.9%

GB Commercial Services

12.7%

GB Market

Return vs Industry: FIH underperformed the UK Commercial Services industry which returned 26.8% over the past year.

Return vs Market: FIH underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

FIHIndustryMarket
7 Day0.6%-0.1%-1.1%
30 Day2.2%0.6%-0.2%
90 Day-1.2%8.6%6.0%
1 Year3.2%1.6%33.8%29.9%18.6%12.7%
3 Year39.5%32.8%29.0%18.1%21.8%6.3%
5 Year23.4%17.4%46.4%22.9%42.5%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIH (£3.2) is trading above our estimate of fair value (£1.18)

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


Price To Earnings Ratio

PE vs Industry: FIH is good value based on its PE Ratio (13.5x) compared to the Commercial Services industry average (20.9x).

PE vs Market: FIH is good value based on its PE Ratio (13.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FIH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FIH is good value based on its PB Ratio (0.9x) compared to the GB Commercial Services industry average (2x).


Next Steps

Future Growth

How is FIH group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FIH's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if FIH's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: FIH's revenue (3.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: FIH's revenue (3.6% 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 FIH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FIH group performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIH has a high level of non-cash earnings.

Growing Profit Margin: FIH's current net profit margins (7%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: FIH's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: FIH's earnings growth over the past year (19%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: FIH earnings growth over the past year (19%) exceeded the Commercial Services industry 16.1%.


Return on Equity

High ROE: FIH's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FIH group's financial position?


Financial Position Analysis

Short Term Liabilities: FIH's short term assets (£22.7M) exceed its short term liabilities (£10.3M).

Long Term Liabilities: FIH's short term assets (£22.7M) do not cover its long term liabilities (£28.4M).


Debt to Equity History and Analysis

Debt Level: FIH's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: FIH's debt to equity ratio has increased from 1.5% to 36.8% over the past 5 years.

Debt Coverage: FIH's debt is well covered by operating cash flow (29.5%).

Interest Coverage: FIH's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: FIH's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.8%markettop25%5.0%industryaverage2.6%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: FIH's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: FIH's dividend (1.56%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.8%), FIH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

John Foster (61yo)

14.6yrs

Tenure

UK£254,000

Compensation

Mr. John L. Foster has been the Chief Executive Officer of FIH group plc since June 10, 2005. Mr. Foster served as a Finance Director of Macro 4 PLC from May 3, 2000 to 13 May 2003. He served as Finance an ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD330.28K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Board Age and Tenure

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: FIH's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£105,00004 Mar 19
Robert Johnston
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares37,500
Max PriceUK£2.80

Ownership Breakdown

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


Management Team

  • John Foster (61yo)

    CEO & Director

    • Tenure: 14.6yrs
    • Compensation: UK£254.00k
  • Ana Crowie

    Financial Controller

    • Carol Bishop (45yo)

      Company Secretary

      • Tenure: 8.1yrs

    Board Members

    • Jeremy Brade (57yo)

      Independent Non-Executive Director

      • Tenure: 10.3yrs
      • Compensation: UK£30.00k
    • Rob Johnston (54yo)

      Non-Executive Director

      • Tenure: 2.6yrs
      • Compensation: UK£30.00k
    • Dominic Lavelle (56yo)

      Non-Executive Director

      • Tenure: 0.08yrs
    • John Foster (61yo)

      CEO & Director

      • Tenure: 14.6yrs
      • Compensation: UK£254.00k
    • Robin George Williams (62yo)

      Non-Executive Chairman

      • Tenure: 2.3yrs
      • Compensation: UK£60.00k

    Company Information

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


    Key Information

    • Name: FIH group plc
    • Ticker: FIH
    • Exchange: AIM
    • Founded: 1851
    • Industry: Diversified Support Services
    • Sector: Commercial Services
    • Market Cap: UK£40.014m
    • Shares outstanding: 12.50m
    • Website: https://www.fihplc.com

    Number of Employees


    Location

    • FIH group plc
    • Kenburgh Court
    • 133-137 South Street
    • Bishop's Stortford
    • Hertfordshire
    • CM23 3HX
    • United Kingdom

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    FIHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1998
    FLKD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1998

    Biography

    FIH group plc, through its subsidiaries, engages in retailing, property, insurance, hotels, shipping, and fishing agency businesses in the Falkland Islands and the United Kingdom. The company retails food, clothing, electrical goods, home furnishings, gifts, and DIY products through 6 retail outlets; sells and hires 4x4 vehicles; and offers travel services, such as flight bookings, airport transfers, and luxury coach and walking tours for tourists. It also provides insurance brokerage services; agency services for cruise ships and fishing vessels; and freight and shipping services to and from the Islands. In addition, the company constructs residential and commercial properties with a portfolio of 40 residential, office, and industrial accommodation properties; offers passenger ferry services across the mouth of Portsmouth harbor through 3 vessels; and operates a cruising vessel providing leisure cruises around the Solent in summer. Further, it is involved in the handling, logistics, storage, and installation of fine art and antiquities. The company was formerly known as Falkland Islands Holdings plc and changed its name to FIH group plc in September 2016. FIH Group plc was founded in 1851 and is headquartered in Bishop's Stortford, the United Kingdom. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 20:37
    End of Day Share Price2020/01/27 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.