AIM:FLTA

Stock Analysis Report

Executive Summary

Filta Group Holdings plc, through its subsidiaries, franchises on-site environmental kitchen solutions in the United Kingdom, the United States, Canada, and Germany.

Rewards

Earnings are forecast to grow 135.02% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (4.4%) are lower than last year (7.6%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£46M)



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FLTA

-0.1%

GB Commercial Services

-1.1%

GB Market


1 Year Return

-30.4%

FLTA

29.9%

GB Commercial Services

12.7%

GB Market

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

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


Shareholder returns

FLTAIndustryMarket
7 Day0%-0.1%-1.1%
30 Day-2.7%0.6%-0.2%
90 Day-13.6%8.6%6.0%
1 Year-29.8%-30.4%33.8%29.9%18.6%12.7%
3 Year26.6%24.1%29.0%18.1%21.8%6.3%
5 Yearn/a46.4%22.9%42.5%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

53.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FLTA (£1.6) is trading above our estimate of fair value (£0.75)

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


Price To Earnings Ratio

PE vs Industry: FLTA is poor value based on its PE Ratio (51.8x) compared to the Commercial Services industry average (20.9x).

PE vs Market: FLTA is poor value based on its PE Ratio (51.8x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FLTA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FLTA is overvalued based on its PB Ratio (5.2x) compared to the GB Commercial Services industry average (2x).


Next Steps

Future Growth

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

135.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLTA's forecast earnings growth (135% per year) is above the savings rate (0.5%).

Earnings vs Market: FLTA's earnings (135% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: FLTA's revenue (18.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: FLTA's revenue (18.2% 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 FLTA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Filta Group Holdings performed over the past 5 years?

55.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLTA has high quality earnings.

Growing Profit Margin: FLTA's current net profit margins (4.4%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: FLTA's earnings have grown significantly by 55.1% per year over the past 5 years.

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

Earnings vs Industry: FLTA had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Commercial Services industry average (16.1%).


Return on Equity

High ROE: FLTA's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Filta Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FLTA's short term assets (£9.8M) exceed its short term liabilities (£5.0M).

Long Term Liabilities: FLTA's short term assets (£9.8M) exceed its long term liabilities (£8.1M).


Debt to Equity History and Analysis

Debt Level: FLTA's debt to equity ratio (47.1%) is considered high.

Reducing Debt: FLTA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FLTA's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: FLTA's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

Inventory Level: FLTA has a low level of unsold assets or inventory.

Debt Coverage by Assets: FLTA's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.8%markettop25%5.0%industryaverage2.6%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: FLTA's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: FLTA's dividend (1.25%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

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

Growing Dividend: FLTA's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.4%), FLTA's dividend payments are 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 Filta Group Holdings's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

Jason Sayers (48yo)

0yrs

Tenure

UK£221,720

Compensation

Mr. Jason Charles Sayers is the Founder and Chief Executive Officer of Xenerga, Inc. Mr. Sayers serves as the Group Chief Executive Officer at Filta Group Holdings plc and has been its Executive Director s ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD288.30K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Board Age and Tenure

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: FLTA's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 3.9%.


Management Team

  • Jason Sayers (48yo)

    Group CEO & Executive Director

    • Compensation: UK£221.72k
  • Brian Hogan (54yo)

    Group CFO

    • Tenure: 3.6yrs
    • Compensation: UK£119.65k
  • Ed Palin

    Managing Director of UK Operations

    • Victor Clewes (62yo)

      Executive Director

      • Tenure: 3.6yrs
      • Compensation: UK£208.63k
    • Roscoe Urosevic (66yo)

      Executive Director

      • Tenure: 3.6yrs
      • Compensation: UK£56.35k
    • Jos van Aalst

      Managing Director of European Operations

      • Tom Dunn

        Chief Executive Officer of North America


        Board Members

        • Graham Woolfman (62yo)

          Independent Non-Executive Director

          • Tenure: 3.6yrs
          • Compensation: UK£30.00k
        • Jason Sayers (48yo)

          Group CEO & Executive Director

          • Compensation: UK£221.72k
        • Brian Hogan (54yo)

          Group CFO

          • Tenure: 3.6yrs
          • Compensation: UK£119.65k
        • Victor Clewes (62yo)

          Executive Director

          • Tenure: 3.6yrs
          • Compensation: UK£208.63k
        • Roscoe Urosevic (66yo)

          Executive Director

          • Tenure: 3.6yrs
          • Compensation: UK£56.35k
        • Tim Worlledge (67yo)

          Non-Executive Chairman

          • Compensation: UK£44.17k
        • Roy Sayers (76yo)

          Non-Executive Director

          • Tenure: 3.8yrs
          • Compensation: UK£32.09k
        • Lloyd Martin (64yo)

          Independent Non-Executive Director

          • Tenure: 0.9yrs

        Company Information

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


        Key Information

        • Name: Filta Group Holdings plc
        • Ticker: FLTA
        • Exchange: AIM
        • Founded: 2016
        • Industry: Environmental and Facilities Services
        • Sector: Commercial Services
        • Market Cap: UK£47.991m
        • Shares outstanding: 29.09m
        • Website: https://www.filtaplc.com

        Number of Employees


        Location

        • Filta Group Holdings plc
        • The Locks
        • Hillmorton
        • Warwickshire
        • West Midlands
        • CV21 4PP
        • United Kingdom

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        FLTAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2016

        Biography

        Filta Group Holdings plc, through its subsidiaries, franchises on-site environmental kitchen solutions in the United Kingdom, the United States, Canada, and Germany. The company offers FiltaFry, which provides fryer management services, including the on-site micro-filtration, and removal and replacement of cooking oil; Fita-Seal for the on-site replacement of refrigerator and freezer door seals; and FiltaGMG, a drain related services comprising live bacteria drain dosing and installation, and servicing of grease recovery units. It also provides FiltaBio for waste oil collection; FiltaGold for new oil supply; and FiltaCool, a moisture absorbing panels for coolers, as well as temperature calibration services. It serves restaurants, catering establishments, supermarkets, pubs, institutional kitchens, universities and colleges, sports stadiums, hospitals, and casinos. Filta Group Holdings plc was incorporated in 2016 and is based in Warwickshire, 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 22:07
        End of Day Share Price2020/01/27 00:00
        Earnings2019/06/30
        Annual Earnings2018/12/31


        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.