AIM:GRA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Grafenia Plc, together with its subsidiaries, licenses brands, software, and technology for the graphic arts industry in the United Kingdom and internationally. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GRA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0%

GRA

-1.2%

GB Commercial Services

-0.3%

GB Market


1 Year Return

-53.5%

GRA

-12.5%

GB Commercial Services

-11.0%

GB Market

Return vs Industry: GRA underperformed the UK Commercial Services industry which returned -13% over the past year.

Return vs Market: GRA underperformed the UK Market which returned -10% over the past year.


Shareholder returns

GRAIndustryMarket
7 Day0%-1.2%-0.3%
30 Day0%2.8%10.2%
90 Day-25.9%3.2%6.4%
1 Year-53.5%-53.5%-8.8%-12.5%-7.4%-11.0%
3 Year-54.0%-54.0%-1.4%-12.6%0.9%-11.5%
5 Year-59.2%-59.2%18.7%-5.7%26.5%-2.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GRA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GRA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GRA is unprofitable, so we can't compare its PE Ratio to the GB Commercial Services industry average.

PE vs Market: GRA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRA is good value based on its PB Ratio (1.1x) compared to the GB Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Grafenia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.1%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Grafenia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Grafenia performed over the past 5 years?

-51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRA is currently unprofitable.

Growing Profit Margin: GRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRA is unprofitable, and losses have increased over the past 5 years at a rate of 51.4% per year.

Accelerating Growth: Unable to compare GRA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRA is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-10%).


Return on Equity

High ROE: GRA has a negative Return on Equity (-68.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Grafenia's financial position?


Financial Position Analysis

Short Term Liabilities: GRA's short term assets (£6.6M) exceed its short term liabilities (£3.6M).

Long Term Liabilities: GRA's short term assets (£6.6M) do not cover its long term liabilities (£6.8M).


Debt to Equity History and Analysis

Debt Level: GRA's debt to equity ratio (60.9%) is considered high.

Reducing Debt: GRA's debt to equity ratio has increased from 4.6% to 60.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GRA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GRA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 34.4% each year


Next Steps

Dividend

What is Grafenia current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GRA'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 GRA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRA'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?

5.1yrs

Average management tenure


CEO

Peter Gunning (44 yo)

no data

Tenure

UK£186,743

Compensation

Mr. Peter R. Gunning, MA serves as Chief Executive Officer of Grafenia Plc and also serves as its Chief Technology Officer. He served as Acting Chief Executive Officer of Grafenia Plc (formerly Printing.co...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD248.97K) is about average for companies of similar size in the UK market ($USD345.93K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Gunning
CEO, CTO & Directorno dataUK£186.74k1.52%
£ 86.2k
Iain Brown
Group Finance Director & Director0.83yrUK£22.85kno data
Gavin Cockerill
COO & Executive Director2.83yrsUK£93.14k0.0043%
£ 243.5
Richard Lightfoot
Company Secretary & Executive Director2.83yrsUK£80.68k0.066%
£ 3.7k

5.1yrs

Average Tenure

42.5yo

Average Age

Experienced Management: GRA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Gunning
CEO, CTO & Directorno dataUK£186.74k1.52%
£ 86.2k
Iain Brown
Group Finance Director & Director0.83yrUK£22.85kno data
Gavin Cockerill
COO & Executive Director2.83yrsUK£93.14k0.0043%
£ 243.5
Richard Lightfoot
Company Secretary & Executive Director2.83yrsUK£80.68k0.066%
£ 3.7k
Simon Barrell
Non Executive Director2.42yrsUK£64.05kno data
Conrad Bona
Non-Executive Director5.08yrsUK£15.46k0.96%
£ 54.3k
Jan-Hendrik Mohr
Non-Executive Chairman3.58yrsUK£15.00kno data

2.8yrs

Average Tenure

44yo

Average Age

Experienced Board: GRA's board of directors are not considered experienced ( 2.8 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: 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

Grafenia Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grafenia Plc
  • Ticker: GRA
  • Exchange: AIM
  • Founded: 2000
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: UK£5.676m
  • Shares outstanding: 113.53m
  • Website: https://www.grafenia.com

Number of Employees


Location

  • Grafenia Plc
  • Third Avenue
  • The Village
  • Manchester
  • Greater Manchester
  • M17 1FG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2000

Biography

Grafenia Plc, together with its subsidiaries, licenses brands, software, and technology for the graphic arts industry in the United Kingdom and internationally. The company’s brands and solutions include B...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 18:54
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.