AIM:GYG

Stock Analysis Report

Executive Summary

GYG plc operates as a superyacht painting, supply, and maintenance company worldwide.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

GYG

1.7%

GB Commercial Services

0.6%

GB Market


1 Year Return

97.2%

GYG

26.0%

GB Commercial Services

12.1%

GB Market

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

Return vs Market: GYG exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

GYGIndustryMarket
7 Day-0.7%1.7%0.6%
30 Day10.2%2.1%1.5%
90 Day17.6%9.3%8.1%
1 Year97.2%97.2%29.7%26.0%18.0%12.1%
3 Yearn/a29.7%18.7%23.9%8.1%
5 Yearn/a43.7%20.5%41.7%8.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GYG (£0.7) is trading below our estimate of fair value (£0.77)

Significantly Below Fair Value: GYG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: GYG 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 GYG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GYG is overvalued based on its PB Ratio (3x) compared to the GB Commercial Services industry average (2x).


Next Steps

Future Growth

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

96.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GYG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: GYG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GYG's is expected to become profitable in the next 3 years.

Revenue vs Market: GYG's revenue (9.9% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GYG's revenue (9.9% 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 GYG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GYG performed over the past 5 years?

-69.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GYG is currently unprofitable.

Growing Profit Margin: GYG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GYG is unprofitable, and losses have increased over the past 5 years at a rate of -69.6% per year.

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

Earnings vs Industry: GYG is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (16.1%).


Return on Equity

High ROE: GYG has a negative Return on Equity (-15.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GYG's financial position?


Financial Position Analysis

Short Term Liabilities: GYG's short term assets (€14.6M) do not cover its short term liabilities (€22.9M).

Long Term Liabilities: GYG's short term assets (€14.6M) exceed its long term liabilities (€11.0M).


Debt to Equity History and Analysis

Debt Level: GYG's debt to equity ratio (66.4%) is considered high.

Reducing Debt: Insufficient data to determine if GYG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GYG's debt is covered by short term assets (assets are 1.7x debt).


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: Whilst unprofitable GYG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GYG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%4.9%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GYG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GYG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GYG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Remy Millott (54yo)

0yrs

Tenure

€257,980

Compensation

Mr. Remy Millott serves as the Chief Executive Officer of Global Yachting Group. He has been Executive Director at GYG plc since March 3, 2016 and also serves as its Chief Executive Officer. Mr. Millott h ...


CEO Compensation Analysis

Compensation vs Market: Remy's total compensation ($USD287.00K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Board Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Board: GYG's board of directors are not considered experienced ( 2.5 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£99,50016 Oct 19
Peter Brown
EntityIndividual
Role
Senior Key Executive
Managing Director of USA
Shares199,000
Max PriceUK£0.50

Ownership Breakdown

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


Management Team

  • Remy Millott (54yo)

    CEO & Director

    • Compensation: €257.98k
  • Peter Brown (53yo)

    Managing Director of USA

    • Kevin McNair (52yo)

      CFO & Executive Director

      • Tenure: 0.3yrs
    • Rupert Savage (48yo)

      Sales & Commercial Director and Director

      • Tenure: 3.8yrs
      • Compensation: €231.60k
    • Sue Steven

      Company Secretary

      • Andrew Clemence (56yo)

        Marketing Director

        • Tenure: 1yrs
      • Raúl Galan

        Chief Operating Officer

        • Tenure: 1.3yrs

      Board Members

      • Stephen T. Murphy (63yo)

        Independent Non-Executive Chairman

        • Tenure: 2.5yrs
        • Compensation: €100.00k
      • Richard King (63yo)

        Independent Non-Executive Director

        • Tenure: 2.5yrs
        • Compensation: €50.00k
      • Remy Millott (54yo)

        CEO & Director

        • Compensation: €257.98k
      • Kevin McNair (52yo)

        CFO & Executive Director

        • Tenure: 0.3yrs
      • Rupert Savage (48yo)

        Sales & Commercial Director and Director

        • Tenure: 3.8yrs
        • Compensation: €231.60k

      Company Information

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


      Key Information

      • Name: GYG plc
      • Ticker: GYG
      • Exchange: AIM
      • Founded: 1977
      • Industry: Diversified Support Services
      • Sector: Commercial Services
      • Market Cap: UK£32.648m
      • Shares outstanding: 46.64m
      • Website: https://www.gygplc.com

      Number of Employees


      Location

      • GYG plc
      • Global Building
      • Muelle Viejo
      • Palma
      • Balearic Islands
      • 7012
      • Spain

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      GYGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2017

      Biography

      GYG plc operates as a superyacht painting, supply, and maintenance company worldwide. It operates in two segments, Coatings and Supply. The company offers painting and other finishing services to yachts and superyachts. It is also involved in fairing and painting of superyachts; repainting and finishing of superyachts as part of a refitting program; and selling and delivering maintenance materials, consumables, spare parts, and equipment for the care and operation of superyachts. In addition, the company offers its products and services primarily under the Pinmar, Pinmar Supply, Rolling Stock, ACA Marine, and Technocraft. The company was formerly known as Global Yachting Group Limited and changed its name to GYG plc in May 2017. GYG plc was founded in 1977 and is headquartered in Palma, Spain. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 22:46
      End of Day Share Price2020/01/20 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.