AIM:HYDG

Stock Analysis Report

Executive Summary

Hydrogen Group Plc, together with its subsidiaries, provides recruitment services for mid to senior level professional staff.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.6%

HYDG

-5.1%

GB Professional Services

-5.4%

GB Market


1 Year Return

-39.3%

HYDG

20.9%

GB Professional Services

2.0%

GB Market

Return vs Industry: HYDG underperformed the UK Professional Services industry which returned 20.9% over the past year.

Return vs Market: HYDG underperformed the UK Market which returned 2% over the past year.


Shareholder returns

HYDGIndustryMarket
7 Day-6.6%-5.1%-5.4%
30 Day-15.4%-0.9%-4.2%
90 Day16.4%5.1%-2.6%
1 Year-37.8%-39.3%23.8%20.9%7.6%2.0%
3 Year26.5%19.7%49.2%39.1%11.4%-2.7%
5 Year-30.0%-37.0%108.5%84.1%29.0%-0.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HYDG (£0.43) is trading below our estimate of fair value (£1.59)

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


Price To Earnings Ratio

PE vs Industry: HYDG is good value based on its PE Ratio (5.5x) compared to the Professional Services industry average (22.7x).

PE vs Market: HYDG is good value based on its PE Ratio (5.5x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: HYDG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HYDG is good value based on its PB Ratio (0.6x) compared to the GB Professional Services industry average (2.9x).


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HYDG's forecast earnings growth (4.3% per year) is above the savings rate (0.5%).

Earnings vs Market: HYDG's earnings (4.3% per year) are forecast to grow slower than the UK market (12.9% per year).

High Growth Earnings: HYDG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HYDG's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: HYDG's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Hydrogen Group performed over the past 5 years?

49.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HYDG has high quality earnings.

Growing Profit Margin: HYDG's current net profit margins (1.9%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: HYDG has become profitable over the past 5 years, growing earnings by 49% per year.

Accelerating Growth: HYDG's earnings growth over the past year (683.9%) exceeds its 5-year average (49% per year).

Earnings vs Industry: HYDG earnings growth over the past year (683.9%) exceeded the Professional Services industry 13.7%.


Return on Equity

High ROE: HYDG's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hydrogen Group's financial position?


Financial Position Analysis

Short Term Liabilities: HYDG's short term assets (£26.0M) exceed its short term liabilities (£17.1M).

Long Term Liabilities: HYDG's short term assets (£26.0M) exceed its long term liabilities (£4.3M).


Debt to Equity History and Analysis

Debt Level: HYDG is debt free.

Reducing Debt: HYDG has no debt compared to 5 years ago when its debt to equity ratio was 24.7%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if HYDG's debt is covered by short term assets.


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: HYDG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HYDG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.71%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.9%markettop25%5.4%industryaverage2.1%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: HYDG's dividend (4.71%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: HYDG's dividend (4.71%) is low compared to the top 25% of dividend payers in the UK market (5.37%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), HYDG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HYDG's dividends in 3 years are forecast to be well covered by earnings (25.5% payout ratio).


Next Steps

Management

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

4.4yrs

Average board tenure


CEO

Ian Temple (52yo)

4.9yrs

Tenure

UK£420,000

Compensation

Mr. Ian Richard Temple is the Co-Founder of Hydrogen Group PLC and has been its Chief Executive Officer since March 4, 2015. Mr. Temple served as an Executive Chairman and Secretary of Hydrogen Group PLC u ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD542.86K) is above average for companies of similar size in the UK market ($USD325.23K).

Compensation vs Earnings: Ian's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Ian Temple
Co-Founder4.9yrsUK£420.00k12.31% £1.7m
John Hunter
COO, CFO & Director2.7yrsUK£367.00k4.99% £699.9k
Richard Green
Senior Independent Non-Executive Director3.9yrsUK£35.00k1.92% £269.0k
Stephen Puckett
Independent Chairman4.9yrsUK£80.00k3.08% £432.0k

4.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: HYDG's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Hydrogen Group Plc
  • Ticker: HYDG
  • Exchange: AIM
  • Founded: 2005
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£14.018m
  • Shares outstanding: 32.98m
  • Website: https://www.hydrogengroup.com

Number of Employees


Location

  • Hydrogen Group Plc
  • 30 Eastcheap
  • London
  • Greater London
  • EC3M 1HD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYDGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2006

Biography

Hydrogen Group Plc, together with its subsidiaries, provides recruitment services for mid to senior level professional staff. The company offers professional support services, including legal, finance, technology, and business transformation; and technical and scientific market sector services, such as energy and life sciences. It provides permanent and contract services for large and medium sized organizations. The company has operations in Europe, the Middle East, Africa, the United States, Asia, and Australia. Hydrogen Group Plc was founded in 2005 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:10
End of Day Share Price2020/02/26 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.