AIM:K3C

Stock Analysis Report

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Executive Summary

K3 Capital Group PLC acts as a business sales specialists in the United Kingdom and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has K3 Capital Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: K3C's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.0%

K3C

2.4%

GB Professional Services

2.0%

GB Market


1 Year Return

49.4%

K3C

4.7%

GB Professional Services

-12.8%

GB Market

Return vs Industry: K3C exceeded the UK Professional Services industry which returned 4.8% over the past year.

Return vs Market: K3C exceeded the UK Market which returned -12.5% over the past year.


Shareholder returns

K3CIndustryMarket
7 Day9.0%2.4%2.0%
30 Day4.5%9.8%5.7%
90 Day-14.6%0.7%-8.2%
1 Year55.5%49.4%7.1%4.7%-8.6%-12.8%
3 Year64.3%45.0%32.8%23.7%-6.2%-17.6%
5 Yearn/a101.4%78.7%12.7%-12.5%

Price Volatility Vs. Market

How volatile is K3 Capital Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K3 Capital Group undervalued compared to its fair value and its price relative to the market?

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K3C (£1.76) is trading below our estimate of fair value (£2.68)

Significantly Below Fair Value: K3C is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: K3C is good value based on its PE Ratio (17.8x) compared to the Professional Services industry average (17.8x).

PE vs Market: K3C is poor value based on its PE Ratio (17.8x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: K3C is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: K3C is overvalued based on its PB Ratio (9x) compared to the GB Professional Services industry average (2.3x).


Next Steps

Future Growth

How is K3 Capital Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K3C's forecast earnings growth (14.2% per year) is above the savings rate (1.2%).

Earnings vs Market: K3C's earnings (14.2% per year) are forecast to grow slower than the UK market (20.3% per year).

High Growth Earnings: K3C's earnings are forecast to grow, but not significantly.

Revenue vs Market: K3C's revenue (10.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: K3C's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: K3C's Return on Equity is forecast to be very high in 3 years time (61.2%).


Next Steps

Past Performance

How has K3 Capital Group performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K3C has high quality earnings.

Growing Profit Margin: K3C's current net profit margins (28.9%) are lower than last year (36.1%).


Past Earnings Growth Analysis

Earnings Trend: K3C's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: K3C's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: K3C had negative earnings growth (-28.8%) over the past year, making it difficult to compare to the Professional Services industry average (9.7%).


Return on Equity

High ROE: K3C's Return on Equity (50.6%) is considered outstanding.


Next Steps

Financial Health

How is K3 Capital Group's financial position?


Financial Position Analysis

Short Term Liabilities: K3C's short term assets (£7.4M) exceed its short term liabilities (£3.4M).

Long Term Liabilities: K3C's short term assets (£7.4M) exceed its long term liabilities (£814.0K).


Debt to Equity History and Analysis

Debt Level: K3C is debt free.

Reducing Debt: K3C has no debt compared to 5 years ago when its debt to equity ratio was 52.1%.

Debt Coverage: K3C has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: K3C has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is K3 Capital Group's current dividend yield, its reliability and sustainability?

4.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K3C's dividend (4.33%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: K3C's dividend (4.33%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


Stability and Growth of Payments

Stable Dividend: K3C has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: K3C's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), K3C's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: K3C's dividends in 3 years are forecast to be covered by earnings (80.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average board tenure


CEO

John Rigby

10.42yrs

Tenure

UK£243,000

Compensation

Mr. John S. Rigby has been the Chief Executive Officer of K3 Capital Group Plc since 2010 and also serves as its Executive Director. Mr. Rigby has been responsible for driving growth and integral in the de ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD299.92K) is about average for companies of similar size in the UK market ($USD336.69K).

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


Board Members

NamePositionTenureCompensationOwnership
John Rigby
CEO & Executive Director10.42yrsUK£243.00k17.98% £13.3m
Anthony John Ford
Executive Vice Chairmanno dataUK£161.00k14.79% £11.0m
Andrew Melbourne
CFO, Company Secretary & Executive Directorno dataUK£100.00k1.1% £815.7k
Stuart Lees
Executive Director4.75yrsUK£41.00k1.63% £1.2m
Ian Mattioli
Non-Executive Chairman3.17yrsUK£74.00k1.62% £1.2m
William Robinson
Independent Non-Executive Director2.92yrsUK£34.00kno data

3.2yrs

Average Tenure

Experienced Board: K3C's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: K3C insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

K3 Capital Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K3 Capital Group PLC
  • Ticker: K3C
  • Exchange: AIM
  • Founded: 1998
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£74.144m
  • Shares outstanding: 42.25m
  • Website: https://www.k3capitalgroupplc.com

Number of Employees


Location

  • K3 Capital Group PLC
  • KBS House
  • 5 Springfield Court
  • Bolton
  • Greater Manchester
  • BL3 2NT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
K3CAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2017
K3CLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2017

Biography

K3 Capital Group PLC acts as a business sales specialists in the United Kingdom and internationally. It provides business sale services that identify and match the sellers of SME businesses to trade, individual, and institutional buyers under the KBS Corporate brand; delivers deals to mid-market private equity and trade buyers; and business transfer services under the Knightsbridge brand. The company was founded in 1998 and is headquartered in Bolton, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 01:22
End of Day Share Price2020/05/29 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.