Loading...

K3 Capital Group

AIM:K3C
Snowflake Description

Outstanding track record with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
K3C
AIM
£59M
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

K3 Capital Group PLC provides advisory services in the United Kingdom. The last earnings update was 122 days ago. More info.


Add to Portfolio Compare Print
  • K3 Capital Group has significant price volatility in the past 3 months.
K3C Share Price and Events
7 Day Returns
-0.7%
AIM:K3C
3.9%
GB Professional Services
0.5%
GB Market
1 Year Returns
-56.4%
AIM:K3C
12.8%
GB Professional Services
-5.4%
GB Market
K3C Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
K3 Capital Group (K3C) -0.7% -7.6% -43.1% -56.4% - -
GB Professional Services 3.9% 6.2% 8.2% 12.8% 55.8% 87%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • K3C underperformed the Professional Services industry which returned 12.8% over the past year.
  • K3C underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
K3C
Industry
5yr Volatility vs Market

K3C Value

 Is K3 Capital Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of K3 Capital Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for K3 Capital Group.

AIM:K3C Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:K3C
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.878 (1 + (1- 19%) (0%))
0.918
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.918 * 6.65%)
7.33%

Discounted Cash Flow Calculation for AIM:K3C using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for K3 Capital Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:K3C DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.33%)
2019 6.93 Est @ 22.21% 6.46
2020 8.03 Est @ 15.91% 6.97
2021 8.96 Est @ 11.51% 7.24
2022 9.71 Est @ 8.42% 7.32
2023 10.32 Est @ 6.26% 7.24
2024 10.81 Est @ 4.75% 7.07
2025 11.21 Est @ 3.7% 6.83
2026 11.54 Est @ 2.95% 6.55
2027 11.82 Est @ 2.44% 6.25
2028 12.07 Est @ 2.07% 5.95
Present value of next 10 years cash flows £67.89
AIM:K3C DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £12.07 × (1 + 1.23%) ÷ (7.33% – 1.23%)
£200.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £200.08 ÷ (1 + 7.33%)10
£98.60
AIM:K3C Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £67.89 + £98.60
£166.49
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £166.49 / 42.21
£3.94
AIM:K3C Discount to Share Price
Calculation Result
Value per share (GBP) From above. £3.94
Current discount Discount to share price of £1.40
= -1 x (£1.40 - £3.94) / £3.94
64.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price K3 Capital Group is available for.
Intrinsic value
>50%
Share price is £1.4 vs Future cash flow value of £3.94
Current Discount Checks
For K3 Capital Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • K3 Capital Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • K3 Capital Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for K3 Capital Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are K3 Capital Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:K3C PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in GBP £0.14
AIM:K3C Share Price ** AIM (2019-05-23) in GBP £1.4
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 33 Publicly-Listed Professional Services Companies 18.89x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of K3 Capital Group.

AIM:K3C PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:K3C Share Price ÷ EPS (both in GBP)

= 1.4 ÷ 0.14

10.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K3 Capital Group is good value based on earnings compared to the GB Professional Services industry average.
  • K3 Capital Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does K3 Capital Group's expected growth come at a high price?
Raw Data
AIM:K3C PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
2.4%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Professional Services Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

AIM:K3C PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.1x ÷ 2.4%

4.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K3 Capital Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on K3 Capital Group's assets?
Raw Data
AIM:K3C PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in GBP £0.17
AIM:K3C Share Price * AIM (2019-05-23) in GBP £1.4
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 44 Publicly-Listed Professional Services Companies 2.92x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
AIM:K3C PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:K3C Share Price ÷ Book Value per Share (both in GBP)

= 1.4 ÷ 0.17

8.17x

* Primary Listing of K3 Capital Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K3 Capital Group is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess K3 Capital Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. K3 Capital Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

K3C Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is K3 Capital Group expected to grow at an attractive rate?
  • K3 Capital Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • K3 Capital Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • K3 Capital Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:K3C Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:K3C Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 2.4%
AIM:K3C Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 6.1%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:K3C Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:K3C Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-05-31 17 6 1
2020-05-31 17 6 1
2019-05-31 14 1
AIM:K3C Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-11-30 16 6 6
2018-08-31 16 7 6
2018-05-31 16 7 6
2018-02-28 15 6 5
2017-11-30 13 4 3
2017-08-31 12 4 3
2017-05-31 11 3 3
2016-05-31 9 3 2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • K3 Capital Group's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
  • K3 Capital Group's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:K3C Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from K3 Capital Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:K3C Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-05-31 0.14 0.14 0.14 1.00
2020-05-31 0.14 0.14 0.14 1.00
2019-05-31
AIM:K3C Past Financials Data
Date (Data in GBP Millions) EPS *
2018-11-30 0.14
2018-08-31 0.14
2018-05-31 0.14
2018-02-28 0.11
2017-11-30 0.08
2017-08-31 0.07
2017-05-31 0.27
2016-05-31 1.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • K3 Capital Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess K3 Capital Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
K3 Capital Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

K3C Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare K3 Capital Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • K3 Capital Group has delivered over 20% year on year earnings growth in the past 5 years.
  • K3 Capital Group's 1-year earnings growth exceeds its 5-year average (71.1% vs 35.2%)
  • K3 Capital Group's earnings growth has exceeded the GB Professional Services industry average in the past year (71.1% vs 13.1%).
Earnings and Revenue History
K3 Capital Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from K3 Capital Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:K3C Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-30 16.15 5.83 9.00
2018-08-31 16.32 5.89 9.09
2018-05-31 16.49 5.95 9.17
2018-02-28 14.60 4.68 8.75
2017-11-30 12.71 3.41 8.33
2017-08-31 11.77 3.09 7.72
2017-05-31 10.82 2.78 7.11
2016-05-31 8.55 2.47 5.36
2015-05-31 4.94 1.34 4.17
2014-05-31 3.07 0.30 2.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • K3 Capital Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • K3 Capital Group used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • K3 Capital Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess K3 Capital Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
K3 Capital Group has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

K3C Health

 How is K3 Capital Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up K3 Capital Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • K3 Capital Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • K3 Capital Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of K3 Capital Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • K3 Capital Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from K3 Capital Group Company Filings, last reported 5 months ago.

AIM:K3C Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 7.21 0.00 5.89
2018-08-31 7.21 0.00 5.89
2018-05-31 8.28 0.00 7.52
2018-02-28 8.28 0.00 7.52
2017-11-30 6.10 0.00 4.97
2017-08-31 6.10 0.00 4.97
2017-05-31 5.35 0.43 3.80
2016-05-31 1.73 0.67 1.53
2015-05-31 1.58 0.88 0.97
2014-05-31 1.59 0.77 0.58
  • K3 Capital Group has no debt.
  • K3 Capital Group currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • K3 Capital Group has no debt, it does not need to be covered by operating cash flow.
  • K3 Capital Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess K3 Capital Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. K3 Capital Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

K3C Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.06%
Current annual income from K3 Capital Group dividends. Estimated to be 8.08% next year.
If you bought £2,000 of K3 Capital Group shares you are expected to receive £161 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • K3 Capital Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • K3 Capital Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:K3C Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:K3C Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-05-31 0.12 1.00
2020-05-31 0.12 1.00
2019-05-31 0.11 1.00
AIM:K3C Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-09-11 0.113 5.027
2018-01-16 0.057 2.019
2017-09-22 0.044 2.808
2017-09-11 0.044 2.985

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, K3 Capital Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but K3 Capital Group only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of K3 Capital Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess K3 Capital Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can K3 Capital Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. K3 Capital Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

K3C Management

 What is the CEO of K3 Capital Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Rigby
COMPENSATION £397,000
TENURE AS CEO 9.3 years
CEO Bio

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 development of the low cost, process driven delivery platform. He joined K3C in 2000 following a career in commercial and corporate banking. He has over 17 years of operational, sales and commercial management experience within the sector and developed the national sales infrastructure of the Group.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

John Rigby

TITLE
CEO & Executive Director
COMPENSATION
£397K
TENURE
9.3 yrs

Tony Ford

TITLE
Executive Vice Chairman
COMPENSATION
£521K

Andrew Melbourne

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£153K

Stuart Lees

TITLE
Executive Director
COMPENSATION
£101K

Matthew Clancy

TITLE
Operations Director

Simon Daniels

TITLE
Sales Director

Gary Edwards

TITLE
Head of Marketing

Julian Coy

TITLE
Corporate Finance Managing Director
Board of Directors Tenure

Average tenure of the K3 Capital Group board of directors in years:

2.1
Average Tenure
  • The average tenure for the K3 Capital Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ian Mattioli

TITLE
Non-Executive Chairman
COMPENSATION
£74K
AGE
53
TENURE
2.1 yrs

John Rigby

TITLE
CEO & Executive Director
COMPENSATION
£397K

Tony Ford

TITLE
Executive Vice Chairman
COMPENSATION
£521K

Andrew Melbourne

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£153K

Stuart Lees

TITLE
Executive Director
COMPENSATION
£101K
TENURE
3.7 yrs

William Robinson

TITLE
Non-Executive Director
COMPENSATION
£24K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by K3 Capital Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
08. Apr 19 Buy Julian Coy Individual 05. Apr 19 05. Apr 19 14,479 £1.37 £19,800
08. Apr 19 Buy Anthony John Ford Individual 05. Apr 19 05. Apr 19 50,000 £1.40 £70,000
05. Jun 18 Buy Ian Mattioli Individual 24. May 18 24. May 18 1,509 £3.30 £4,978
X
Management checks
We assess K3 Capital Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. K3 Capital Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

K3C News

Simply Wall St News

What Is K3 Capital Group PLC's (LON:K3C) Share Price Doing?

K3 Capital Group PLC (LON:K3C), which is in the professional services business, and is based in United Kingdom, saw significant share price movement during recent months on the AIM, rising to highs of £2.48 and falling to the lows of £1.37. … This is because K3 Capital Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … However, with a relatively muted profit growth of 4.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for K3 Capital Group, at least in the short term.

Simply Wall St -

K3 Capital Group PLC (LON:K3C): What Does Its Beta Value Mean For Your Portfolio?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

These Fundamentals Make K3 Capital Group PLC (LON:K3C) Truly Worth Looking At

I've been keeping an eye on K3 Capital Group PLC (LON:K3C) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe K3C has a lot to offer. … , dividend-paying company with a

Simply Wall St -

Are K3 Capital Group PLC's (LON:K3C) Interest Costs Too High?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like K3 Capital Group PLC (LON:K3C), as the company does not have to adhere to strict debt covenants. … However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does K3C's growth rate justify its decision for financial flexibility over lower cost of capital

Simply Wall St -

Why We Like K3 Capital Group Plc’s (LON:K3C) 88% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Should K3 Capital Group Plc (LON:K3C) Be Part Of Your Portfolio?

K3 Capital Group Plc (LON:K3C) has started paying a dividend to shareholders. … Let's take a look at K3 Capital Group in more detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Should You Be Tempted To Sell K3 Capital Group Plc (LON:K3C) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … K3 Capital Group has a price to earnings ratio of 19.29, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Can We Expect From K3 Capital Group Plc's (LON:K3C) Earnings Over The Next Year?

Since K3 Capital Group Plc (LON:K3C) released its earnings in May 2018, … with earnings expected to decline by -4.3% in the upcoming year

Simply Wall St -

Brief Commentary On K3 Capital Group Plc's (LON:K3C) Fundamentals

K3 Capital Group Plc (LON:K3C) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Is K3 Capital Group Plc's (LON:K3C) ROE Of 72% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows K3 Capital Group has a return on equity of 72% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

K3C Company Info

Description

K3 Capital Group PLC provides advisory services in the United Kingdom. It offers sell side advisory services to SME businesses in engineering, manufacturing, construction, technology, retail, wholesale, distribution, and business service sectors; company sales lead advisory and transaction support, and handling services; and business transfer services to clients in retail, catering, care, commercial, licensed and leisure markets. The company was founded in 1998 and is headquartered in Bolton, the United Kingdom.

Details
Name: K3 Capital Group PLC
K3C
Exchange: AIM
Founded: 1998
£58,883,683
42,210,526
Website: http://www.k3capitalgroupplc.com
Address: K3 Capital Group PLC
KBS House,
5 Springfield Court,
Bolton,
Greater Manchester, BL3 2NT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM K3C Ordinary Shares London Stock Exchange AIM Market GB GBP 11. Apr 2017
LSE K3C Ordinary Shares London Stock Exchange GB GBP 11. Apr 2017
Number of employees
Current staff
Staff numbers
148
K3 Capital Group employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:33
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/04/05
Last earnings filing: 2019/01/21
Last earnings reported: 2018/11/30
Last annual earnings reported: 2018/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.