AIM:KEYS

Stock Analysis Report

Executive Summary

Keystone Law Group plc provides legal services in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KEYS

1.5%

GB Professional Services

-1.5%

GB Market


1 Year Return

24.5%

KEYS

17.5%

GB Professional Services

3.5%

GB Market

Return vs Industry: KEYS exceeded the UK Professional Services industry which returned 17.5% over the past year.

Return vs Market: KEYS exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

KEYSIndustryMarket
7 Day0%1.5%-1.5%
30 Day9.5%3.9%1.0%
90 Day18.8%-1.5%4.3%
1 Year28.9%24.5%20.3%17.5%9.0%3.5%
3 Yearn/a58.2%46.8%21.8%6.4%
5 Yearn/a115.0%89.6%33.8%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KEYS (£5.14) is trading above our estimate of fair value (£3.36)

Significantly Below Fair Value: KEYS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KEYS is poor value based on its PE Ratio (39.5x) compared to the Professional Services industry average (20.8x).

PE vs Market: KEYS is poor value based on its PE Ratio (39.5x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: KEYS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: KEYS is overvalued based on its PB Ratio (10.5x) compared to the GB Professional Services industry average (2.9x).


Next Steps

Future Growth

How is Keystone Law Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEYS's forecast earnings growth (12.6% per year) is above the savings rate (1.2%).

Earnings vs Market: KEYS's earnings (12.6% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: KEYS's revenue (12.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: KEYS's revenue (12.1% 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 KEYS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Keystone Law Group performed over the past 5 years?

46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEYS has high quality earnings.

Growing Profit Margin: KEYS's current net profit margins (8.9%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: KEYS's earnings have grown significantly by 46.4% per year over the past 5 years.

Accelerating Growth: KEYS's earnings growth over the past year (77.3%) exceeds its 5-year average (46.4% per year).

Earnings vs Industry: KEYS earnings growth over the past year (77.3%) exceeded the Professional Services industry 12.5%.


Return on Equity

High ROE: KEYS's Return on Equity (26.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Keystone Law Group's financial position?


Financial Position Analysis

Short Term Liabilities: KEYS's short term assets (£21.8M) exceeds its short term liabilities (£13.2M)

Long Term Liabilities: KEYS's short term assets (21.8M) exceeds its long term liabilities (2.4M)


Debt to Equity History and Analysis

Debt Level: KEYS is debt free.

Reducing Debt: KEYS had no debt 5 years ago.

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%5.3%industryaverage2.1%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: KEYS's dividend (1.75%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: KEYS's dividend (1.75%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KEYS has been paying a dividend for less than 10 years.

Growing Dividend: KEYS's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.6%), KEYS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEYS's dividends in 3 years are forecast to be covered by earnings (67.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

James Knight (52yo)

0yrs

Tenure

UK£315,000

Compensation

Mr. James David Knight Founded Keystone Law Group Plc in 2002 and serves as its Chief Executive Officer Mr. Knight has been Executive Director at Keystone Law Group Plc since October 17, 2014. He has a 10  ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD405.68K) is below average for companies of similar size in the UK market ($USD661.27K).

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


Management Age and Tenure

2.8yrs

Average Tenure

46yo

Average Age

Experienced Management: KEYS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

52yo

Average Age

Experienced Board: KEYS's board of directors are considered experienced (4.8 years average tenure).


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

SellUK£4,500,00031 May 19
Root Capital
EntityCompany
Shares1,000,000
Max PriceUK£4.50

Ownership Breakdown

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


Management Team

  • Karen Scott

    General counsel

    • Tenure: 0yrs
  • James Knight (52yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£315.00k
  • Ashley Rupert James Miller (47yo)

    Finance Director & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£147.00k
  • William Robins (42yo)

    Director of Operations & Compliance and Company Secretary

    • Tenure: 0yrs
  • Mark Machray (46yo)

    Head of Recruitment and Director of Growth & Development

    • Tenure: 0yrs
  • Maurice Tunney (46yo)

    Director of Technology & Innovation

    • Tenure: 0yrs
  • Kristina Oliver (36yo)

    Director of Marketing & Business Development

    • Tenure: 6.3yrs
  • Fiona Severs

    Head of Community & Engagement

    • Tenure: 0yrs
  • Emma Millar

    Head of Administration

    • Tenure: 0.6yrs
  • Alastair Clark

    PR & Communications Manager

    • Tenure: 0.8yrs

Board Members

  • Simon Robert Philips (51yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£50.00k
  • Peter Whiting (53yo)

    Senior Independent Director

    • Tenure: 2.1yrs
    • Compensation: UK£35.00k
  • Robin George Williams (62yo)

    Independent Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: UK£60.00k
  • James Knight (52yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£315.00k
  • Ashley Rupert James Miller (47yo)

    Finance Director & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£147.00k

Company Information

Keystone Law Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keystone Law Group plc
  • Ticker: KEYS
  • Exchange: AIM
  • Founded: 2002
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£160.748m
  • Shares outstanding: 31.27m
  • Website: https://www.keystonelaw.co.uk

Number of Employees


Location

  • Keystone Law Group plc
  • 48 Chancery Lane
  • London
  • Greater London
  • WC2A 1JF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEYSAIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPNov 2017

Biography

Keystone Law Group plc provides legal services in the United Kingdom. The company offers its legal services in the areas of banking and finance, commercial, commercial property, construction and projects,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 22:07
End of Day Share Price2019/11/14 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.