AIM:KEYS

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

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

-2.1%

KEYS

-2.3%

GB Professional Services

-1.9%

GB Market


1 Year Return

-2.1%

KEYS

6.3%

GB Professional Services

-16.2%

GB Market

Return vs Industry: KEYS underperformed the UK Professional Services industry which returned 8.7% over the past year.

Return vs Market: KEYS exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

KEYSIndustryMarket
7 Day-2.1%-2.3%-1.9%
30 Day-1.6%-1.3%0.7%
90 Day-6.9%1.4%-4.8%
1 Year-0.7%-2.1%8.3%6.3%-13.0%-16.2%
3 Yearn/a27.2%18.8%-9.4%-20.6%
5 Yearn/a96.7%74.8%13.5%-12.0%

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?

39.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KEYS (£4.7) is trading above our estimate of fair value (£4.57)

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 (39.1x) compared to the GB Professional Services industry average (25.1x).

PE vs Market: KEYS is poor value based on its PE Ratio (39.1x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: KEYS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KEYS is overvalued based on its PB Ratio (9.3x) compared to the GB Professional Services industry average (2.3x).


Next Steps

Future Growth

How is Keystone Law Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEYS's forecast earnings growth (18.3% per year) is above the savings rate (1.2%).

Earnings vs Market: KEYS's earnings (18.3% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: KEYS's revenue (14% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: KEYS's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEYS's Return on Equity is forecast to be high in 3 years time (27.4%)


Next Steps

  • Explore growth companies in the Commercial Services industry.

Past Performance

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

38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEYS has high quality earnings.

Growing Profit Margin: KEYS's current net profit margins (7.3%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: KEYS's earnings have grown significantly by 38.3% per year over the past 5 years.

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

Earnings vs Industry: KEYS had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Professional Services industry average (-16.3%).


Return on Equity

High ROE: KEYS's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Keystone Law Group's financial position?


Financial Position Analysis

Short Term Liabilities: KEYS's short term assets (£22.2M) exceed its short term liabilities (£13.1M).

Long Term Liabilities: KEYS's short term assets (£22.2M) exceed its long term liabilities (£1.5M).


Debt to Equity History and Analysis

Debt Level: KEYS is debt free.

Reducing Debt: KEYS has no debt compared to 5 years ago when its debt to equity ratio was 2611.9%.

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


Next Steps

Dividend

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

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KEYS's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: KEYS's dividend (1.4%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


Stability and Growth of Payments

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

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 (55%), 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 (67.5% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

James Knight (53 yo)

no data

Tenure

UK£322,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD423.16K) is below average for companies of similar size in the UK market ($USD684.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Knight
Founderno dataUK£322.00k34.16%
£ 50.2m
Ashley Rupert James Miller
Finance Director & Executive Director5.67yrsUK£173.00k0.79%
£ 1.2m
William Robins
Director of Operations & Compliance and Company Secretaryno datano data4.65%
£ 6.8m
Maurice Tunney
Director of Technology & Innovationno datano datano data
Emma Millar
Head of Administration1.5yrsno datano data
Karen Scott
General counselno datano datano data
Katie Tibbitts
PR & Communications Manager0.42yrno datano data
Kristina Oliver
Director of Marketing & Business Development7.25yrsno datano data
Mark Machray
Head of Recruitment and Director of Growth & Developmentno datano datano data
Fiona Severs
Head of Community & Engagementno datano datano data
Sarah Brown
Head of Partner Recruitment0.75yrno datano data
Alex Sayers
Financial Controllerno datano datano data

1.5yrs

Average Tenure

47yo

Average Age

Experienced Management: KEYS's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Knight
Founderno dataUK£322.00k34.16%
£ 50.2m
Ashley Rupert James Miller
Finance Director & Executive Director5.67yrsUK£173.00k0.79%
£ 1.2m
Simon Robert Philips
Non-Executive Director6.17yrsUK£44.00kno data
Peter Whiting
Senior Independent Director3yrsUK£40.00k0.070%
£ 102.8k
Robin George Williams
Independent Non-Executive Chairman3yrsUK£62.00k0.040%
£ 58.8k

5.7yrs

Average Tenure

53yo

Average Age

Experienced Board: KEYS's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KEYS insiders have only sold shares 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

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£146.988m
  • 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 Analysis2020/10/21 20:35
End of Day Share Price2020/10/21 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.