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Market Cap

UK£362.6m

Last Updated

2021/05/10 22:56 UTC

Data Sources

Company Financials +

Executive Summary

Knights Group Holdings plc provides legal and professional services in the United Kingdom. More Details

Rewards

Trading at 6.3% below our estimate of its fair value

Earnings are forecast to grow 83.06% per year

Risk Analysis

No risks detected for KGH from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KGH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KGH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

KGH

-0.6%

GB Professional Services

2.4%

GB Market


1 Year Return

24.0%

KGH

10.5%

GB Professional Services

25.6%

GB Market

Return vs Industry: KGH exceeded the UK Professional Services industry which returned 11.6% over the past year.

Return vs Market: KGH underperformed the UK Market which returned 26.3% over the past year.


Shareholder returns

KGHIndustryMarket
7 Day-1.3%-0.6%2.4%
30 Day0.9%0.6%3.4%
90 Day8.7%7.3%9.1%
1 Year24.0%24.0%12.6%10.5%31.1%25.6%
3 Yearn/a35.9%27.2%13.0%-0.03%
5 Yearn/a89.4%69.3%51.0%22.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KGH (£4.39) is trading below our estimate of fair value (£4.69)

Significantly Below Fair Value: KGH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KGH is unprofitable, so we can't compare its PE Ratio to the UK Professional Services industry average.

PE vs Market: KGH is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KGH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KGH is overvalued based on its PB Ratio (4.8x) compared to the GB Professional Services industry average (2.9x).


Future Growth

How is Knights Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

83.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: KGH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KGH's is expected to become profitable in the next 3 years.

Revenue vs Market: KGH's revenue (15% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: KGH's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KGH's Return on Equity is forecast to be low in 3 years time (18.4%).


Past Performance

How has Knights Group Holdings performed over the past 5 years?

-18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGH is currently unprofitable.

Growing Profit Margin: KGH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KGH is unprofitable, and losses have increased over the past 5 years at a rate of 18.4% per year.

Accelerating Growth: Unable to compare KGH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KGH is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-10.4%).


Return on Equity

High ROE: KGH has a negative Return on Equity (-2.35%), as it is currently unprofitable.


Financial Health

How is Knights Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KGH's short term assets (£52.6M) exceed its short term liabilities (£28.1M).

Long Term Liabilities: KGH's short term assets (£52.6M) do not cover its long term liabilities (£54.1M).


Debt to Equity History and Analysis

Debt Level: KGH's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KGH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KGH's debt is well covered by operating cash flow (65.5%).

Interest Coverage: KGH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

1.08%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KGH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KGH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KGH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KGH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KGH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KGH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

David Beech (54 yo)

10.33yrs

Tenure

UK£231,000

Compensation

Mr. Andrew Beech, also known as David, is the Chief Executive Officer of Knights Group Holdings Plc since 2011 and serves as its Director since April 4, 2018. Mr. Beech was Managing Partner of Heatons sinc...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD326.59K) is below average for companies of similar size in the UK market ($USD718.45K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: KGH's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: KGH's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Knights Group Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Knights Group Holdings plc
  • Ticker: KGH
  • Exchange: AIM
  • Founded: 1759
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£362.644m
  • Shares outstanding: 82.61m
  • Website: https://www.knightsplc.com

Number of Employees


Location

  • Knights Group Holdings plc
  • The Brampton
  • Newcastle-under-Lyme
  • Staffordshire
  • ST5 0QW
  • United Kingdom

Listings


Biography

Knights Group Holdings plc provides legal and professional services in the United Kingdom. It offers business services, in the areas of aviation, banking, commercial, corporate, data protection, debt recov...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 22:56
End of Day Share Price2021/05/10 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.