AIM:NAK

Stock Analysis Report

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Executive Summary

Nakama Group plc, together with its subsidiaries, provides recruitment consultancy services for digital technology and interactive media industries under the Nakama name in the Asia Pacific, the United Kingdom, Europe, and the United States.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NAK

1.7%

GB Professional Services

5.5%

GB Market


1 Year Return

-72.5%

NAK

5.2%

GB Professional Services

-9.2%

GB Market

Return vs Industry: NAK underperformed the UK Professional Services industry which returned 5.2% over the past year.

Return vs Market: NAK underperformed the UK Market which returned -9.2% over the past year.


Shareholder returns

NAKIndustryMarket
7 Day0%1.7%5.5%
30 Day-21.4%10.6%10.8%
90 Day-50.0%4.6%-0.4%
1 Year-72.5%-72.5%7.6%5.2%-4.8%-9.2%
3 Year-85.3%-85.3%34.4%25.3%-0.8%-12.9%
5 Year-93.9%-93.9%103.6%80.6%18.1%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NAK (£0) is trading above our estimate of fair value (£0)

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


Price To Earnings Ratio

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

PE vs Market: NAK 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 NAK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NAK is good value based on its PB Ratio (1.6x) compared to the GB Professional Services industry average (2.2x).


Next Steps

Future Growth

How is Nakama Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nakama Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nakama Group performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAK is currently unprofitable.

Growing Profit Margin: NAK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NAK is unprofitable, and losses have increased over the past 5 years at a rate of -37.4% per year.

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

Earnings vs Industry: NAK is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (9.7%).


Return on Equity

High ROE: NAK has a negative Return on Equity (-74.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nakama Group's financial position?


Financial Position Analysis

Short Term Liabilities: NAK's short term assets (£1.7M) exceed its short term liabilities (£1.5M).

Long Term Liabilities: NAK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NAK's debt to equity ratio (250.5%) is considered high.

Reducing Debt: NAK's debt to equity ratio has increased from 64.8% to 250.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NAK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NAK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NAK'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 NAK's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NAK'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?

1.9yrs

Average board tenure


CEO

Rob Thesiger (48yo)

1.17yrs

Tenure

Mr. Robert Thesiger also known as Rob, has been Group Chief Executive Officer and Director at Nakama Group plc since April 1, 2019. Mr. Thesiger served as the Chief Executive Officer of Imprint Limited (fo ...


Board Members

NamePositionTenureCompensationOwnership
Robert Thesiger
Group CEO & Director1.17yrsno datano data
Timothy John Sheffield
Independent Non-Executive Chairman2.42yrsno datano data
Michael Clelland
Independent Non-Executive Director1.92yrsUK£12.00kno data

1.9yrs

Average Tenure

Experienced Board: NAK's board of directors are not considered experienced ( 1.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Nakama Group plc
  • Ticker: NAK
  • Exchange: AIM
  • Founded: 1983
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£323.010k
  • Shares outstanding: 117.46m
  • Website: https://www.nakamagroupplc.com

Number of Employees


Location

  • Nakama Group plc
  • Quadrant House
  • 33/45 Croydon Road
  • Caterham
  • Surrey
  • CR3 6PB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAKAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1996

Biography

Nakama Group plc, together with its subsidiaries, provides recruitment consultancy services for digital technology and interactive media industries under the Nakama name in the Asia Pacific, the United Kingdom, Europe, and the United States. The company also provides technology and business information recruitment consultancy services to insurance and investment management industries under Highams brand name. Its recruitment services include permanent, contract, freelance, and search and project management services. The company was formerly known as Highams Systems Services Group plc. Nakama Group PLC was founded in 1983 and is headquartered in Caterham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 23:07
End of Day Share Price2020/06/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.