AIM:NSH

Stock Analysis Report

Executive Summary

Norish Plc, together with its subsidiaries, provides temperature-controlled warehousing and logistics services to food manufacturers, importers, wholesalers, retailers, and distributors in the United Kingdom and Ireland.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.9%

NSH

2.2%

GB Commercial Services

-0.2%

GB Market


1 Year Return

27.0%

NSH

20.9%

GB Commercial Services

4.7%

GB Market

Return vs Industry: NSH exceeded the UK Commercial Services industry which returned 20.9% over the past year.

Return vs Market: NSH exceeded the UK Market which returned 4.7% over the past year.


Shareholder returns

NSHIndustryMarket
7 Day9.9%2.2%-0.2%
30 Day8.4%2.2%0.8%
90 Day34.8%8.1%3.7%
1 Year30.4%27.0%24.6%20.9%10.1%4.7%
3 Year84.0%70.3%27.6%16.6%20.9%5.6%
5 Year151.2%121.4%35.0%13.2%32.3%2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSH (£0.78) is trading below our estimate of fair value (£1.07)

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


Price To Earnings Ratio

PE vs Industry: NSH is good value based on its PE Ratio (13.1x) compared to the Commercial Services industry average (20.4x).

PE vs Market: NSH is good value based on its PE Ratio (13.1x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NSH is good value based on its PB Ratio (1.4x) compared to the GB Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Norish forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NSH's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if NSH's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NSH's revenue (3.4% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: NSH's revenue (3.4% 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 NSH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Norish performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSH has high quality earnings.

Growing Profit Margin: NSH's current net profit margins (5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: NSH's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: NSH's earnings growth over the past year (39%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: NSH earnings growth over the past year (39%) exceeded the Commercial Services industry 14.9%.


Return on Equity

High ROE: NSH's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Norish's financial position?


Financial Position Analysis

Short Term Liabilities: NSH's short term assets (£8.5M) do not cover its short term liabilities (£10.2M)

Long Term Liabilities: NSH's short term assets (£8.5M) exceeds its long term liabilities (7.1M)


Debt to Equity History and Analysis

Debt Level: NSH's debt to equity ratio (59.9%) is considered high.

Reducing Debt: NSH's debt to equity ratio has reduced from 67.3% to 59.9% over the past 5 years.

Debt Coverage: NSH's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: NSH's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

Inventory Level: NSH has a high level of physical assets or inventory.

Debt Coverage by Assets: NSH's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.3%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: NSH's dividend (1.98%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: NSH's dividend (1.98%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: NSH's dividend payments have been volatile in the past 10 years.

Growing Dividend: NSH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), NSH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NSH's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Kieran Mahon (53yo)

3.8yrs

Tenure

UK£151,000

Compensation

Mr. Kieran Mahon has been Group Managing Director of Norish plc since January 1, 2016 and has been its Executive Director since August 19, 2015. Mr. Mahon joined Norish from J+E Davy, where he was an equit ...


Management Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: NSH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

14.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: NSH's board of directors are seasoned and experienced ( 14.5 years average tenure).


Insider Trading

Insider Buying: NSH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£31,50010 Oct 19
Aidan Hughes
EntityIndividual
Role
Member of the Board of Directors
Financial Director & Executive Director
Shares50,000
Max PriceUK£0.63

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Ted O'Neill (67yo)

    Executive Chairman

    • Tenure: 16.5yrs
    • Compensation: UK£114.00k
  • Aidan Hughes (55yo)

    Financial Director & Executive Director

    • Tenure: 13.2yrs
  • Ger Murphy (33yo)

    Company Secretary

    • Tenure: 1.6yrs
  • Paul Andrew

    Managing Director of Norish North West

    • Tenure: 0.8yrs
  • Kieran Mahon (53yo)

    Group MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£151.00k
  • Mick Bates

    Managing Director of Kent

    • Tenure: 0.8yrs
  • David Bell

    Sales and Business Development Manager

    • Tenure: 0yrs

Board Members

  • Ted O'Neill (67yo)

    Executive Chairman

    • Tenure: 16.5yrs
    • Compensation: UK£114.00k
  • Willie McCarter (71yo)

    Senior Independent Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: UK£14.00k
  • Aidan Hughes (55yo)

    Financial Director & Executive Director

    • Tenure: 13.2yrs
  • Torgeir Mantor (62yo)

    Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: UK£14.00k
  • Sean Savage (73yo)

    Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£14.00k
  • Kieran Mahon (53yo)

    Group MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£151.00k

Company Information

Norish Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norish Plc
  • Ticker: NSH
  • Exchange: AIM
  • Founded: 1975
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£23.305m
  • Shares outstanding: 30.07m
  • Website: https://www.norish.com

Number of Employees


Location

  • Norish Plc
  • Northern Industrial Estate
  • Bury St Edmunds
  • Suffolk
  • IP32 6NL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Norish Plc, together with its subsidiaries, provides temperature-controlled warehousing and logistics services to food manufacturers, importers, wholesalers, retailers, and distributors in the United Kingd ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 20:50
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.