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 Analysis

Solid track record and fair value.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

NSH

-3.5%

GB Commercial Services

-5.4%

GB Market


1 Year Return

25.0%

NSH

20.5%

GB Commercial Services

2.0%

GB Market

Return vs Industry: NSH exceeded the UK Commercial Services industry which returned 20.5% over the past year.

Return vs Market: NSH exceeded the UK Market which returned 2% over the past year.


Shareholder returns

NSHIndustryMarket
7 Day0%-3.5%-5.4%
30 Day6.3%-3.7%-4.2%
90 Day9.7%-0.05%-2.6%
1 Year28.3%25.0%24.1%20.5%7.6%2.0%
3 Year141.6%123.7%19.8%9.5%11.4%-2.7%
5 Year175.6%142.9%31.1%9.9%29.0%-0.6%

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?

14.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NSH (£0.85) is trading above our estimate of fair value (£0.44)

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


Price To Earnings Ratio

PE vs Industry: NSH is good value based on its PE Ratio (14.4x) compared to the Commercial Services industry average (19.9x).

PE vs Market: NSH is good value based on its PE Ratio (14.4x) compared to the UK market (17.3x).


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 (1.5x) compared to the GB Commercial Services industry average (2x).


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 (0.5%).

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 (3.8% 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 17.1%.


Return on Equity

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


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) exceed 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 70.1% 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?

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NSH's dividend (1.76%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: NSH's dividend (1.76%) is low compared to the top 25% of dividend payers in the UK market (5.37%).


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

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

1.8yrs

Average management tenure


CEO

Kieran Mahon (53yo)

4.1yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Aidan Hughes
Financial Director & Executive Director13.4yrsno data0.89% £227.4k
Timothy O'Neill
Executive Chairman16.8yrsUK£114.00k10.04% £2.6m
Kieran Mahon
Group MD & Executive Director4.1yrsUK£151.00k6.6% £1.7m
Paul Andrew
Managing Director of Norish North West1.1yrsno datano data
Mick Bates
Managing Director of Kent1.1yrsno datano data
Gerard Murphy
Company Secretary1.8yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: NSH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aidan Hughes
Financial Director & Executive Director13.4yrsno data0.89% £227.4k
Timothy O'Neill
Executive Chairman16.8yrsUK£114.00k10.04% £2.6m
Kieran Mahon
Group MD & Executive Director4.1yrsUK£151.00k6.6% £1.7m
William McCarter
Senior Independent Non-Executive Director16.1yrsUK£14.00kno data
Torgeir Mantor
Non-Executive Director27.1yrsUK£14.00k4.18% £1.1m
Sean Savage
Non-Executive Director7.3yrsUK£14.00k3.33% £850.3k

14.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: NSH's board of directors are seasoned and experienced ( 14.8 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

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£25.560m
  • 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 Kingdom and Ireland. The company operates through Product Sourcing Business, North West Cold Storage, South East Cold Storage, and Dairy Farming segments. It offers bonded storage, handling, blast freezing, de-vanning, picking and packing, and cross-docking and distribution services. The company also supplies raw and cooked beef, mutton, lamb, pork, chicken, fish, and poultry and dairy products to food manufacturing and wholesale companies in the United Kingdom, including Northern Ireland. In addition, it is involved in the dairy farming, investment, and property management businesses. Norish plc was founded in 1975 and is headquartered in Bury St Edmunds, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:04
End of Day Share Price2020/02/26 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.