AIM:PTY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Parity Group plc, together with its subsidiaries, provides a range of recruitment, and data and technology solutions in the United Kingdom and rest of Europe.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PTY

4.5%

GB Professional Services

2.6%

GB Market


1 Year Return

4.7%

PTY

-1.9%

GB Professional Services

-10.3%

GB Market

Return vs Industry: PTY exceeded the UK Professional Services industry which returned -4.1% over the past year.

Return vs Market: PTY exceeded the UK Market which returned -11.5% over the past year.


Shareholder returns

PTYIndustryMarket
7 Day0%4.5%2.6%
30 Day-3.1%-0.2%2.3%
90 Day-8.8%4.8%6.9%
1 Year4.7%4.7%0.3%-1.9%-6.7%-10.3%
3 Year-26.2%-26.2%29.8%21.0%-3.9%-15.4%
5 Year-1.6%-1.6%94.4%76.2%16.9%-9.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PTY (£0.08) is trading below our estimate of fair value (£0.5)

Significantly Below Fair Value: PTY is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PTY is good value based on its PB Ratio (1.2x) compared to the GB Professional Services industry average (2x).


Next Steps

Future Growth

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

14.8%

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 Parity 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 Parity Group performed over the past 5 years?

32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTY is currently unprofitable.

Growing Profit Margin: PTY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTY is unprofitable, but has reduced losses over the past 5 years at a rate of 32.4% per year.

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

Earnings vs Industry: PTY is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-13.4%).


Return on Equity

High ROE: PTY has a negative Return on Equity (-16.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is Parity Group's financial position?


Financial Position Analysis

Short Term Liabilities: PTY's short term assets (£10.9M) exceed its short term liabilities (£9.4M).

Long Term Liabilities: PTY's short term assets (£10.9M) exceed its long term liabilities (£1.1M).


Debt to Equity History and Analysis

Debt Level: PTY's debt to equity ratio (42.3%) is considered high.

Reducing Debt: PTY's debt to equity ratio has reduced from 107% to 42.3% 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 PTY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PTY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PTY'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 PTY'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?

1.3yrs

Average management tenure


CEO

Matt Bayfield (45 yo)

1.5yrs

Tenure

UK£279,454

Compensation

Mr. Matthew Bayfield, Matt Co-founded Tree LLP (Tree (London) Limited) in 2001 and serves as its Partner. Mr. Bayfield has been a Chief Executive Officer and Director of Parity Group plc since February 5, ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD365.54K) is about average for companies of similar size in the UK market ($USD358.32K).

Compensation vs Earnings: Insufficient data to compare Matt's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Bayfield
CEO & Director1.5yrsUK£279.45k0.050%
£ 3.9k
Mike Johns
Director & CFO0.17yrno datano data
Shaun O'Hara
People Directorno datano datano data
Antonio Acuña
Head of Consulting1.33yrsno datano data

1.3yrs

Average Tenure

Experienced Management: PTY's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew Bayfield
CEO & Director1.5yrsUK£279.45k0.050%
£ 3.9k
Mike Johns
Director & CFO0.17yrno datano data
Gerard Brandon
Non-Executive Director0.25yrno datano data
David Samuel Firth
Independent Non-Executive Director3.92yrsUK£45.00k0.19%
£ 15.0k
John Conoley
Independent Non-Executive Chairman3.33yrsUK£60.00k0.34%
£ 25.9k

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: PTY's board of directors are not considered experienced ( 1.5 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: PTY 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

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


Key Information

  • Name: Parity Group plc
  • Ticker: PTY
  • Exchange: AIM
  • Founded: 1993
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£7.707m
  • Shares outstanding: 102.62m
  • Website: https://www.parity.net

Number of Employees


Location

  • Parity Group plc
  • The Ministry
  • 2nd Floor
  • London
  • Greater London
  • SE1 1DN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTYAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992
PAY1BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

Parity Group plc, together with its subsidiaries, provides a range of recruitment, and data and technology solutions in the United Kingdom and rest of Europe. The company operates through two segments, Rec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:44
End of Day Share Price2020/08/11 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.