AIM:RST

Stock Analysis Report

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Executive Summary

Restore plc, together with its subsidiaries, provides offices and workplaces services to the public and private sectors primarily in the United Kingdom. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

RST

-1.9%

GB Commercial Services

-1.9%

GB Market


1 Year Return

-24.7%

RST

-10.6%

GB Commercial Services

-14.5%

GB Market

Return vs Industry: RST underperformed the UK Commercial Services industry which returned -10.3% over the past year.

Return vs Market: RST underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

RSTIndustryMarket
7 Day-3.0%-1.9%-1.9%
30 Day-1.2%-0.3%-1.7%
90 Day-12.2%-1.3%-4.4%
1 Year-24.7%-24.7%-7.1%-10.6%-11.3%-14.5%
3 Year-39.5%-41.1%-8.9%-18.5%-9.0%-20.3%
5 Year25.8%20.1%22.4%-1.1%15.3%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RST (£3.2) is trading below our estimate of fair value (£3.53)

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


Price To Earnings Ratio

PE vs Industry: RST is poor value based on its PE Ratio (173.4x) compared to the GB Commercial Services industry average (34.8x).

PE vs Market: RST is poor value based on its PE Ratio (173.4x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: RST is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: RST is overvalued based on its PB Ratio (1.9x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is Restore forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RST's forecast earnings growth (58.8% per year) is above the savings rate (1.2%).

Earnings vs Market: RST's earnings (58.8% per year) are forecast to grow faster than the UK market (24.2% per year).

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

Revenue vs Market: RST's revenue (6% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: RST's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RST's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Restore performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RST has a large one-off loss of £9.7M impacting its June 30 2020 financial results.

Growing Profit Margin: RST's current net profit margins (1.2%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: RST's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: RST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RST had negative earnings growth (-89.1%) over the past year, making it difficult to compare to the Commercial Services industry average (0.2%).


Return on Equity

High ROE: RST's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Restore's financial position?


Financial Position Analysis

Short Term Liabilities: RST's short term assets (£69.8M) exceed its short term liabilities (£53.7M).

Long Term Liabilities: RST's short term assets (£69.8M) do not cover its long term liabilities (£234.4M).


Debt to Equity History and Analysis

Debt Level: RST's debt to equity ratio (47.8%) is considered high.

Reducing Debt: RST's debt to equity ratio has reduced from 62.6% to 47.8% over the past 5 years.

Debt Coverage: RST's debt is well covered by operating cash flow (52.3%).

Interest Coverage: RST's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Restore current dividend yield, its reliability and sustainability?

1.63%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.2yrs

Average management tenure


CEO

Charles Bligh (52 yo)

1.5yrs

Tenure

UK£713,680

Compensation

Mr. Charles Edward Bligh is Chief Executive Officer at Restore plc since April 1, 2019. Mr. Bligh had been the Chief Operating Officer at TalkTalk Telecom Group PLC since May 2017 until June 30, 2018. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD926.78K) is about average for companies of similar size in the UK market ($USD909.22K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Bligh
CEO & Director1.5yrsUK£713.68k0.021%
£ 83.2k
Neil Ritchie
CFO & Executive Director1yrUK£344.00k0.011%
£ 45.9k
Duncan Gooding
Managing Director1yrno datano data
Sarah Waudby
Company Secretaryno datano datano data

1.2yrs

Average Tenure

Experienced Management: RST's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Bligh
CEO & Director1.5yrsUK£713.68k0.021%
£ 83.2k
Neil Ritchie
CFO & Executive Director1yrUK£344.00k0.011%
£ 45.9k
Martin Towers
Independent Chairman2.75yrsUK£90.00k0.012%
£ 48.0k
Jameson Hopkins
Independent Non-Executive Director0.75yrno data0.0059%
£ 23.7k
Sharon Baylay
Senior Independent Director1.83yrsUK£55.00k0.0014%
£ 5.6k
Susan Davy
Independent Non-Executive Director1.75yrsUK£49.00kno data

1.7yrs

Average Tenure

52yo

Average Age

Experienced Board: RST's board of directors are not considered experienced ( 1.7 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: RST 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

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


Key Information

  • Name: Restore plc
  • Ticker: RST
  • Exchange: AIM
  • Founded: 2004
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£402.093m
  • Shares outstanding: 125.65m
  • Website: https://www.restoreplc.com

Number of Employees


Location

  • Restore plc
  • 15/19 Cavendish Place
  • London
  • Greater London
  • W1G 0QE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2005

Biography

Restore plc, together with its subsidiaries, provides offices and workplaces services to the public and private sectors primarily in the United Kingdom. The company operates through two segments, Document ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:25
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.