AIM:SAG

Stock Analysis Report

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Executive Summary

Science Group plc, together with its subsidiaries, offers science and technology-based consultancy services in the United Kingdom, North America, Europe, and internationally.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SAG

5.1%

GB Professional Services

2.8%

GB Market


1 Year Return

29.6%

SAG

2.0%

GB Professional Services

-7.7%

GB Market

Return vs Industry: SAG exceeded the UK Professional Services industry which returned 2% over the past year.

Return vs Market: SAG exceeded the UK Market which returned -7.7% over the past year.


Shareholder returns

SAGIndustryMarket
7 Day0%5.1%2.8%
30 Day3.4%2.3%2.2%
90 Day18.5%11.4%9.2%
1 Year29.6%29.6%4.4%2.0%-4.0%-7.7%
3 Year26.4%20.9%32.1%23.1%-3.4%-15.0%
5 Year84.5%67.6%103.8%84.7%20.4%-6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAG (£2.43) is trading below our estimate of fair value (£2.7)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SAG is overvalued based on its PB Ratio (2.6x) compared to the GB Professional Services industry average (2x).


Next Steps

Future Growth

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

2.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SAG'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: SAG's revenue (2.7% per year) is forecast to grow slower than the UK market (5.6% per year).

High Growth Revenue: SAG's revenue (2.7% 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 SAG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Science Group performed over the past 5 years?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAG is currently unprofitable.

Growing Profit Margin: SAG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SAG is unprofitable, and losses have increased over the past 5 years at a rate of 20.9% per year.

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

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


Return on Equity

High ROE: SAG has a negative Return on Equity (-5.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Science Group's financial position?


Financial Position Analysis

Short Term Liabilities: SAG's short term assets (£37.6M) exceed its short term liabilities (£27.7M).

Long Term Liabilities: SAG's short term assets (£37.6M) exceed its long term liabilities (£22.1M).


Debt to Equity History and Analysis

Debt Level: SAG's debt to equity ratio (45.4%) is considered high.

Reducing Debt: SAG's debt to equity ratio has increased from 24.3% to 45.4% over the past 5 years.

Debt Coverage: SAG's debt is well covered by operating cash flow (81%).

Interest Coverage: SAG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.34%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.6yrs

Average board tenure


CEO

Dan Edwards (45 yo)

no data

Tenure

UK£274,821

Compensation

Mr. Daniel Robert Morgan Edwards, also known as Dan, serves as Group Managing Director at Science Group plc and serves as its Director since April 24, 2019. Mr Edwards joined the Science Group plc in 2004 ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD359.57K) is about average for companies of similar size in the UK market ($USD352.24K).

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


Board Members

NamePositionTenureCompensationOwnership
Martyn Ratcliffe
Executive Chairman10.33yrsUK£385.00k32.31%
£ 32.6m
Daniel Edwards
Group MD & Directorno dataUK£274.82k0.18%
£ 179.8k
Rebecca Archer
Finance Director & Director6.58yrsUK£202.00k0.16%
£ 157.9k
Peter Bertram
Independent Non-Executive Director0.17yrno datano data
Michael Lacey-Solymar
Senior Independent Director1.58yrsUK£40.00kno data

1.6yrs

Average Tenure

57yo

Average Age

Experienced Board: SAG's board of directors are not considered experienced ( 1.6 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

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


Key Information

  • Name: Science Group plc
  • Ticker: SAG
  • Exchange: AIM
  • Founded: 2008
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£100.879m
  • Shares outstanding: 41.51m
  • Website: https://www.sciencegroup.com

Number of Employees


Location

  • Science Group plc
  • Harston Mill
  • Harston
  • Cambridge
  • Cambridgeshire
  • CB22 7GG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2008

Biography

Science Group plc, together with its subsidiaries, offers science and technology-based consultancy services in the United Kingdom, North America, Europe, and internationally. The company provides applied s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:05
End of Day Share Price2020/08/13 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.