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SimplyBiz Group

AIM:SBIZ
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SBIZ
AIM
£218M
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

The SimplyBiz Group Limited provides regulatory and business support services to professionals operating within the financial services market in the United Kingdom. The last earnings update was 139 days ago. More info.


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SBIZ Share Price and Events
7 Day Returns
4.7%
AIM:SBIZ
0.7%
GB Professional Services
0.2%
GB Market
1 Year Returns
22%
AIM:SBIZ
8.9%
GB Professional Services
-2%
GB Market
SBIZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SimplyBiz Group (SBIZ) 4.7% 1.8% 3.2% 22% - -
GB Professional Services 0.7% -1.2% 9% 8.9% 44.5% 94.5%
GB Market 0.2% 1.1% 0.1% -2% 11.2% 6.3%
1 Year Return vs Industry and Market
  • SBIZ outperformed the Professional Services industry which returned 8.9% over the past year.
  • SBIZ outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is SimplyBiz Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SimplyBiz Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SimplyBiz Group.

AIM:SBIZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SBIZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 19%) (3.41%))
0.916
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.916 * 6.65%)
7.32%

Discounted Cash Flow Calculation for AIM:SBIZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SimplyBiz Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SBIZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.32%)
2020 4.63 Est @ -6.97% 4.31
2021 4.42 Est @ -4.51% 3.84
2022 4.30 Est @ -2.79% 3.48
2023 4.23 Est @ -1.59% 3.19
2024 4.20 Est @ -0.74% 2.95
2025 4.19 Est @ -0.15% 2.74
2026 4.20 Est @ 0.26% 2.56
2027 4.23 Est @ 0.55% 2.40
2028 4.26 Est @ 0.75% 2.26
2029 4.30 Est @ 0.9% 2.12
Present value of next 10 years cash flows £29.86
AIM:SBIZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £4.30 × (1 + 1.23%) ÷ (7.32% – 1.23%)
£71.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £71.40 ÷ (1 + 7.32%)10
£35.23
AIM:SBIZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £29.86 + £35.23
£65.09
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £65.09 / 96.78
£0.67
AIM:SBIZ Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.67
Current discount Discount to share price of £2.25
= -1 x (£2.25 - £0.67) / £0.67
-234.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SimplyBiz Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SimplyBiz Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SimplyBiz Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SBIZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.04
AIM:SBIZ Share Price ** AIM (2019-07-19) in GBP £2.25
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 32 Publicly-Listed Professional Services Companies 19.54x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SimplyBiz Group.

AIM:SBIZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SBIZ Share Price ÷ EPS (both in GBP)

= 2.25 ÷ 0.04

56.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SimplyBiz Group is overvalued based on earnings compared to the GB Professional Services industry average.
  • SimplyBiz Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does SimplyBiz Group's expected growth come at a high price?
Raw Data
AIM:SBIZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 56.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
32.1%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Professional Services Companies 1.52x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

AIM:SBIZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 56.84x ÷ 32.1%

1.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SimplyBiz Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SimplyBiz Group's assets?
Raw Data
AIM:SBIZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.35
AIM:SBIZ Share Price * AIM (2019-07-19) in GBP £2.25
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 44 Publicly-Listed Professional Services Companies 2.42x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
AIM:SBIZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SBIZ Share Price ÷ Book Value per Share (both in GBP)

= 2.25 ÷ 0.35

6.48x

* Primary Listing of SimplyBiz Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SimplyBiz Group is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess SimplyBiz Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. SimplyBiz Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SimplyBiz Group expected to grow at an attractive rate?
  • SimplyBiz Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • SimplyBiz Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • SimplyBiz Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SBIZ Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SBIZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 32.1%
AIM:SBIZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 6.8%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SBIZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SBIZ Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 62 12 12 1
2020-12-31 59 11 10 1
2019-12-31 55 10 9 1
AIM:SBIZ Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 51 6 3
2018-09-30 49 6 2
2018-06-30 47 5 1
2018-03-31 46 8 3
2017-12-31 44 11 5
2016-12-31 41 7 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SimplyBiz Group's earnings are expected to grow significantly at over 20% yearly.
  • SimplyBiz Group's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SBIZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from SimplyBiz Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SBIZ Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.14 0.14 0.14 1.00
2020-12-31 0.13 0.13 0.13 1.00
2019-12-31 0.11 0.11 0.11 1.00
AIM:SBIZ Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.04
2018-09-30 0.03
2018-06-30 0.02
2018-03-31 0.04
2017-12-31 0.08
2016-12-31 0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if SimplyBiz Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess SimplyBiz Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SimplyBiz Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SimplyBiz Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SimplyBiz Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if SimplyBiz Group's year on year earnings growth rate was positive over the past 5 years.
  • SimplyBiz Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SimplyBiz Group's 1-year earnings growth is negative, it can't be compared to the GB Professional Services industry average.
Earnings and Revenue History
SimplyBiz Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SimplyBiz Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SBIZ Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 50.69 2.85
2018-09-30 48.84 2.02 2.17
2018-06-30 46.99 1.19 24.56 0.56
2018-03-31 45.53 2.99 24.56 0.56
2017-12-31 44.07 4.79 4.34
2016-12-31 40.82 4.08 22.95 0.70
2015-12-31 38.40 -0.67 20.57 0.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SimplyBiz Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SimplyBiz Group used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • SimplyBiz Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SimplyBiz Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SimplyBiz Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SimplyBiz Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SimplyBiz Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SimplyBiz Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SimplyBiz Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SimplyBiz Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SimplyBiz Group Company Filings, last reported 6 months ago.

AIM:SBIZ Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 26.57 7.43 13.29
2018-09-30 26.57 7.43 13.29
2018-06-30 22.58 10.01 10.69
2018-03-31 22.58 10.01 10.69
2017-12-31 -5.85 33.67 11.00
2016-12-31 -9.28 33.37 7.10
2015-12-31 -12.13 33.07 5.00
  • SimplyBiz Group's level of debt (28%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if SimplyBiz Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (81.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess SimplyBiz Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SimplyBiz Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.82%
Current annual income from SimplyBiz Group dividends. Estimated to be 2.08% next year.
If you bought £2,000 of SimplyBiz Group shares you are expected to receive £36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SimplyBiz Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • SimplyBiz Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SBIZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SBIZ Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.05 2.00
2020-12-31 0.05 2.00
2019-12-31 0.04 2.00
AIM:SBIZ Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.041 1.833
2018-09-11 0.020 1.110

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether SimplyBiz Group has stable dividend payments.
  • SimplyBiz Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of SimplyBiz Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess SimplyBiz Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SimplyBiz Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SimplyBiz Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Neil Stevens
AGE 41
TENURE AS CEO 9.5 years
CEO Bio

Mr. Neil Martin Stevens is Joint Chief Executive Officer of The SimplyBiz Group plc since 2010 and serves as is Director. Mr. Stevens joined SimplyBiz Group as a consultant in 2003 before joining the Board in early 2004 as operations director and was appointed joint managing director in May 2010. He is Director of 360 Legal Group Limited; APS Legal & Associates Limited; Capital Reward Clients Limited; Clear View Assured Limited; Compliance First Limited; Elder & Oakley Limited; Financial Intermediary and Broker Association Limited; Home Information Group Limited; IKST Limited; New Model Business Academy Limited; Professional Finance Broking Limited; SIFA Limited; Simply Biz Limited; Simply Biz Services Limited; Sonas Surveyors Limited; Verbatim Adviser Services Ltd; Verbatim Asset Management Limited; Verbatim Investments Limited; Verbatim Portfolio Management Limited and Zest Technology Limited. He was Director of Bespoke Compliance Solutions Limited; Capital Reward Plus Limited; Compliance 24/7 Ltd; Compliance First Services Limited; Gateway Panel Management Limited; Journey Properties LLP; Professional Financial Centres Limited and SC Surveyors Limited. He has an engineering management degree from the University of Central England and an MBA, in which he focused on finance theory, from Manchester Metropolitan University.

CEO Compensation
  • Insufficient data for Neil to compare compensation growth.
  • Insufficient data for Neil to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the SimplyBiz Group management team in years:

0.7
Average Tenure
41
Average Age
  • The average tenure for the SimplyBiz Group management team is less than 2 years, this suggests a new team.
Management Team

Neil Stevens

TITLE
Joint CEO & Director
AGE
41
TENURE
9.5 yrs

Matt Timmins

TITLE
Joint CEO & Director
AGE
40
TENURE
9.5 yrs

Gareth Hague

TITLE
Group Finance Director & Director
AGE
37

Sarah Turvey

TITLE
COO, Company Secretary & Member of Executive Management Board
AGE
48
TENURE
0.7 yrs

Gary Kershaw

TITLE
Group Compliance Director & Member of Executive Management Board
AGE
48

David Golder

TITLE
MD of Consumer Credit Centre & Member of Executive Management Board
TENURE
0.7 yrs

Richard Ardron

TITLE
Marketing Director & Member of Executive Management Board
TENURE
0.7 yrs

Janice Laing

TITLE
Member of Executive Management Board & MD of Compliance First
TENURE
0.7 yrs

Dan Russell

TITLE
Member of Executive Management Board & MD of SimplyBiz Investment Services
TENURE
0.7 yrs

Martin Reynolds

TITLE
Member of Executive Management Board & CEO of SimplyBiz Mortgages
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the SimplyBiz Group board of directors in years:

2.6
Average Tenure
55
Average Age
  • The average tenure for the SimplyBiz Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ken Davy

TITLE
Non-Executive Chairman
AGE
77

Neil Stevens

TITLE
Joint CEO & Director
AGE
41

Matt Timmins

TITLE
Joint CEO & Director
AGE
40
TENURE
15.9 yrs

Gareth Hague

TITLE
Group Finance Director & Director
AGE
37
TENURE
1.3 yrs

Tim Trotter

TITLE
Non-Executive Director
AGE
60
TENURE
3.2 yrs

Tim Clarke

TITLE
Independent Non-Executive Director
AGE
55
TENURE
2.6 yrs

Gary Hughes

TITLE
Senior Independent Non-Executive Director
AGE
57
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by SimplyBiz Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. May 19 Buy Neil Stevens Individual 01. May 19 01. May 19 50,000 £2.05 £102,500
X
Management checks
We assess SimplyBiz Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SimplyBiz Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Selling The SimplyBiz Group plc (LON:SBIZ) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in The SimplyBiz Group plc (LON:SBIZ). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for SimplyBiz Group SimplyBiz Group Insider Transactions Over The Last Year Joint CEO & Director Neil Stevens made the biggest insider purchase in the last 12 months. … What Might The Insider Transactions At SimplyBiz Group Tell Us?

Simply Wall St -

Is The SimplyBiz Group plc's (LON:SBIZ) High P/E Ratio A Problem For Investors?

SimplyBiz Group has a price to earnings ratio of 58.11, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for SimplyBiz Group: P/E of 58.11 = £2.3 ÷ £0.040 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … SimplyBiz Group shrunk earnings per share by 53% over the last year.

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Should We Worry About The SimplyBiz Group plc's (LON:SBIZ) P/E Ratio?

SimplyBiz Group has a price to earnings ratio of 58.11, based on the last twelve months. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for SimplyBiz Group: P/E of 58.11 = £2.3 ÷ £0.040 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … The Verdict On SimplyBiz Group's P/E Ratio With a P/E ratio of 58.1, SimplyBiz Group is expected to grow earnings very strongly in the years to come.

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Update: SimplyBiz Group (LON:SBIZ) Stock Gained 28% In The Last Year

For example, the The SimplyBiz Group plc (LON:SBIZ) share price is up 28% in the last year, clearly besting than the market return of around -0.5% (not including dividends). … We'll need to follow SimplyBiz Group for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

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Consider This Before Buying The SimplyBiz Group plc (LON:SBIZ) For The 1.9% Dividend

The SimplyBiz Group plc (LON:SBIZ) has started paying a dividend to shareholders. … Does SimplyBiz Group tick all the boxes of a great dividend stock? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

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How The SimplyBiz Group plc (LON:SBIZ) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on The SimplyBiz Group plc (LON:SBIZ) due to its excellent fundamentals in more than one area.

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Is The SimplyBiz Group plc's (LON:SBIZ) 5.3% ROE Worse Than Average?

Our data shows SimplyBiz Group has a return on equity of 5.3% for the last year. … That means that for every £1 worth of shareholders' equity, it generated £0.053 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Why The SimplyBiz Group plc’s (LON:SBIZ) Return On Capital Employed Is Impressive

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

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Is The SimplyBiz Group plc (LON:SBIZ) A Financially Sound Company?

While small-cap stocks, such as The SimplyBiz Group plc (LON:SBIZ) with its market cap of UK£119m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Something To Consider Before Buying The SimplyBiz Group plc (LON:SBIZ) For The 1.2% Dividend

The SimplyBiz Group plc (LON:SBIZ) has started paying a dividend to shareholders. … Does SimplyBiz Group tick all the boxes of a great dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

Company Info

Description

The SimplyBiz Group Limited provides regulatory and business support services to professionals operating within the financial services market in the United Kingdom. It operates through two segments, Intermediary Services and Distribution Channels. The Intermediary Services segment provides compliance and regulation services to financial intermediary member firms, including directly authorized IFSs, directly authorized mortgage advisers, workplace consultants, and directly authorized consumer credit brokers. The Distribution Channels segment offers marketing and promotion, product paneling, and co-manufacturing services to approximately financial institutions, including asset managers, life assurance and pension companies, mortgage lenders, general insurance providers, and credit lenders, as well as provides survey paneling and surveying works for mortgage lenders. The company was founded in 2002 and is based in Huddersfield, the United Kingdom.

Details
Name: The SimplyBiz Group plc
SBIZ
Exchange: AIM
Founded: 2002
£217,760,166
96,782,296
Website: http://www.simplybizgroup.co.uk
Address: The SimplyBiz Group plc
The John Smith's Stadium,
Stadium Way,
Huddersfield,
West Yorkshire, HD1 6PG,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SBIZ Ordinary Shares London Stock Exchange AIM Market GB GBP 04. Apr 2018
Number of employees
Current staff
Staff numbers
420
SimplyBiz Group employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 00:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/03/27
Last earnings filing: 2019/03/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.