AIM:SBIZ

Stock Analysis Report

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Executive Summary

The SimplyBiz Group plc provides regulatory, business support, and software services to professional financial advisers, financial intermediaries, and product providers operating within the retail financial services market in the United Kingdom.


Snowflake Analysis

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

SBIZ

1.3%

GB Professional Services

1.4%

GB Market


1 Year Return

-34.7%

SBIZ

-4.8%

GB Professional Services

-12.9%

GB Market

Return vs Industry: SBIZ underperformed the UK Professional Services industry which returned -3.7% over the past year.

Return vs Market: SBIZ underperformed the UK Market which returned -11.1% over the past year.


Shareholder returns

SBIZIndustryMarket
7 Day-0.5%1.3%1.4%
30 Day-6.4%-5.3%-1.0%
90 Day-19.3%0.01%4.0%
1 Year-32.9%-34.7%-2.6%-4.8%-9.3%-12.9%
3 Yearn/a27.2%18.6%-6.0%-17.2%
5 Yearn/a90.1%72.3%14.2%-11.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBIZ (£1.4) is trading below our estimate of fair value (£1.79)

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


Price To Earnings Ratio

PE vs Industry: SBIZ's PE Ratio (15.1x) is in line with the GB Professional Services industry average.

PE vs Market: SBIZ is good value based on its PE Ratio (15.1x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SBIZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SBIZ is good value based on its PB Ratio (2x) compared to the GB Professional Services industry average (2.2x).


Next Steps

Future Growth

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

4.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SBIZ'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: SBIZ's revenue (4.6% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: SBIZ's revenue (4.6% 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 SBIZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SimplyBiz Group performed over the past 5 years?

40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBIZ has high quality earnings.

Growing Profit Margin: SBIZ's current net profit margins (13.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: SBIZ's earnings have grown significantly by 40.1% per year over the past 5 years.

Accelerating Growth: SBIZ's earnings growth over the past year (200%) exceeds its 5-year average (40.1% per year).

Earnings vs Industry: SBIZ earnings growth over the past year (200%) exceeded the Professional Services industry -9%.


Return on Equity

High ROE: SBIZ's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is SimplyBiz Group's financial position?


Financial Position Analysis

Short Term Liabilities: SBIZ's short term assets (£22.6M) exceed its short term liabilities (£18.4M).

Long Term Liabilities: SBIZ's short term assets (£22.6M) do not cover its long term liabilities (£45.3M).


Debt to Equity History and Analysis

Debt Level: SBIZ's debt to equity ratio (54.2%) is considered high.

Reducing Debt: Insufficient data to determine if SBIZ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SBIZ's debt is well covered by operating cash flow (27.6%).

Interest Coverage: SBIZ's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBIZ's dividend (3.04%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: SBIZ's dividend (3.04%) is low compared to the top 25% of dividend payers in the UK market (5.4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SBIZ has been paying a dividend for less than 10 years.

Growing Dividend: SBIZ's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46%), SBIZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBIZ's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Neil Stevens (42 yo)

10.58yrs

Tenure

UK£297,000

Compensation

Mr. Neil Martin Stevens is Joint Chief Executive Officer of The SimplyBiz Group plc since 2010 and serves as its Director since 2004. Mr. Stevens joined SimplyBiz Group as a consultant in 2003 before joini ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD387.89K) is below average for companies of similar size in the UK market ($USD695.81K).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Neil Stevens
Joint CEO & Director10.58yrsUK£297.00k1.72%
£ 2.3m
Matthew Timmins
Joint CEO & Director17yrsUK£297.00k1.78%
£ 2.4m
Gareth Hague
Group Finance Director & Director2.42yrsUK£189.00kno data
Gary Kershaw
Group Compliance Director & Member of Executive Management Boardno dataUK£225.32kno data
David Golder
MD of Consumer Credit Centre & Member of Executive Management Board1.75yrsno datano data
Richard Ardron
Marketing Director & Member of Executive Management Board1.75yrsno datano data
Janice Laing
Member of Executive Management Board & MD of Compliance First1.75yrsno datano data
Daniel Russell
Member of Executive Management Board & MD of SimplyBiz Investment Services1.75yrsno datano data
Martin Reynolds
Member of Executive Management Board & CEO of SimplyBiz Mortgages1.75yrsno datano data
Vicky Williams
Group Company Secretary1.25yrsno datano data

1.8yrs

Average Tenure

41.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Neil Stevens
Joint CEO & Director10.58yrsUK£297.00k1.72%
£ 2.3m
Matthew Timmins
Joint CEO & Director17yrsUK£297.00k1.78%
£ 2.4m
Gareth Hague
Group Finance Director & Director2.42yrsUK£189.00kno data
Gary Hughes
Independent Deputy Chairman0.33yrUK£58.00k0.056%
£ 75.7k
Kenneth Davy
Non-Executive Chairmanno dataUK£130.00k27%
£ 36.6m
Timothy Clarke
Independent Non-Executive Director3.67yrsUK£65.00k0.018%
£ 24.1k

3.7yrs

Average Tenure

49yo

Average Age

Experienced Board: SBIZ's board of directors are considered experienced (3.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: The SimplyBiz Group plc
  • Ticker: SBIZ
  • Exchange: AIM
  • Founded: 2002
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£135.526m
  • Shares outstanding: 96.80m
  • Website: https://www.simplybizgroup.co.uk

Number of Employees


Location

  • The SimplyBiz Group plc
  • St Andrews House
  • St Andrews Road
  • Huddersfield
  • West Yorkshire
  • HD1 6NA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBIZAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2018

Biography

The SimplyBiz Group plc provides regulatory, business support, and software services to professional financial advisers, financial intermediaries, and product providers operating within the retail financia ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 20:39
End of Day Share Price2020/08/06 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.