LSE:AQSG

Stock Analysis Report

Executive Summary

Aquila Services Group plc provides financing and management consultancy advice to housing associations, local authorities, government agencies, academy trusts, and other non-profit organizations in the United Kingdom, the Republic of Ireland, and internationally.

Rewards

Trading at 54% below its fair value

Earnings have grown 63.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (£13M)



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AQSG

1.9%

GB Professional Services

0.3%

GB Market


1 Year Return

11.1%

AQSG

24.4%

GB Professional Services

13.1%

GB Market

Return vs Industry: AQSG underperformed the UK Professional Services industry which returned 25.2% over the past year.

Return vs Market: AQSG underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

AQSGIndustryMarket
7 Day0%1.9%0.3%
30 Day4.5%3.5%1.5%
90 Day18.6%13.8%7.8%
1 Year14.2%11.1%27.3%24.4%19.1%13.1%
3 Year-9.8%-15.7%57.9%47.2%22.5%6.8%
5 Yearn/a111.2%86.5%41.2%8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aquila Services 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: AQSG (£0.35) is trading below our estimate of fair value (£0.76)

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


Price To Earnings Ratio

PE vs Industry: AQSG is poor value based on its PE Ratio (25x) compared to the Professional Services industry average (24.2x).

PE vs Market: AQSG is poor value based on its PE Ratio (25x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AQSG is good value based on its PB Ratio (2.7x) compared to the GB Professional Services industry average (3x).


Next Steps

Future Growth

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

9.3%

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 Aquila Services 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 Aquila Services Group performed over the past 5 years?

63.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQSG has high quality earnings.

Growing Profit Margin: AQSG's current net profit margins (6.2%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: AQSG has become profitable over the past 5 years, growing earnings by 63.8% per year.

Accelerating Growth: AQSG's earnings growth over the past year (13.7%) is below its 5-year average (63.8% per year).

Earnings vs Industry: AQSG earnings growth over the past year (13.7%) underperformed the Professional Services industry 16%.


Return on Equity

High ROE: AQSG's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aquila Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: AQSG's short term assets (£3.4M) exceed its short term liabilities (£3.0M).

Long Term Liabilities: AQSG has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AQSG is debt free.

Reducing Debt: AQSG has not had any debt for past 5 years.

Debt Coverage: AQSG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AQSG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AQSG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AQSG's debt is covered by short term assets.


Next Steps

Dividend

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

2.54%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.8%markettop25%5.0%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AQSG's dividend (2.54%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AQSG's dividend (2.54%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

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

Growing Dividend: AQSG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.2%), AQSG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

UK£172k

CEO Compensation


CEO

Steven Douglas 0

0yrs

Tenure

UK£171,850

Compensation

Mr. Steven Franklyn Douglas, CBE, serves as Group Chief Executive of Aquila Services Group plc and serves as its Director. He served as Joint Chief Executive of Aquila Services Group plc. He served as Join ...


CEO Compensation Analysis

Compensation vs Market: Steven's total compensation ($USD223.46K) is below average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Steven's compensation has increased by more than 20% in the past year.


Insider Trading

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.


Management Team

  • Fiona Underwood

    Chief Executive of Altair

    • Compensation: UK£172.03k
  • Hugh Coll

    Head of Financial Modelling

    • Sarah Palmer

      Head of Interim Management and Executive Search

      • Steven Douglas

        Group Chief Executive & Director

        • Compensation: UK£171.85k
      • Claire Banks (49yo)

        Group Finance Director

        • Tenure: 0.5yrs

      Board Members

      • Derek Joseph (69yo)

        Chairman

        • Tenure: 2.5yrs
        • Compensation: UK£62.76k
      • John Wollenberg (71yo)

        Independent Non-Executive Director

        • Compensation: UK£4.00k
      • Fiona Underwood

        Chief Executive of Altair

        • Compensation: UK£172.03k
      • Steven Douglas

        Group Chief Executive & Director

        • Compensation: UK£171.85k
      • Claire Banks (49yo)

        Group Finance Director

        • Tenure: 0.5yrs

      Company Information

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


      Key Information

      • Name: Aquila Services Group plc
      • Ticker: AQSG
      • Exchange: LSE
      • Founded: 2014
      • Industry: Research and Consulting Services
      • Sector: Commercial Services
      • Market Cap: UK£13.248m
      • Shares outstanding: 37.85m
      • Website: https://aquilaservicesgroup.co.uk

      Number of Employees


      Location

      • Aquila Services Group plc
      • Tempus Wharf
      • 29A Bermondsey Wall West
      • London
      • Greater London
      • SE16 4SA
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      AQSGLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 2015

      Biography

      Aquila Services Group plc provides financing and management consultancy advice to housing associations, local authorities, government agencies, academy trusts, and other non-profit organizations in the United Kingdom, the Republic of Ireland, and internationally. The company operates through Consultancy, Interim Management, and Treasury Management segments. It advises on various aspects of the development and management of affordable housing for rent and sale; and on the management of organizations operating in this sector. The company also provides specialist treasury management consultancy services to local authorities, housing associations, colleges, and higher education bodies and other clients on their capital funding requirements; and supports them in securing debt finance. In addition, it provides track record in education and sport related consultancy to community and voluntary sector, local authorities, membership organizations, and socially-minded private sector organizations. Aquila Services Group plc was incorporated in 2014 and is based in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/16 22:16
      End of Day Share Price2020/01/16 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      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.