LSE:CLG

Stock Analysis Report

Executive Summary

Clipper Logistics plc, together with its subsidiaries, provides value-added logistics services to the retail sector in the United Kingdom, Germany, and rest of Europe.

Rewards

PE ratio (20.9x) is below the Commercial Services industry average (20.9x)

Earnings are forecast to grow 11.98% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Moderate growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

CLG

1.9%

GB Commercial Services

1.4%

GB Market


1 Year Return

9.1%

CLG

26.4%

GB Commercial Services

12.4%

GB Market

Return vs Industry: CLG underperformed the UK Commercial Services industry which returned 26.8% over the past year.

Return vs Market: CLG underperformed the UK Market which returned 13.1% over the past year.


Shareholder returns

CLGIndustryMarket
7 Day-2.8%1.9%1.4%
30 Day-4.5%2.5%1.8%
90 Day22.6%9.7%8.8%
1 Year13.9%9.1%30.1%26.4%18.3%12.4%
3 Year-21.9%-28.8%30.3%19.2%23.8%8.0%
5 Year80.2%58.3%43.4%20.3%41.8%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLG (£2.92) is trading above our estimate of fair value (£2.43)

Significantly Below Fair Value: CLG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CLG is good value based on its PE Ratio (20.9x) compared to the Commercial Services industry average (20.9x).

PE vs Market: CLG is poor value based on its PE Ratio (20.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CLG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CLG is overvalued based on its PB Ratio (12x) compared to the GB Commercial Services industry average (2x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLG's forecast earnings growth (12% per year) is above the savings rate (0.5%).

Earnings vs Market: CLG's earnings (12% per year) are forecast to grow faster than the UK market (11.7% per year).

High Growth Earnings: CLG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLG's revenue (8.4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: CLG's revenue (8.4% 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 CLG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Clipper Logistics performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLG has a large one-off gain of £3.1M impacting its October 31 2019 financial results.

Growing Profit Margin: CLG's current net profit margins (2.9%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: CLG's earnings have grown by 15% per year over the past 5 years.

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

Earnings vs Industry: CLG had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the Commercial Services industry average (16.1%).


Return on Equity

High ROE: Whilst CLG's Return on Equity (57.24%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clipper Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: CLG's short term assets (£145.2M) do not cover its short term liabilities (£167.3M).

Long Term Liabilities: CLG's short term assets (£145.2M) do not cover its long term liabilities (£219.3M).


Debt to Equity History and Analysis

Debt Level: CLG's debt to equity ratio (139.7%) is considered high.

Reducing Debt: CLG's debt to equity ratio has increased from 82.3% to 139.7% over the past 5 years.

Debt Coverage: CLG's debt is well covered by operating cash flow (72.5%).

Interest Coverage: CLG's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: CLG has a high level of physical assets or inventory.

Debt Coverage by Assets: CLG's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is Clipper Logistics's current dividend yield, its reliability and sustainability?

3.50%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.8%markettop25%5.0%industryaverage2.6%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: CLG's dividend (3.32%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: CLG's dividend (3.32%) 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, CLG has been paying a dividend for less than 10 years.

Growing Dividend: CLG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.5%), CLG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLG's dividends in 3 years are forecast to be covered by earnings (62% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Tony Mannix (56yo)

5.7yrs

Tenure

UK£328,000

Compensation

Mr. Antony Gerard Mannix, also known as Tony, has been Chief Executive Officer and Member of Executive Board of Clipper Logistics plc since May 2014 and served as its Managing Director. Mr. Mannix joined t ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD426.50K) is below average for companies of similar size in the UK market ($USD864.74K).

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


Management Age and Tenure

4.7yrs

Average Tenure

58yo

Average Age

Experienced Management: CLG's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

59yo

Average Age

Experienced Board: CLG's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£7,36313 Jan 20
Charles Stanley & Co. Ltd, Asset Management Arm
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Shares70,592
Max PriceUK£2.95
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Max PriceUK£2.93
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Max PriceUK£2.93
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Shares475,000
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Nomura Holdings Inc, Securities & Investment Arm
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Stuart Watson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000
Max PriceUK£2.61

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Steve Parkin (59yo)

    Founder

    • Compensation: UK£493.00k
  • Guy Jackson

    Group Head of Legal

    • Tenure: 4.9yrs
  • David Hodkin (58yo)

    CFO, Member of Executive Board & Executive Director

    • Compensation: UK£237.00k
  • Tony Mannix (56yo)

    CEO, Member of Executive Board & Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£328.00k
  • Carl Moore

    Chief Commercial Officer

    • Tenure: 1yrs
  • Roger Peel

    Managing Director of Commercial Vehicles

    • Compensation: UK£108.34k
  • Jürgen Wey

    Managing Director of German Logistics

    • Compensation: UK£72.24k
  • Richard Crofton

    Deputy Chief Financial Officer

    • Tenure: 4.5yrs
  • Richard Cowlishaw

    Group HR Director

    • Tenure: 3.3yrs
  • Marianne Hodgkiss

    Company Secretary


    Board Members

    • Steve Parkin (59yo)

      Founder

      • Compensation: UK£493.00k
    • David Hodkin (58yo)

      CFO, Member of Executive Board & Executive Director

      • Compensation: UK£237.00k
    • Tony Mannix (56yo)

      CEO, Member of Executive Board & Executive Director

      • Tenure: 5.7yrs
      • Compensation: UK£328.00k
    • Dino Rocos

      Independent Non-Executive Director

      • Stephen Robertson (65yo)

        Senior Independent Non-Executive Director

        • Tenure: 0.8yrs
        • Compensation: UK£51.00k
      • Mike Russell (68yo)

        Independent Non-Executive Director

        • Tenure: 9yrs
        • Compensation: UK£48.00k
      • Stuart Watson

        Independent Non-Executive Director

        • Tenure: 0.8yrs

      Company Information

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


      Key Information

      • Name: Clipper Logistics plc
      • Ticker: CLG
      • Exchange: LSE
      • Founded: 1992
      • Industry: Diversified Support Services
      • Sector: Commercial Services
      • Market Cap: UK£281.605m
      • Shares outstanding: 101.66m
      • Website: https://www.clippergroup.co.uk

      Number of Employees


      Location

      • Clipper Logistics plc
      • Carlton Court
      • Gelderd Road
      • Leeds
      • West Yorkshire
      • LS12 6LT
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CLGLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2014
      CLGlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2014
      CLPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2014

      Biography

      Clipper Logistics plc, together with its subsidiaries, provides value-added logistics services to the retail sector in the United Kingdom, Germany, and rest of Europe. The company operates through two segments, Value-Added Logistics Services and Commercial Vehicles. It offers e-fulfilment, returns management, port deconsolidation logistics, retail consolidation, multichannel, warehousing, secure logistics, transportation, and contract packaging services. The company also provides added-value services, including secure warehousing, HMRC customs bond, quality control, pressing, RFID/security tag attachment, label printing, store recall, metal detection, container de-stuffing, new store building, pick and pack, secure destruction, and specialist storage services. In addition, it offers specialist fashion services, such as fine distribution, primary transport, shared user distribution, secondary store distribution, contract distribution, inter-branch transfer, return to vendor, new store openings/refurbishment, spot hire, fleet management, Pan-European network, and home delivery link services. Further, the company provides Ingenious, a supply chain management solution that develops, manages, and maintains a supply chain network. Additionally, it sells new and used commercial vehicles, as well as parts; and operates servicing and repair facilities. The company is also involved in online retail activities; and operates agency for leasing commitments. It operates in 46 sites and 9.2 million square feet of warehousing space. Clipper Logistics plc was founded in 1992 and is headquartered in Leeds, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 21:40
      End of Day Share Price2020/01/17 00:00
      Earnings2019/10/31
      Annual Earnings2019/04/30


      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.