LSE:GFS

Stock Analysis Report

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Executive Summary

G4S plc, together with its subsidiaries, provides security and related services in Africa, the Americas, Asia, Europe, and the Middle East. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has G4S's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

GFS

-0.2%

GB Commercial Services

0.07%

GB Market


1 Year Return

0.09%

GFS

-10.1%

GB Commercial Services

-15.4%

GB Market

Return vs Industry: GFS exceeded the UK Commercial Services industry which returned -10.1% over the past year.

Return vs Market: GFS exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

GFSIndustryMarket
7 Day0.9%-0.2%0.07%
30 Day11.7%3.7%2.2%
90 Day43.2%-0.4%-2.1%
1 Year0.09%0.09%-6.5%-10.1%-12.1%-15.4%
3 Year-18.2%-25.1%-8.8%-18.3%-8.4%-19.7%
5 Year2.3%-13.3%25.0%1.0%16.4%-9.7%

Price Volatility Vs. Market

How volatile is G4S's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is G4S undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFS (£2.11) is trading below our estimate of fair value (£2.98)

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


Price To Earnings Ratio

PE vs Industry: GFS is poor value based on its PE Ratio (191.6x) compared to the GB Commercial Services industry average (33.1x).

PE vs Market: GFS is poor value based on its PE Ratio (191.6x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GFS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GFS is overvalued based on its PB Ratio (6.1x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is G4S forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFS's earnings are forecast to decline over the next 3 years (-19.7% per year).

Earnings vs Market: GFS's earnings are forecast to decline over the next 3 years (-19.7% per year).

High Growth Earnings: GFS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GFS's revenue (3.1% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: GFS's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GFS's Return on Equity is forecast to be high in 3 years time (32.7%)


Next Steps

Past Performance

How has G4S performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFS has a large one-off loss of £340.0M impacting its June 30 2020 financial results.

Growing Profit Margin: GFS's current net profit margins (0.2%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: GFS's earnings have declined by 13.2% per year over the past 5 years.

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

Earnings vs Industry: GFS had negative earnings growth (-53.2%) over the past year, making it difficult to compare to the Commercial Services industry average (0.2%).


Return on Equity

High ROE: GFS's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is G4S's financial position?


Financial Position Analysis

Short Term Liabilities: GFS's short term assets (£3.0B) exceed its short term liabilities (£2.1B).

Long Term Liabilities: GFS's short term assets (£3.0B) exceed its long term liabilities (£2.8B).


Debt to Equity History and Analysis

Debt Level: GFS's debt to equity ratio (487.7%) is considered high.

Reducing Debt: GFS's debt to equity ratio has increased from 283.4% to 487.7% over the past 5 years.

Debt Coverage: GFS's debt is well covered by operating cash flow (22.2%).

Interest Coverage: GFS's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is G4S current dividend yield, its reliability and sustainability?

3.12%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.0yrs

Average management tenure


CEO

Ashley Almanza (57 yo)

7.33yrs

Tenure

UK£1,477,045

Compensation

Mr. Ashley Almanza has been the Chief Executive Officer of G4S Australia Holdings Pty. Ltd since June 1, 2013. Mr. Almanza has been the Group Chief Executive Officer of G4S plc since June 1, 2013. He has b ...


CEO Compensation Analysis

Compensation vs Market: Ashley's total compensation ($USD1.93M) is about average for companies of similar size in the UK market ($USD2.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ashley Almanza
CEO & Executive Director7.33yrsUK£1.48m0.14%
£ 4.5m
Tim Weller
CFO & Executive Director7.5yrsUK£901.16k0.034%
£ 1.1m
Jesus Rosano
Global Executive Vice President of Growth0.75yrno datano data
Helen Parris
Director of Investor Relationsno datano datano data
Søren Lundsberg-Nielsen
Group General Counsel19.75yrsno datano data
Sophie McMillan
Head of Mediano datano datano data
Catherine Hooper
Group Human Resource Director0.42yrno datano data
Graham Levinsohn
Regional Chief Executive Officer of UK & Middle East6.92yrsno datano data
Mel Brooks
Regional Chief Executive Officer of Africa0.75yrno datano data
Stephane Verdoy
Regional Chief Executive Officer of Europe0.75yrno datano data
John Kenning
Regional Chief Executive Officer of the Americas5.92yrsno datano data
Celine Arlette Barroche
Company Secretaryno datano datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: GFS's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashley Almanza
CEO & Executive Director7.33yrsUK£1.48m0.14%
£ 4.5m
Tim Weller
CFO & Executive Director7.5yrsUK£901.16k0.034%
£ 1.1m
John Connolly
Independent Chairman of the Board8.33yrsUK£390.18k0.040%
£ 1.3m
Steven Mogford
Senior Independent Director4.42yrsUK£79.52k0.00065%
£ 21.1k
Clare Chapman
Independent Non-Executive Director1.08yrsUK£25.45kno data
Barbara Milian Thoralfsson
Independent Non-Executive Director4.25yrsUK£71.50kno data
Michel Van der Bel
Non-Executive Director0.42yrno datano data
John Ramsay
Deputy Chairman & Senior Independent Directorno dataUK£87.84k0.0025%
£ 80.0k
Elisabeth Fleuriot
Independent Non-Executive Director2.33yrsUK£93.61kno data
Adine Grate
Non-Executive Director0.25yrno datano data

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: GFS's board of directors are considered experienced (4.3 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

G4S plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: G4S plc
  • Ticker: GFS
  • Exchange: LSE
  • Founded: 1901
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: UK£3.254b
  • Shares outstanding: 1.55b
  • Website: https://www.g4s.com

Number of Employees


Location

  • G4S plc
  • Southside
  • 5th Floor
  • London
  • Greater London
  • SW1E 6QT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2004
G4SCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKJul 2004
GHNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
GFSZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
GFSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2004
G4SCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKJul 2004
GFSZ.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

G4S plc, together with its subsidiaries, provides security and related services in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence based risk ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 20:51
End of Day Share Price2020/10/23 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.