LSE:GFS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential 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

-24.4%

GFS

-0.8%

GB Commercial Services

-2.2%

GB Market


1 Year Return

-61.9%

GFS

-21.6%

GB Commercial Services

-25.9%

GB Market

Return vs Industry: GFS underperformed the UK Commercial Services industry which returned -19% over the past year.

Return vs Market: GFS underperformed the UK Market which returned -25% over the past year.


Shareholder returns

GFSIndustryMarket
7 Day-24.4%-0.8%-2.2%
30 Day-55.6%-31.3%-21.7%
90 Day-67.2%-35.1%-29.6%
1 Year-60.0%-61.9%-19.4%-21.6%-22.2%-25.9%
3 Year-74.6%-77.4%-20.0%-26.8%-16.1%-26.6%
5 Year-72.4%-77.4%-12.1%-24.9%-4.6%-26.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFS (£0.92) is trading below our estimate of fair value (£1.87)

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


Price To Earnings Ratio

PE vs Industry: GFS is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: GFS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GFS is overvalued based on its PB Ratio (5.3x) compared to the GB Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is G4S forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

68.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: GFS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GFS's is expected to become profitable in the next 3 years.

Revenue vs Market: GFS's revenue (0.4% per year) is forecast to grow slower than the UK market (2.4% per year).

High Growth Revenue: GFS's revenue (0.4% 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 very high in 3 years time (46%).


Next Steps

Past Performance

How has G4S performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFS is currently unprofitable.

Growing Profit Margin: GFS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GFS is unprofitable, but has reduced losses over the past 5 years at a rate of 3.9% per year.

Accelerating Growth: Unable to compare GFS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GFS is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (11.7%).


Return on Equity

High ROE: GFS has a negative Return on Equity (-26.49%), as it is currently unprofitable.


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 (£2.0B).

Long Term Liabilities: GFS's short term assets (£3.0B) do not cover its long term liabilities (£3.1B).


Debt to Equity History and Analysis

Debt Level: GFS's debt to equity ratio (872.2%) is considered high.

Reducing Debt: GFS's debt to equity ratio has increased from 226.6% to 872.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GFS's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GFS has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: GFS has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

13.01%

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 payouts.

High Dividend: Unable to evaluate GFS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

5.2yrs

Average management tenure


CEO

Ashley Almanza (56yo)

6.83s

Tenure

UK£2,930,243

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 ($USD3.64M) is above average for companies of similar size in the UK market ($USD1.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ashley Almanza
CEO & Executive Director6.83yrsUK£2.93m0.13% £1.4m
Tim Weller
CFO & Executive Director7yrsUK£1.97m0.033% £361.7k
Helen Parris
Director of Investor Relationsno datano datano data
Søren Lundsberg-Nielsen
Group General Counsel19.25yrsno datano data
Sophie McMillan
Head of Mediano datano datano data
Stephane Verdoy
Group Sales & Marketing Director2.17yrsno datano data
Jenni Myles
Group Human Resources Director4.75yrsno datano data
Graham Levinsohn
Regional Chief Executive Officer of Europe & the Middle East6.42yrsno datano data
John Kenning
Regional Chief Executive Officer of the Americas5.42yrsno datano data
Mel Brooks
Regional President of Africa4.92yrsno datano data

5.2yrs

Average Tenure

56yo

Average Age

Experienced Management: GFS's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashley Almanza
CEO & Executive Director6.83yrsUK£2.93m0.13% £1.4m
Tim Weller
CFO & Executive Director7yrsUK£1.97m0.033% £361.7k
John Connolly
Independent Chairman of the Board7.83yrsUK£385.72k0.040% £427.7k
Steven Mogford
Senior Independent Director3.92yrsUK£80.49k0.00065% £7.0k
Clare Chapman
Non-Executive Director0.58yrno datano data
Barbara Milian Thoralfsson
Non-Executive Director3.75yrsUK£84.29kno data
Wah Kin
Non-Executive Director9.5yrsUK£81.90k0.0019% £21.0k
John Ramsay
Non-Executive Director2.25yrsUK£89.32k0.0025% £26.6k
Elisabeth Fleuriot
Non-Executive Director1.83yrsUK£49.87kno data

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: GFS's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GFS 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£1.081b
  • 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 assessment, incident management, and travel advisory systems, such as RISK360; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides custody, detention, rehabilitation, and care services; automated cash solutions for retailers, automated bulk-teller solution for banks, and mobile banking services, as well as G4S Pay, a retail cash solution; and security advice, risk mitigation strategies, secure support, and integrated solutions. The company serves corporates and industrials, government, financial institutions, private energy/utilities, and ports and airports, as well as the retail, transport and logistics, and leisure and tourism sectors. G4S plc was founded in 1901 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 Analysis2020/04/03 20:48
End of Day Share Price2020/04/03 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.