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MTO

Mitie Group LSE:MTO Stock Report

Last Price

UK£0.59

Market Cap

UK£824.9m

7D

-6.8%

1Y

-12.8%

Updated

28 Jun, 2022

Data

Company Financials +
MTO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends3/6

MTO Stock Overview

Mitie Group plc, together with its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally.

Mitie Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mitie Group
Historical stock prices
Current Share PriceUK£0.59
52 Week HighUK£0.78
52 Week LowUK£0.45
Beta1.43
1 Month Change3.72%
3 Month Change2.27%
1 Year Change-12.80%
3 Year Change-59.59%
5 Year Change-78.75%
Change since IPO204.42%

Recent News & Updates

Shareholder Returns

MTOGB Commercial ServicesGB Market
7D-6.8%3.9%1.8%
1Y-12.8%1.5%-7.3%

Return vs Industry: MTO underperformed the UK Commercial Services industry which returned 1.5% over the past year.

Return vs Market: MTO underperformed the UK Market which returned -7.3% over the past year.

Price Volatility

Is MTO's price volatile compared to industry and market?
MTO volatility
MTO Average Weekly Movement5.4%
Commercial Services Industry Average Movement5.4%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: MTO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MTO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193671,330Phil Bentleyhttps://www.mitie.com

Mitie Group plc, together with its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. The company operates in eight segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities, Care & Custody, Landscapes, Waste, and Spain. The company provides security services, such as manned guarding and technology-backed monitoring solutions, fire and security systems installations, vetting and front-of-house services; and general, specialist, and technical cleaning services in offices, buildings, transport and logistics hubs, and high-security environments.

Mitie Group Fundamentals Summary

How do Mitie Group's earnings and revenue compare to its market cap?
MTO fundamental statistics
Market CapUK£824.89m
Earnings (TTM)UK£31.30m
Revenue (TTM)UK£3.90b

26.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTO income statement (TTM)
RevenueUK£3.90b
Cost of RevenueUK£3.45b
Gross ProfitUK£451.80m
Other ExpensesUK£420.50m
EarningsUK£31.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.022
Gross Margin11.57%
Net Profit Margin0.80%
Debt/Equity Ratio41.8%

How did MTO perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

80%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MTO?

Other financial metrics that can be useful for relative valuation.

MTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA6.2x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does MTO's PE Ratio compare to its peers?

MTO PE Ratio vs Peers
The above table shows the PE ratio for MTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.8x
RWI Renewi
9.2x12.9%UK£592.4m
SRP Serco Group
6.8x-17.1%UK£2.1b
RPS RPS Group
47.4x32.0%UK£279.4m
WATR Water Intelligence
23.9xn/aUK£112.0m
MTO Mitie Group
26.4x52.8%UK£824.9m

Price-To-Earnings vs Peers: MTO is expensive based on its Price-To-Earnings Ratio (26x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does MTO's PE Ratio compare vs other companies in the GB Commercial Services Industry?

Price-To-Earnings vs Industry: MTO is good value based on its Price-To-Earnings Ratio (26x) compared to the UK Commercial Services industry average (29.3x)


Price to Earnings Ratio vs Fair Ratio

What is MTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ratio68.7x

Price-To-Earnings vs Fair Ratio: MTO is good value based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (68.7x).


Share Price vs Fair Value

What is the Fair Price of MTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MTO (£0.59) is trading below our estimate of fair value (£1.24)

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


Price to Earnings Growth Ratio

PEG Ratio: MTO is good value based on its PEG Ratio (0.5x)


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Future Growth

How is Mitie Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


52.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTO's forecast earnings growth (52.8% per year) is above the savings rate (0.9%).

Earnings vs Market: MTO's earnings (52.8% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: MTO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTO's revenue (2.4% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: MTO's revenue (2.4% 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 MTO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Mitie Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


57.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTO has a large one-off loss of £27.3M impacting its March 31 2022 financial results.

Growing Profit Margin: MTO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MTO has become profitable over the past 5 years, growing earnings by 57% per year.

Accelerating Growth: MTO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MTO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (106.9%).


Return on Equity

High ROE: MTO's Return on Equity (7.4%) is considered low.


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Financial Health

How is Mitie Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MTO's short term assets (£1.1B) do not cover its short term liabilities (£1.2B).

Long Term Liabilities: MTO's short term assets (£1.1B) exceed its long term liabilities (£241.0M).


Debt to Equity History and Analysis

Debt Level: MTO has more cash than its total debt.

Reducing Debt: MTO's debt to equity ratio has reduced from 343.8% to 41.8% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (129.3%).

Interest Coverage: MTO's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MTO's dividend (3.07%) is higher than the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: MTO's dividend (3.07%) is low compared to the top 25% of dividend payers in the UK market (5.16%).


Stability and Growth of Payments

Stable Dividend: MTO's dividend payments have been volatile in the past 10 years.

Growing Dividend: MTO's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80.2%), MTO's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.9%), MTO's dividend payments are thoroughly covered by cash flows.


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Management

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

5.3yrs

Average management tenure


CEO

Phil Bentley (62 yo)

5.5yrs

Tenure

UK£2,741,397

Compensation

Mr. Phillip Bentley, also known as Phil, has been the Chief Executive Officer of Mitie Group plc since December 12, 2016. Mr. Bentley served as the Chief Executive Officer and Executive Director of Cable &...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD3.34M) is above average for companies of similar size in the UK market ($USD1.35M).

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


Leadership Team

Experienced Management: MTO's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: MTO's board of directors are considered experienced (4.6 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

Mitie Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Mitie Group plc
  • Ticker: MTO
  • Exchange: LSE
  • Founded: 1936
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Implied Market Cap: UK£824.891m
  • Shares outstanding: 1.39b
  • Website: https://www.mitie.com

Number of Employees


Location

  • Mitie Group plc
  • The Shard
  • Level 12
  • London
  • Greater London
  • SE1 9SG
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.