Mitie Group
Market Cap
UK£241.9m
Last Updated
2020/04/03 21:02 UTC
Data Sources
Company Financials +
Executive Summary
Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential.
Similar Companies
Share Price & News
How has Mitie Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MTO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.6%
MTO
-0.8%
GB Commercial Services
-2.2%
GB Market
1 Year Return
-49.8%
MTO
-21.6%
GB Commercial Services
-25.9%
GB Market
Return vs Industry: MTO underperformed the UK Commercial Services industry which returned -19.6% over the past year.
Return vs Market: MTO underperformed the UK Market which returned -25.2% over the past year.
Shareholder returns
| MTO | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.6% | -0.8% | -2.2% |
| 30 Day | -52.6% | -31.3% | -21.7% |
| 90 Day | -53.2% | -35.1% | -29.6% |
| 1 Year | -48.4%-49.8% | -19.4%-21.6% | -22.2%-25.9% |
| 3 Year | -66.5%-68.5% | -20.0%-26.8% | -16.1%-26.6% |
| 5 Year | -73.2%-76.8% | -12.1%-24.9% | -4.6%-26.2% |
Price Volatility Vs. Market
How volatile is Mitie Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Mitie Group plc’s (LON:MTO) 20% ROCE Any Good?1 month ago | Simply Wall St
Is Mitie Group (LON:MTO) A Risky Investment?1 month ago | Simply Wall St
If You Had Bought Mitie Group (LON:MTO) Stock Five Years Ago, You'd Be Sitting On A 55% Loss, TodayValuation
Is Mitie 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: MTO (£0.67) is trading below our estimate of fair value (£2.51)
Significantly Below Fair Value: MTO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MTO is good value based on its PE Ratio (7.5x) compared to the Commercial Services industry average (11.1x).
PE vs Market: MTO is good value based on its PE Ratio (7.5x) compared to the UK market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: MTO is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: MTO is overvalued based on its PB Ratio (6.2x) compared to the GB Commercial Services industry average (1.5x).
Next Steps
Future Growth
How is Mitie Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
29.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MTO's forecast earnings growth (29.7% per year) is above the savings rate (0.5%).
Earnings vs Market: MTO's earnings (29.7% per year) are forecast to grow faster than the UK market (15.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MTO's revenue (1.3% per year) is forecast to grow slower than the UK market (2.4% per year).
High Growth Revenue: MTO's revenue (1.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MTO's Return on Equity is forecast to be very high in 3 years time (213%).
Next Steps
Past Performance
How has Mitie Group performed over the past 5 years?
-27.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MTO has a high level of non-cash earnings.
Growing Profit Margin: MTO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MTO's earnings have declined by -27.6% per year over the past 5 years.
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 (11.7%).
Return on Equity
High ROE: Whilst MTO's Return on Equity (82.95%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Mitie Group's financial position?
Financial Position Analysis
Short Term Liabilities: MTO's short term assets (£538.6M) do not cover its short term liabilities (£606.0M).
Long Term Liabilities: MTO's short term assets (£538.6M) exceed its long term liabilities (£403.0M).
Debt to Equity History and Analysis
Debt Level: MTO's debt to equity ratio (699.2%) is considered high.
Reducing Debt: MTO's debt to equity ratio has increased from 72.1% to 699.2% over the past 5 years.
Debt Coverage: MTO's debt is not well covered by operating cash flow (3.3%).
Interest Coverage: MTO's interest payments on its debt are well covered by EBIT (7.1x coverage).
Balance Sheet
Inventory Level: MTO has a low level of unsold assets or inventory.
Debt Coverage by Assets: MTO's debt is covered by short term assets (assets are 2x debt).
Next Steps
Dividend
What is Mitie Group's current dividend yield, its reliability and sustainability?
5.98%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MTO's dividend (5.98%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).
High Dividend: MTO's dividend (5.98%) is low compared to the top 25% of dividend payers in the UK market (7.57%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45%), MTO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MTO's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Phil Bentley (60yo)
3.33s
Tenure
UK£2,248,948
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 ($USD2.75M) is above average for companies of similar size in the UK market ($USD757.95K).
Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 3.33yrs | UK£2.25m | 0.56% £1.4m | |
| Group CFO & Director | 0.25yr | no data | no data | |
| Chief Information Officer | 2.83yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief of Staff & General Counsel | 3.08yrs | no data | no data | |
| Chief Marketing & Strategy Officer | 2.42yrs | no data | no data | |
| Managing Director | no data | no data | no data | |
| Managing Director of Soft Services | no data | no data | no data | |
| Managing Director of Landscapes Business | 7.25yrs | no data | no data | |
| Managing Director for Total Document Management Business | 5.92yrs | no data | no data |
3.1yrs
Average Tenure
Experienced Management: MTO's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 3.33yrs | UK£2.25m | 0.56% £1.4m | |
| Group CFO & Director | 0.25yr | no data | no data | |
| Senior Independent Director | 1.75yrs | UK£59.00k | 0.014% £33.5k | |
| Non-Executive Chairman | 2.75yrs | UK£225.00k | 0.039% £93.7k | |
| Independent Non-Executive Director | 2.75yrs | UK£57.00k | 0.0051% £12.4k | |
| Independent Non-Executive Director | 2.58yrs | UK£57.00k | 0.0032% £7.8k | |
| Independent Non-Executive Director | 2.83yrs | UK£52.00k | no data | |
| Independent Non-Executive Director | 2.42yrs | UK£52.00k | no data |
2.7yrs
Average Tenure
64yo
Average Age
Experienced Board: MTO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MTO 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mitie Group plc
- Ticker: MTO
- Exchange: LSE
- Founded: 1987
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: UK£241.901m
- Shares outstanding: 361.59m
- Website: https://www.mitie.com
Number of Employees
Location
- Mitie Group plc
- The Shard
- Level 12
- London
- Greater London
- SE1 9SG
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MITF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Sep 1994 |
| MTO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Sep 1994 |
| MZ4 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Sep 1994 |
| MTOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Sep 1994 |
| MITF.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADS | US | USD | May 2011 |
Biography
Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. It offers engineering services, such as technical and building maintenance services, as well as offers specialist services, such as heating, cooling, lighting, water treatment, and building controls; and security services and products, including security management, front of house, document management, employee vetting, and procius. The company also provides professional services, connected workspace, international, sustainability, waste management, risk management, and occupier Services; and cleaning and environmental services, such as commercial and technical cleaning, as well as specialist services, including and landscaping and healthcare services. In addition, it offers care and custody services, such as detention and escorting services, and forensic medical examiner and custody support services, as well as manages immigration removal centers; and indoor and outdoor event catering services. Mitie Group plc was founded in 1987 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 21:02 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.