AIM:CCT

Stock Analysis Report

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Executive Summary

The Character Group plc designs, develops, manufactures, and distributes toys, games, and gifts based on popular television, film, and digital characters in the United Kingdom and internationally. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CCT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

CCT

-0.1%

GB Leisure

0.08%

GB Market


1 Year Return

-11.1%

CCT

76.2%

GB Leisure

-13.9%

GB Market

Return vs Industry: CCT underperformed the UK Leisure industry which returned 76.2% over the past year.

Return vs Market: CCT exceeded the UK Market which returned -13.9% over the past year.


Shareholder returns

CCTIndustryMarket
7 Day-7.7%-0.1%0.08%
30 Day-10.3%13.6%0.4%
90 Day-9.3%21.0%-1.5%
1 Year-7.6%-11.1%82.0%76.2%-10.4%-13.9%
3 Year-27.7%-36.3%199.8%160.2%-4.3%-16.0%
5 Year-25.5%-38.4%332.4%247.6%23.0%-4.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCT (£3.12) is trading above our estimate of fair value (£0.4)

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


Price To Earnings Ratio

PE vs Industry: CCT is good value based on its PE Ratio (12x) compared to the XE Leisure industry average (17x).

PE vs Market: CCT is good value based on its PE Ratio (12x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CCT is overvalued based on its PB Ratio (2x) compared to the GB Leisure industry average (1.8x).


Next Steps

Future Growth

How is Character Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.1%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Character Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Character Group performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCT has high quality earnings.

Growing Profit Margin: CCT's current net profit margins (4.9%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: CCT's earnings have declined by 5.4% per year over the past 5 years.

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

Earnings vs Industry: CCT had negative earnings growth (-58.5%) over the past year, making it difficult to compare to the Leisure industry average (-6.4%).


Return on Equity

High ROE: CCT's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Character Group's financial position?


Financial Position Analysis

Short Term Liabilities: CCT's short term assets (£43.7M) exceed its short term liabilities (£16.2M).

Long Term Liabilities: CCT's short term assets (£43.7M) exceed its long term liabilities (£1.8M).


Debt to Equity History and Analysis

Debt Level: CCT's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: CCT's debt to equity ratio has reduced from 94.4% to 8.6% over the past 5 years.

Debt Coverage: CCT's debt is well covered by operating cash flow (246%).

Interest Coverage: CCT's interest payments on its debt are well covered by EBIT (28.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCT's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: CCT's dividend (1.28%) is low compared to the top 25% of dividend payers in the UK market (5.14%).


Stability and Growth of Payments

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

Growing Dividend: CCT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), CCT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.2yrs

Average board tenure


CEO

Kiran Shah (65 yo)

15yrs

Tenure

UK£813,947

Compensation

Mr. Kirankumar Premchand Shah, FCCA Founded The Character Group plc in April 1991 and has been its Group Joint Managing Director since September 22, 2005. Mr. Shah has been Group Finance Director of Compan ...


CEO Compensation Analysis

Compensation vs Market: Kiran's total compensation ($USD1.05M) is above average for companies of similar size in the UK market ($USD350.05K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard King
Founder & Non-Executive Chairman25.67yrsUK£116.84k1.59%
£ 1.0m
Kirankumar Shah
Founder15yrsUK£813.95k10.27%
£ 6.8m
Jonathan Diver
Group Joint MD & Executive Directorno dataUK£1.03m6.68%
£ 4.4m
Jeremiah Healy
Group Marketing Director & Executive Director4.58yrsUK£252.12k0.35%
£ 227.8k
Michael Hyde
MD of Far East Operations & Executive Director9.5yrsUK£546.25k1.47%
£ 966.2k
Joseph John Kissane
Founderno dataUK£629.29k2.44%
£ 1.6m
David Harris
Senior Independent Non-Executive Director5.17yrsUK£40.00k0.32%
£ 212.7k
Clive Crouch
Independent Non-Executive Director4.58yrsUK£40.00k0.073%
£ 47.9k

5.2yrs

Average Tenure

66yo

Average Age

Experienced Board: CCT's board of directors are considered experienced (5.2 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

The Character Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Character Group plc
  • Ticker: CCT
  • Exchange: AIM
  • Founded: 1991
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: UK£65.816m
  • Shares outstanding: 21.09m
  • Website: https://www.thecharacter.com

Number of Employees


Location

  • The Character Group plc
  • 86-88 Coombe Road
  • 2nd Floor
  • New Malden
  • Greater London
  • KT3 4QS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGRO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1995
CCTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1995

Biography

The Character Group plc designs, develops, manufactures, and distributes toys, games, and gifts based on popular television, film, and digital characters in the United Kingdom and internationally. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 03:32
End of Day Share Price2020/09/18 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.