AIM:CCT

Stock Analysis Report

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.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

CCT

3.1%

GB Leisure

0.3%

GB Market


1 Year Return

-46.7%

CCT

81.5%

GB Leisure

6.5%

GB Market

Return vs Industry: CCT underperformed the UK Leisure industry which returned 81.5% over the past year.

Return vs Market: CCT underperformed the UK Market which returned 6.5% over the past year.


Shareholder returns

CCTIndustryMarket
7 Day3.9%3.1%0.3%
30 Day-9.9%3.0%-1.4%
90 Day-20.5%17.9%2.9%
1 Year-43.6%-46.7%90.8%81.5%12.0%6.5%
3 Year-38.5%-46.5%209.3%159.1%18.7%3.8%
5 Year-4.5%-21.4%289.1%203.1%35.0%4.1%

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?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCT (£2.9) is trading below our estimate of fair value (£3.48)

Significantly Below Fair Value: CCT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCT is good value based on its PE Ratio (7.8x) compared to the Leisure industry average (19.1x).

PE vs Market: CCT is good value based on its PE Ratio (7.8x) compared to the UK market (18.6x).


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 good value based on its PB Ratio (1.8x) compared to the GB Leisure industry average (2x).


Next Steps

Future Growth

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

2.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CCT's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if CCT's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCT's revenue (2.9% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: CCT's revenue (2.9% 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 CCT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Character Group performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCT has high quality earnings.

Growing Profit Margin: CCT's current net profit margins (6.6%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: CCT's earnings have grown by 1.1% 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 (-17.8%) over the past year, making it difficult to compare to the Leisure industry average (-5.6%).


Return on Equity

High ROE: CCT's Return on Equity (22%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Character Group's financial position?


Financial Position Analysis

Short Term Liabilities: CCT's short term assets (£81.8M) exceed its short term liabilities (£52.7M).

Long Term Liabilities: CCT's short term assets (£81.8M) exceed its long term liabilities (£1.3M).


Debt to Equity History and Analysis

Debt Level: CCT's debt to equity ratio (68.8%) is considered high.

Reducing Debt: CCT's debt to equity ratio has reduced from 221.8% to 68.8% over the past 5 years.

Debt Coverage: CCT's debt is well covered by operating cash flow (33.6%).

Interest Coverage: CCT's interest payments on its debt are well covered by EBIT (34.7x coverage).


Balance Sheet

Inventory Level: CCT has a high level of physical assets or inventory.

Debt Coverage by Assets: CCT's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

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

8.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCT's dividend (8.97%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: CCT's dividend (8.97%) is in the top 25% of dividend payers in the UK market (5.07%)


Stability and Growth of Payments

Stable Dividend: CCT's dividends per share have been stable 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 (69.9%), CCT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCT's dividends in 3 years are forecast to be covered by earnings (74.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average board tenure


CEO

Kiran Shah (64yo)

14.4yrs

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 ($USD1.06M) is above average for companies of similar size in the UK market ($USD324.14K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard King
Founder & Non-Executive Chairman25.1yrsUK£116.84k1.57% £975.2k
Kirankumar Shah
Founder14.4yrsUK£813.95k10.13% £6.3m
Jonathan Diver
Group Joint MD & Executive Director0yrsUK£1.03m6.59% £4.1m
Joseph John Kissane
Founder0yrsUK£629.29k2.4% £1.5m
Jeremiah Healy
Group Marketing Director & Executive Director4yrsUK£252.12k0.34% £211.7k
Michael Hyde
MD of Far East Operations & Executive Director8.9yrsUK£546.25k1.45% £898.1k
David Harris
Senior Independent Non-Executive Director4.6yrsUK£40.00k0.32% £197.7k
Clive Crouch
Non-Executive Director4yrsUK£40.00k0.072% £44.5k

4.6yrs

Average Tenure

65yo

Average Age

Experienced Board: CCT'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: CCT insiders have bought and sold the same number of shares 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£62.001m
  • Shares outstanding: 21.38m
  • 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 company sells its products under the Ben & Holly's Little Kingdom, ChillFactor, Cra-Z-Art Shimmer 'n Sparkle, Doctor Who, Easy, Fireman Sam, Orbeez, Postman Pat, Teletubbies, Zombie Blast, Spare Parts, Peppa Pig, Little Live, Stretch Armstrong, Mash'ems, Games, Laser X, and Oonies brands. It also provides its products under the Cra-Z-Slimy, Mine It, Soft 'n Slo Squishies, Fizz 'n' Surprise, Smart Sketcher, Treasure X, Glow Friends, Really R.A.D. Robots, Disney Doorables, Pokémon, Little Live Wrapples, Odditeez, Zookiez Slappy, Cra-Z-Loom, Hairdooz, Ballerina Dreamer, FlipaZoo, and Heroes of Goo Jit Zu brands. In addition, the company offers products under the Blinger, Swarm Squad, Cra-Z-Air Sand, Goo Goo Galaxy, ORB Mocheez Babies, Little Live Wraptiles, Foam Alive, Chu Chu TV Peek & Play Surprise Eggs, Funatic Foam, and Luvi Pups brands. It also imports and distributes gifts; and invests in properties. The company was founded in 1991 and is headquartered 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 Analysis2020/02/23 20:56
End of Day Share Price2020/02/21 00:00
Earnings2019/08/31
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.