AIM:CCT

Stock Analysis Report

Executive Summary

The Character Group plc designs, develops, and distributes toys, games, and gifts the United Kingdom, the Far East, and internationally.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

CCT

-4.2%

GB Leisure

-0.4%

GB Market


1 Year Return

-34.3%

CCT

25.7%

GB Leisure

2.9%

GB Market

Return vs Industry: CCT underperformed the UK Leisure industry which returned 25.7% over the past year.

Return vs Market: CCT underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

CCTIndustryMarket
7 Day-4.6%-4.2%-0.4%
30 Day-6.4%-5.0%-1.4%
90 Day-42.4%-6.1%-2.1%
1 Year-31.2%-34.3%32.7%25.7%7.9%2.9%
3 Year-12.2%-22.3%157.2%112.5%18.0%3.6%
5 Year96.9%64.9%207.2%136.6%35.8%6.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CCT (£3.34) is trading below our estimate of fair value (£27.26)

Significantly Undervalued: CCT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CCT is good value based on its PE Ratio (5.3x) compared to the Leisure industry average (17.5x).

PE vs Market: CCT is good value based on its PE Ratio (5.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CCT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CCT is good value based on its PB Ratio (2.1x) compared to the GB Leisure industry average (2.1x).


Next Steps

Future Growth

How is Character Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCT's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: CCT's earnings are forecast to decline over the next 3 years (-3.4% per year).

High Growth Earnings: CCT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CCT's revenue (8.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: CCT's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CCT's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: CCT's earnings growth over the past year (160%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: CCT earnings growth over the past year (160%) exceeded the Leisure industry 11%.


Return on Equity

High ROE: CCT's Return on Equity (39.9%) is considered high.


Return on Assets

ROA vs Industry: CCT has a higher Return on Assets than the Leisure industry average last year.


Return on Capital Employed

ROCE Improving: CCT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Character Group's financial position?


Financial Position Analysis

Short Term Liabilities: CCT's short term assets (£47.6M) exceeds its short term liabilities (£21.7M)

Long Term Liabilities: CCT's short term assets (47.6M) exceeds its long term liabilities (1.7M)


Debt to Equity History and Analysis

Debt Level: CCT's debt to equity ratio (11.1%) is considered satisfactory

Reducing Debt: CCT's debt to equity ratio has reduced from 151.6% to 11.1% over the past 5 years.

Debt Coverage: CCT's debt is well covered by operating cash flow (538.5%).

Interest Coverage: CCT's interest payments on its debt are well covered by EBIT (63.2x 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 12.800910x debt).


Next Steps

Dividend

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

7.78%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years8.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CCT's dividend (7.78%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: CCT's dividend (7.78%) is in the top 25% of dividend payers in the UK market (5.36%)

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 reasonably low payout ratio (39.6%), CCT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCT's dividends in 3 years are forecast to be covered by earnings (58.7% payout ratio).


Next Steps

Management

What is the CEO of Character Group's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Kiran Shah (64yo)

14.1yrs

Tenure

UK£869,574

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 ($USD1.12M) is about average for companies of similar size in the UK market ($USD320.52K).

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


Board Age and Tenure

4.3yrs

Average Tenure

65yo

Average Age

Experienced Board: CCT's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: CCT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£16,56017 Sep 19
David Harris
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares4,500
Max PriceUK£3.68

Ownership Breakdown


Management Team

  • Kiran Shah (64yo)

    Founder

    • Tenure: 14.1yrs
    • Compensation: UK£869.57k
  • Richard King (74yo)

    Founder & Non-Executive Chairman

    • Tenure: 24.8yrs
    • Compensation: UK£115.44k
  • Jon Diver (55yo)

    Group Joint MD & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.10m
  • Mike Hyde (44yo)

    MD of Far East Operations & Executive Director

    • Tenure: 8.6yrs
    • Compensation: UK£513.01k
  • Jerry Healy (57yo)

    Group Marketing Director & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£248.33k

Board Members

  • Joe Kissane (67yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£672.98k
  • Kiran Shah (64yo)

    Founder

    • Tenure: 14.1yrs
    • Compensation: UK£869.57k
  • Richard King (74yo)

    Founder & Non-Executive Chairman

    • Tenure: 24.8yrs
    • Compensation: UK£115.44k
  • Jon Diver (55yo)

    Group Joint MD & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.10m
  • David Harris (70yo)

    Senior Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£32.50k
  • Mike Hyde (44yo)

    MD of Far East Operations & Executive Director

    • Tenure: 8.6yrs
    • Compensation: UK£513.01k
  • Jerry Healy (57yo)

    Group Marketing Director & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£248.33k
  • Clive Crouch (66yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£32.50k

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£71.241m
  • Shares outstanding: 21.33m
  • Website: https://www.thecharacter.com

Number of Employees


Location

  • The Character Group plc
  • 10 Chiswell Street
  • 2nd Floor
  • London
  • Greater London
  • EC1Y 4UQ
  • 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, and distributes toys, games, and gifts the United Kingdom, the Far East, and internationally. The company sells its products under the Beados, Ben & Holly's Littl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:39
End of Day Share Price2019/10/18 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.