AIM:IGR

Stock Analysis Report

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Market Cap

UK£541.3m

Last Updated

2021/06/17 22:29 UTC

Data Sources

Company Financials +

Executive Summary

IG Design Group plc designs, manufactures, and distributes celebrations, craft and creative play, stationery, gifting, and not for sale consumable products. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IGR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IGR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

IGR

0.6%

GB Consumer Durables

0.1%

GB Market


1 Year Return

3.5%

IGR

33.7%

GB Consumer Durables

18.7%

GB Market

Return vs Industry: IGR underperformed the UK Consumer Durables industry which returned 32.2% over the past year.

Return vs Market: IGR underperformed the UK Market which returned 19% over the past year.


Shareholder returns

IGRIndustryMarket
7 Day-1.9%0.6%0.1%
30 Day-1.8%-2.1%1.4%
90 Day-4.9%1.7%7.2%
1 Year5.4%3.5%37.9%33.7%24.6%18.7%
3 Year20.3%14.9%30.6%15.5%14.5%1.3%
5 Year287.7%259.5%62.9%27.9%47.6%19.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

50.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IGR (£5.58) is trading below our estimate of fair value (£8.63)

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


Price To Earnings Ratio

PE vs Industry: IGR is poor value based on its PE Ratio (93.7x) compared to the UK Consumer Durables industry average (28.3x).

PE vs Market: IGR is poor value based on its PE Ratio (93.7x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: IGR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: IGR is overvalued based on its PB Ratio (2x) compared to the GB Consumer Durables industry average (1.7x).


Future Growth

How is IG Design Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

35.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGR's forecast earnings growth (35% per year) is above the savings rate (0.9%).

Earnings vs Market: IGR's earnings (35% per year) are forecast to grow faster than the UK market (17.4% per year).

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

Revenue vs Market: IGR's revenue (6.9% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: IGR's revenue (6.9% 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 IGR's Return on Equity is forecast to be high in 3 years time


Past Performance

How has IG Design Group performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGR has high quality earnings.

Growing Profit Margin: IGR's current net profit margins (0.9%) are lower than last year (2.8%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: IGR had negative earnings growth (-53.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (-49.5%).


Return on Equity

High ROE: IGR's Return on Equity (2.7%) is considered low.


Financial Health

How is IG Design Group's financial position?


Financial Position Analysis

Short Term Liabilities: IGR's short term assets ($440.7M) exceed its short term liabilities ($252.9M).

Long Term Liabilities: IGR's short term assets ($440.7M) exceed its long term liabilities ($118.3M).


Debt to Equity History and Analysis

Debt Level: IGR's debt to equity ratio (14.4%) is considered satisfactory.

Reducing Debt: IGR's debt to equity ratio has reduced from 35.3% to 14.4% over the past 5 years.

Debt Coverage: IGR's debt is well covered by operating cash flow (114.8%).

Interest Coverage: IGR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGR's dividend (1.47%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: IGR's dividend (1.47%) is low compared to the top 25% of dividend payers in the UK market (3.99%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IGR has been paying a dividend for less than 10 years.

Growing Dividend: IGR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (137.1%), IGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IGR's dividends in 3 years are forecast to be well covered by earnings (40% payout ratio).


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Paul Fineman

12.42yrs

Tenure

US$1,288,429

Compensation

Mr. Paul Elliott Fineman has been the Group Managing Director of IG Design Group Plc since January 2008 and has been its Group Chief Executive Officer since January 2009. Mr. Fineman serves as the Chief Ex...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.29M) is above average for companies of similar size in the UK market ($USD970.53K).

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


Leadership Team

Experienced Management: IGR's management team is seasoned and experienced (7.9 years average tenure).


Board Members

Experienced Board: IGR's board of directors are considered experienced (9.3 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

IG Design Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IG Design Group plc
  • Ticker: IGR
  • Exchange: AIM
  • Founded: 1978
  • Industry: Housewares and Specialties
  • Sector: Consumer Durables
  • Market Cap: UK£541.261m
  • Shares outstanding: 96.83m
  • Website: https://www.thedesigngroup.com

Number of Employees


Location

  • IG Design Group plc
  • Howard House
  • Howard Way
  • Newport Pagnell
  • Buckinghamshire
  • MK16 9PX
  • United Kingdom

Listings


Biography

IG Design Group plc designs, manufactures, and distributes celebrations, craft and creative play, stationery, gifting, and not for sale consumable products. Its celebrations products include greetings card...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 22:29
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.