LSE:GLE

Stock Analysis Report

Executive Summary

MJ Gleeson plc engages in urban housing regeneration and strategic land trading activities in the United Kingdom.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has MJ Gleeson's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

GLE

1.0%

GB Consumer Durables

0.3%

GB Market


1 Year Return

27.8%

GLE

38.8%

GB Consumer Durables

6.5%

GB Market

Return vs Industry: GLE underperformed the UK Consumer Durables industry which returned 38.8% over the past year.

Return vs Market: GLE exceeded the UK Market which returned 6.5% over the past year.


Shareholder returns

GLEIndustryMarket
7 Day0.8%1.0%0.3%
30 Day2.1%4.7%-1.4%
90 Day20.3%25.6%2.9%
1 Year33.5%27.8%48.8%38.8%12.0%6.5%
3 Year92.1%69.4%87.2%56.2%18.7%3.8%
5 Year220.8%169.6%140.1%80.3%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MJ Gleeson undervalued compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLE (£9.84) is trading below our estimate of fair value (£11.99)

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


Price To Earnings Ratio

PE vs Industry: GLE is poor value based on its PE Ratio (20.5x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: GLE is poor value based on its PE Ratio (20.5x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: GLE is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GLE is overvalued based on its PB Ratio (2.7x) compared to the GB Consumer Durables industry average (1.8x).


Next Steps

Future Growth

How is MJ Gleeson forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLE's forecast earnings growth (13.1% per year) is above the savings rate (0.5%).

Earnings vs Market: GLE's earnings (13.1% per year) are forecast to grow faster than the UK market (12.9% per year).

High Growth Earnings: GLE's earnings are forecast to grow, but not significantly.

Revenue vs Market: GLE's revenue (8.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GLE's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLE's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has MJ Gleeson performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLE has high quality earnings.

Growing Profit Margin: GLE's current net profit margins (11.1%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: GLE's earnings have grown by 15.9% per year over the past 5 years.

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

Earnings vs Industry: GLE had negative earnings growth (-30%) over the past year, making it difficult to compare to the Consumer Durables industry average (3.1%).


Return on Equity

High ROE: GLE's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MJ Gleeson's financial position?


Financial Position Analysis

Short Term Liabilities: GLE's short term assets (£243.3M) exceed its short term liabilities (£49.9M).

Long Term Liabilities: GLE's short term assets (£243.3M) exceed its long term liabilities (£11.9M).


Debt to Equity History and Analysis

Debt Level: GLE is debt free.

Reducing Debt: GLE has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.

Debt Coverage: GLE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GLE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: GLE's debt is covered by short term assets (assets are 5.4797098106068E+17x debt).


Next Steps

Dividend

What is MJ Gleeson's current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateMar 05 2020Dividend Pay DateApr 03 202029 days from Ex DividendBuy in the next 9 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: GLE's dividend (3.51%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: GLE's dividend (3.51%) is low compared to the top 25% of dividend payers in the UK market (5.07%).


Stability and Growth of Payments

Stable Dividend: GLE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GLE's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73%), GLE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLE's dividends in 3 years are forecast to be well covered by earnings (50% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Oxon Thomson 0

0.7yrs

Tenure

UK£483,004

Compensation

Mr. James Thomson, also known as Oxon, has been Chief Executive Officer at MJ Gleeson plc since December 2, 2019 and serves as its Director since June 10, 2019 and served as its Interim Chief Executive Off ...


CEO Compensation Analysis

Compensation vs Market: Oxon's total compensation ($USD626.26K) is below average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Insufficient data to compare Oxon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
James Thomson
CEO & Director0.7yrsUK£483.00k0.0076% £41.4k
Stefan Allanson
CFO, Company Secretary & Executive Director4.6yrsUK£992.00k0.13% £697.6k
Beth Broughton
Director of Human Resources4.6yrsno datano data
Scott Chamberlin
Managing Director of Gleeson Strategic Land15.1yrsno data0.045% £247.3k

4.6yrs

Average Tenure

Experienced Management: GLE's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Thomson
CEO & Director0.7yrsUK£483.00k0.0076% £41.4k
Stefan Allanson
CFO, Company Secretary & Executive Director4.6yrsUK£992.00k0.13% £697.6k
Christopher Mills
Non-Executive Director11.1yrsUK£47.00kno data
Andrew Coppel
Non Executive Director0.3yrsno datano data
Dermot Gleeson
Non-Executive Chairman26.1yrsUK£126.00k1.96% £10.7m
Fiona Goldsmith
Non Executive Director0.3yrsno datano data

2.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: GLE's board of directors are not considered experienced ( 2.6 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: 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

MJ Gleeson plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MJ Gleeson plc
  • Ticker: GLE
  • Exchange: LSE
  • Founded: 1903
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£544.373m
  • Shares outstanding: 55.32m
  • Website: https://www.mjgleesonplc.com

Number of Employees


Location

  • MJ Gleeson plc
  • 6 Europa Court
  • Sheffield Business Park
  • Sheffield
  • South Yorkshire
  • S9 1XE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
GLElBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

MJ Gleeson plc engages in urban housing regeneration and strategic land trading activities in the United Kingdom. The company operates through two divisions, Gleeson Homes and Gleeson Strategic Land. It engages in house building activities on brownfield land in the north of England; and strategic land trading primarily in the south of England. The company was founded in 1903 and is headquartered in Sheffield, 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 22:18
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.