LSE:GLE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

MJ Gleeson plc engages in low-cost house building and strategic land promotion activities in the United Kingdom. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GLE's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

GLE

1.0%

GB Consumer Durables

-0.3%

GB Market


1 Year Return

-23.2%

GLE

-18.6%

GB Consumer Durables

-7.9%

GB Market

Return vs Industry: GLE underperformed the UK Consumer Durables industry which returned -18.6% over the past year.

Return vs Market: GLE underperformed the UK Market which returned -7.9% over the past year.


Shareholder returns

GLEIndustryMarket
7 Day-2.9%1.0%-0.3%
30 Day3.6%3.6%5.4%
90 Day32.5%21.0%15.7%
1 Year-23.2%-23.2%-17.3%-18.6%-4.1%-7.9%
3 Year11.2%1.6%10.1%-4.6%4.2%-8.5%
5 Year46.2%25.6%40.1%9.6%45.0%12.1%

Long-Term 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?

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLE (£7.5) is trading below our estimate of fair value (£8.46)

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 (86.7x) compared to the GB Consumer Durables industry average (19x).

PE vs Market: GLE is poor value based on its PE Ratio (86.7x) compared to the UK market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: GLE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GLE is overvalued based on its PB Ratio (2x) compared to the GB Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is MJ Gleeson forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

47.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLE's forecast earnings growth (47.4% per year) is above the savings rate (1%).

Earnings vs Market: GLE's earnings (47.4% per year) are forecast to grow faster than the UK market (25.3% per year).

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

Revenue vs Market: GLE's revenue (21.4% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: GLE's revenue (21.4% per year) is forecast to grow faster 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 (14.7%).


Next Steps

Past Performance

How has MJ Gleeson performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLE has a large one-off gain of £1.1M impacting its June 30 2020 financial results.

Growing Profit Margin: GLE's current net profit margins (3.3%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: GLE's earnings have grown by 5.6% 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 (-85.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-45.3%).


Return on Equity

High ROE: GLE's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is MJ Gleeson's financial position?


Financial Position Analysis

Short Term Liabilities: GLE's short term assets (£301.7M) exceed its short term liabilities (£97.4M).

Long Term Liabilities: GLE's short term assets (£301.7M) exceed its long term liabilities (£12.1M).


Debt to Equity History and Analysis

Debt Level: GLE's debt to equity ratio (28.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GLE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GLE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GLE's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.96%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GLE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GLE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GLE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GLE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GLE is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GLE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

James Thomson

1.58yrs

Tenure

UK£769,000

Compensation

Mr. James Thomson, MA (Oxon), ACA 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 Officer ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD1.05M) is about average for companies of similar size in the UK market ($USD822.07K).

Compensation vs Earnings: James's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Thomson
CEO & Director1.58yrsUK£769.00k0.022%
£ 96.1k
Stefan Allanson
CFO & Executive Director5.5yrsUK£893.00k0.21%
£ 901.4k
Leanne Johnson
Head of Legal & Company Secretary0.83yrno datano data
Beth Broughton
Director of Human Resources5.5yrsno datano data
Scott Chamberlin
Managing Director of Gleeson Strategic Land16yrsno datano data

5.5yrs

Average Tenure

Experienced Management: GLE's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Thomson
CEO & Director1.58yrsUK£769.00k0.022%
£ 96.1k
Stefan Allanson
CFO & Executive Director5.5yrsUK£893.00k0.21%
£ 901.4k
Christopher Mills
Non-Executive Director12yrsUK£44.00kno data
Andrew Coppel
Senior Independent Director0.50yrUK£32.00k0.011%
£ 48.6k
Dermot Gleeson
Non-Executive Chairman27yrsUK£117.00k1.87%
£ 8.1m
Fiona Goldsmith
Independent Non Executive Director1.25yrsUK£32.00k0.0086%
£ 37.4k

3.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: GLE's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 5.3%.


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: 2014
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£435.634m
  • Shares outstanding: 58.24m
  • 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 low-cost house building and strategic land promotion activities in the United Kingdom. The company operates through two divisions, Gleeson Homes and Gleeson Strategic Land. It eng...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 19:33
End of Day Share Price2021/01/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.