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Franchise Brands

AIM:FRAN
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FRAN
AIM
£65M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Franchise Brands plc engages in franchising and related activities primarily in the United Kingdom. The last earnings update was 74 days ago. More info.


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FRAN Share Price and Events
7 Day Returns
0%
AIM:FRAN
0.7%
GB Consumer Services
-0.6%
GB Market
1 Year Returns
1.2%
AIM:FRAN
-36.8%
GB Consumer Services
-5.8%
GB Market
FRAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Franchise Brands (FRAN) 0% -5.6% 20.9% 1.2% - -
GB Consumer Services 0.7% -2.6% 0.9% -36.8% -59.9% -49.6%
GB Market -0.6% -2% 1.4% -5.8% 13.1% 1.3%
1 Year Return vs Industry and Market
  • FRAN outperformed the Consumer Services industry which returned -36.8% over the past year.
  • FRAN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.
Price Volatility
FRAN
Industry
5yr Volatility vs Market

Value

 Is Franchise Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Franchise Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Franchise Brands.

AIM:FRAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:FRAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.945 (1 + (1- 19%) (12.17%))
1.025
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.025 * 6.65%)
8.05%

Discounted Cash Flow Calculation for AIM:FRAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Franchise Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:FRAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.05%)
2019 2.40 Analyst x1 2.22
2020 3.20 Analyst x1 2.74
2021 3.80 Analyst x1 3.01
2022 4.23 Est @ 11.27% 3.10
2023 4.58 Est @ 8.26% 3.11
2024 4.86 Est @ 6.15% 3.05
2025 5.09 Est @ 4.67% 2.96
2026 5.27 Est @ 3.64% 2.84
2027 5.42 Est @ 2.92% 2.70
2028 5.56 Est @ 2.41% 2.56
Present value of next 10 years cash flows £28.30
AIM:FRAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £5.56 × (1 + 1.23%) ÷ (8.05% – 1.23%)
£82.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £82.47 ÷ (1 + 8.05%)10
£38.03
AIM:FRAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £28.30 + £38.03
£66.34
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £66.34 / 77.37
£0.86
AIM:FRAN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.86
Current discount Discount to share price of £0.84
= -1 x (£0.84 - £0.86) / £0.86
2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Franchise Brands is available for.
Intrinsic value
2%
Share price is £0.84 vs Future cash flow value of £0.85743
Current Discount Checks
For Franchise Brands to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Franchise Brands's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Franchise Brands's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Franchise Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Franchise Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:FRAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.03
AIM:FRAN Share Price ** AIM (2019-05-24) in GBP £0.84
Europe Consumer Services Industry PE Ratio Median Figure of 10 Publicly-Listed Consumer Services Companies 17.36x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Franchise Brands.

AIM:FRAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:FRAN Share Price ÷ EPS (both in GBP)

= 0.84 ÷ 0.03

27.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franchise Brands is overvalued based on earnings compared to the Europe Consumer Services industry average.
  • Franchise Brands is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Franchise Brands's expected growth come at a high price?
Raw Data
AIM:FRAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
17.1%per year
Europe Consumer Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Consumer Services Companies 1.12x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

AIM:FRAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.98x ÷ 17.1%

1.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franchise Brands is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Franchise Brands's assets?
Raw Data
AIM:FRAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.31
AIM:FRAN Share Price * AIM (2019-05-24) in GBP £0.84
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry PB Ratio Median Figure of 6 Publicly-Listed Consumer Services Companies 2.52x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.49x
AIM:FRAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:FRAN Share Price ÷ Book Value per Share (both in GBP)

= 0.84 ÷ 0.31

2.67x

* Primary Listing of Franchise Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franchise Brands is overvalued based on assets compared to the GB Consumer Services industry average.
X
Value checks
We assess Franchise Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Franchise Brands has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Franchise Brands expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Franchise Brands expected to grow at an attractive rate?
  • Franchise Brands's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Franchise Brands's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Franchise Brands's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:FRAN Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:FRAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 17.1%
AIM:FRAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 6.6%
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:FRAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:FRAN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 43 5 4 1
2020-12-31 40 5 3 1
2019-12-31 38 4 3 1
AIM:FRAN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 35 3 2
2018-09-30 34 2 2
2018-06-30 32 1 1
2018-03-31 28 1 1
2017-12-31 24 1 0
2017-09-30 18 1 0
2017-06-30 11 1 0
2017-03-31 8 1 0
2016-12-31 5 1 1
2016-09-30 5 1 1
2016-06-30 5 1 1
2016-03-31 4 1 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Franchise Brands's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
  • Franchise Brands's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:FRAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Franchise Brands Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FRAN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.05 0.05 0.05 1.00
2020-12-31 0.04 0.04 0.04 1.00
2019-12-31 0.04 0.04 0.04 1.00
AIM:FRAN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.03
2018-09-30 0.02
2018-06-30 0.02
2018-03-31 0.01
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 -0.01
2017-03-31 0.00
2016-12-31 0.01
2016-09-30 0.02
2016-06-30 0.02
2016-03-31 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Franchise Brands will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Franchise Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Franchise Brands has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Franchise Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Franchise Brands's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Franchise Brands's year on year earnings growth rate has been positive over the past 5 years.
  • Franchise Brands has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Franchise Brands has become profitable in the last year making it difficult to compare the Europe Consumer Services industry average.
Earnings and Revenue History
Franchise Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Franchise Brands Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FRAN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 35.47 2.33 9.95
2018-09-30 33.69 1.82 9.20
2018-06-30 32.20 1.29 8.77
2018-03-31 28.25 0.59 7.73
2017-12-31 24.29 -0.11 6.69
2017-09-30 17.95 -0.21 5.47
2017-06-30 11.32 -0.29 3.94
2017-03-31 8.09 0.12 2.99
2016-12-31 4.87 0.52 2.05
2016-09-30 4.74 0.75 1.95
2016-06-30 4.61 0.98 1.84
2016-03-31 4.49 0.93 1.81
2015-12-31 4.38 0.89 1.77
2014-12-31 4.35 0.71 1.92
2013-12-31 4.69 0.54 2.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Franchise Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Franchise Brands used its assets more efficiently than the Europe Consumer Services industry average last year based on Return on Assets.
  • Unable to establish if Franchise Brands improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Franchise Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Franchise Brands has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Franchise Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Franchise Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Franchise Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Franchise Brands's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Franchise Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Franchise Brands Company Filings, last reported 4 months ago.

AIM:FRAN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 24.44 7.91 2.94
2018-09-30 24.44 7.91 2.94
2018-06-30 24.16 8.22 2.75
2018-03-31 24.16 8.22 2.75
2017-12-31 23.19 9.51 3.25
2017-09-30 23.19 9.51 3.25
2017-06-30 23.20 11.95 5.96
2017-03-31 23.20 11.95 5.96
2016-12-31 3.90 0.52 3.00
2016-09-30 3.90 0.52 3.00
2016-06-30 0.20 1.88 1.16
2016-03-31 0.20 1.88 1.16
2015-12-31 -0.38 1.91 0.50
2014-12-31 -1.27 3.34 1.05
2013-12-31 -1.98 3.35 0.49
  • Franchise Brands's level of debt (32.4%) compared to net worth is satisfactory (less than 40%).
  • Franchise Brands had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (36.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).
X
Financial health checks
We assess Franchise Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Franchise Brands has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Franchise Brands's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.8%
Current annual income from Franchise Brands dividends. Estimated to be 1.43% next year.
If you bought £2,000 of Franchise Brands shares you are expected to receive £16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Franchise Brands's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.04%).
  • Franchise Brands's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.32%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:FRAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:FRAN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.02 1.00
2020-12-31 0.01 1.00
2019-12-31 0.01 1.00
AIM:FRAN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-13 0.007 0.845
2018-03-22 0.005 0.657
2018-03-21 0.005 0.692
2017-09-14 0.003 0.552
2017-03-23 0.004 0.483
2017-03-22 0.004 0.442

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franchise Brands is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Franchise Brands is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Franchise Brands's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Franchise Brands's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Franchise Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Franchise Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Franchise Brands has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Franchise Brands has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the Franchise Brands management team in years:

2.1
Average Tenure
48
Average Age
  • The tenure for the Franchise Brands management team is about average.
Management Team

Stephen Hemsley

TITLE
Executive Chairman
COMPENSATION
£116K
AGE
60

Chris Dent

TITLE
CFO & Director
COMPENSATION
£105K
AGE
37
TENURE
1.8 yrs

Julia Choudhury

TITLE
Corporate Development Director & Director
COMPENSATION
£120K
AGE
51

Andrew Mallows

TITLE
Commercial Director
AGE
48
TENURE
2.2 yrs

Colin Rees

TITLE
Chief Information Officer & Director
AGE
48
TENURE
2.1 yrs

Ella Pugh

TITLE
Head of Marketing

Lee Dancy

TITLE
Managing Director

Tim Roberts

TITLE
Head of IT

Mark Peters

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Franchise Brands board of directors in years:

2.8
Average Tenure
55
Average Age
  • The average tenure for the Franchise Brands board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stephen Hemsley

TITLE
Executive Chairman
COMPENSATION
£116K
AGE
60
TENURE
2.8 yrs

Chris Dent

TITLE
CFO & Director
COMPENSATION
£105K
AGE
37

Julia Choudhury

TITLE
Corporate Development Director & Director
COMPENSATION
£120K
AGE
51
TENURE
2.8 yrs

Colin Rees

TITLE
Chief Information Officer & Director
AGE
48
TENURE
1.2 yrs

David Poutney

TITLE
Non-Executive Director
COMPENSATION
£22K
AGE
65
TENURE
2.8 yrs

Rob Bellhouse

TITLE
Independent Non-Executive Director
COMPENSATION
£22K
TENURE
2.8 yrs

Nigel Wray

TITLE
Non-Executive Director
COMPENSATION
£17K
AGE
70
TENURE
2.8 yrs

Tim Harris

TITLE
Director
COMPENSATION
£69K
AGE
54
TENURE
2.8 yrs

Peter Molloy

TITLE
Director
AGE
56
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Franchise Brands insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
12. Apr 19 Buy David Poutney Individual 11. Apr 19 11. Apr 19 100,000 £0.73 £72,500
04. Sep 18 Buy David Poutney Individual 03. Sep 18 03. Sep 18 60,000 £0.80 £48,000
05. Jun 18 Buy David Poutney Individual 01. Jun 18 01. Jun 18 250,000 £0.81 £202,500
X
Management checks
We assess Franchise Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Franchise Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is It Too Late To Consider Buying Franchise Brands plc (LON:FRAN)?

According to my valuation model, Franchise Brands seems to be fairly priced at around 2.1% below my intrinsic value, which means if you buy Franchise Brands today, you’d be paying a fair price for it. … Since Franchise Brands’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. … FRAN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

The Franchise Brands (LON:FRAN) Share Price Is Up 16% And Shareholders Are Holding On

To wit, the Franchise Brands plc (LON:FRAN) share price is 16% higher than it was a year ago, much better than the market return of around -2.1% (not including dividends) in the same period. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Simply Wall St -

Is Franchise Brands plc's (LON:FRAN) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as Franchise Brands plc (LON:FRAN) with its market cap of UK£53m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Does Franchise Brands plc (LON:FRAN) Have A Particularly Volatile Share Price?

Volatility is considered to be a measure of risk in modern finance theory. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Can Franchise Brands plc (LON:FRAN) Improve Its Returns?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Franchise Brands plc (LON:FRAN). … Over the last twelve months Franchise Brands has recorded a ROE of 5.4%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Franchise Brands plc's (LON:FRAN) Interest Costs Too High?

However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Why Did Franchise Brands plc's' (LON:FRAN) Insiders Buy Up More Shares?

small-cap stocks … It is widely considered that insider buying stock in their own companies is potentially a bullish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

How Financially Strong Is Franchise Brands plc (LON:FRAN)?

Investors are always looking for growth in small-cap stocks like Franchise Brands plc (LON:FRAN), with a market cap of UK£61.80m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.

Simply Wall St -

Who Are Franchise Brands plc's (LON:FRAN) Major Shareholders?

Although FRAN has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Private Company Ownership Potential investors in FRAN should also look at another important group of investors: private companies, with a stake of 4.34%, who are primarily invested because of strategic and capital gain interests. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Does Franchise Brands plc's (LON:FRAN) CEO Pay Compare Well With Peers?

Therefore I will use earnings as a proxy of Harris's performance in the past year. … Most recently, FRAN released negative earnings of -UK£112.00K , compared to the previous year's positive earnings. … Normally I'd use market cap and profit as factors determining performance, however, FRAN's negative earnings lower the usefulness of my formula.

Simply Wall St -

Company Info

Description

Franchise Brands plc engages in franchising and related activities primarily in the United Kingdom. It provides vehicle repair services, which comprise bumper scuffs, paintwork scratches, minor dents, and kerbed alloy wheel repairs under the ChipsAway brand name; and oven cleaning services include cleaning of domestic oven brands and models, such as electric and gas ovens, ranges, microwaves, hobs, extractor fans, and barbecues, as well as various removable components consisting of racks and other removable parts under the Ovenclean brand. The company also operates dog care franchise under the Barking Mad brand name; and offers drain clearance and maintenance services comprising high pressure water jetting, CCTV survey, drain or sewer lining, excavation, electro mechanical cleaning, and fat and grease management under the Metro Rod brand name. It operates 450 franchisees in 12 countries. The company was formerly known as FB Holdings plc. Franchise Brands plc was founded in 2008 and is based in Macclesfield, the United Kingdom.

Details
Name: Franchise Brands plc
FRAN
Exchange: AIM
Founded: 2008
£64,989,399
77,368,333
Website: http://www.franchisebrands.co.uk
Address: Franchise Brands plc
Ashwood Court,
Tytherington Business Park,
Macclesfield,
Cheshire, SK10 2XF,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM FRAN Ordinary Shares London Stock Exchange AIM Market GB GBP 05. Aug 2016
Number of employees
Current staff
Staff numbers
103
Franchise Brands employees.
Industry
Specialized Consumer Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 22:15
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.