AIM:MLVN

Stock Analysis Report

Executive Summary

Malvern International plc, an investment holding company, provides educational consultancy services in the United Kingdom, Singapore, and Malaysia.

Rewards

Revenue is forecast to grow 12.82% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (£2M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Malvern International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLVN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

MLVN

6.2%

GB Consumer Services

0.6%

GB Market


1 Year Return

-83.0%

MLVN

27.6%

GB Consumer Services

12.1%

GB Market

Return vs Industry: MLVN underperformed the UK Consumer Services industry which returned 21.9% over the past year.

Return vs Market: MLVN underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

MLVNIndustryMarket
7 Day0%6.2%0.6%
30 Day23.1%9.5%1.5%
90 Day-56.8%9.1%8.1%
1 Year-83.0%-83.0%29.3%27.6%18.0%12.1%
3 Year-75.4%-75.4%7.5%1.7%23.9%8.1%
5 Year-75.4%-75.4%-30.7%-48.6%41.7%8.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Malvern International undervalued compared to its fair value and its price relative to the market?

0.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MLVN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MLVN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MLVN is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: MLVN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MLVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MLVN is good value based on its PB Ratio (0.5x) compared to the GB Consumer Services industry average (3x).


Next Steps

Future Growth

How is Malvern International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MLVN's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if MLVN's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: MLVN's revenue (12.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: MLVN's revenue (12.8% 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 MLVN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Malvern International performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLVN is currently unprofitable.

Growing Profit Margin: MLVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MLVN is unprofitable, but has reduced losses over the past 5 years at a rate of 14.9% per year.

Accelerating Growth: Unable to compare MLVN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MLVN is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (47.8%).


Return on Equity

High ROE: MLVN has a negative Return on Equity (-36.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Malvern International's financial position?


Financial Position Analysis

Short Term Liabilities: MLVN's short term assets (£3.6M) do not cover its short term liabilities (£4.6M).

Long Term Liabilities: MLVN's short term assets (£3.6M) exceed its long term liabilities (£2.5M).


Debt to Equity History and Analysis

Debt Level: MLVN's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: MLVN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: MLVN's debt is covered by short term assets (assets are 8.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MLVN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MLVN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -71.7% each year


Next Steps

Dividend

What is Malvern International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%4.9%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Sam Malafeh (42yo)

2.1yrs

Tenure

UK£103,000

Compensation

Dr. Sam Malafeh has been the Chief Executive Officer of Malvern International plc since December 21, 2017 and has been its Executive Director of Malvern International plc since October 21, 2016. Dr. Malafe ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD133.76K) is below average for companies of similar size in the UK market ($USD326.78K).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: MLVN's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

64yo

Average Age

Experienced Board: MLVN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 162.8%.


Management Team

  • Chia Tan

    Chief Financial Officer of AEC College Singapore and Head of Human Resources - AEC College Singapore

    • Chee Leong Chong

      Chief Executive Officer of AEC College Singapore

      • Tenure: 7.7yrs
    • Muthu Krishnan

      Managing Director of Malvern International Malaysia

      • William Dowling

        Chief Executive Officer of Malvern House International

        • Tenure: 5.6yrs
      • Warith Kharusi

        Managing Director of Global Institute for Management & Technology/ Malvern House Oman

        • Rakesh Shah

          Group Head of Finance

          • Sam Malafeh (42yo)

            CEO & Executive Director

            • Tenure: 2.1yrs
            • Compensation: UK£103.00k
          • Bharat Guha

            Group Chief Financial Officer

            • Tenure: 2yrs
          • Lin Wei

            Group Chief Operating Officer


            Board Members

            • Haider Mohamedally Sithawalla (85yo)

              Non-Executive Director

              • Tenure: 4.2yrs
            • Jayapal Ramasamy

              Non-Executive Director

              • Mark Westcombe Elliott (60yo)

                Non-Executive Chairman

                • Tenure: 0.3yrs
              • Alan M. Carroll (68yo)

                Independent Non-Executive Director

                • Tenure: 0.3yrs
              • Sam Malafeh (42yo)

                CEO & Executive Director

                • Tenure: 2.1yrs
                • Compensation: UK£103.00k
              • Nirvana Chaudhary

                Non-Executive Director

                • Tenure: 1.3yrs

              Company Information

              Malvern International plc's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Malvern International plc
              • Ticker: MLVN
              • Exchange: AIM
              • Founded:
              • Industry: Education Services
              • Sector: Consumer Services
              • Market Cap: UK£2.069m
              • Shares outstanding: 258.58m
              • Website: https://www.malverninternational.com

              Number of Employees


              Location

              • Malvern International plc
              • No. 08-01, Pasir Panjang Road
              • 102nd Floor
              • Singapore
              • 118530
              • Singapore

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              MLVNAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2004

              Biography

              Malvern International plc, an investment holding company, provides educational consultancy services in the United Kingdom, Singapore, and Malaysia. The company operates colleges, including Malvern House London; Malvern International Academy Malaysia; Malvern International Academy Singapore; and SAA Global Education Singapore, as well as a Communicate School in Manchester, the United Kingdom. Its colleges offer programs in accounting, business, banking, finance, economics, law, tourism, and hospitality, as well as vocational programs. The company was formerly known as AEC Education plc and changed its name to Malvern International plc in September 2016. Malvern International plc is based in Singapore. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/20 20:34
              End of Day Share Price2020/01/20 00:00
              Earnings2019/06/30
              Annual Earnings2018/12/31


              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.