LSE:FSTA

Stock Analysis Report

Executive Summary

Fuller, Smith & Turner P.L.C. operates managed pubs and hotels in the United Kingdom and internationally.

Rewards

Earnings are forecast to grow 28.43% per year

Pays a high and reliable dividend of 2.1%

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (3.7%) are lower than last year (8.6%)



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Britvic

LSE:BVIC

Share Price & News

How has Fuller Smith & Turner's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

FSTA

1.3%

GB Hospitality

2.3%

GB Market


1 Year Return

6.2%

FSTA

17.9%

GB Hospitality

10.7%

GB Market

Return vs Industry: FSTA underperformed the UK Hospitality industry which returned 17.9% over the past year.

Return vs Market: FSTA underperformed the UK Market which returned 10.7% over the past year.


Shareholder returns

FSTAIndustryMarket
7 Day0.9%1.3%2.3%
30 Day-7.9%-1.5%2.5%
90 Day-20.8%2.2%3.0%
1 Year20.0%6.2%21.3%17.9%16.4%10.7%
3 Year12.7%-4.2%35.3%21.3%21.3%5.8%
5 Year25.2%3.0%57.8%32.9%41.0%8.7%

Price Volatility Vs. Market

How volatile is Fuller Smith & Turner's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fuller Smith & Turner undervalued compared to its fair value and its price relative to the market?

42.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FSTA (£9.58) is trading above our estimate of fair value (£6.85)

Significantly Below Fair Value: FSTA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSTA is poor value based on its PE Ratio (42.5x) compared to the Hospitality industry average (27.3x).

PE vs Market: FSTA is poor value based on its PE Ratio (42.5x) compared to the UK market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: FSTA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FSTA is good value based on its PB Ratio (1x) compared to the GB Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Fuller Smith & Turner forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSTA's forecast earnings growth (28.4% per year) is above the savings rate (0.5%).

Earnings vs Market: FSTA's earnings (28.4% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: FSTA's revenue (4.9% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: FSTA's revenue (4.9% 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 FSTA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fuller Smith & Turner performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSTA has a large one-off loss of £5.9M impacting its September 28 2019 financial results.

Growing Profit Margin: FSTA's current net profit margins (3.7%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: FSTA's earnings have declined by -9.3% per year over the past 5 years.

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

Earnings vs Industry: FSTA had negative earnings growth (-44.2%) over the past year, making it difficult to compare to the Hospitality industry average (4.9%).


Return on Equity

High ROE: FSTA's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fuller Smith & Turner's financial position?


Financial Position Analysis

Short Term Liabilities: FSTA's short term assets (£65.8M) exceed its short term liabilities (£46.0M).

Long Term Liabilities: FSTA's short term assets (£65.8M) do not cover its long term liabilities (£200.4M).


Debt to Equity History and Analysis

Debt Level: FSTA's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: FSTA's debt to equity ratio has reduced from 59.8% to 13.5% over the past 5 years.

Debt Coverage: FSTA's debt is well covered by operating cash flow (37.8%).

Interest Coverage: FSTA's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: FSTA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Fuller Smith & Turner's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Fuller Smith & Turner before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.1%marketbottom25%1.9%markettop25%5.1%industryaverage2.5%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: FSTA's dividend (2.1%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: FSTA's dividend (2.1%) is low compared to the top 25% of dividend payers in the UK market (5.06%).


Stability and Growth of Payments

Stable Dividend: FSTA's dividends per share have been stable in the past 10 years.

Growing Dividend: FSTA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.3%), FSTA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FSTA's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).


Next Steps

Management

What is the CEO of Fuller Smith & Turner's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

J. Emeny (53yo)

6.4yrs

Tenure

UK£959,000

Compensation

Mr. J. Simon Emeny has been the Chief Executive Officer of Fuller Smith & Turner Plc since July 1, 2013 and served as its Group Managing Director since November 1, 2010. Mr. Emeny served as the Managing Di ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD1.28M) is about average for companies of similar size in the UK market ($USD1.16M).

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


Management Age and Tenure

0.7yrs

Average Tenure

53yo

Average Age

Experienced Management: FSTA's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

9.5yrs

Average Tenure

53yo

Average Age

Experienced Board: FSTA's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£10,82028 Jan 19
J. Emeny
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,000
Max PriceUK£10.82

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Anthony Fuller (79yo)

    President

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • J. Emeny (53yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£959.00k
  • Georgina Wald

    Corporate Communications Manager

    • Tenure: 0yrs
  • Richard Fuller (59yo)

    Corporate Affairs Director & Executive Director

    • Tenure: 10yrs
    • Compensation: UK£355.00k
  • Deborah Stevenson

    Interim Finance Director

    • Tenure: 1.1yrs
  • Adam Councell (40yo)

    Finance Director

    • Tenure: 0.3yrs
  • Jane Jones

    Director of Marketing

    • Tenure: 0yrs
  • Fred Turner (33yo)

    Retail Director & Executive Director

    • Tenure: 0.5yrs
  • Dawn Browne

    People & Talent Director

    • Tenure: 0yrs
  • Iain Rippon

    Head of Operations - Tenanted

    • Tenure: 0.3yrs

Board Members

  • J. Emeny (53yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£959.00k
  • Michael Turner (67yo)

    Non-Executive Chairman

    • Tenure: 12.9yrs
    • Compensation: UK£276.00k
  • Richard Fuller (59yo)

    Corporate Affairs Director & Executive Director

    • Tenure: 10yrs
    • Compensation: UK£355.00k
  • Helen Jones (61yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£5.00k
  • James Fuller (48yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: UK£50.00k
  • Juliette Stacey (49yo)

    Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£65.00k
  • Fred Turner (33yo)

    Retail Director & Executive Director

    • Tenure: 0.5yrs

Company Information

Fuller, Smith & Turner P.L.C.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fuller, Smith & Turner P.L.C.
  • Ticker: FSTA
  • Exchange: LSE
  • Founded: 1845
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£528.823m
  • Shares outstanding: 55.20m
  • Website: https://www.fullers.co.uk

Number of Employees


Location

  • Fuller, Smith & Turner P.L.C.
  • The Griffin Brewery
  • Chiswick Lane South
  • London
  • Greater London
  • W4 2QB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSTALSE (London Stock Exchange)YesA Ordinary SharesGBGBPJan 1992
FTUA.FOTCPK (Pink Sheets LLC)YesA Ordinary SharesUSUSDJan 1992
FSTAlBATS-CHIXE (BATS 'Chi-X Europe')YesA Ordinary SharesGBGBPJan 1992
53GWLSE (London Stock Exchange)6% 1ST CUM PRF GBP1GBGBPAug 1996

Biography

Fuller, Smith & Turner P.L.C. operates managed pubs and hotels in the United Kingdom and internationally. It operates in three segments: Managed Pubs and Hotels, Tenanted Inns, and The Fuller’s Beer Compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 21:14
End of Day Share Price2019/12/13 00:00
Earnings2019/09/28
Annual Earnings2019/03/30


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.