LSE:FSTA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

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

9.9%

FSTA

16.1%

GB Hospitality

8.6%

GB Market


1 Year Return

-32.2%

FSTA

-16.8%

GB Hospitality

-19.4%

GB Market

Return vs Industry: FSTA underperformed the UK Hospitality industry which returned -30.5% over the past year.

Return vs Market: FSTA underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

FSTAIndustryMarket
7 Day9.9%16.1%8.6%
30 Day9.9%-7.2%-3.5%
90 Day-18.9%-27.2%-23.0%
1 Year-22.8%-32.2%-14.6%-16.8%-15.5%-19.4%
3 Year-9.7%-23.9%-8.9%-18.0%-8.8%-19.9%
5 Year-4.1%-21.8%7.2%-9.4%4.2%-19.0%

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?

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSTA (£7.1) is trading below our estimate of fair value (£10.42)

Significantly Below Fair Value: FSTA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSTA is poor value based on its PE Ratio (31.5x) compared to the Hospitality industry average (17.6x).

PE vs Market: FSTA is poor value based on its PE Ratio (31.5x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: FSTA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: FSTA is good value based on its PB Ratio (0.8x) compared to the GB Hospitality industry average (1x).


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?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSTA's forecast earnings growth (25.5% per year) is above the savings rate (0.5%).

Earnings vs Market: FSTA's earnings (25.5% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: FSTA's revenue (5.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: FSTA's revenue (5.3% 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 (-3.5%).


Return on Equity

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


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


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSTA's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: FSTA's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (7.43%).


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 (38.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

J. Emeny (53yo)

6.75s

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 ($USD1.17M) is about average for companies of similar size in the UK market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. Emeny
CEO & Executive Director6.75yrsUK£959.00k0.40% £1.7m
Anthony Fuller
Presidentno dataUK£30.00kno data
Adam Councell
Finance Director0.67yrno data0.0041% £17.6k
Georgina Wald
Corporate Communications Managerno datano datano data
Jane Jones
Director of Marketingno datano datano data
Dawn Browne
People & Talent Directorno datano datano data
Fred Turner
Retail Director & Executive Director0.83yrno datano data
Iain Rippon
Head of Operations - Tenanted0.58yrno datano data
Séverine Béquin
Company Secretary6.25yrsno datano data

3.5yrs

Average Tenure

49yo

Average Age

Experienced Management: FSTA's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
J. Emeny
CEO & Executive Director6.75yrsUK£959.00k0.40% £1.7m
Fred Turner
Retail Director & Executive Director0.83yrno datano data
Michael Turner
Non-Executive Chairman13.25yrsUK£276.00k0.50% £2.1m
Helen Jones
Independent Non-Executive Director1.08yrsUK£5.00kno data
James Fuller
Non-Executive Director9.83yrsUK£50.00k2.08% £8.9m
Juliette Stacey
Senior Independent Director0.58yrUK£65.00k0.0023% £9.8k

5.5yrs

Average Tenure

51yo

Average Age

Experienced Board: FSTA's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FSTA 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

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£426.048m
  • Shares outstanding: 54.62m
  • 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 Company. The company also manages pubs operated by third parties under tenancy or lease agreements. In addition, the company is involved in the brewing and distribution of beer, cider, wines, spirits, and soft drinks. Further, it engages in the restaurant ownership and management, and operates as a managed houses service company. The company offers its beers under the London Pride, Oliver’s Island, ESB, Organic Honey Dew, and Frontier Craft Lager brand names. Fuller, Smith & Turner P.L.C. was founded in 1845 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:40
End of Day Share Price2020/04/09 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.