B.P. Marsh & Partners (AIM:BPM) - Share price, News & Analysis

Q: What is the Fair Price of BPM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BPM (£3.07) is trading below our estimate of [[fair value]] (£7.3)

BPM fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

BPM Stock Overview

B.P. Marsh & Partners PLC engages in the provision of consulting services, making and trading in investments, and financial services businesses in the United Kingdom and internationally.

Rewards

Trading at 57.9% below our estimate of its fair value

Revenue is forecast to grow 8.53% per year

Earnings grew by 27.4% over the past year

Risk Analysis

Earnings have declined by 1.3% per year over past 5 years

B.P. Marsh & Partners Competitors

Manolete Partners

AIM:MANO

UK£117.1m

RM Infrastructure Income

LSE:RMII

UK£104.9m

Record

LSE:REC

UK£132.6m

M&G Credit Income Investment Trust

LSE:MGCI

UK£130.8m

Price History & Performance

Summary of all time highs, changes and price drops for B.P. Marsh & Partners
Historical stock prices
Current Share Price	UK£3.07
52 Week High	UK£3.63
52 Week Low	UK£2.72
Beta	0.66
1 Month Change	-4.36%
3 Month Change	7.72%
1 Year Change	-5.25%
3 Year Change	13.28%
5 Year Change	34.65%
Change since IPO	102.64%

Shareholder Returns

	BPM	GB Capital Markets	GB Market
7D	0%	0.7%	0.5%
1Y	-5.2%	-14.6%	-6.8%

Return vs Industry: BPM exceeded the UK Capital Markets industry which returned -14.6% over the past year.

Return vs Market: BPM exceeded the UK Market which returned -6.8% over the past year.

Price Volatility

Is BPM's price volatile compared to industry and market?
BPM volatility
BPM Average Weekly Movement	2.9%
Capital Markets Industry Average Movement	4.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.7%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: BPM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BPM's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	16	Alice Hannah Foulk	https://www.bpmarsh.co.uk

B.P. Marsh & Partners PLC engages in the provision of consulting services, making and trading in investments, and financial services businesses in the United Kingdom and internationally. The company primarily invests in financial services intermediary businesses, including insurance intermediaries, financial advisors, wealth and fund managers, and specialist advisory and consultancy firms. B.P.

B.P. Marsh & Partners Fundamentals Summary

How do B.P. Marsh & Partners's earnings and revenue compare to its market cap?
BPM fundamental statistics
Market Cap	UK£114.89m
Earnings (TTM)	UK£17.48m
Revenue (TTM)	UK£24.34m

6.6x

P/E Ratio

4.7x

P/S Ratio

Is BPM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BPM income statement (TTM)
Revenue	UK£24.34m
Cost of Revenue	UK£3.97m
Gross Profit	UK£20.37m
Other Expenses	UK£2.88m
Earnings	UK£17.48m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.47
Gross Margin	83.69%
Net Profit Margin	71.84%
Debt/Equity Ratio	0%

How did BPM perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BPM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BPM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BPM. This is calculated by dividing BPM's market cap by their current preferred multiple.
What is BPM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£114.89m

BPM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.1x
Enterprise Value/EBITDA	4.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does BPM's PE Ratio compare to its peers?

BPM PE Ratio vs Peers

The above table shows the PE ratio for BPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.1x
MANO Manolete Partners	31.8x	n/a	UK£117.1m
RMII RM Infrastructure Income	18.1x	n/a	UK£104.9m
REC Record	15.4x	10.9%	UK£132.6m
MGCI M&G Credit Income Investment Trust	21.7x	n/a	UK£130.8m
BPM B.P. Marsh & Partners	6.6x	n/a	UK£114.9m

Price-To-Earnings vs Peers: BPM is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

How does BPM's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: BPM is good value based on its Price-To-Earnings Ratio (6.6x) compared to the UK Capital Markets industry average (10x)

Price to Earnings Ratio vs Fair Ratio

What is BPM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BPM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BPM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BPM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BPM (£3.07) is trading below our estimate of fair value (£7.3)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is B.P. Marsh & Partners forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BPM's forecast earnings growth is above the savings rate (0.9%).

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

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

Revenue vs Market: BPM's revenue (8.5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: BPM's revenue (8.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BPM's Return on Equity is forecast to be low in 3 years time (10.7%).

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Past Performance

How has B.P. Marsh & Partners performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BPM has high quality earnings.

Growing Profit Margin: BPM's current net profit margins (71.8%) are lower than last year (78.8%).

Past Earnings Growth Analysis

Earnings Trend: BPM's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: BPM's earnings growth over the past year (27.4%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: BPM earnings growth over the past year (27.4%) exceeded the Capital Markets industry 25.4%.

Return on Equity

High ROE: BPM's Return on Equity (10.5%) is considered low.

Discover strong past performing companies

Financial Health

How is B.P. Marsh & Partners's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BPM's short term assets (£21.7M) exceed its short term liabilities (£1.8M).

Long Term Liabilities: BPM's short term assets (£21.7M) exceed its long term liabilities (£2.7M).

Debt to Equity History and Analysis

Debt Level: BPM is debt free.

Reducing Debt: BPM had no debt 5 years ago.

Debt Coverage: BPM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BPM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is B.P. Marsh & Partners's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BPM's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: BPM's dividend (0.91%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

Stability and Growth of Payments

Stable Dividend: BPM is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: BPM is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: BPM is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: BPM is not paying a notable dividend for the UK market.

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Management

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

6.6yrs

Average management tenure

CEO

Alice Hannah Foulk (35 yo)

6.58yrs

Tenure

UK£368,696

Compensation

Ms. Alice Hannah Daisy Foulk, BA (Hons), is Managing Director since January 2016 and Director since February 2015 at B.P. Marsh & Partners PLC. She has been Managing Director of B. P. Marsh & Company Limit...

CEO Compensation Analysis

Compensation vs Market: Alice Hannah's total compensation ($USD446.60K) is above average for companies of similar size in the UK market ($USD336.69K).

Compensation vs Earnings: Alice Hannah's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BPM's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: BPM's board of directors are considered experienced (7.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: BPM 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/01/31
Annual Earnings	2022/01/31