FRP Advisory Group (AIM:FRP) - Share price, News & Analysis

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

FRP (£1.6) is trading below our estimate of [[fair value]] (£1.71)

FRP fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

FRP Stock Overview

FRP Advisory Group plc, through its subsidiaries, provides business advisory services to companies, lenders, investors, individuals, and other stakeholders.

Rewards

Trading at 6.6% below our estimate of its fair value

Earnings are forecast to grow 17.08% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

FRP Advisory Group Competitors

Numis

AIM:NUM

UK£282.6m

CMC Markets

LSE:CMCX

UK£741.7m

Peel Hunt

AIM:PEEL

UK£128.9m

Alpha FX Group

AIM:AFX

UK£755.3m

Price History & Performance

Summary of all time highs, changes and price drops for FRP Advisory Group
Historical stock prices
Current Share Price	UK£1.60
52 Week High	UK£1.63
52 Week Low	UK£1.09
Beta	0.51
1 Month Change	1.27%
3 Month Change	18.15%
1 Year Change	30.20%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	99.38%

Recent News & Updates

May 21

If You Like EPS Growth Then Check Out FRP Advisory Group (LON:FRP) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	FRP	GB Capital Markets	GB Market
7D	3.6%	1.5%	0.7%
1Y	30.2%	-13.5%	-7.8%

Return vs Industry: FRP exceeded the UK Capital Markets industry which returned -13.4% over the past year.

Return vs Market: FRP exceeded the UK Market which returned -9.1% over the past year.

Price Volatility

Is FRP's price volatile compared to industry and market?
FRP volatility
FRP Average Weekly Movement	4.6%
Capital Markets Industry Average Movement	4.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: FRP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRP's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	504	Geoff Rowley	https://www.frpadvisory.com

FRP Advisory Group plc, through its subsidiaries, provides business advisory services to companies, lenders, investors, individuals, and other stakeholders. The company’s services include corporate finance advisory services comprising mergers and acquisitions (M&A), strategic advisory and valuations, capital raising, special situations M&A, partial exits, and financial due diligence; and debt advisory services, such as asset based lending, raising and refinancing debt, debt amendments and extensions, restructuring debt, and corporate and leveraged debt advisory. Its services also comprise forensic services, including forensic investigations, dispute, compliance and risk advisory, and forensic technology services; pensions advisory services comprising covenant advisory, corporate governance, pension scheme transaction advisory, and pension scheme restructuring advisory; and restructuring advisory services, such as corporate financial advisory, formal insolvency appointments, informal restructuring advisory, personal insolvency, and general advice to various stakeholders.

FRP Advisory Group Fundamentals Summary

How do FRP Advisory Group's earnings and revenue compare to its market cap?
FRP fundamental statistics
Market Cap	UK£367.16m
Earnings (TTM)	UK£11.91m
Revenue (TTM)	UK£95.16m

30.8x

P/E Ratio

3.9x

P/S Ratio

Is FRP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRP income statement (TTM)
Revenue	UK£95.16m
Cost of Revenue	UK£58.80m
Gross Profit	UK£36.36m
Other Expenses	UK£24.45m
Earnings	UK£11.91m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.052
Gross Margin	38.21%
Net Profit Margin	12.52%
Debt/Equity Ratio	15.3%

How did FRP perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

88%

Payout Ratio

Does FRP pay a reliable dividends?

See FRP dividend history and benchmarks

When do you need to buy FRP by to receive an upcoming dividend?
FRP Advisory Group dividend dates
Ex Dividend Date	Sep 22 2022
Dividend Pay Date	Oct 21 2022
Days until Ex dividend	40 days
Days until Dividend pay date	69 days

Does FRP pay a reliable dividends?

See FRP dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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 FRP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FRP. This is calculated by dividing FRP's market cap by their current preferred multiple.
What is FRP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£367.16m

FRP 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	3.7x
Enterprise Value/EBITDA	21.6x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

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

FRP PE Ratio vs Peers

The above table shows the PE ratio for FRP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.1x
NUM Numis	6.3x	n/a	UK£282.6m
CMCX CMC Markets	10.3x	4.5%	UK£741.7m
PEEL Peel Hunt	11.8x	21.1%	UK£128.9m
AFX Alpha FX Group	32.1x	n/a	UK£755.3m
FRP FRP Advisory Group	30.8x	17.1%	UK£367.2m

Price-To-Earnings vs Peers: FRP is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: FRP is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the UK Capital Markets industry average (10.4x)

Price to Earnings Ratio vs Fair Ratio

What is FRP'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.

FRP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.8x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: FRP is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

Share Price vs Fair Value

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

Below Fair Value: FRP (£1.6) is trading below our estimate of fair value (£1.71)

Significantly Below Fair Value: FRP is trading below fair value, but not by a significant amount.

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 less than 20% higher than the current share price.

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Future Growth

How is FRP Advisory Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

17.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRP's forecast earnings growth (17.1% per year) is above the savings rate (0.9%).

Earnings vs Market: FRP's earnings (17.1% per year) are forecast to grow faster than the UK market (9.4% per year).

High Growth Earnings: FRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRP's revenue (7% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: FRP's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FRP's Return on Equity is forecast to be high in 3 years time (22.8%)

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Past Performance

How has FRP Advisory Group 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

56.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRP has high quality earnings.

Growing Profit Margin: FRP's current net profit margins (12.5%) are lower than last year (17.2%).

Past Earnings Growth Analysis

Earnings Trend: FRP has become profitable over the past 5 years, growing earnings by 56.9% per year.

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

Earnings vs Industry: FRP had negative earnings growth (-12.5%) over the past year, making it difficult to compare to the Capital Markets industry average (15.5%).

Return on Equity

High ROE: FRP's Return on Equity (26.8%) is considered high.

Discover strong past performing companies

Financial Health

How is FRP Advisory Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: FRP's short term assets (£71.0M) exceed its short term liabilities (£33.5M).

Long Term Liabilities: FRP's short term assets (£71.0M) exceed its long term liabilities (£15.4M).

Debt to Equity History and Analysis

Debt Level: FRP has more cash than its total debt.

Reducing Debt: FRP's debt to equity ratio has increased from 14.7% to 15.3% over the past 5 years.

Debt Coverage: FRP's debt is well covered by operating cash flow (269%).

Interest Coverage: FRP's interest payments on its debt are well covered by EBIT (31.5x coverage).

Balance Sheet

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Dividend

What is FRP Advisory Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

2.70%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FRP's dividend (2.7%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: FRP's dividend (2.7%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FRP has been paying a dividend for less than 10 years.

Growing Dividend: FRP's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (87.8%), FRP's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (58.6%), FRP's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure

CEO

Geoff Rowley (50 yo)

2.42yrs

Tenure

UK£1,303,996

Compensation

Mr. Geoffrey Paul Rowley, also known as Geoff, is Chief Executive Officer at FRP Advisory Group plc since March 2020 and has been its Executive Director since November 14, 2019. Outside of management respo...

CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD1.58M) is above average for companies of similar size in the UK market ($USD1.06M).

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

Leadership Team

Experienced Management: FRP's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: FRP's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

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 diluted in the past year, with total shares outstanding growing by 2.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/04/30
Annual Earnings	2022/04/30