AIM:SGR

Stock Analysis Report

Executive Summary

Shore Capital Group Limited, together with its subsidiaries, provides various investment related services in Guernsey and internationally.

Rewards

Earnings are forecast to grow 18.44% per year

Risk Analysis

Dividend of 4.49% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap (£48M)



Snowflake Analysis

Limited growth unattractive dividend payer.


Similar Companies

Walker Crips Group

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Share Price & News

How has Shore Capital Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

41.3%

SGR

2.3%

GB Capital Markets

-1.1%

GB Market


1 Year Return

-12.7%

SGR

24.9%

GB Capital Markets

12.7%

GB Market

Return vs Industry: SGR underperformed the UK Capital Markets industry which returned 21.7% over the past year.

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


Shareholder returns

SGRIndustryMarket
7 Day41.3%2.3%-1.1%
30 Day58.9%0.08%0.07%
90 Day11.8%10.8%6.2%
1 Year-7.7%-12.7%27.9%24.9%18.6%12.7%
3 Year8.6%-5.3%76.3%64.0%21.8%6.3%
5 Year-39.2%-47.6%135.7%108.3%42.5%9.6%

Price Volatility Vs. Market

How volatile is Shore Capital Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shore Capital Group undervalued compared to its fair value and its price relative to the market?

21.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGR (£2.23) is trading above our estimate of fair value (£1.42)

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


Price To Earnings Ratio

PE vs Industry: SGR is poor value based on its PE Ratio (21.5x) compared to the Capital Markets industry average (20.9x).

PE vs Market: SGR is poor value based on its PE Ratio (21.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SGR is good value based on its PB Ratio (0.8x) compared to the GB Capital Markets industry average (1.4x).


Next Steps

Future Growth

How is Shore Capital Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGR's forecast earnings growth (18.4% per year) is above the savings rate (1.2%).

Earnings vs Market: SGR's earnings (18.4% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: Insufficient data to determine if SGR's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if SGR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SGR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shore Capital Group performed over the past 5 years?

-22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGR has a large one-off loss of £1.4M impacting its June 30 2019 financial results.

Growing Profit Margin: SGR's current net profit margins (4.9%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SGR's earnings have declined by -22.6% per year over the past 5 years.

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

Earnings vs Industry: SGR had negative earnings growth (-25%) over the past year, making it difficult to compare to the Capital Markets industry average (14.5%).


Return on Equity

High ROE: SGR's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shore Capital Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SGR has a low level of unsold assets or inventory.

Debt Coverage by Assets: SGR's debt is covered by short term assets (assets are 393.9x debt).


Financial Institutions Analysis

Asset Level: SGR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SGR has a sufficient allowance for bad loans.

Low Risk Liabilities: SGR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SGR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SGR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SGR has an appropriate level of bad loans.


Next Steps

Dividend

What is Shore Capital Group's current dividend yield, its reliability and sustainability?

4.49%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.8%markettop25%5.0%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SGR's dividend (4.49%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: SGR's dividend (4.49%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: SGR's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.6%), SGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Shore Capital Group's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Simon Peter Fine (54yo)

2.6yrs

Tenure

UK£253,000

Compensation

Mr. Simon Fine has been Joint Chief Executive Officer of Shore Capital Group Limited since April 2017 and also serves as its Director. Mr. Fine served as the Chief Executive of Shore Capital Markets at Sho ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD327.17K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Management Age and Tenure

2.6yrs

Average Tenure

54yo

Average Age

Experienced Management: SGR's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SGR's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SGR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£291,86016 Oct 19
Michael van Messel
EntityIndividual
Role
Chief Financial Officer
Head of Finance & Tax
Shares201,283
Max PriceUK£1.45

Ownership Breakdown

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


Management Team

  • Howard Shore (59yo)

    Founder & Executive Chairman

    • Compensation: UK£214.00k
  • Clive Black (55yo)

    Head of Research

    • Tenure: 16.8yrs
  • Michael van Messel (54yo)

    Head of Finance & Tax

    • Compensation: UK£320.00k
  • Simon Peter Fine (54yo)

    Co-CEO & Director

    • Tenure: 2.6yrs
    • Compensation: UK£253.00k
  • Malachy Joseph McEntyre (42yo)

    Head of Corporate Broking

    • Tenure: 1.8yrs
  • Elizabeth Bruce (58yo)

    Company Secretary & Director

    • Tenure: 8.3yrs
    • Compensation: UK£45.00k
  • David Kaye (41yo)

    Co-CEO & Director

    • Tenure: 2.5yrs
    • Compensation: UK£302.00k
  • Dru Danford (49yo)

    Chief Executive of Shore Capital & Corporate Limited

    • Heydan Von Frankenberg

      Managing Director of Shore Capital Germany

      • Toby Gibbs

        Assistant Director


        Board Members

        • Zvi Marom (64yo)

          Non-Executive Director

          • Compensation: UK£45.00k
        • Howard Shore (59yo)

          Founder & Executive Chairman

          • Compensation: UK£214.00k
        • Simon Peter Fine (54yo)

          Co-CEO & Director

          • Tenure: 2.6yrs
          • Compensation: UK£253.00k
        • James Rosenwald (61yo)

          Non-Executive Director

          • Compensation: UK£45.00k
        • Elizabeth Bruce (58yo)

          Company Secretary & Director

          • Tenure: 8.3yrs
          • Compensation: UK£45.00k
        • David Kaye (41yo)

          Co-CEO & Director

          • Tenure: 2.5yrs
          • Compensation: UK£302.00k

        Company Information

        Shore Capital Group Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Shore Capital Group Limited
        • Ticker: SGR
        • Exchange: AIM
        • Founded: 1985
        • Industry: Investment Banking and Brokerage
        • Sector: Diversified Financials
        • Market Cap: UK£48.001m
        • Shares outstanding: 21.57m
        • Website: https://www.shorecap.co.uk

        Number of Employees


        Location

        • Shore Capital Group Limited
        • Martello Court
        • Admiral Park
        • St Peter Port
        • GY1 3HB
        • Guernsey

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SGRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2000

        Biography

        Shore Capital Group Limited, together with its subsidiaries, provides various investment related services in Guernsey and internationally. The company offers research in selected sectors, broking for institutional and professional clients, market making in small and mid cap stocks, fixed income broking, and corporate broking and advisory for large, mid, and small cap companies. It also provides investment banking, research, sales, and trading services to institutional and corporate clients, as well as manages specialist funds. In addition, the company offers asset management services to real estate businesses and development capital for institutional clients, including pension funds, insurance companies, and family offices; and fund management services to private clients. Further, it engages in the investments and other holdings activities; and the provision of treasury, investment property holding, asset rental, nominee, and broker/dealer, as well as telecom services. Shore Capital Group Limited was founded in 1985 and is headquartered in St Peter Port, Guernsey. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2019/11/01 20:33
        End of Day Share Price2019/10/31 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.