AIM:STM

Stock Analysis Report

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Executive Summary

STM Group Plc, together with its subsidiaries, provides various financial services in Gibraltar, Malta, Jersey, Spain, the United Kingdom, and internationally. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

STM

-2.5%

GB Capital Markets

-0.7%

GB Market


1 Year Return

-37.2%

STM

-2.3%

GB Capital Markets

-16.4%

GB Market

Return vs Industry: STM underperformed the UK Capital Markets industry which returned 0.3% over the past year.

Return vs Market: STM underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

STMIndustryMarket
7 Day0%-2.5%-0.7%
30 Day-28.0%0.7%0.7%
90 Day1.9%-2.1%-3.2%
1 Year-34.4%-37.2%0.9%-2.3%-13.2%-16.4%
3 Year-46.2%-52.2%19.7%5.4%-9.3%-20.5%
5 Year-51.2%-59.4%60.1%31.0%15.2%-10.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STM (£0.27) is trading below our estimate of fair value (£0.85)

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


Price To Earnings Ratio

PE vs Industry: STM is good value based on its PE Ratio (12.2x) compared to the GB Capital Markets industry average (17.3x).

PE vs Market: STM is good value based on its PE Ratio (12.2x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: STM is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: STM is good value based on its PB Ratio (0.5x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is STM Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

48.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STM's forecast earnings growth (48.1% per year) is above the savings rate (1.2%).

Earnings vs Market: STM's earnings (48.1% per year) are forecast to grow faster than the UK market (24.1% per year).

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

Revenue vs Market: STM's revenue (11.4% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: STM's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STM's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has STM Group performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STM has high quality earnings.

Growing Profit Margin: STM's current net profit margins (5.7%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: STM's earnings have grown by 10.5% per year over the past 5 years.

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

Earnings vs Industry: STM had negative earnings growth (-74%) over the past year, making it difficult to compare to the Capital Markets industry average (0.9%).


Return on Equity

High ROE: STM's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is STM Group's financial position?


Financial Position Analysis

Short Term Liabilities: STM's short term assets (£25.0M) exceed its short term liabilities (£12.2M).

Long Term Liabilities: STM's short term assets (£25.0M) exceed its long term liabilities (£2.0M).


Debt to Equity History and Analysis

Debt Level: STM's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: STM's debt to equity ratio has increased from 1.5% to 2% over the past 5 years.

Debt Coverage: STM's debt is well covered by operating cash flow (365.3%).

Interest Coverage: STM's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STM's dividend (4.07%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: STM's dividend (4.07%) is low compared to the top 25% of dividend payers in the UK market (5.24%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.7%), STM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STM's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Alan Kentish (54 yo)

4.08yrs

Tenure

UK£205,000

Compensation

Mr. Alan Roy Kentish, ACA ACII AIRM has been the Chief Executive Officer at STM Group Plc since September 2016. Mr. Kentish served as an Interim Chief Executive Officer of STM Group Plc from April 1, 2016 ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD266.84K) is about average for companies of similar size in the UK market ($USD355.54K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Kentish
CEO & Executive Director4.08yrsUK£205.00kno data
Therese Neish
CFO & Executive Director6.75yrsUK£160.93k0.84%
£ 133.0k
Peter Marr
COO & Director1.75yrsUK£177.94kno data
Iain Farr
Head of Distribution4.75yrsno datano data
David Frier
Managing Director of International Tax Planningno datano datano data
Sebastien Moerman
Managing Director of Trust & Company Management Divisionno datano datano data
David Easton
Head of Pensions4.25yrsno datano data
Marina Steglich
Head of Enterprise Risk Management3.75yrsno datano data
Alex Small
Company Secretaryno datano datano data

4.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: STM's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Kentish
CEO & Executive Director4.08yrsUK£205.00kno data
Therese Neish
CFO & Executive Director6.75yrsUK£160.93k0.84%
£ 133.0k
Peter Marr
COO & Director1.75yrsUK£177.94kno data
Graham Kettleborough
Independent Non-Executive Director2.17yrsUK£64.55kno data
Robin Ellison
Independent Non-Executive Director3.83yrsUK£48.00kno data
Malcolm Berryman
Independent Non-Executive Director4.42yrsUK£75.00kno data
Leslie Livens
Director of Atlas Trust Company Limitedno datano datano data
Irene Barnett
Director of Bellwether Corporate Services Limitedno datano datano data
Duncan Crocker
Independent Non-Executive Chairman2.08yrsUK£60.00kno data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: STM's board of directors are considered experienced (3.8 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

STM Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: STM Group Plc
  • Ticker: STM
  • Exchange: AIM
  • Founded: 1989
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£15.746m
  • Shares outstanding: 58.32m
  • Website: https://www.stmgroupplc.com

Number of Employees


Location

  • STM Group Plc
  • 5 Chancery Lane
  • Suite 315
  • London
  • Greater London
  • EC4A 1BL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2007

Biography

STM Group Plc, together with its subsidiaries, provides various financial services in Gibraltar, Malta, Jersey, Spain, the United Kingdom, and internationally. It operates in four segments: Corporate Trust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 20:49
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.