AIM:TERN

Stock Analysis Report

Executive Summary

Tern Plc invests in the private software companies.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

TERN

-0.08%

GB Capital Markets

1.1%

GB Market


1 Year Return

-40.7%

TERN

24.2%

GB Capital Markets

2.7%

GB Market

Return vs Industry: TERN underperformed the UK Capital Markets industry which returned 24.2% over the past year.

Return vs Market: TERN underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

TERNIndustryMarket
7 Day-1.1%-0.08%1.1%
30 Day-1.1%-3.5%-1.7%
90 Day-22.6%3.6%-2.7%
1 Year-40.7%-40.7%27.3%24.2%7.8%2.7%
3 Year20.7%20.7%82.1%69.2%19.3%4.7%
5 Year173.8%173.8%159.1%127.4%38.0%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate TERN's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate TERN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TERN is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: TERN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

16.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tern has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tern performed over the past 5 years?

-29.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TERN is unprofitable, and losses have increased over the past 5 years at a rate of -29.3% per year.

Accelerating Growth: Unable to compare TERN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TERN is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (4.6%).


Return on Equity

High ROE: TERN has a negative Return on Equity (-4.09%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TERN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TERN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tern'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: TERN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TERN's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TERN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: TERN has sufficient cash runway for 1.376157 years if free cash flow continues to reduce at historical rates of -46.2% each year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Tern's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TERN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TERN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TERN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TERN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TERN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Al Sisto (68yo)

3.1yrs

Tenure

UK£84,473

Compensation

Mr. Albert E. Sisto, also known as Al, has been the Chief Executive Officer of TERN plc since September 22, 2016. Mr. Sisto is a General Partner of Sixth Bridge L. P. where he serves as an investor and bus ...


CEO Compensation Analysis

Compensation vs. Market: Al's total compensation ($USD107.63K) is about average for companies of similar size in the UK market ($USD314.44K).

Compensation vs Earnings: Al's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

4.1yrs

Average Tenure

68yo

Average Age

Experienced Board: TERN's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Al Sisto (68yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£84.47k
  • Bruce Leith (67yo)

    Business Development Director & Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£65.90k
  • Sarah Payne (46yo)

    Finance Director

    • Tenure: 4.1yrs
    • Compensation: UK£65.70k

Board Members

  • Al Sisto (68yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£84.47k
  • Ian Ritchie (68yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£30.00k
  • Alan Howarth (73yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£24.00k
  • Bruce Leith (67yo)

    Business Development Director & Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£65.90k
  • Sarah Payne (46yo)

    Finance Director

    • Tenure: 4.1yrs
    • Compensation: UK£65.70k

Company Information

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


Key Information

  • Name: Tern Plc
  • Ticker: TERN
  • Exchange: AIM
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£22.904m
  • Shares outstanding: 254.32m
  • Website: https://www.ternplc.com

Number of Employees


Location

  • Tern Plc
  • 27/28 Eastcastle Street
  • London
  • Greater London
  • W1W 8DH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERNAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2006
TERN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006

Biography

Tern Plc invests in the private software companies. It primarily acquires or invests in companies operating in the Internet of Things and cloud spaces. The company was formerly known as Silvermere Energy p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:45
End of Day Share Price2019/10/15 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.