AIM:TERN

Stock Analysis Report

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Executive Summary

Tern Plc is a venture capital firm specializing in growth capital investment. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

20.3%

TERN

-3.0%

GB Capital Markets

-3.4%

GB Market


1 Year Return

-31.8%

TERN

-5.5%

GB Capital Markets

-19.7%

GB Market

Return vs Industry: TERN underperformed the UK Capital Markets industry which returned -5.5% over the past year.

Return vs Market: TERN underperformed the UK Market which returned -19.7% over the past year.


Shareholder returns

TERNIndustryMarket
7 Day20.3%-3.0%-3.4%
30 Day9.6%-4.4%-4.5%
90 Day0%-4.2%-5.1%
1 Year-31.8%-31.8%-2.3%-5.5%-16.6%-19.7%
3 Year48.0%48.0%15.8%2.0%-12.8%-23.6%
5 Year-47.1%-47.1%55.3%27.1%9.9%-14.9%

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?

1.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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 GB 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

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 (0.8x) 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?

23.7%

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?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TERN is currently unprofitable.

Growing Profit Margin: TERN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TERN is unprofitable, and losses have increased over the past 5 years at a rate of 44.7% 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 (0.9%).


Return on Equity

High ROE: TERN has a negative Return on Equity (-0.074%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tern's financial position?


Financial Position Analysis

Short Term Liabilities: TERN's short term assets (£961.6K) exceed its short term liabilities (£189.1K).

Long Term Liabilities: TERN has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TERN is debt free.

Reducing Debt: TERN has no debt compared to 5 years ago when its debt to equity ratio was 31.3%.

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

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

4.1yrs

Average management tenure


CEO

Al Sisto (69 yo)

4.08yrs

Tenure

UK£126,287

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 ($USD163.95K) is below average for companies of similar size in the UK market ($USD351.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Albert Sisto
CEO & Executive Director4.08yrsUK£126.29k2.46%
£ 548.8k
Sarah Payne
CFO, Company Secretary & Director5.08yrsUK£113.50k0.033%
£ 7.4k
Bruce Leith
Business Development Director & Executive Director7.17yrsUK£108.50k2.94%
£ 655.4k
Matthew Scherba
Partner0.58yrno data0.24%
£ 53.0k

4.1yrs

Average Tenure

68yo

Average Age

Experienced Management: TERN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Sisto
CEO & Executive Director4.08yrsUK£126.29k2.46%
£ 548.8k
Sarah Payne
CFO, Company Secretary & Director5.08yrsUK£113.50k0.033%
£ 7.4k
Bruce Leith
Business Development Director & Executive Director7.17yrsUK£108.50k2.94%
£ 655.4k
Matthew Scherba
Partner0.58yrno data0.24%
£ 53.0k
Ian Ritchie
Non-Executive Chairman & Senior Independent Director3.33yrsUK£33.50k0.34%
£ 74.8k
Alan Howarth
Independent Non-Executive Director4.92yrsUK£27.50kno data

5.0yrs

Average Tenure

69yo

Average Age

Experienced Board: TERN's board of directors are considered experienced (5 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 been diluted in the past year, with total shares outstanding growing by 18.4%.


Top Shareholders

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£22.274m
  • Shares outstanding: 301.00m
  • 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 is a venture capital firm specializing in growth capital investment. The firm typically invests in the software companies having IoT security, enablement and analytics solutions for the healthcare ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:19
End of Day Share Price2020/10/29 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.