LSE:AMGO

Stock Analysis Report

Executive Summary

Amigo Holdings PLC, through its subsidiaries, provides guarantor loans to individuals in the United Kingdom.

Snowflake

Fundamentals

Very undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.4%

AMGO

4.1%

GB Consumer Finance

1.9%

GB Market


1 Year Return

-64.9%

AMGO

-41.5%

GB Consumer Finance

2.4%

GB Market

Return vs Industry: AMGO underperformed the UK Consumer Finance industry which returned -41.5% over the past year.

Return vs Market: AMGO underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

AMGOIndustryMarket
7 Day9.4%4.1%1.9%
30 Day5.8%-1.9%-1.1%
90 Day-54.3%-14.4%-1.8%
1 Year-63.1%-64.9%-39.1%-41.5%7.4%2.4%
3 Yearn/a-62.6%-73.5%18.2%3.7%
5 Yearn/a-53.2%-69.0%35.7%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AMGO (£0.78) is trading below our estimate of fair value (£2.59)

Significantly Undervalued: AMGO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMGO is good value based on its PE Ratio (3.9x) compared to the Consumer Finance industry average (10.9x).

PE vs Market: AMGO is good value based on its PE Ratio (3.9x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: AMGO is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AMGO is good value based on its PB Ratio (1.4x) compared to the GB Consumer Finance industry average (1.4x).


Next Steps

Future Growth

How is Amigo Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMGO's forecast earnings growth (7.9% per year) is above the savings rate (1.2%).

Earnings vs Market: AMGO's earnings (7.9% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: AMGO's revenue (6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: AMGO's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AMGO's Return on Equity is forecast to be high in 3 years time (31.6%)


Next Steps

Past Performance

How has Amigo Holdings performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMGO's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: AMGO's earnings growth over the past year (84.7%) exceeds its 5-year average (26.3% per year).

Earnings vs Industry: AMGO earnings growth over the past year (84.7%) exceeded the Consumer Finance industry 7.8%.


Return on Equity

High ROE: Whilst AMGO's Return on Equity (36%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: AMGO has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: AMGO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Amigo Holdings'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: AMGO has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMGO's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

11.93%

Current Dividend Yield


Dividend Yield vs Market

company11.9%marketbottom25%2.0%markettop25%5.4%industryaverage5.8%forecastin3Years13.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AMGO's dividend (11.93%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: AMGO's dividend (11.93%) is in the top 25% of dividend payers in the UK market (5.42%)

Stable Dividend: Too early to tell whether AMGO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AMGO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.9%), AMGO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMGO's dividends in 3 years are forecast to be well covered by earnings (50% payout ratio).


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Hamish Paton 0

0.3yrs

Tenure

0

Mr. Hamish S. Paton serves as Chief Executive officer at Amigo Holdings PLC since July 29, 2019 and has been its Executive Director since May 2019. Mr. Paton served as Chief Commercial Officer and Director ...


Management Age and Tenure

0.4yrs

Average Tenure

56yo

Average Age

Experienced Management: AMGO's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

58yo

Average Age

Experienced Board: AMGO's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£92,64923 Sep 19
Richard Price
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares126,569
Max PriceUK£0.73
BuyUK£9,93802 Sep 19
Nicholas Beal
EntityIndividual
Shares13,254
Max PriceUK£0.75
BuyUK£11,95902 Sep 19
Naynesh Patel
EntityIndividual
Role
Senior Key Executive
Chief Analytics Officer
Shares15,840
Max PriceUK£0.76

Ownership Breakdown


Management Team

  • Nayan Kisnadwala (58yo)

    CFO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£551.85k
  • Roger Bennett (56yo)

    Company Secretary

    • Tenure: 0.3yrs
  • Hamish Paton

    CEO & Executive Director

    • Tenure: 0.3yrs
  • Mark Paskowitz

    Chief Risk Officer

    • Tenure: 0.8yrs
  • Helen Hancock (48yo)

    Chief People Officer

    • Tenure: 0.3yrs
  • Deborah Green

    Chief Operating Officer

    • Tenure: 0.6yrs
  • Stephen King

    Chief Customer Officer

    • Tenure: 0yrs
  • Naynesh Patel

    Chief Analytics Officer

    • Tenure: 0yrs

Board Members

  • Stephan Wilcke (48yo)

    Independent Chairman

    • Tenure: 3.5yrs
    • Compensation: UK£44.99m
  • Clare Salmon (56yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£23.43k
  • Nayan Kisnadwala (58yo)

    CFO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£551.85k
  • Hamish Paton

    CEO & Executive Director

    • Tenure: 0.3yrs
  • Roger Lovering (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.26m
  • Richard Price (58yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£1.26m

Company Information

Amigo Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amigo Holdings PLC
  • Ticker: AMGO
  • Exchange: LSE
  • Founded: 2005
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£374.420m
  • Shares outstanding: 475.33m
  • Website: https://www.amigoplc.com

Number of Employees


Location

  • Amigo Holdings PLC
  • Nova Building
  • 118-128 Commercial Road
  • Bournemouth
  • Hampshire
  • BH2 5LT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMGOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2018
AMGOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2018

Biography

Amigo Holdings PLC, through its subsidiaries, provides guarantor loans to individuals in the United Kingdom. It is also involved in trading business. The company was founded in 2005 and is based in Bournem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:54
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.