LSE:ARW

Stock Analysis Report

Executive Summary

Arrow Global Group PLC identifies, acquires, and manages secured and unsecured defaulted and non-core loan portfolios and real estate from and on behalf of financial institutions, such as banks, institutional investors, and credit card companies in the United Kingdom and internationally.

Snowflake

Fundamentals

Undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

ARW

4.1%

GB Consumer Finance

1.9%

GB Market


1 Year Return

6.7%

ARW

-41.5%

GB Consumer Finance

2.4%

GB Market

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

Return vs Market: ARW exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

ARWIndustryMarket
7 Day3.8%4.1%1.9%
30 Day1.0%-1.9%-1.1%
90 Day-18.0%-14.4%-1.8%
1 Year13.9%6.7%-39.1%-41.5%7.4%2.4%
3 Year-17.7%-28.2%-62.6%-73.5%18.2%3.7%
5 Year8.8%-9.7%-53.2%-69.0%35.7%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arrow Global 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

Undervalued: ARW (£2.19) is trading below our estimate of fair value (£5.63)

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


Price To Earnings Ratio

PE vs Industry: ARW is good value based on its PE Ratio (8.8x) compared to the Consumer Finance industry average (10.9x).

PE vs Market: ARW is good value based on its PE Ratio (8.8x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ARW is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ARW is overvalued based on its PB Ratio (1.9x) compared to the GB Consumer Finance industry average (1.4x).


Next Steps

Future Growth

How is Arrow Global Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW's forecast earnings growth (21% per year) is above the savings rate (1.2%).

Earnings vs Market: ARW's earnings (21% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: ARW's revenue (8.6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ARW's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ARW's Return on Equity is forecast to be high in 3 years time (28.5%)


Next Steps

Past Performance

How has Arrow Global Group performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARW's earnings have grown by 17.3% per year over the past 5 years.

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

Earnings vs Industry: ARW had negative earnings growth (-2.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (7.8%).


Return on Equity

High ROE: Whilst ARW's Return on Equity (22.15%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ARW's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ARW's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Arrow Global 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: ARW has a low level of unsold assets or inventory.

Debt Coverage by Assets: ARW's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Arrow Global Group's current dividend yield, its reliability and sustainability?

5.79%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.0%markettop25%5.4%industryaverage5.8%forecastin3Years7.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ARW's dividend (5.79%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: ARW's dividend (5.79%) is in the top 25% of dividend payers in the UK market (5.42%)

Stable Dividend: Whilst dividend payments have been stable, ARW has been paying a dividend for less than 10 years.

Growing Dividend: ARW's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.7%), ARW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARW's dividends in 3 years are forecast to be well covered by earnings (37.2% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Lee Rochford (52yo)

2.8yrs

Tenure

UK£1,011,000

Compensation

Mr. Lee Rochford, MA has been the Group Chief Executive Officer of Arrow Global Group PLC since January 3, 2017. Mr. Rochford served as the Chief Financial Officer of Virgin Money Holdings (UK) plc and Vir ...


CEO Compensation Analysis

Compensation vs. Market: Lee's total compensation ($USD1.30M) is about average for companies of similar size in the UK market ($USD874.66K).

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


Management Age and Tenure

2.5yrs

Average Tenure

45yo

Average Age

Experienced Management: ARW's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ARW's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

BuyUK£9,95009 May 19
Dave Sutherland
EntityIndividual
Role
Chief Operating Officer
Group Chief Operating Officer
Shares4,975
Max PriceUK£2.00

Ownership Breakdown


Management Team

  • Zach Lewy (45yo)

    Founder & Chief Investment Officer

    • Tenure: 0yrs
    • Compensation: UK£201.00k
  • Lee Rochford (52yo)

    Group CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.01m
  • Joao Bugalho

    Country Head for Portugal

    • Tenure: 2.5yrs
  • Matt Hotson

    Group Chief Financial Officer

    • Tenure: 0.2yrs
  • Stewart Hamilton (43yo)

    General Counsel & Group Company Secretary

    • Tenure: 6.1yrs
  • Tracy French

    Group HR Director

    • Tenure: 0yrs
  • Steve Greenwood

    Chief Risk Officer

    • Tenure: 0yrs
  • John Calvao

    Country Head for Italy

    • Tenure: 2.5yrs
  • Duncan Browne

    Head of Investor Relations

    • Tenure: 0yrs
  • Dave Sutherland

    Group Chief Operating Officer

    • Tenure: 1.8yrs

Board Members

  • Jonathan Bloomer (65yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£170.00k
  • Andrew Fisher (61yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: UK£65.00k
  • Lee Rochford (52yo)

    Group CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.01m
  • Maria Albuquerque

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£55.00k
  • Lan Tu (51yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£65.00k

Company Information

Arrow Global Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arrow Global Group PLC
  • Ticker: ARW
  • Exchange: LSE
  • Founded: 2005
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£384.110m
  • Shares outstanding: 175.23m
  • Website: https://www.arrowglobal.net

Number of Employees


Location

  • Arrow Global Group PLC
  • Belvedere
  • 12 Booth Street
  • Manchester
  • Greater Manchester
  • M2 4AW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARWLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2013
A0WDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013
ARWlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2013
ARWG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013

Biography

Arrow Global Group PLC identifies, acquires, and manages secured and unsecured defaulted and non-core loan portfolios and real estate from and on behalf of financial institutions, such as banks, institutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:27
End of Day Share Price2019/10/16 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.