LSE:ARW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Very undervalued with high growth potential.


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

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


Market Performance


7 Day Return

14.7%

ARW

5.1%

GB Consumer Finance

1.8%

GB Market


1 Year Return

-59.8%

ARW

-65.1%

GB Consumer Finance

-12.2%

GB Market

Return vs Industry: ARW exceeded the UK Consumer Finance industry which returned -65.1% over the past year.

Return vs Market: ARW underperformed the UK Market which returned -12.2% over the past year.


Shareholder returns

ARWIndustryMarket
7 Day14.7%5.1%1.8%
30 Day-20.1%5.1%6.5%
90 Day-66.0%-47.0%-9.9%
1 Year-57.0%-59.8%-63.7%-65.1%-8.0%-12.2%
3 Year-76.6%-79.6%-81.1%-86.1%-5.6%-17.2%
5 Year-64.6%-70.6%-81.9%-87.6%11.2%-13.7%

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

Below Fair Value: ARW (£0.81) is trading below our estimate of fair value (£3.74)

Significantly Below Fair Value: 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 (4.5x) compared to the Consumer Finance industry average (5.8x).

PE vs Market: ARW is good value based on its PE Ratio (4.5x) compared to the UK market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: ARW is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: ARW is good value based on its PB Ratio (0.7x) compared to the GB Consumer Finance industry average (0.9x).


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?

59.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW's forecast earnings growth (59.8% per year) is above the savings rate (1.2%).

Earnings vs Market: ARW's earnings (59.8% per year) are forecast to grow faster than the UK market (20.1% per year).

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

Revenue vs Market: ARW's revenue (17.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ARW's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARW's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

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

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARW has a large one-off gain of £13.3M impacting its March 31 2020 financial results.

Growing Profit Margin: ARW's current net profit margins (11.5%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: ARW's earnings have grown by 12.3% 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 (-32.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (-0.3%).


Return on Equity

High ROE: ARW's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Arrow Global Group's financial position?


Financial Position Analysis

Short Term Liabilities: ARW's short term assets (£355.5M) do not cover its short term liabilities (£499.7M).

Long Term Liabilities: ARW's short term assets (£355.5M) do not cover its long term liabilities (£1.0B).


Debt to Equity History and Analysis

Debt Level: ARW's debt to equity ratio (581.8%) is considered high.

Reducing Debt: ARW's debt to equity ratio has increased from 381.8% to 581.8% over the past 5 years.

Debt Coverage: ARW's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: Insufficient data to determine if ARW's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

12.87%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ARW'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 ARW's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: ARW is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARW'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?

3.1yrs

Average management tenure


CEO

Lee Rochford (52yo)

3.33yrs

Tenure

UK£932,000

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 ($USD1.14M) is above average for companies of similar size in the UK market ($USD746.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Rochford
Group CEO & Executive Director3.33yrsUK£932.00k0.28% £394.8k
Matthew Hotson
Group CFO & Director0.58yrUK£466.22kno data
Zachary Lewy
Founder & Group Chief Investment Officerno dataUK£201.00k1.71% £2.4m
Dave Sutherland
Group Chief Operating Officer2.33yrsno data0.0051% £7.2k
Duncan Browne
Head of Investor Relationsno datano datano data
Stewart Hamilton
Group Chief Legal & Risk Officer6.67yrsno data0.081% £115.1k
Tracy French
Group HR Directorno datano data0.0056% £8.0k
Clare Dyer
Group Chief People Officerno datano datano data
John Calvao
Country Head for Italy3.08yrsno datano data
Joao Bugalho
Country Head for Portugal3.08yrsno datano data

3.1yrs

Average Tenure

45yo

Average Age

Experienced Management: ARW's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Rochford
Group CEO & Executive Director3.33yrsUK£932.00k0.28% £394.8k
Matthew Hotson
Group CFO & Director0.58yrUK£466.22kno data
Stewart Hamilton
Group Chief Legal & Risk Officer6.67yrsno data0.081% £115.1k
Jonathan Bloomer
Independent Non-Executive Chairmanno dataUK£170.00k0.029% £41.0k
Andrew Fisher
Senior Independent Non-Executive Director1yrUK£76.97kno data
Maria Albuquerque
Independent Non-Executive Director4.17yrsUK£55.00kno data
Lan Tu
Independent Non-Executive Director5.17yrsUK£65.00k0.013% £18.8k

3.8yrs

Average Tenure

52yo

Average Age

Experienced Board: ARW'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: ARW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£141.865m
  • Shares outstanding: 176.23m
  • 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, institutional investors, and credit card companies in the United Kingdom and internationally. It also engages in the debt purchase, and asset management servicing business. The company was founded in 2005 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 08:28
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
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.