LSE:DNE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Dunedin Enterprise Investment Trust

Executive Summary

Dunedin Enterprise Investment Trust PLC specializes in direct investments, fund of fund investments, and investments in listed private equity companies.

Rewards


Snowflake Analysis

Share Price & News

How has Dunedin Enterprise Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

DNE

-1.2%

GB Capital Markets

2.0%

GB Market


1 Year Return

-23.9%

DNE

9.7%

GB Capital Markets

-12.8%

GB Market

Return vs Industry: DNE underperformed the UK Capital Markets industry which returned 10.3% over the past year.

Return vs Market: DNE underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

DNEIndustryMarket
7 Day0%-1.2%2.0%
30 Day-5.9%8.4%5.7%
90 Day-12.3%1.2%-8.2%
1 Year-17.0%-23.9%12.2%9.7%-8.6%-12.8%
3 Year46.6%-22.2%57.2%46.0%-6.2%-17.6%
5 Year69.9%-18.2%127.6%102.2%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Dunedin Enterprise Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dunedin Enterprise Investment Trust 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: DNE (£2.7) is trading below our estimate of fair value (£9.27)

Significantly Below Fair Value: DNE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DNE is good value based on its PE Ratio (4.6x) compared to the Capital Markets industry average (15.3x).

PE vs Market: DNE is good value based on its PE Ratio (4.6x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DNE is good value based on its PB Ratio (0.6x) compared to the GB Capital Markets industry average (1.6x).

Future Growth

How is Dunedin Enterprise Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

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 Dunedin Enterprise Investment Trust 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.

Past Performance

How has Dunedin Enterprise Investment Trust performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNE has high quality earnings.

Growing Profit Margin: DNE's current net profit margins (95.3%) are higher than last year (85.5%).


Past Earnings Growth Analysis

Earnings Trend: DNE has become profitable over the past 5 years, growing earnings by 41.1% per year.

Accelerating Growth: DNE's earnings growth over the past year (100.6%) exceeds its 5-year average (41.1% per year).

Earnings vs Industry: DNE earnings growth over the past year (100.6%) exceeded the Capital Markets industry 16.4%.


Return on Equity

High ROE: DNE's Return on Equity (13.2%) is considered low.

Financial Health

How is Dunedin Enterprise Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: DNE's short term assets (£4.8M) exceed its short term liabilities (£2.2M).

Long Term Liabilities: DNE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: DNE is debt free.

Reducing Debt: DNE had no debt 5 years ago.

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

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


Balance Sheet

Dividend

What is Dunedin Enterprise Investment Trust's current dividend yield, its reliability and sustainability?

1.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNE's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: DNE's dividend (1.85%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

Stable Dividend: DNE's dividend payments have been volatile in the past 10 years.

Growing Dividend: DNE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.5%), DNE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

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

4.0yrs

Average board tenure


CEO

Dunedin Enterprise Investment Trust has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Brian Finlayson
Director4yrsUK£23.00k0.80% £443.9k
Angela Lane
Independent Non-Executive Director4.92yrsno data0.17% £93.7k
Federico Marescotti
Independent Non-Executive Director and Senior Independent Director4yrsUK£23.00kno data
Duncan Budge
Chairman6yrsUK£23.00k0.26% £142.7k
Michael Jensen
Non-Executive Director3yrsno data0.11% £59.1k

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: DNE's board of directors are considered experienced (4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Dunedin Enterprise Investment Trust PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dunedin Enterprise Investment Trust PLC
  • Ticker: DNE
  • Exchange: LSE
  • Founded: 1973
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£55.739m
  • Shares outstanding: 20.64m
  • Website: https://www.dunedinenterprise.com

Location

  • Dunedin Enterprise Investment Trust PLC
  • Saltire Court
  • 20 Castle Terrace
  • Edinburgh
  • Midlothian
  • EH1 2EN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
DNElBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Dunedin Enterprise Investment Trust PLC specializes in direct investments, fund of fund investments, and investments in listed private equity companies. In the case of direct investments, it specializes in investments in management buyouts, management buy ins, and growing businesses in lower middle markets. The firm also specializes in organic growth, buy and build, internationalization, roll-out or international growth strategies. It primarily invests in aerospace and defense, automobiles and parts, consumer products and services, construction and building materials, electronic and electrical equipment, general retailers, household goods and textiles, medical, biotechnology, insurance, healthcare, real estate, leisure and hotels, personal care and household products, software and computer services, specialty finance, financial services, pharmaceutical, technology, industrials, and support services sectors. For direct investments, it seeks to invest in the United Kingdom. The firm invests in transactions of size between £20 million ($30.16 million) and £75 million ($113.10 million) in firms with enterprise values between £20 million ($30.16 million) and £100 million ($150.80 million). In the case of fund of fund investments, it invests predominantly in private equity funds and buyout funds specializing in small and medium sized buyouts in Europe. It was formerly known as Dunedin Ventures Limited and changed its name to Dunedin Enterprise Investment Trust PLC in 1996. The trust also invests in European listed private equity companies. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:05
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.