LSE:SNN

Stock Analysis Report

Executive Summary

Sanne Group plc, provides fund, company, and trust administration services worldwide.

Snowflake

Fundamentals

High growth potential unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

SNN

-0.5%

GB Capital Markets

0.2%

GB Market


1 Year Return

-6.6%

SNN

17.6%

GB Capital Markets

1.7%

GB Market

Return vs Industry: SNN underperformed the UK Capital Markets industry which returned 17.6% over the past year.

Return vs Market: SNN underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

SNNIndustryMarket
7 Day2.0%-0.5%0.2%
30 Day-3.6%-3.6%-1.7%
90 Day-24.5%2.8%-3.1%
1 Year-4.3%-6.6%20.5%17.6%6.7%1.7%
3 Year7.5%1.5%76.8%64.3%17.7%3.1%
5 Yearn/a148.5%119.0%36.1%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sanne Group undervalued compared to its fair value and its price relative to the market?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNN (£5.55) is trading below our estimate of fair value (£5.74)

Significantly Below Fair Value: SNN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SNN is poor value based on its PE Ratio (60.7x) compared to the Capital Markets industry average (19.3x).

PE vs Market: SNN is poor value based on its PE Ratio (60.7x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: SNN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SNN is overvalued based on its PB Ratio (4.3x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Sanne Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNN's forecast earnings growth (33.3% per year) is above the savings rate (1.2%).

Earnings vs Market: SNN's earnings (33.3% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: SNN's revenue (9.3% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SNN's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNN's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Sanne Group performed over the past 5 years?

33.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SNN's earnings have grown significantly by 33.1% per year over the past 5 years.

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

Earnings vs Industry: SNN had negative earnings growth (-18.4%) over the past year, making it difficult to compare to the Capital Markets industry average (4.6%).


Return on Equity

High ROE: SNN's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: SNN's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Sanne 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: SNN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SNN's debt is covered by short term assets (assets are 1.001540x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SNN's dividend (2.49%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SNN's dividend (2.49%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

Growing Dividend: SNN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (152%), SNN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNN's dividends in 3 years are forecast to be covered by earnings (51.3% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Martin Schnaier (42yo)

0.4yrs

Tenure

0

Mr. Martin Schnaier, ACA, serves as Director at Sanne Group plc since 2019. He served as Chief Commercial Officer at Sanne Group plc since 2017 until January 2019 and served as its Managing Director of Alt ...


Management Age and Tenure

2.8yrs

Average Tenure

43.5yo

Average Age

Experienced Management: SNN's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

Experienced Board: SNN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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£1,71613 Jun 19
Rupert H. Robson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares249
Max PriceUK£6.89
BuyUK£49,49225 Mar 19
Dean Godwin
EntityIndividual
Shares9,520
Max PriceUK£5.20
BuyUK£99,11425 Mar 19
Rupert H. Robson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares19,100
Max PriceUK£5.19

Ownership Breakdown


Management Team

  • Jason Bingham (40yo)

    Managing Director of Product Development

    • Tenure: 2.8yrs
  • Martin Schnaier (42yo)

    Group CEO & Director

    • Tenure: 0.4yrs
  • Moricko Kemp

    Lead Director of Investment & Treasury services

    • Tenure: 3.5yrs
  • Dan McKeon (45yo)

    Head of Legal & Secretariat

    • Tenure: 2.8yrs
  • Matthew Morel

    Director of Marketing & Corporate Communications

    • Tenure: 2.8yrs
  • Kate Windall (48yo)

    Head of Human Resources

    • Tenure: 0yrs
  • Peter Messervy-Gross

    Chief Information Officer

    • Tenure: 0yrs
  • Eric Watson

    Group Chief Operating Officer

    • Tenure: 2.8yrs
  • James Ireland

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£379.31k
  • Martin Pearson

    Chief Risk Officer & Group Compliance Officer

    • Tenure: 1.8yrs

Board Members

  • Andy Pomfret (60yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£75.00k
  • Yves Stein (56yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£15.00k
  • Rupert H. Robson (58yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: UK£160.00k
  • Mel Carvill (57yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£70.00k
  • Julia Anne Chapman (53yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£30.00k
  • Martin Schnaier (42yo)

    Group CEO & Director

    • Tenure: 0.4yrs
  • Nicola Palios (52yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£70.00k
  • James Ireland

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£379.31k

Company Information

Sanne Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanne Group plc
  • Ticker: SNN
  • Exchange: LSE
  • Founded: 1988
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£795.177m
  • Shares outstanding: 143.28m
  • Website: https://www.sannegroup.com

Number of Employees


Location

  • Sanne Group plc
  • 13 Castle Street
  • St Helier
  • JE4 5UT
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNNLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPApr 2015
SNNLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPApr 2015

Biography

Sanne Group plc, provides fund, company, and trust administration services worldwide. The company operates through EMEA Alternatives, Asia-Pacific & Mauritius Alternatives, North America Alternatives, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:28
End of Day Share Price2019/10/21 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.