Sanne Group (LSE:SNN) - Share price, News & Analysis

SNN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

SNN Stock Overview

Rewards

Earnings are forecast to grow 95.45% per year

Risk Analysis

No risks detected for SNN from our risk checks.

Sanne Group Competitors

Brewin Dolphin Holdings

LSE:BRW

UK£1.5b

Ninety One Group

LSE:N91

UK£1.8b

Rathbones Group

LSE:RAT

UK£1.2b

Ashmore Group

LSE:ASHM

UK£1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Sanne Group
Historical stock prices
Current Share Price	UK£9.07
52 Week High	UK£9.50
52 Week Low	UK£8.01
Beta	0.23
1 Month Change	0.89%
3 Month Change	0%
1 Year Change	8.11%
3 Year Change	27.93%
5 Year Change	41.61%
Change since IPO	305.82%

Shareholder Returns

	SNN	GB Capital Markets	GB Market
7D	0%	-2.7%	-1.1%
1Y	8.1%	-17.9%	-9.7%

Return vs Industry: SNN exceeded the UK Capital Markets industry which returned -17.9% over the past year.

Return vs Market: SNN exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is SNN's price volatile compared to industry and market?
SNN volatility
SNN Average Weekly Movement	0.6%
Capital Markets Industry Average Movement	4.2%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: SNN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: SNN's weekly volatility (1%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	2,200	Martin Schnaier	https://www.sannegroup.com

Sanne Group plc provides corporate, fund and private client administration, reporting, and fiduciary services in Europe, the Middle East, Africa, the Channel Islands, North America, the Asia-Pacific, and Mauritius. The company offers fund services, including private equity, private debt, real assets, and hedge services; corporate services comprising governance, fiduciary, administration, listing, escrow, employee incentives and independent trustee, treasury, accounting and financial reporting, regulatory, tax, and compliance services; and data management and consolidation, portfolio monitoring, portfolio investment monitoring, and compliance services. It also provides loan administration, covenants monitoring, security agency, bond agency, and additional services.

Sanne Group Fundamentals Summary

How do Sanne Group's earnings and revenue compare to its market cap?
SNN fundamental statistics
Market Cap	UK£1.48b
Earnings (TTM)	-UK£7.09m
Revenue (TTM)	UK£194.16m

7.6x

P/S Ratio

-208.2x

P/E Ratio

Is SNN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNN income statement (TTM)
Revenue	UK£194.16m
Cost of Revenue	UK£82.78m
Gross Profit	UK£111.38m
Other Expenses	UK£118.47m
Earnings	-UK£7.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.044
Gross Margin	57.37%
Net Profit Margin	-3.65%
Debt/Equity Ratio	38.3%

How did SNN perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SNN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SNN. This is calculated by dividing SNN's market cap by their current preferred multiple.
What is SNN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£1.48b

SNN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.1x
Enterprise Value/EBITDA	27.9x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does SNN's PB Ratio compare to its peers?

SNN PB Ratio vs Peers

The above table shows the PB ratio for SNN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	3.3x
BRW Brewin Dolphin Holdings	4.4x	6.4%	UK£1.5b
N91 Ninety One Group	5.2x	-3.0%	UK£1.8b
RAT Rathbones Group	1.8x	5.8%	UK£1.2b
ASHM Ashmore Group	1.5x	-6.5%	UK£1.4b
SNN Sanne Group	5.7x	95.4%	UK£1.5b

Price-To-Book vs Peers: SNN is expensive based on its Price-To-Book Ratio (5.7x) compared to the peer average (3.3x).

Price to Earnings Ratio vs Industry

How does SNN's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Book vs Industry: SNN is expensive based on its Price-To-Book Ratio (5.7x) compared to the UK Capital Markets industry average (1.1x)

Price to Book Ratio vs Fair Ratio

What is SNN's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	5.7x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate SNN's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SNN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNN (£9.07) is trading above our estimate of fair value (£2.39)

Significantly Below Fair Value: SNN is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

How is Sanne Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

95.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: SNN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SNN is expected to become profitable in the next 3 years.

Revenue vs Market: SNN's revenue (12.2% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: SNN's revenue (12.2% 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 (21.5%)

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Past Performance

How has Sanne Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNN is currently unprofitable.

Growing Profit Margin: SNN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SNN is unprofitable, and losses have increased over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare SNN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SNN is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (43.8%).

Return on Equity

High ROE: SNN has a negative Return on Equity (-2.73%), as it is currently unprofitable.

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Financial Health

How is Sanne Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNN's short term assets (£137.3M) do not cover its short term liabilities (£195.9M).

Long Term Liabilities: SNN's short term assets (£137.3M) exceed its long term liabilities (£63.2M).

Debt to Equity History and Analysis

Debt Level: SNN's net debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: SNN's debt to equity ratio has reduced from 45.1% to 38.3% over the past 5 years.

Debt Coverage: SNN's debt is well covered by operating cash flow (39.5%).

Interest Coverage: SNN's interest payments on its debt are well covered by EBIT (9.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.82%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: SNN is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SNN has not reported any payouts.

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Management

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

5.5yrs

Average management tenure

CEO

Martin Schnaier (45 yo)

3.17yrs

Tenure

UK£641,406

Compensation

Mr. Martin Schnaier, ACA, has been Chief Executive Officer at Sanne Group plc since May 16, 2019 and has been its Director since January 23, 2019. He served as Chief Commercial Officer at Sanne Group plc s...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Martin's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: SNN's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: SNN'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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31