LSE:SNN

Stock Analysis Report

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Executive Summary

Sanne Group plc provides alternative asset and corporate administration services worldwide.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

SNN

1.7%

GB Capital Markets

3.7%

GB Market


1 Year Return

-3.8%

SNN

14.5%

GB Capital Markets

-9.5%

GB Market

Return vs Industry: SNN underperformed the UK Capital Markets industry which returned 11.5% over the past year.

Return vs Market: SNN exceeded the UK Market which returned -11% over the past year.


Shareholder returns

SNNIndustryMarket
7 Day-0.4%1.7%3.7%
30 Day2.3%9.5%10.8%
90 Day13.5%3.6%-5.0%
1 Year-1.4%-3.8%17.1%14.5%-5.1%-9.5%
3 Year6.9%0.2%59.8%48.4%-1.7%-13.7%
5 Year157.4%133.3%129.9%104.3%16.4%-9.7%

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?

172.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SNN (£6.65) is trading above our estimate of fair value (£2.14)

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


Price To Earnings Ratio

PE vs Industry: SNN is poor value based on its PE Ratio (172.8x) compared to the Capital Markets industry average (15.8x).

PE vs Market: SNN is poor value based on its PE Ratio (172.8x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: SNN is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: SNN is overvalued based on its PB Ratio (5.6x) compared to the GB Capital Markets industry average (1.7x).


Next Steps

Future Growth

How is Sanne Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNN's forecast earnings growth (50% per year) is above the savings rate (1.2%).

Earnings vs Market: SNN's earnings (50% per year) are forecast to grow faster than the UK market (20.5% 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 (3.7% 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 (23%)


Next Steps

Past Performance

How has Sanne Group performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNN has a large one-off loss of £11.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SNN's current net profit margins (3.5%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: SNN's earnings have grown significantly by 24.3% 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 (-61.8%) over the past year, making it difficult to compare to the Capital Markets industry average (16.4%).


Return on Equity

High ROE: SNN's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Sanne Group's financial position?


Financial Position Analysis

Short Term Liabilities: SNN's short term assets (£108.8M) exceed its short term liabilities (£40.7M).

Long Term Liabilities: SNN's short term assets (£108.8M) do not cover its long term liabilities (£181.8M).


Debt to Equity History and Analysis

Debt Level: SNN's debt to equity ratio (75.4%) is considered high.

Reducing Debt: SNN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SNN's debt is well covered by operating cash flow (35.1%).

Interest Coverage: SNN's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNN's dividend (2.12%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SNN's dividend (2.12%) is low compared to the top 25% of dividend payers in the UK market (5.56%).


Stability and Growth of Payments

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (366.3%), 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 well covered by earnings (48.8% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Martin Schnaier (42yo)

1.08yrs

Tenure

UK£428,345

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: Martin's total compensation ($USD539.71K) is below average for companies of similar size in the UK market ($USD1.68M).

Compensation vs Earnings: Insufficient data to compare Martin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Schnaier
Group CEO & Director1.08yrsUK£428.35k0.19% £1.8m
James Ireland
CFO & Director1.92yrsUK£375.06k0.012% £111.8k
Eric Watson
Group Chief Operating Officer3.42yrsno datano data
Moricko Kemp
Lead Director of Investment & Treasury services4.17yrsno datano data
Marie Measures
Chief Technology Officerno datano datano data
Peter Messervy-Gross
Chief Information Officerno datano datano data
Kevin Lazeris
Group Head of Complianceno datano datano data
James Bermingham
General Counselno datano datano data
Matthew Morel
Director of Marketing & Corporate Communications3.42yrsno datano data
Cindy Peters
Chief Human Resources Officerno datano datano data

3.4yrs

Average Tenure

Experienced Management: SNN's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Schnaier
Group CEO & Director1.08yrsUK£428.35k0.19% £1.8m
James Ireland
CFO & Director1.92yrsUK£375.06k0.012% £111.8k
Andrew Pomfret
Senior Independent Directorno dataUK£83.00k0.037% £354.7k
Yves Stein
Independent Non-Executive Director1.67yrsUK£68.00kno data
Rupert H. Robson
Non-Executive Chairman5.25yrsUK£160.00k0.036% £347.0k
Mel Carvill
Independent Non-Executive Director2.42yrsUK£80.00k0.0069% £66.5k
Julia Anne Chapman
Independent Non-Executive Director1.92yrsUK£68.00k0.0020% £19.1k
Nicola Palios
Independent Non-Executive Director5.25yrsUK£75.00k0.0038% £36.6k

1.9yrs

Average Tenure

56yo

Average Age

Experienced Board: SNN's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SNN 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

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£962.945m
  • Shares outstanding: 144.80m
  • Website: https://www.sannegroup.com

Number of Employees


Location

  • Sanne Group plc
  • 13 Castle Street
  • Saint 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 alternative asset and corporate administration services worldwide. The company operates through EMEA, Asia-Pacific & Mauritius, Channel Islands, and North America segments. It offers alternative asset services comprising private debt fund administration, capital markets, depositary, and loan agency and security trustee services to banks, insurance companies, and asset managers; real estate fund and corporate administration, real estate accounting, and complementary services; private equity fund administration, corporate administration, and portfolio monitoring services; and hedge fund administration services, as well as acts as an alternative investment fund manager. The company also provides AIFMD compliant depositary services, such as safekeeping and verification of documentation and assets; trustee/fund safe custody services; maintenance of comprehensive asset registers; operational oversight ensuring compliance with fund documents and applicable laws and regulations; cash monitoring and document tracking; and regular document reconciliation and sub-custodian liaison to private equity, private debt, real estate, and asset class fund managers. In addition, it offers independent and specialist agency and security trustee services for syndicated loans and bonds issuances; and accounting and administration, and waterfall modelling services, as well as support various carried interest arrangements. Further, the company provides outsource fiduciary, administration, and regulatory services to international corporates, institutions, investor groups, asset managers, and high net worth individuals and their families. The company was formerly known as Album Group plc and changed its name to Sanne Group plc in March 2015. Sanne Group plc was founded in 1988 and is headquartered in Saint Helier, Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 00:18
End of Day Share Price2020/06/03 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.