LSE:SNN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Sanne Group has significant price volatility in the past 3 months.

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

-3.6%

LSE:SNN

0.05%

GB Capital Markets

0.4%

GB Market


1 Year Return

-20.6%

LSE:SNN

5.0%

GB Capital Markets

-6.2%

GB Market

SNN underperformed the Capital Markets industry which returned 4.9% over the past year.

SNN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

SNNIndustryMarket
7 Day-3.6%0.05%0.4%
30 Day-28.8%0.7%-4.7%
90 Day-21.2%2.3%-2.3%
1 Year-18.8%-20.6%7.5%5.0%-1.7%-6.2%
3 Year29.0%21.9%68.0%55.9%16.8%2.9%
5 Yearn/a132.6%99.4%24.2%-2.3%

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 based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sanne Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sanne Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sanne Group is overvalued based on earnings compared to the GB Capital Markets industry average.

Sanne Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Sanne Group is poor value based on expected growth next year.


Price Based on Value of Assets

Sanne Group is overvalued based on assets compared to the GB Capital Markets industry average.


Next Steps

Future Growth

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

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sanne Group's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Sanne Group's earnings are expected to grow significantly at over 20% yearly.

Sanne Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Sanne Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Sanne Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Sanne Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Sanne Group performed over the past 5 years?

37.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sanne Group has delivered over 20% year on year earnings growth in the past 5 years.

Sanne Group's 1-year earnings growth is less than its 5-year average (0.2% vs 37.9%)

Sanne Group's earnings growth has not exceeded the GB Capital Markets industry average in the past year (0.2% vs 4.6%).


Return on Equity

Sanne Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sanne Group used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Sanne Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sanne Group's financial position?


Financial Position Analysis

Sanne Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sanne Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sanne Group's level of debt (44.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (515.1% vs 44.3% today).

Debt is well covered by operating cash flow (32.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

2.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sanne Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

Sanne Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Whilst dividend payments have been stable, Sanne Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sanne Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Martin Schnaier (42yo)

0.3yrs

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

2.6yrs

Average Tenure

43.5yo

Average Age

The tenure for the Sanne Group management team is about average.


Board Age and Tenure

1.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Sanne Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Sanne Group individual insiders in the past 3 months, but not in substantial volumes.


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

Ownership Breakdown


Management Team

  • Jason Bingham (40yo)

    Managing Director of Product Development

    • Tenure: 2.7yrs
  • Martin Schnaier (42yo)

    Group CEO & Director

    • Tenure: 0.3yrs
  • Moricko Kemp

    Lead Director of Investment & Treasury services

    • Tenure: 3.3yrs
  • Dan McKeon (45yo)

    Head of Legal & Secretariat

    • Tenure: 2.7yrs
  • Matthew Morel

    Director of Marketing & Corporate Communications

    • Tenure: 2.6yrs
  • Kate Windall (48yo)

    Head of Human Resources

    • Tenure: 0.0yrs
  • Peter Messervy-Gross

    Chief Information Officer

    • Tenure: 0.0yrs
  • Eric Watson

    Group Chief Operating Officer

    • Tenure: 2.6yrs
  • James Ireland

    CFO & Director

    • Tenure: 1.1yrs
    • Compensation: UK£379.31k
  • Martin Pearson

    Chief Risk Officer & Group Compliance Officer

    • Tenure: 1.6yrs

Board Members

  • Andy Pomfret (60yo)

    Senior Independent Director

    • Tenure: 0.0yrs
    • Compensation: UK£75.00k
  • Yves Stein (56yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£15.00k
  • Rupert H. Robson (58yo)

    Non-Executive Chairman

    • Tenure: 4.4yrs
    • Compensation: UK£160.00k
  • Mel Carvill (57yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£70.00k
  • Julia Anne Chapman (53yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£30.00k
  • Martin Schnaier (42yo)

    Group CEO & Director

    • Tenure: 0.3yrs
  • Nicola Palios (52yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£70.00k
  • James Ireland

    CFO & Director

    • Tenure: 1.1yrs
    • 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£760.791m
  • 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

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 Analysis2019/08/24 22:40
End of Day Share Price2019/08/23 00:00
Earnings2018/12/31
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.