LSE:SONG

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Market Cap

UK£1.3b

Last Updated

2021/06/23 19:06 UTC

Data Sources

Company Financials +

Executive Summary

Hipgnosis Songs Fund Limited is a closed-ended fund launched and managed by The Family (Music) Limited. More Details

Rewards


Snowflake Analysis

Share Price & News

How has Hipgnosis Songs Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SONG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SONG's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

SONG

0.1%

GB Capital Markets

-1.2%

GB Market


1 Year Return

7.2%

SONG

16.2%

GB Capital Markets

17.8%

GB Market

Return vs Industry: SONG underperformed the UK Capital Markets industry which returned 16.2% over the past year.

Return vs Market: SONG underperformed the UK Market which returned 17.8% over the past year.


Shareholder returns

SONGIndustryMarket
7 Day0.2%0.1%-1.2%
30 Day-0.3%3.1%0.7%
90 Day0.2%8.7%6.6%
1 Year11.9%7.2%19.5%16.2%23.4%17.8%
3 Yearn/a41.3%25.9%14.2%1.2%
5 Yearn/a129.9%91.2%53.2%24.3%

Long-Term Price Volatility Vs. Market

How volatile is Hipgnosis Songs Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hipgnosis Songs Fund undervalued compared to its fair value and its price relative to the market?

27.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SONG (£1.23) is trading above our estimate of fair value (£0.46)

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


Price To Earnings Ratio

PE vs Industry: SONG is poor value based on its PE Ratio (27.9x) compared to the UK Capital Markets industry average (18.1x).

PE vs Market: SONG is poor value based on its PE Ratio (27.9x) compared to the UK market (25.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SONG is good value based on its PB Ratio (1.5x) compared to the GB Capital Markets industry average (1.9x).

Future Growth

How is Hipgnosis Songs Fund forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SONG's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if SONG's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: SONG's revenue (14.1% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: SONG's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SONG's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Hipgnosis Songs Fund performed over the past 5 years?

75.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SONG has a high level of non-cash earnings.

Growing Profit Margin: SONG's current net profit margins (28.3%) are lower than last year (37.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SONG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SONG's past year earnings growth to its 5-year average.

Earnings vs Industry: SONG earnings growth over the past year (75.7%) exceeded the Capital Markets industry 13.6%.


Return on Equity

High ROE: SONG's Return on Equity (3%) is considered low.

Financial Health

How is Hipgnosis Songs Fund's financial position?


Financial Position Analysis

Short Term Liabilities: SONG's short term assets (£265.2M) do not cover its short term liabilities (£291.2M).

Long Term Liabilities: SONG's short term assets (£265.2M) do not cover its long term liabilities (£313.6M).


Debt to Equity History and Analysis

Debt Level: SONG's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SONG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SONG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SONG's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Dividend

What is Hipgnosis Songs Fund current dividend yield, its reliability and sustainability?

4.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SONG's dividend (4.27%) is higher than the bottom 25% of dividend payers in the UK market (1.27%).

High Dividend: SONG's dividend (4.27%) is in the top 25% of dividend payers in the UK market (4.04%)


Stability and Growth of Payments

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

Growing Dividend: SONG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.8%), SONG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SONG's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).

Management

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

2.9yrs

Average board tenure


CEO

Merck Mercuriadis (57 yo)

no data

Tenure

Mr. Merck Mercuriadis has been Founder of The Family (Music) Limited at Hipgnosis Songs Fund Limited. Mr. Mercuriadis serves as the Chief Executive Officer of The Family (Music) Limited, Investment Adviser...


Board Members

Experienced Board: SONG's board of directors are not considered experienced ( 2.9 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: SONG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 75.8%.


Top Shareholders

Company Information

Hipgnosis Songs Fund Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hipgnosis Songs Fund Limited
  • Ticker: SONG
  • Exchange: LSE
  • Founded: 2018
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£1.300b
  • Shares outstanding: 1.08b
  • Website: https://www.hipgnosissongs.com

Location

  • Hipgnosis Songs Fund Limited
  • United Kingdom

Listings


Biography

Hipgnosis Songs Fund Limited is a closed-ended fund launched and managed by The Family (Music) Limited. The fund invests in songs and associated musical intellectual property rights, including master recor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 19:06
End of Day Share Price2021/06/23 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.