LSE:SUS

Stock Analysis Report

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Executive Summary

S&U plc provides motor and property bridging finance services. More Details


Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has S&U's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

SUS

-2.4%

GB Consumer Finance

1.2%

GB Market


1 Year Return

-22.2%

SUS

-46.7%

GB Consumer Finance

-13.2%

GB Market

Return vs Industry: SUS exceeded the UK Consumer Finance industry which returned -46.7% over the past year.

Return vs Market: SUS underperformed the UK Market which returned -13.2% over the past year.


Shareholder returns

SUSIndustryMarket
7 Day-2.1%-2.4%1.2%
30 Day8.1%4.4%-0.2%
90 Day-3.2%0.9%-1.1%
1 Year-17.3%-22.2%-46.0%-46.7%-9.8%-13.2%
3 Year1.5%-13.6%-51.2%-62.1%-3.4%-15.1%
5 Year-10.1%-32.3%-83.0%-88.6%25.3%-2.7%

Price Volatility Vs. Market

How volatile is S&U's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S&U undervalued compared to its fair value and its price relative to the market?

35.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUS (£16.65) is trading below our estimate of fair value (£25.77)

Significantly Below Fair Value: SUS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SUS is poor value based on its PE Ratio (7x) compared to the GB Consumer Finance industry average (6.8x).

PE vs Market: SUS is good value based on its PE Ratio (7x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SUS is overvalued based on its PB Ratio (1.1x) compared to the GB Consumer Finance industry average (0.8x).


Next Steps

Future Growth

How is S&U forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SUS's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if SUS'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: SUS's revenue (9.3% per year) is forecast to grow faster than the UK market (6.2% per year).

High Growth Revenue: SUS'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: Insufficient data to determine if SUS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has S&U performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUS has high quality earnings.

Growing Profit Margin: SUS's current net profit margins (33.9%) are lower than last year (35.7%).


Past Earnings Growth Analysis

Earnings Trend: SUS's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: SUS's earnings growth over the past year (3.2%) is below its 5-year average (16.6% per year).

Earnings vs Industry: SUS earnings growth over the past year (3.2%) underperformed the Consumer Finance industry 8.4%.


Return on Equity

High ROE: SUS's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is S&U's financial position?


Financial Position Analysis

Short Term Liabilities: SUS's short term assets (£303.9M) exceed its short term liabilities (£7.4M).

Long Term Liabilities: SUS's short term assets (£303.9M) exceed its long term liabilities (£119.2M).


Debt to Equity History and Analysis

Debt Level: SUS's debt to equity ratio (66.3%) is considered high.

Reducing Debt: SUS's debt to equity ratio has reduced from 67% to 66.3% over the past 5 years.

Debt Coverage: SUS's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: Insufficient data to determine if SUS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is S&U current dividend yield, its reliability and sustainability?

7.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUS's dividend (7.21%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: SUS's dividend (7.21%) is in the top 25% of dividend payers in the UK market (5.16%)


Stability and Growth of Payments

Stable Dividend: SUS's dividends per share have been stable in the past 10 years.

Growing Dividend: SUS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), SUS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUS's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

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

12.3yrs

Average board tenure


CEO

Anthony Michael Coombs (67 yo)

21.67yrs

Tenure

UK£427,000

Compensation

Mr. Anthony Michael Vincent Coombs, MA (Oxon), has been Managing Director at S&U plc since 1999. Mr. Coombs joined S & U PLC in 1975. From 1987 to 1997, he served as a Member of Parliament and was a Member ...


CEO Compensation Analysis

Compensation vs Market: Anthony Michael's total compensation ($USD553.19K) is about average for companies of similar size in the UK market ($USD687.45K).

Compensation vs Earnings: Anthony Michael's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Anthony Michael Coombs
Chairman & MD21.67yrsUK£427.00k11.09%
£ 22.4m
Christopher Redford
Group Financial Director16.5yrsUK£392.00k0.15%
£ 308.0k
Graham Derek Coombs
Deputy Chairman of the Board12.33yrsUK£400.00k10.66%
£ 21.5m
Demetrios Markou
Independent Non-Executive Directorno dataUK£37.00k0.037%
£ 74.9k
Fiann Coombs
Non-Executive Director18.67yrsUK£35.00k2.34%
£ 4.7m
Tarek Khlat
Independent Non-Executive Director4.5yrsUK£35.00kno data
Graham Pedersen
Independent Non Executive Director5.58yrsUK£35.00kno data

12.3yrs

Average Tenure

65yo

Average Age

Experienced Board: SUS's board of directors are seasoned and experienced ( 12.3 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.


Top Shareholders

Company Information

S&U plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S&U plc
  • Ticker: SUS
  • Exchange: LSE
  • Founded: 1938
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£202.027m
  • Shares outstanding: 12.13m
  • Website: https://www.suplc.co.uk

Number of Employees


Location

  • S&U plc
  • 2 Stratford Court
  • Cranmore Boulevard
  • Solihull
  • West Midlands
  • B90 4QT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
47IELSE (London Stock Exchange)31.5% CUM PRF 12 1/2PGBGBPJan 1992

Biography

S&U plc provides motor and property bridging finance services. The company was founded in 1938 and is headquartered in Solihull, the United Kingdom.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 04:21
End of Day Share Price2020/09/17 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.