LSE:SUS

Stock Analysis Report

Executive Summary

S&U plc provides consumer credit, motor finance, and property bridging finance services.

Snowflake

Fundamentals

6 star dividend payer and good 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


Market Performance


7 Day Return

1.0%

SUS

5.0%

GB Consumer Finance

0.2%

GB Market


1 Year Return

3.4%

SUS

-39.3%

GB Consumer Finance

1.7%

GB Market

Return vs Industry: SUS exceeded the UK Consumer Finance industry which returned -39.3% over the past year.

Return vs Market: SUS matched the UK Market which returned 1.7% over the past year.


Shareholder returns

SUSIndustryMarket
7 Day1.0%5.0%0.2%
30 Day-1.9%2.4%-1.7%
90 Day-9.5%-10.8%-3.1%
1 Year9.2%3.4%-36.9%-39.3%6.7%1.7%
3 Year1.1%-11.4%-63.2%-73.8%17.7%3.1%
5 Year38.8%8.7%-51.7%-68.0%36.1%5.5%

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?

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUS (£21) is trading below our estimate of fair value (£29.85)

Significantly Below Fair Value: SUS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SUS is good value based on its PE Ratio (8.9x) compared to the Consumer Finance industry average (11x).

PE vs Market: SUS is good value based on its PE Ratio (8.9x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: SUS is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SUS is overvalued based on its PB Ratio (1.5x) compared to the GB Consumer Finance industry average (1.5x).


Next Steps

Future Growth

How is S&U forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUS's forecast earnings growth (9% per year) is above the savings rate (1.2%).

Earnings vs Market: SUS's earnings (9% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: SUS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SUS's revenue (9.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SUS's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUS's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

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

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUS's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: SUS's earnings growth over the past year (7.8%) is below its 5-year average (18.6% per year).

Earnings vs Industry: SUS earnings growth over the past year (7.8%) underperformed the Consumer Finance industry 7.8%.


Return on Equity

High ROE: SUS's Return on Equity (16.9%) is considered low.


Return on Assets

ROA vs Industry: SUS has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SUS's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is S&U's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUS's debt is covered by short term assets (assets are 2.386240x debt).


Financial Institutions Analysis

Asset Level: SUS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SUS has a sufficient allowance for bad loans.

Low Risk Liabilities: SUS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SUS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SUS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SUS has an appropriate level of bad loans.


Next Steps

Dividend

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

5.62%

Current Dividend Yield


Upcoming Dividend Payment

Purchase S&U before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.6%marketbottom25%2.0%markettop25%5.4%industryaverage5.7%forecastin3Years6.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SUS's dividend (5.62%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SUS's dividend (5.62%) is in the top 25% of dividend payers in the UK market (5.37%)

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 (50.6%), 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 well covered by earnings (49% payout ratio).


Next Steps

Management

What is the CEO of S&U's salary, the management and board of directors tenure and is there insider trading?

20.8yrs

Average management tenure


CEO

Anthony Michael Coombs (66yo)

20.8yrs

Tenure

UK£412,000

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 ($USD534.73K) is about average for companies of similar size in the UK market ($USD884.56K).

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


Management Age and Tenure

20.8yrs

Average Tenure

63yo

Average Age

Experienced Management: SUS's management team is seasoned and experienced (20.8 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SUS's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Anthony Michael Coombs (66yo)

    Chairman & MD

    • Tenure: 20.8yrs
    • Compensation: UK£412.00k
  • Chris Redford (53yo)

    Group Financial Director

    • Tenure: 15.6yrs
    • Compensation: UK£346.00k
  • John Thompson (63yo)

    Executive Director

    • Tenure: 14.6yrs
    • Compensation: UK£759.00k

Board Members

  • Anthony Michael Coombs (66yo)

    Chairman & MD

    • Tenure: 20.8yrs
    • Compensation: UK£412.00k
  • Graham Derek Coombs (66yo)

    Deputy Chairman of the Board

    • Tenure: 11.4yrs
    • Compensation: UK£368.00k
  • Demetrios Markou (75yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£35.00k
  • Chris Redford (53yo)

    Group Financial Director

    • Tenure: 15.6yrs
    • Compensation: UK£346.00k
  • Fiann Coombs (50yo)

    Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: UK£33.00k
  • John Thompson (63yo)

    Executive Director

    • Tenure: 14.6yrs
    • Compensation: UK£759.00k
  • Tarek Khlat (52yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£33.00k
  • Graham Pedersen (64yo)

    Independent Non Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£33.00k

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£258.193m
  • Shares outstanding: 12.07m
  • 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 consumer credit, motor finance, 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 Analysis2019/10/21 20:34
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.