AIM:NWF

Stock Analysis Report

Executive Summary

NWF Group plc, together with its subsidiaries, primarily engages in the sale and distribution of fuel oils in the United Kingdom.

Rewards

Trading at 46.5% below its fair value

Earnings are forecast to grow 8.75% per year

Pays a high and reliable dividend of 3.71%

Risk Analysis

No risks detected for NWF from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NWF

-2.9%

GB Oil and Gas

-0.5%

GB Market


1 Year Return

-2.5%

NWF

2.9%

GB Oil and Gas

12.4%

GB Market

Return vs Industry: NWF underperformed the UK Oil and Gas industry which returned 4.5% over the past year.

Return vs Market: NWF underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

NWFIndustryMarket
7 Day0%-2.9%-0.5%
30 Day2.3%-0.3%0.2%
90 Day4.7%-2.0%6.0%
1 Year1.4%-2.5%8.1%2.9%18.3%12.4%
3 Year15.5%3.2%24.3%8.4%22.6%6.9%
5 Year69.4%41.3%63.6%30.8%40.9%8.3%

Price Volatility Vs. Market

How volatile is NWF Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NWF Group undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWF (£1.78) is trading below our estimate of fair value (£3.32)

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


Price To Earnings Ratio

PE vs Industry: NWF is poor value based on its PE Ratio (12.8x) compared to the Oil and Gas industry average (7.6x).

PE vs Market: NWF is good value based on its PE Ratio (12.8x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NWF is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NWF is overvalued based on its PB Ratio (1.8x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWF's forecast earnings growth (8.8% per year) is above the savings rate (0.5%).

Earnings vs Market: NWF's earnings (8.8% per year) are forecast to grow slower than the UK market (11.7% per year).

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

Revenue vs Market: NWF's revenue (6.4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: NWF's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWF's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has NWF Group performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWF has high quality earnings.

Growing Profit Margin: NWF's current net profit margins (1%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: NWF's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: NWF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NWF had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (24.4%).


Return on Equity

High ROE: NWF's Return on Equity (14.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NWF Group's financial position?


Financial Position Analysis

Short Term Liabilities: NWF's short term assets (£75.8M) exceed its short term liabilities (£68.0M).

Long Term Liabilities: NWF's short term assets (£75.8M) exceed its long term liabilities (£34.0M).


Debt to Equity History and Analysis

Debt Level: NWF's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: NWF's debt to equity ratio has reduced from 35.2% to 27.6% over the past 5 years.

Debt Coverage: NWF's debt is well covered by operating cash flow (49.2%).

Interest Coverage: NWF's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet

Inventory Level: NWF has a high level of physical assets or inventory.

Debt Coverage by Assets: NWF's debt is covered by short term assets (assets are 5.8x debt).


Next Steps

Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.8%markettop25%5.0%industryaverage5.4%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: NWF's dividend (3.71%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: NWF's dividend (3.71%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), NWF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWF's dividends in 3 years are forecast to be well covered by earnings (40.7% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Richard Whiting (55yo)

0yrs

Tenure

UK£605,000

Compensation

Mr. Richard A. Whiting, BA, serves as the Chief Executive Officer of NWF Group plc. Mr. Whiting has been an Executive Director of NWF Group plc since October 1, 2007 and previously served as its Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD786.68K) is above average for companies of similar size in the UK market ($USD326.78K).

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


Management Age and Tenure

4.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NWF's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: NWF's board of directors are considered experienced (3 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Keith Forster (59yo)

    Managing Director of Food

    • Tenure: 15.2yrs
  • Richard Whiting (55yo)

    Chief Executive & Executive Director

    • Compensation: UK£605.00k
  • S. Andrew (56yo)

    Company Secretary

    • Tenure: 16yrs
  • Richard Huxley

    Managing Director of Fuels

    • Tenure: 1.3yrs
  • Andrew Downie

    Managing Director of Feeds

    • Tenure: 4.9yrs
  • Chris Belsham (43yo)

    Group Finance Director & Director

    • Tenure: 2.8yrs
    • Compensation: UK£332.00k

Board Members

  • Thomas Acton (61yo)

    Chairman

    • Tenure: 3yrs
    • Compensation: UK£75.00k
  • Yvonne Monaghan (61yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£40.00k
  • Richard Whiting (55yo)

    Chief Executive & Executive Director

    • Compensation: UK£605.00k
  • David Downie (53yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£40.00k
  • Chris Belsham (43yo)

    Group Finance Director & Director

    • Tenure: 2.8yrs
    • Compensation: UK£332.00k

Company Information

NWF Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NWF Group plc
  • Ticker: NWF
  • Exchange: AIM
  • Founded: 1871
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: UK£86.776m
  • Shares outstanding: 48.75m
  • Website: https://www.nwf.co.uk

Number of Employees


Location

  • NWF Group plc
  • Wardle
  • Nantwich
  • Cheshire
  • CW5 6BP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 1993
NYYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1993

Biography

NWF Group plc, together with its subsidiaries, primarily engages in the sale and distribution of fuel oils in the United Kingdom. It operates through Fuels, Food, and Feeds segments. The Fuels segment sells and distributes domestic heating, industrial, and road fuels. This segment operates through a network of 19 depots. The Food segment is involved in the warehousing and distribution of grocery and other products to supermarket and other retail distribution centers. The Feeds segment manufactures and sells animal feeds and other agricultural products. NWF Group plc was founded in 1871 and is headquartered in Nantwich, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 20:44
End of Day Share Price2020/01/22 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


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.