AIM:TGP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Tekmar Group plc, together with its subsidiaries, designs, develops, manufactures, installs, and sells subsea stability and protection solutions to offshore energy markets. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TGP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TGP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

4.4%

TGP

-0.7%

GB Energy Services

0.3%

GB Market


1 Year Return

-37.8%

TGP

-20.9%

GB Energy Services

0.8%

GB Market

Return vs Industry: TGP underperformed the UK Energy Services industry which returned -20.1% over the past year.

Return vs Market: TGP underperformed the UK Market which returned 1.1% over the past year.


Shareholder returns

TGPIndustryMarket
7 Day4.4%-0.7%0.3%
30 Day14.4%8.4%3.2%
90 Day-0.7%2.2%4.5%
1 Year-37.8%-37.8%-20.7%-20.9%6.7%0.8%
3 Yearn/a-49.9%-53.9%11.5%-1.9%
5 Yearn/a-55.5%-62.5%41.8%14.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGP (£0.72) is trading below our estimate of fair value (£2.06)

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


Price To Earnings Ratio

PE vs Industry: TGP is poor value based on its PE Ratio (34.9x) compared to the XE Energy Services industry average (17.2x).

PE vs Market: TGP is poor value based on its PE Ratio (34.9x) compared to the UK market (24.3x).


Price to Earnings Growth Ratio

PEG Ratio: TGP is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TGP's PB Ratio (0.8x) is in line with the GB Energy Services industry average.


Next Steps

Future Growth

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

43.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGP's forecast earnings growth (43.9% per year) is above the savings rate (1%).

Earnings vs Market: TGP's earnings (43.9% per year) are forecast to grow faster than the UK market (22.9% per year).

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

Revenue vs Market: TGP's revenue (3.5% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: TGP's revenue (3.5% 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 TGP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tekmar Group performed over the past 5 years?

65.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGP has high quality earnings.

Growing Profit Margin: TGP's current net profit margins (2.7%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: TGP has become profitable over the past 5 years, growing earnings by 65.5% per year.

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

Earnings vs Industry: TGP had negative earnings growth (-81.1%) over the past year, making it difficult to compare to the Energy Services industry average (-25.6%).


Return on Equity

High ROE: TGP's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Tekmar Group's financial position?


Financial Position Analysis

Short Term Liabilities: TGP's short term assets (£26.1M) exceed its short term liabilities (£10.9M).

Long Term Liabilities: TGP's short term assets (£26.1M) exceed its long term liabilities (£1.1M).


Debt to Equity History and Analysis

Debt Level: TGP's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: TGP had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TGP's debt is well covered by operating cash flow (50.6%).

Interest Coverage: TGP's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Tekmar Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TGP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TGP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TGP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TGP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TGP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

UK£75k

CEO Compensation


CEO

Ally MacDonald (55 yo)

0.42

Tenure

UK£75,000

Compensation

Mr. Alasdair MacDonald, also known as Ally, is Executive Director of Tekmar Group plc and serves as its Chief Executive Officer since October 15, 2020. He was Executive Chairman at Tekmar Group plc since A...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TGP 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

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


Key Information

  • Name: Tekmar Group plc
  • Ticker: TGP
  • Exchange: AIM
  • Founded: 1985
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£36.652m
  • Shares outstanding: 51.26m
  • Website: https://investors.tekmar.co.uk

Number of Employees


Location

  • Tekmar Group plc
  • Aycliffe Business Park
  • Unit 1
  • Newton Aycliffe
  • County Durham
  • DL5 6AR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2018

Biography

Tekmar Group plc, together with its subsidiaries, designs, develops, manufactures, installs, and sells subsea stability and protection solutions to offshore energy markets. The company offers subsea cable,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 19:55
End of Day Share Price2021/03/03 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.