AIM:MPE

Stock Analysis Report

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Executive Summary

M.P. Evans Group plc, through its subsidiaries, owns, manages, and develops oil palm plantations in Indonesia. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has M.P. Evans Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MPE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MPE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

MPE

0.4%

GB Food

-1.7%

GB Market


1 Year Return

-4.1%

MPE

-13.5%

GB Food

-8.6%

GB Market

Return vs Industry: MPE exceeded the UK Food industry which returned -13.5% over the past year.

Return vs Market: MPE exceeded the UK Market which returned -8.6% over the past year.


Shareholder returns

MPEIndustryMarket
7 Day2.2%0.4%-1.7%
30 Day8.2%-0.2%3.4%
90 Day19.4%20.0%14.5%
1 Year-1.2%-4.1%-12.6%-13.5%-4.9%-8.6%
3 Year-4.1%-11.6%-10.3%-15.2%3.7%-9.0%
5 Year111.7%82.2%-7.1%-16.2%47.1%13.7%

Long-Term Price Volatility Vs. Market

How volatile is M.P. Evans Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M.P. Evans 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: MPE (£6.93) is trading below our estimate of fair value (£42.34)

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


Price To Earnings Ratio

PE vs Industry: MPE is poor value based on its PE Ratio (45.8x) compared to the GB Food industry average (13.2x).

PE vs Market: MPE is poor value based on its PE Ratio (45.8x) compared to the UK market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: MPE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MPE's PB Ratio (1.5x) is in line with the GB Food industry average.


Next Steps

Future Growth

How is M.P. Evans Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPE's forecast earnings growth (37.9% per year) is above the savings rate (1%).

Earnings vs Market: MPE's earnings (37.9% per year) are forecast to grow faster than the UK market (25.9% per year).

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

Revenue vs Market: MPE's revenue (10.7% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: MPE's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPE's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has M.P. Evans Group performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPE has high quality earnings.

Growing Profit Margin: MPE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MPE's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: MPE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MPE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (0.01%).


Return on Equity

High ROE: MPE's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is M.P. Evans Group's financial position?


Financial Position Analysis

Short Term Liabilities: MPE's short term assets ($74.3M) exceed its short term liabilities ($59.5M).

Long Term Liabilities: MPE's short term assets ($74.3M) do not cover its long term liabilities ($80.7M).


Debt to Equity History and Analysis

Debt Level: MPE's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: MPE's debt to equity ratio has increased from 12.3% to 27% over the past 5 years.

Debt Coverage: MPE's debt is well covered by operating cash flow (32.8%).

Interest Coverage: MPE's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is M.P. Evans Group current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPE's dividend (2.29%) is higher than the bottom 25% of dividend payers in the UK market (1.55%).

High Dividend: MPE's dividend (2.29%) is low compared to the top 25% of dividend payers in the UK market (4.55%).


Stability and Growth of Payments

Stable Dividend: MPE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.5%), MPE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MPE's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Tristan R. Price (54 yo)

4.58yrs

Tenure

US$490,929

Compensation

Mr. Tristan R J Price, MA, MSC, FCA, has been Chief Executive of M.P. Evans Group plc since June 2016. Mr. Price worked in the Diplomatic Service and as an economist at the Organization for Economic Co-ope...


CEO Compensation Analysis

Compensation vs Market: Tristan R.'s total compensation ($USD883.80K) is about average for companies of similar size in the UK market ($USD820.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Hadsley-Chaplin
Executive Chairman11yrsUS$272.17k2.86%
$ 10.8m
Tristan R. Price
CEO & Executive Director4.58yrsUS$490.93k0.11%
$ 405.1k
Matthew Coulson
Finance Director & Director4yrsUS$345.71k0.011%
$ 40.8k
Katya Merrick
Company Secretary4.25yrsno datano data

4.3yrs

Average Tenure

Experienced Management: MPE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Hadsley-Chaplin
Executive Chairman11yrsUS$272.17k2.86%
$ 10.8m
Tristan R. Price
CEO & Executive Director4.58yrsUS$490.93k0.11%
$ 405.1k
Matthew Coulson
Finance Director & Director4yrsUS$345.71k0.011%
$ 40.8k
John Green-Armytage
Senior Independent Non-Executive Directorno dataUS$39.70kno data
Philip Fletcher
Non-Executive Director34yrsUS$34.00k1.92%
$ 7.3m
Darian McBain
Independent Non Executive Director1yrno datano data
Bruce Christian Tozer
Independent Non-Executive Director4.5yrsUS$34.00kno data

7.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MPE's board of directors are considered experienced (7.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

M.P. Evans Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M.P. Evans Group plc
  • Ticker: MPE
  • Exchange: AIM
  • Founded: 1981
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£377.516m
  • Shares outstanding: 54.51m
  • Website: https://www.mpevans.co.uk

Number of Employees


Location

  • M.P. Evans Group plc
  • 3 Clanricarde Gardens
  • Tunbridge Wells
  • Kent
  • TN1 1HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

M.P. Evans Group plc, through its subsidiaries, owns, manages, and develops oil palm plantations in Indonesia. The company produces crude palm oil and palm kernels. It is also involved in the property deve...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 19:43
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.