AIM:NICL

Stock Analysis Report

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Market Cap

UK£539.1m

Last Updated

2021/07/31 19:15 UTC

Data Sources

Company Financials +

Executive Summary

Nichols plc, together with its subsidiaries, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.7%

NICL

1.7%

GB Beverage

0.3%

GB Market


1 Year Return

11.5%

NICL

27.1%

GB Beverage

22.4%

GB Market

Return vs Industry: NICL underperformed the UK Beverage industry which returned 27.1% over the past year.

Return vs Market: NICL underperformed the UK Market which returned 22.4% over the past year.


Shareholder returns

NICLIndustryMarket
7 Day-0.7%1.7%0.3%
30 Day-0.3%2.9%0.3%
90 Day0.7%8.8%1.5%
1 Year13.0%11.5%30.3%27.1%27.9%22.4%
3 Year6.8%0.7%28.8%19.5%12.7%-0.1%
5 Year14.5%3.8%87.4%65.2%39.4%12.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

53.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NICL (£14.6) is trading above our estimate of fair value (£13.1)

Significantly Below Fair Value: NICL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NICL is poor value based on its PE Ratio (53.1x) compared to the UK Beverage industry average (30.7x).

PE vs Market: NICL is poor value based on its PE Ratio (53.1x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: NICL is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NICL is overvalued based on its PB Ratio (4.3x) compared to the GB Beverage industry average (2.8x).


Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NICL's forecast earnings growth (21.5% per year) is above the savings rate (0.9%).

Earnings vs Market: NICL's earnings (21.5% per year) are forecast to grow faster than the UK market (14.8% per year).

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

Revenue vs Market: NICL's revenue (7% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: NICL's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NICL's Return on Equity is forecast to be low in 3 years time (16.4%).


Past Performance

How has Nichols performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NICL has a large one-off loss of £5.1M impacting its June 30 2021 financial results.

Growing Profit Margin: NICL's current net profit margins (8%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: NICL's earnings have declined by 14.2% per year over the past 5 years.

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

Earnings vs Industry: NICL had negative earnings growth (-42.4%) over the past year, making it difficult to compare to the Beverage industry average (-3.3%).


Return on Equity

High ROE: NICL's Return on Equity (8%) is considered low.


Financial Health

How is Nichols's financial position?


Financial Position Analysis

Short Term Liabilities: NICL's short term assets (£92.0M) exceed its short term liabilities (£25.9M).

Long Term Liabilities: NICL's short term assets (£92.0M) exceed its long term liabilities (£4.7M).


Debt to Equity History and Analysis

Debt Level: NICL is debt free.

Reducing Debt: NICL has not had any debt for past 5 years.

Debt Coverage: NICL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NICL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NICL's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: NICL's dividend (1.27%) is low compared to the top 25% of dividend payers in the UK market (4%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.6%), NICL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NICL's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

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

4.6yrs

Average board tenure


CEO

Andrew Milne (48 yo)

0.50

Tenure

UK£286,000

Compensation

Mr. Andrew Paul Milne has been the Chief Executive Officer at Nichols plc since January 1, 2021 and its Executive Director since January 1, 2016. He served as Group Chief Operating Officer of Nichols plc s...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD397.71K) is below average for companies of similar size in the UK market ($USD976.57K).

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


Board Members

Experienced Board: NICL's board of directors are considered experienced (4.6 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

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


Key Information

  • Name: Nichols plc
  • Ticker: NICL
  • Exchange: AIM
  • Founded: 1908
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£539.094m
  • Shares outstanding: 36.92m
  • Website: https://www.nicholsplc.co.uk

Number of Employees


Location

  • Nichols plc
  • Laurel House
  • 5 Woodlands Park
  • Newton-le-Willows
  • Merseyside
  • WA12 0HH
  • United Kingdom

Listings


Biography

Nichols plc, together with its subsidiaries, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries in the United Kingdom. The company operates through two segments, Stil...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 19:15
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.