AIM:NICL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 2.4% below its fair value

Earnings are forecast to grow 4.03% per year

Earnings grew by 9.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

NICL

-2.1%

GB Beverage

-0.8%

GB Market


1 Year Return

13.6%

NICL

9.9%

GB Beverage

8.5%

GB Market

Return vs Industry: NICL exceeded the UK Beverage industry which returned 9.9% over the past year.

Return vs Market: NICL exceeded the UK Market which returned 8.5% over the past year.


Shareholder returns

NICLIndustryMarket
7 Day-1.4%-2.1%-0.8%
30 Day1.8%0.5%-0.6%
90 Day-6.5%-9.8%1.5%
1 Year16.4%13.6%12.9%9.9%14.1%8.5%
3 Year7.5%0.9%63.6%51.8%19.2%4.0%
5 Year106.8%86.6%99.0%74.0%41.8%9.5%

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?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NICL (£15.9) is trading below our estimate of fair value (£16.3)

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


Price To Earnings Ratio

PE vs Industry: NICL is good value based on its PE Ratio (22.7x) compared to the Beverage industry average (23.2x).

PE vs Market: NICL is poor value based on its PE Ratio (22.7x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: NICL is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: NICL is overvalued based on its PB Ratio (5.2x) compared to the GB Beverage industry average (3.3x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NICL's forecast earnings growth (4% per year) is above the savings rate (0.5%).

Earnings vs Market: NICL's earnings (4% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: NICL's revenue (3.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: NICL'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: NICL's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Nichols performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NICL has high quality earnings.

Growing Profit Margin: NICL's current net profit margins (17.4%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: NICL's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: NICL's earnings growth over the past year (9.2%) is below its 5-year average (11.1% per year).

Earnings vs Industry: NICL earnings growth over the past year (9.2%) exceeded the Beverage industry -8.4%.


Return on Equity

High ROE: NICL's Return on Equity (22.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nichols's financial position?


Financial Position Analysis

Short Term Liabilities: NICL's short term assets (£80.7M) exceed its short term liabilities (£29.0M).

Long Term Liabilities: NICL's short term assets (£80.7M) exceed its long term liabilities (£7.3M).


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

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

Debt Coverage by Assets: Insufficient data to determine if NICL's debt is covered by short term assets.


Next Steps

Dividend

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

2.40%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.0%markettop25%5.3%industryaverage2.2%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: NICL's dividend (2.4%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: NICL's dividend (2.4%) is low compared to the top 25% of dividend payers in the UK market (5.25%).


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 (56%), 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 (61.7% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Marnie-Jane Millard (54yo)

6.6yrs

Tenure

UK£502,000

Compensation

Ms. Marnie-Jane Millard, OBE has been Chief Executive Officer of Nichols plc since May 1, 2013 and also has been its Executive Director since March 7, 2013. Ms. Millard served as Managing Director of Vimto ...


CEO Compensation Analysis

Compensation vs Market: Marnie-Jane's total compensation ($USD657.64K) is below average for companies of similar size in the UK market ($USD1.17M).

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


Management Age and Tenure

6.6yrs

Average Tenure

54yo

Average Age

Experienced Management: NICL's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: NICL's board of directors are considered experienced (4.4 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.


Recent Insider Transactions

SellUK£26,31715 Aug 19
Nick Yates
EntityIndividual
Shares1,450
Max PriceUK£18.15
SellUK£20409 May 19
Andrew Milne
EntityIndividual
Role
Member of the Board of Directors
Group Chief Operating Officer & Director
Shares1,136
Max PriceUK£0.18
SellUK£46,62912 Apr 19
Nick Yates
EntityIndividual
Shares2,898
Max PriceUK£16.09
SellUK£34,86013 Mar 19
Timothy Croston
EntityIndividual
Role
Member of the Board of Directors
Group CFO
Shares2,249
Max PriceUK£15.50

Ownership Breakdown

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


Management Team

  • Tim Croston (56yo)

    Group CFO

    • Tenure: 0yrs
    • Compensation: UK£371.00k
  • Marnie-Jane Millard (54yo)

    CEO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£502.00k
  • Andrew Milne (46yo)

    Group Chief Operating Officer & Director

    • Tenure: 3.9yrs
    • Compensation: UK£344.00k

Board Members

  • Peter Nichols (69yo)

    Non Executive Chairman

    • Tenure: 12.9yrs
    • Compensation: UK£102.00k
  • Helen Keays (54yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£40.00k
  • John Gittins (59yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£40.00k
  • Tim Croston (56yo)

    Group CFO

    • Tenure: 0yrs
    • Compensation: UK£371.00k
  • Marnie-Jane Millard (54yo)

    CEO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£502.00k
  • Andrew Milne (46yo)

    Group Chief Operating Officer & Director

    • Tenure: 3.9yrs
    • Compensation: UK£344.00k

Company Information

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


Key Information

  • Name: Nichols plc
  • Ticker: NICL
  • Exchange: AIM
  • Founded: 1929
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£575.747m
  • Shares outstanding: 36.91m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NICLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 1993
NRVBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 1993

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 Still and Carbonat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 20:41
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.