AIM:NICL

Stock Analysis Report

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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 average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

NICL

-1.8%

GB Beverage

-1.0%

GB Market


1 Year Return

-34.3%

NICL

-15.8%

GB Beverage

-14.8%

GB Market

Return vs Industry: NICL underperformed the UK Beverage industry which returned -15.8% over the past year.

Return vs Market: NICL underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

NICLIndustryMarket
7 Day-7.8%-1.8%-1.0%
30 Day-14.8%1.3%-1.6%
90 Day-19.4%-5.0%-3.6%
1 Year-32.9%-34.3%-13.7%-15.8%-11.6%-14.8%
3 Year-34.2%-38.5%6.7%-1.1%-8.9%-20.2%
5 Year-16.1%-24.5%60.9%41.2%16.2%-10.0%

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?

12.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NICL (£10.4) is trading below our estimate of fair value (£11.86)

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 (21.8x) compared to the GB Beverage industry average (24.9x).

PE vs Market: NICL is poor value based on its PE Ratio (21.8x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NICL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NICL is overvalued based on its PB Ratio (3.1x) compared to the GB Beverage industry average (2.8x).


Next Steps

Future Growth

How is Nichols forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NICL's forecast earnings growth (16% per year) is above the savings rate (1.2%).

Earnings vs Market: NICL's earnings (16% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: NICL's revenue (5.5% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: NICL's revenue (5.5% 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 low in 3 years time (17.4%).


Next Steps

Past Performance

How has Nichols performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NICL has high quality earnings.

Growing Profit Margin: NICL's current net profit margins (13.1%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: NICL's earnings have grown by 0.8% 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 (-31.7%) over the past year, making it difficult to compare to the Beverage industry average (-25%).


Return on Equity

High ROE: NICL's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is Nichols's financial position?


Financial Position Analysis

Short Term Liabilities: NICL's short term assets (£87.3M) exceed its short term liabilities (£20.7M).

Long Term Liabilities: NICL's short term assets (£87.3M) exceed its long term liabilities (£6.7M).


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


Next Steps

Dividend

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

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NICL's dividend (3.88%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: NICL's dividend (3.88%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


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 (58.7%), 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 (60% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

1.3yrs

Average management tenure


CEO

Marnie-Jane Millard (55 yo)

7.42yrs

Tenure

UK£587,000

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 ($USD771.41K) is about average for companies of similar size in the UK market ($USD905.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marnie-Jane Millard
CEO & Executive Director7.42yrsUK£587.00k0.028%
£ 109.6k
Andrew Milne
Group COO & Executive Director4.75yrsUK£383.00k0.0025%
£ 9.5k
David Rattigan
CFO & Executive Directorno datano datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: NICL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marnie-Jane Millard
CEO & Executive Director7.42yrsUK£587.00k0.028%
£ 109.6k
Andrew Milne
Group COO & Executive Director4.75yrsUK£383.00k0.0025%
£ 9.5k
David Rattigan
CFO & Executive Directorno datano datano data
Peter Nichols
Non Executive Chairman13.75yrsUK£102.00k5.42%
£ 21.0m
Helen Keays
Independent Non-Executive Director3.08yrsUK£40.00kno data
John Gittins
Independent Non-Executive Director5.25yrsUK£40.00k0.0035%
£ 13.5k
James Nichols
Non-Independent Non-Executive Director0.25yrno datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Board: NICL's board of directors are considered experienced (5 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£387.667m
  • 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

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 two segments, Stil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:13
End of Day Share Price2020/10/21 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.