AIM:EMIS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£710.3m

Last Updated

2021/06/19 18:10 UTC

Data Sources

Company Financials +

Executive Summary

EMIS Group plc, through its subsidiaries, provides connected healthcare software and systems for healthcare professionals in the United Kingdom. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EMIS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: EMIS's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-4.9%

EMIS

-1.5%

GB Healthcare Services

-1.7%

GB Market


1 Year Return

8.9%

EMIS

31.9%

GB Healthcare Services

16.0%

GB Market

Return vs Industry: EMIS underperformed the UK Healthcare Services industry which returned 33.4% over the past year.

Return vs Market: EMIS underperformed the UK Market which returned 18.7% over the past year.


Shareholder returns

EMISIndustryMarket
7 Day-4.9%-1.5%-1.7%
30 Day-5.4%-8.6%0.2%
90 Day2.2%2.8%5.7%
1 Year12.1%8.9%34.2%31.9%21.6%16.0%
3 Year37.4%26.0%24.3%18.2%11.6%-1.3%
5 Year44.3%25.2%84.4%67.8%51.6%23.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMIS (£11.28) is trading below our estimate of fair value (£15.46)

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


Price To Earnings Ratio

PE vs Industry: EMIS is good value based on its PE Ratio (23.4x) compared to the European Healthcare Services industry average (45.1x).

PE vs Market: EMIS is good value based on its PE Ratio (23.4x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: EMIS is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: EMIS's PB Ratio (6x) is in line with the GB Healthcare Services industry average.


Future Growth

How is EMIS Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMIS's forecast earnings growth (3.9% per year) is above the savings rate (0.9%).

Earnings vs Market: EMIS's earnings (3.9% per year) are forecast to grow slower than the UK market (17.4% per year).

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

Revenue vs Market: EMIS's revenue (4% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: EMIS's revenue (4% 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 EMIS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has EMIS Group performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMIS has high quality earnings.

Growing Profit Margin: EMIS's current net profit margins (19%) are higher than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: EMIS's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: EMIS's earnings growth over the past year (36.2%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: EMIS earnings growth over the past year (36.2%) exceeded the Healthcare Services industry 19.5%.


Return on Equity

High ROE: EMIS's Return on Equity (25.3%) is considered high.


Financial Health

How is EMIS Group's financial position?


Financial Position Analysis

Short Term Liabilities: EMIS's short term assets (£87.2M) exceed its short term liabilities (£63.4M).

Long Term Liabilities: EMIS's short term assets (£87.2M) exceed its long term liabilities (£10.2M).


Debt to Equity History and Analysis

Debt Level: EMIS is debt free.

Reducing Debt: EMIS has no debt compared to 5 years ago when its debt to equity ratio was 12.7%.

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

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


Balance Sheet


Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMIS's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: EMIS's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

Stable Dividend: EMIS's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.5%), EMIS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EMIS's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Andy Thorburn (58 yo)

4.08yrs

Tenure

UK£1,098,000

Compensation

Mr. Andrew John Thorburn, known as Andy, has been Chief Executive Officer and Executive Director of EMIS Group plc since May 01, 2017. Mr. Thorburn served as Chief Operating Officer of Digicel Group Limite...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD1.52M) is above average for companies of similar size in the UK market ($USD970.53K).

Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EMIS's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: EMIS's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: EMIS Group plc
  • Ticker: EMIS
  • Exchange: AIM
  • Founded: 1987
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: UK£710.322m
  • Shares outstanding: 62.97m
  • Website: https://www.emisgroupplc.com

Number of Employees


Location

  • EMIS Group plc
  • Fulford Grange
  • Micklefield Lane
  • Leeds
  • West Yorkshire
  • LS19 6BA
  • United Kingdom

Listings


Biography

EMIS Group plc, through its subsidiaries, provides connected healthcare software and systems for healthcare professionals in the United Kingdom. It operates in two segments, EMIS Health and EMIS Enterprise...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 18:10
End of Day Share Price2021/06/18 00:00
Earnings2020/12/31
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.