AIM:ACRL

Stock Analysis Report

Executive Summary

Accrol Group Holdings plc engages in soft tissue paper converting business in the United Kingdom and Europe.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ACRL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

ACRL

0.3%

GB Household Products

0.3%

GB Market


1 Year Return

85.5%

ACRL

8.8%

GB Household Products

6.5%

GB Market

Return vs Industry: ACRL exceeded the UK Household Products industry which returned 8.8% over the past year.

Return vs Market: ACRL exceeded the UK Market which returned 6.5% over the past year.


Shareholder returns

ACRLIndustryMarket
7 Day-0.6%0.3%0.3%
30 Day4.1%2.5%-0.5%
90 Day26.2%3.9%3.8%
1 Year85.5%85.5%11.5%8.8%12.0%6.5%
3 Year-72.8%-73.5%-11.7%-17.3%18.7%3.8%
5 Yearn/a8.6%-1.8%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Accrol Group Holdings 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: ACRL (£0.39) is trading below our estimate of fair value (£1.39)

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


Price To Earnings Ratio

PE vs Industry: ACRL is unprofitable, so we can't compare its PE Ratio to the Household Products industry average.

PE vs Market: ACRL is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACRL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACRL is good value based on its PB Ratio (1.8x) compared to the XE Household Products industry average (2x).


Next Steps

Future Growth

How is Accrol Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

118.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACRL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: ACRL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACRL's is expected to become profitable in the next 3 years.

Revenue vs Market: ACRL's revenue (5.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ACRL's revenue (5.1% 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 ACRL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Accrol Group Holdings performed over the past 5 years?

-59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACRL is currently unprofitable.

Growing Profit Margin: ACRL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACRL is unprofitable, and losses have increased over the past 5 years at a rate of -59.9% per year.

Accelerating Growth: Unable to compare ACRL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACRL is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (-11.6%).


Return on Equity

High ROE: ACRL has a negative Return on Equity (-15.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Accrol Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ACRL's short term assets (£34.8M) do not cover its short term liabilities (£36.6M).

Long Term Liabilities: ACRL's short term assets (£34.8M) exceed its long term liabilities (£21.9M).


Debt to Equity History and Analysis

Debt Level: ACRL's debt to equity ratio (50.7%) is considered high.

Reducing Debt: ACRL's debt to equity ratio has reduced from 294.2% to 50.7% over the past 5 years.


Balance Sheet

Inventory Level: ACRL has a high level of physical assets or inventory.

Debt Coverage by Assets: ACRL's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ACRL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ACRL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -40.2% per year.


Next Steps

Dividend

What is Accrol Group Holdings's current dividend yield, its reliability and sustainability?

86.58%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%5.1%industryaverage2.3%forecastin3Years86.6%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ACRL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ACRL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACRL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACRL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ACRL is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACRL's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Gareth Jenkins (51yo)

2.4yrs

Tenure

UK£457,871

Compensation

Mr. Gareth Paul Jenkins has been Chief Executive Officer at Accrol Group Holdings Plc since September 11, 2017 and serves as its Director Since September 11, 2017. Mr. Jenkins joined Accrol Group Holdings  ...


CEO Compensation Analysis

Compensation vs Market: Gareth's total compensation ($USD593.67K) is above average for companies of similar size in the UK market ($USD324.14K).

Compensation vs Earnings: Gareth's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Wright
Executive Chairman2yrsUK£90.00k2.09% £1.6m
Gareth Jenkins
CEO & Director2.4yrsUK£457.87k0.31% £234.9k
John Pilkington
Group Finance Director0.8yrsno datano data
Mark Dewhurst
Chief Operating Officer1.4yrsno datano data
Kathryn Robinson
Head of Human Resources0yrsno datano data
Richard Almond
Company Secretary0yrsno datano data

1.7yrs

Average Tenure

Experienced Management: ACRL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Wright
Executive Chairman2yrsUK£90.00k2.09% £1.6m
Gareth Jenkins
CEO & Director2.4yrsUK£457.87k0.31% £234.9k
Euan Hamilton
Independent Non-Executive Director1.5yrsUK£30.87kno data
Simon Allport
Independent Non-Executive Director1.3yrsUK£25.22kno data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ACRL's board of directors are not considered experienced ( 1.8 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: ACRL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Accrol Group Holdings plc
  • Ticker: ACRL
  • Exchange: AIM
  • Founded: 1993
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£75.170m
  • Shares outstanding: 195.25m
  • Website: https://www.accrol.co.uk

Number of Employees


Location

  • Accrol Group Holdings plc
  • Delta Building
  • Roman Road
  • Blackburn
  • Lancashire
  • BB1 2LD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACRLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2016
0AEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016

Biography

Accrol Group Holdings plc engages in soft tissue paper converting business in the United Kingdom and Europe. It manufactures toilet papers, kitchen towels, and facial tissues. The company was founded in 1993 and is based in Blackburn, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:36
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.