Warpaint London (AIM:W7L) - Share price, News & Analysis

W7L fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	1/6

W7L Stock Overview

Warpaint London PLC, together with its subsidiaries, provides color cosmetics.

Rewards

Trading at 5.6% below our estimate of its fair value

Revenue is forecast to grow 8.12% per year

Became profitable this year

Risk Analysis

Earnings have declined by 35.1% per year over past 5 years

Dividend of 4.71% is not well covered by earnings or forecast to be in the next 3 years

Warpaint London Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Warpaint London
Historical stock prices
Current Share Price	UK£1.28
52 Week High	UK£2.40
52 Week Low	UK£1.01
Beta	1.07
1 Month Change	-9.89%
3 Month Change	-7.27%
1 Year Change	4.08%
3 Year Change	25.00%
5 Year Change	-53.64%
Change since IPO	16.44%

Recent News & Updates

May 11

Should You Think About Buying Warpaint London PLC (LON:W7L) Now?

Warpaint London PLC ( LON:W7L ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

	W7L	GB Personal Products	GB Market
7D	2.0%	-1.7%	1.1%
1Y	4.1%	-15.4%	-2.5%

Return vs Industry: W7L exceeded the UK Personal Products industry which returned -14.4% over the past year.

Return vs Market: W7L exceeded the UK Market which returned -2.5% over the past year.

Price Volatility

Is W7L's price volatile compared to industry and market?
W7L volatility
W7L Average Weekly Movement	7.5%
Personal Products Industry Average Movement	7.0%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: W7L is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: W7L's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	113	Sam Bazini	https://www.warpaintlondonplc.com

Warpaint London PLC, together with its subsidiaries, provides color cosmetics. It operates through two segments, Branded and Close-Out. The company offers eye, face make-up, lip, and nail products; gift products; accessories and sets; brushes; and others.

Warpaint London Fundamentals Summary

How do Warpaint London's earnings and revenue compare to its market cap?
W7L fundamental statistics
Market Cap	UK£97.86m
Earnings (TTM)	UK£2.83m
Revenue (TTM)	UK£50.00m

34.6x

P/E Ratio

2.0x

P/S Ratio

Is W7L overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
W7L income statement (TTM)
Revenue	UK£50.00m
Cost of Revenue	UK£33.09m
Gross Profit	UK£16.91m
Other Expenses	UK£14.08m
Earnings	UK£2.83m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.037
Gross Margin	33.82%
Net Profit Margin	5.66%
Debt/Equity Ratio	0%

How did W7L perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

163%

Payout Ratio

Does W7L pay a reliable dividends?

See W7L dividend history and benchmarks

When do you need to buy W7L by to receive an upcoming dividend?
Warpaint London dividend dates
Ex Dividend Date	Jun 16 2022
Dividend Pay Date	Jul 05 2022
Days until Ex dividend	27 days
Days until Dividend pay date	46 days

Does W7L pay a reliable dividends?

See W7L dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

5.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: W7L (£1.28) is trading below our estimate of fair value (£1.35)

Significantly Below Fair Value: W7L is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: W7L is poor value based on its PE Ratio (34.6x) compared to the UK Personal Products industry average (23.5x).

PE vs Market: W7L is poor value based on its PE Ratio (34.6x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate W7L's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: W7L is overvalued based on its PB Ratio (2.7x) compared to the GB Personal Products industry average (2.2x).

Future Growth

How is Warpaint London forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if W7L's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if W7L's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: W7L's revenue (8.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: W7L's revenue (8.1% 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 W7L's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Warpaint London performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-35.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: W7L has high quality earnings.

Growing Profit Margin: W7L became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: W7L's earnings have declined by 35.1% per year over the past 5 years.

Accelerating Growth: W7L has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: W7L has become profitable in the last year, making it difficult to compare its past year earnings growth to the Personal Products industry (8.4%).

Return on Equity

High ROE: W7L's Return on Equity (7.8%) is considered low.

Financial Health

How is Warpaint London's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: W7L's short term assets (£33.1M) exceed its short term liabilities (£8.3M).

Long Term Liabilities: W7L's short term assets (£33.1M) exceed its long term liabilities (£3.1M).

Debt to Equity History and Analysis

Debt Level: W7L is debt free.

Reducing Debt: W7L had no debt 5 years ago.

Debt Coverage: W7L has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: W7L has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Warpaint London current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.71%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: W7L's dividend (4.71%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: W7L's dividend (4.71%) is low compared to the top 25% of dividend payers in the UK market (4.82%).

Stability and Growth of Payments

Stable Dividend: W7L has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: W7L's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (162.7%), W7L's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (102.6%), W7L's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Sam Bazini (58 yo)

2.33yrs

Tenure

UK£1,989,657

Compensation

Mr. Samuel Bazini, also known as Sam, has been Chief Executive Officer of Warpaint London PLC since January 6, 2020 and serves as its Executive Director. He served as a Joint Chief Executive Officer at War...

CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD2.47M) is above average for companies of similar size in the UK market ($USD317.47K).

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

Leadership Team

Experienced Management: W7L's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: W7L's board of directors are considered experienced (5.5 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31