AIM:W7L

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Risks

  • Warpaint London has significant price volatility in the past 3 months.
  • Warpaint London is covered by less than 3 analysts.

Share Price & News

How has Warpaint London's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

20.5%

AIM:W7L

3.3%

GB Personal Products

-1.1%

GB Market


1 Year Return

-76.3%

AIM:W7L

14.6%

GB Personal Products

-5.7%

GB Market

W7L underperformed the Personal Products industry which returned 14.3% over the past year.

W7L underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

W7LIndustryMarket
7 Day20.5%3.3%-1.1%
30 Day-29.7%1.1%-4.4%
90 Day-40.7%4.4%-2.7%
1 Year-75.2%-76.3%18.2%14.6%-1.3%-5.7%
3 Yearn/a56.4%42.2%17.6%3.9%
5 Yearn/a122.8%90.4%26.8%0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Warpaint London undervalued based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Warpaint London's share price is below the future cash flow value, and at a moderate discount (> 20%).

Warpaint London's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Warpaint London is good value based on earnings compared to the GB Personal Products industry average.

Warpaint London is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Warpaint London is good value based on expected growth next year.


Price Based on Value of Assets

Warpaint London is good value based on assets compared to the GB Personal Products industry average.


Next Steps

Future Growth

How is Warpaint London expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Warpaint London's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).

Warpaint London's earnings are expected to grow significantly at over 20% yearly.

Warpaint London's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Warpaint London's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Warpaint London's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Warpaint London is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Warpaint London performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Warpaint London's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Warpaint London's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Warpaint London's 1-year earnings growth is negative, it can't be compared to the Europe Personal Products industry average.


Return on Equity

Warpaint London has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Warpaint London used its assets more efficiently than the GB Personal Products industry average last year based on Return on Assets.


Return on Capital Employed

Warpaint London's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Warpaint London's financial position?


Financial Position Analysis

Warpaint London is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Warpaint London's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Warpaint London's level of debt (5.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (2.2% vs 5.2% today).

Debt is well covered by operating cash flow (199.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 40.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 15.1x debt.


Next Steps

Dividend

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

9.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Warpaint London's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Warpaint London's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Whilst dividend payments have been stable, Warpaint London has been paying a dividend for less than 10 years.

Dividend payments have increased, but Warpaint London only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Sam Bazini (56yo)

2.8yrs

Tenure

UK£208,000

Compensation

Mr. Samuel Bazini, also known as Sam, has been a Joint Chief Executive Officer at Warpaint London PLC since November 24, 2016 and serves as its Executive Director. Mr. Bazini co-founded Wll London Plc in 1 ...


CEO Compensation Analysis

Sam's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Sam's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

The tenure for the Warpaint London management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Warpaint London board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sam Bazini (56yo)

    Joint CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£208.00k
  • Eoin MacLeod (57yo)

    Joint CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£206.00k
  • Neil Rodol (57yo)

    CFO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£151.00k
  • Sandra Hewett

    Financial Controller

    • Tenure: 0.0yrs
  • Sally Craig (58yo)

    Company Secretary

    • Tenure: 0.9yrs
    • Compensation: UK£30.00k

Board Members

  • Keith Sadler (60yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£40.00k
  • Clive Garston (74yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: UK£60.00k
  • Sam Bazini (56yo)

    Joint CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£208.00k
  • Eoin MacLeod (57yo)

    Joint CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£206.00k
  • Neil Rodol (57yo)

    CFO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£151.00k
  • Paul Hagon (56yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£30.00k
  • Sally Craig (58yo)

    Company Secretary

    • Tenure: 0.9yrs
    • Compensation: UK£30.00k

Company Information

Warpaint London PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Warpaint London PLC
  • Ticker: W7L
  • Exchange: AIM
  • Founded: 1992
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: UK£44.514m
  • Shares outstanding: 76.75m
  • Website: https://www.warpaintlondonplc.com

Number of Employees


Location

  • Warpaint London PLC
  • Units B&C Orbital Forty Six
  • The Ridgeway Trading Estate
  • Iver
  • Buckinghamshire
  • SL0 9HW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
W7LAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2016

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 22:20
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
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.