AIM:W7L

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: W7L's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

W7L

0.2%

GB Personal Products

0.1%

GB Market


1 Year Return

-56.8%

W7L

-32.4%

GB Personal Products

-23.6%

GB Market

Return vs Industry: W7L underperformed the UK Personal Products industry which returned -32.4% over the past year.

Return vs Market: W7L underperformed the UK Market which returned -23.6% over the past year.


Shareholder returns

W7LIndustryMarket
7 Day0%0.2%0.1%
30 Day-50.3%-20.7%-15.5%
90 Day-39.7%-23.8%-27.0%
1 Year-54.6%-56.8%-31.1%-32.4%-19.8%-23.6%
3 Year-75.5%-77.5%-56.8%-58.4%-13.5%-24.3%
5 Yearn/a-28.8%-29.6%-1.6%-23.5%

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 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: W7L (£0.43) is trading below our estimate of fair value (£0.9)

Significantly Below Fair Value: W7L is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: W7L is good value based on its PE Ratio (13.8x) compared to the Personal Products industry average (13.8x).

PE vs Market: W7L is poor value based on its PE Ratio (13.8x) compared to the UK market (12.6x).


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 good value based on its PB Ratio (0.8x) compared to the GB Personal Products industry average (1x).


Next Steps

Future Growth

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

3.9%

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 (0.5%).

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 (3.9% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: W7L's revenue (3.9% 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


Next Steps

Past Performance

How has Warpaint London performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W7L has a large one-off loss of £1.1M impacting its June 30 2019 financial results.

Growing Profit Margin: W7L's current net profit margins (4.8%) are lower than last year (11.2%).


Past Earnings Growth Analysis

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

Accelerating Growth: W7L's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: W7L had negative earnings growth (-43.7%) over the past year, making it difficult to compare to the Personal Products industry average (-1.4%).


Return on Equity

High ROE: W7L's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Warpaint London's financial position?


Financial Position Analysis

Short Term Liabilities: W7L's short term assets (£33.6M) exceed its short term liabilities (£14.5M).

Long Term Liabilities: W7L's short term assets (£33.6M) exceed its long term liabilities (£2.0M).


Debt to Equity History and Analysis

Debt Level: W7L's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: W7L's debt to equity ratio has reduced from 3.5% to 3.3% over the past 5 years.

Debt Coverage: W7L's debt is well covered by operating cash flow (205.7%).

Interest Coverage: W7L's interest payments on its debt are well covered by EBIT (18.7x coverage).


Balance Sheet


Next Steps

Dividend

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

10.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: W7L's dividend (10.35%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: W7L's dividend (10.35%) is in the top 25% of dividend payers in the UK market (7.08%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, W7L has been paying a dividend for less than 10 years.

Growing Dividend: W7L's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (142.7%), W7L's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: W7L's dividends in 3 years are forecast to be covered by earnings (64.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Sam Bazini (56yo)

0.25

Tenure

UK£208,000

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 ($USD255.56K) is about average for companies of similar size in the UK market ($USD335.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Bazini
CEO & Executive Director0.25yrUK£208.00k25.34% £8.3m
Neil Rodol
CFO & Executive Directorno dataUK£151.00k0.14% £44.2k
Sally Craig
Company Secretary1.58yrsUK£30.00kno data
Eoin MacLeod
MD & Executive Directorno dataUK£206.00k25.34% £8.3m
Sandra Hewett
Financial Controllerno datano datano data

1.7yrs

Average Tenure

57yo

Average Age

Experienced Management: W7L's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Samuel Bazini
CEO & Executive Director0.25yrUK£208.00k25.34% £8.3m
Neil Rodol
CFO & Executive Directorno dataUK£151.00k0.14% £44.2k
Sally Craig
Company Secretary1.58yrsUK£30.00kno data
Eoin MacLeod
MD & Executive Directorno dataUK£206.00k25.34% £8.3m
Keith Sadler
Non-Executive Director3.42yrsUK£41.00k0.041% £13.2k
Clive Garston
Non-Executive Chairman3.42yrsUK£60.00k0.16% £53.7k
Paul Hagon
Non-Executive Director3.42yrsUK£40.00k0.041% £13.2k

3.4yrs

Average Tenure

57yo

Average Age

Experienced Board: W7L's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

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£32.618m
  • 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. 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; make-up brushes; and others. It is also involved in purchasing, repacking, and selling third party products; and the provision of supply chain management services. The company provides its products under the W7, Technic, Man’stuff, Body Collection, Vintage, Outdoor Girl, Very Vegan, Chit Chat, Smooch, Copy Cat, and Taxi brand names. Warpaint London PLC sells its products to discount retailers, distributors, and independent beauty shops in the United Kingdom, rest of Europe, the United States, Australia, New Zealand, and internationally. The company was founded in 1992 and is based in Iver, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:09
End of Day Share Price2020/04/06 00:00
Earnings2019/06/30
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.