AIM:W7L

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

W7L

0.2%

GB Personal Products

-0.4%

GB Market


1 Year Return

4.8%

W7L

20.8%

GB Personal Products

-14.3%

GB Market

Return vs Industry: W7L underperformed the UK Personal Products industry which returned 20.8% over the past year.

Return vs Market: W7L exceeded the UK Market which returned -14.3% over the past year.


Shareholder returns

W7LIndustryMarket
7 Day-3.0%0.2%-0.4%
30 Day-3.0%3.2%0.06%
90 Day-3.7%6.1%-2.5%
1 Year6.8%4.8%21.7%20.8%-10.8%-14.3%
3 Year-62.2%-65.1%-29.9%-32.8%-5.2%-16.7%
5 Yearn/a7.5%6.2%24.5%-3.6%

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?

18.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: W7L (£0.66) is trading below our estimate of fair value (£0.8)

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 (36.7x) compared to the XE Personal Products industry average (20.3x).

PE vs Market: W7L is poor value based on its PE Ratio (36.7x) compared to the UK market (17.7x).


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 (1.3x) compared to the GB Personal Products industry average (2.4x).


Next Steps

Future Growth

How is Warpaint London forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.5%

Forecasted Household industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Warpaint London has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Warpaint London performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W7L has high quality earnings.

Growing Profit Margin: W7L's current net profit margins (2.8%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: W7L's earnings have declined by 11.4% 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 (-61.7%) over the past year, making it difficult to compare to the Personal Products industry average (22.1%).


Return on Equity

High ROE: W7L's Return on Equity (3.4%) 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 (£31.6M) exceed its short term liabilities (£6.7M).

Long Term Liabilities: W7L's short term assets (£31.6M) exceed its long term liabilities (£5.2M).


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 5.1% to 3.3% over the past 5 years.

Debt Coverage: W7L's debt is well covered by operating cash flow (328.7%).

Interest Coverage: W7L's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate W7L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate W7L's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if W7L's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if W7L's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: W7L is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of W7L'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?

2.1yrs

Average management tenure


CEO

Sam Bazini (57 yo)

0.67

Tenure

UK£2,311,621

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 ($USD2.96M) is above average for companies of similar size in the UK market ($USD350.05K).

Compensation vs Earnings: Sam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Bazini
CEO & Executive Director0.67yrUK£2.31m25.34%
£ 12.7m
Neil Rodol
CFO & Executive Director3.83yrsUK£663.18k0.14%
£ 68.1k
Sally Craig
Company Secretary2yrsUK£59.87kno data
Eoin MacLeod
MD & Executive Directorno dataUK£2.31m25.34%
£ 12.7m
Sandra Hewett
Financial Controllerno datano datano data

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: W7L's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samuel Bazini
CEO & Executive Director0.67yrUK£2.31m25.34%
£ 12.7m
Neil Rodol
CFO & Executive Director3.83yrsUK£663.18k0.14%
£ 68.1k
Sally Craig
Company Secretary2yrsUK£59.87kno data
Eoin MacLeod
MD & Executive Directorno dataUK£2.31m25.34%
£ 12.7m
Keith Sadler
Independent Non-Executive Director3.83yrsUK£40.00k0.041%
£ 20.4k
Clive Garston
Independent Non-Executive Chairman3.83yrsUK£60.00k0.16%
£ 82.7k
Paul Hagon
Independent Non-Executive Director3.83yrsUK£40.00k0.041%
£ 20.4k

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: W7L's board of directors are considered experienced (3.8 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.


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£50.271m
  • 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
  • Berkshire
  • 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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 03:18
End of Day Share Price2020/09/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.