AIM:W7L

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

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

11.5%

W7L

5.6%

GB Personal Products

-0.4%

GB Market


1 Year Return

-64.0%

W7L

-39.3%

GB Personal Products

2.9%

GB Market

Return vs Industry: W7L underperformed the UK Personal Products industry which returned -39.3% over the past year.

Return vs Market: W7L underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

W7LIndustryMarket
7 Day11.5%5.6%-0.4%
30 Day42.2%6.9%-1.4%
90 Day-8.3%-14.1%-2.1%
1 Year-62.4%-64.0%-38.0%-39.3%8.0%2.9%
3 Yearn/a-15.1%-16.5%18.0%3.6%
5 Yearn/a-21.7%-22.2%35.8%6.4%

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?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: W7L (£0.78) is trading below our estimate of fair value (£0.98)

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 (25.1x) compared to the Personal Products industry average (21.2x).

PE vs Market: W7L is poor value based on its PE Ratio (25.1x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: W7L is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: W7L is good value based on its PB Ratio (1.5x) compared to the GB Personal Products industry average (1.5x).


Next Steps

Future Growth

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

40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W7L's forecast earnings growth (40.1% per year) is above the savings rate (1.2%).

Earnings vs Market: W7L's earnings (40.1% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: W7L's revenue (6.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: W7L's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: W7L's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Warpaint London performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History


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 (3.6%).


Return on Equity

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


Return on Assets

ROA vs Industry: W7L's Return on Assets is below or equal to the Personal Products industry average last year.


Return on Capital Employed

ROCE Improving: W7L's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Warpaint London's financial position?


Financial Position Analysis

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

Long Term Liabilities: W7L's short term assets (33.6M) exceeds 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

Inventory Level: W7L has a high level of physical assets or inventory.

Debt Coverage by Assets: W7L's debt is covered by short term assets (assets are 26.340900x debt).


Next Steps

Dividend

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

5.68%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Warpaint London before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.7%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: W7L's dividend (5.68%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: W7L's dividend (5.68%) is in the top 25% of dividend payers in the UK market (5.36%)

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 2 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 (56.7% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Sam Bazini (56yo)

2.9yrs

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

Compensation vs. Market: Insufficient data to establish whether Sam's total compensation is reasonable compared to companies of similar size in the UK market.

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


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: W7L's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: W7L's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sam Bazini (56yo)

    Joint CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£208.00k
  • Eoin MacLeod (57yo)

    Joint CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£206.00k
  • Neil Rodol (57yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£151.00k
  • Sandra Hewett

    Financial Controller

    • Tenure: 0yrs
  • Sally Craig (58yo)

    Company Secretary

    • Tenure: 1.1yrs
    • Compensation: UK£30.00k

Board Members

  • Keith Sadler (60yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£40.00k
  • Clive Garston (74yo)

    Non-Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: UK£60.00k
  • Sam Bazini (56yo)

    Joint CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£208.00k
  • Eoin MacLeod (57yo)

    Joint CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£206.00k
  • Neil Rodol (57yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£151.00k
  • Paul Hagon (56yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£30.00k
  • Sally Craig (58yo)

    Company Secretary

    • Tenure: 1.1yrs
    • 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£59.481m
  • 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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 22:04
End of Day Share Price2019/10/18 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.