Hansard Global (LSE:HSD) - Share price, News & Analysis

Q: What is the Fair Price of HSD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HSD (£0.38) is trading below our estimate of [[fair value]] (£0.94)

HSD fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	0/6
Financial Health	5/6
Dividends	3/6

HSD Stock Overview

Hansard Global plc operates as a specialist long-term savings provider that offers savings and investment products for investors, institutions, and wealth-management groups worldwide.

Rewards

Trading at 59.5% below our estimate of its fair value

Earnings are forecast to grow 33.09% per year

Risk Analysis

Dividend of 11.71% is not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (£52M)

Hansard Global Competitors

Chesnara

LSE:CSN

UK£471.5m

Personal Group Holdings

AIM:PGH

UK£71.7m

Enterprise Group

GHSE:EGL

GH₵563.9m

CIG Pannónia Életbiztosító Nyrt

BUSE:CIGPANNONIA

Ft25.3b

Price History & Performance

Summary of all time highs, changes and price drops for Hansard Global
Historical stock prices
Current Share Price	UK£0.38
52 Week High	UK£0.62
52 Week Low	UK£0.34
Beta	0.81
1 Month Change	-9.52%
3 Month Change	-13.24%
1 Year Change	-32.14%
3 Year Change	-13.54%
5 Year Change	-48.91%
Change since IPO	-86.90%

Recent News & Updates

Mar 06

Hansard Global (LON:HSD) Will Pay A Dividend Of UK£0.018

Hansard Global plc's ( LON:HSD ) investors are due to receive a payment of UK£0.018 per share on 21st of April. This...

Shareholder Returns

	HSD	GB Insurance	GB Market
7D	5.9%	4.6%	0.03%
1Y	-32.1%	-19.1%	-8.3%

Return vs Industry: HSD underperformed the UK Insurance industry which returned -19.1% over the past year.

Return vs Market: HSD underperformed the UK Market which returned -8.3% over the past year.

Price Volatility

Is HSD's price volatile compared to industry and market?
HSD volatility
HSD Average Weekly Movement	5.2%
Insurance Industry Average Movement	4.5%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: HSD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HSD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	187	Graham Sheward	https://www.hansard.com

Hansard Global plc operates as a specialist long-term savings provider that offers savings and investment products for investors, institutions, and wealth-management groups worldwide. The company offers unit-linked regular or single premium life assurance and investment contracts; administration services; and marketing and development services. It also operates Hansard OnLine, a sales and business administration tool that is used by independent financial advisors (IFAs) and clients.

Hansard Global Fundamentals Summary

How do Hansard Global's earnings and revenue compare to its market cap?
HSD fundamental statistics
Market Cap	UK£52.27m
Earnings (TTM)	UK£3.90m
Revenue (TTM)	UK£137.60m

13.4x

P/E Ratio

0.4x

P/S Ratio

Is HSD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSD income statement (TTM)
Revenue	UK£137.60m
Cost of Revenue	UK£16.20m
Gross Profit	UK£121.40m
Other Expenses	UK£117.50m
Earnings	UK£3.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 22, 2022

Earnings per share (EPS)	0.028
Gross Margin	88.23%
Net Profit Margin	2.83%
Debt/Equity Ratio	0%

How did HSD perform over the long term?

See historical performance and comparison

Dividends

11.7%

Current Dividend Yield

157%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HSD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HSD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HSD. This is calculated by dividing HSD's market cap by their current preferred multiple.
What is HSD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£52.27m

HSD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does HSD's PE Ratio compare to its peers?

HSD PE Ratio vs Peers

The above table shows the PE ratio for HSD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.8x
CSN Chesnara	17.3x	6.5%	UK£471.5m
PGH Personal Group Holdings	19.9x	13.2%	UK£71.7m
EGL Enterprise Group	7.2x	n/a	GH₵563.9m
CIGPANNONIA CIG Pannónia Életbiztosító Nyrt	18.6x	n/a	Ft25.3b
HSD Hansard Global	13.4x	33.1%	UK£52.3m

Price-To-Earnings vs Peers: HSD is good value based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does HSD's PE Ratio compare vs other companies in the European Insurance Industry?

Price-To-Earnings vs Industry: HSD is good value based on its Price-To-Earnings Ratio (13.4x) compared to the UK Insurance industry average (17.4x)

Price to Earnings Ratio vs Fair Ratio

What is HSD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HSD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.4x
Fair PE Ratio	19x

Price-To-Earnings vs Fair Ratio: HSD is good value based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

Share Price vs Fair Value

What is the Fair Price of HSD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HSD (£0.38) is trading below our estimate of fair value (£0.94)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Hansard Global forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

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

33.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSD's forecast earnings growth (33.1% per year) is above the savings rate (0.9%).

Earnings vs Market: HSD's earnings (33.1% per year) are forecast to grow faster than the UK market (9.8% per year).

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

Revenue vs Market: HSD's revenue (10.7% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: HSD's revenue (10.7% 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 HSD's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Hansard Global performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-14.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSD has a large one-off loss of £1.4M impacting its December 31 2021 financial results.

Growing Profit Margin: HSD's current net profit margins (2.8%) are lower than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: HSD's earnings have declined by 14.1% per year over the past 5 years.

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

Earnings vs Industry: HSD had negative earnings growth (-17%) over the past year, making it difficult to compare to the Insurance industry average (-25.7%).

Return on Equity

High ROE: HSD's Return on Equity (17%) is considered low.

Discover strong past performing companies

Financial Health

How is Hansard Global's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: HSD's short term assets (£1.3B) exceed its short term liabilities (£58.3M).

Long Term Liabilities: HSD's short term assets (£1.3B) do not cover its long term liabilities (£1.4B).

Debt to Equity History and Analysis

Debt Level: HSD is debt free.

Reducing Debt: HSD has not had any debt for past 5 years.

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

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

Balance Sheet

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Dividend

What is Hansard Global current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

11.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HSD's dividend (11.71%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: HSD's dividend (11.71%) is in the top 25% of dividend payers in the UK market (5.13%)

Stability and Growth of Payments

Stable Dividend: HSD's dividend payments have been volatile in the past 10 years.

Growing Dividend: HSD's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (157%), HSD's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.9%), HSD's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

7.3yrs

Average management tenure

CEO

Graham Sheward

1.25yrs

Tenure

UK£264,714

Compensation

Mr. Graham Sheward serves as Group Chief Executive Officer and Executive Director of Hansard Global Plc since May 10, 2021. He served as Managing Director of CIM Global Business at CIM Financial Services L...

CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD320.30K) is about average for companies of similar size in the UK market ($USD336.18K).

Compensation vs Earnings: Insufficient data to compare Graham's compensation with company performance.

Leadership Team

Experienced Management: HSD's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: HSD's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.

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	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30