AIM:NAH

Stock Analysis Report

Executive Summary

NAHL Group plc, together with its subsidiaries, engages in the marketing and services business focusing on the consumer legal services market in the United Kingdom.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has NAHL Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

NAH

-0.4%

GB Media

-0.3%

GB Market


1 Year Return

6.7%

NAH

19.5%

GB Media

3.0%

GB Market

Return vs Industry: NAH underperformed the UK Media industry which returned 19.5% over the past year.

Return vs Market: NAH exceeded the UK Market which returned 3% over the past year.


Shareholder returns

NAHIndustryMarket
7 Day0.4%-0.4%-0.3%
30 Day-3.6%-1.1%-0.9%
90 Day-5.6%4.1%-2.0%
1 Year14.4%6.7%23.7%19.5%8.0%3.0%
3 Year-39.5%-55.0%15.4%2.6%18.0%3.6%
5 Year-20.3%-47.5%43.4%16.9%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NAHL Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NAH (£1.15) is trading below our estimate of fair value (£2.65)

Significantly Undervalued: NAH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NAH is good value based on its PE Ratio (11.8x) compared to the Media industry average (21.5x).

PE vs Market: NAH is good value based on its PE Ratio (11.8x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NAH is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: NAH is good value based on its PB Ratio (0.9x) compared to the GB Media industry average (1.5x).


Next Steps

Future Growth

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

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAH's forecast earnings growth (27.9% per year) is above the savings rate (1.2%).

Earnings vs Market: NAH's earnings (27.9% 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: NAH's revenue (13.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: NAH's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NAH's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has NAHL Group performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NAH's earnings have declined by -5.7% per year over the past 5 years.

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

Earnings vs Industry: NAH had negative earnings growth (-53.1%) over the past year, making it difficult to compare to the Media industry average (2.8%).


Return on Equity

High ROE: NAH's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: NAH has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is NAHL Group's financial position?


Financial Position Analysis

Short Term Liabilities: NAH's short term assets (£35.1M) exceeds its short term liabilities (£18.2M)

Long Term Liabilities: NAH's short term assets (35.1M) exceeds its long term liabilities (20.8M)


Debt to Equity History and Analysis

Debt Level: NAH's debt to equity ratio (31.1%) is considered satisfactory

Reducing Debt: NAH's debt to equity ratio has increased from 17.9% to 31.1% over the past 5 years.

Debt Coverage: NAH's debt is well covered by operating cash flow (36.3%).

Interest Coverage: NAH's interest payments on its debt are well covered by EBIT (31.4x coverage).


Balance Sheet

Inventory Level: NAH has a low level of unsold assets or inventory.

Debt Coverage by Assets: NAH's debt is covered by short term assets (assets are 1.783050x debt).


Next Steps

Dividend

What is NAHL Group's current dividend yield, its reliability and sustainability?

7.75%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years7.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NAH's dividend (7.76%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: NAH's dividend (7.76%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: NAH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NAH has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.7%), NAH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NAH's dividends in 3 years are forecast to be well covered by earnings (49.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

J. Atkinson (54yo)

0yrs

Tenure

UK£241,000

Compensation

Mr. Russell Atkinson serves as the Chief Executive Officer of NAHL Group plc. Mr. Atkinson served as Managing Director of NAHL Group plc. His responsibilities included developing and implementing the overa ...


CEO Compensation Analysis

Compensation vs. Market: J.'s total compensation ($USD310.22K) is about average for companies of similar size in the UK market ($USD320.52K).

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


Management Age and Tenure

3.3yrs

Average Tenure

42yo

Average Age

Experienced Management: NAH's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Board: NAH's board of directors are not considered experienced ( 2.5 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.


Recent Insider Transactions

BuyUK£9,98919 Mar 19
James Saralis
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares10,515
Max PriceUK£0.95
BuyUK£14,84814 Jan 19
J. Atkinson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares16,535
Max PriceUK£0.90
BuyUK£14,99914 Jan 19
James Saralis
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares16,666
Max PriceUK£0.90

Ownership Breakdown


Management Team

  • J. Atkinson (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£241.00k
  • Simon Trott

    Chief Executive Officer of Personal Injury

    • Tenure: 3.8yrs
  • Helen Jackson (42yo)

    Managing Director of Bush & Company Rehabilitation - Critical Care

    • Tenure: 3.3yrs
  • Marcus Lamont

    Group Human Resources Director

    • Tenure: 3.3yrs
  • James Saralis (39yo)

    Group CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£168.00k
  • Will Herbertson

    Managing Director of Residential Property

    • Tenure: 1.1yrs

Board Members

  • Caroline Brown (57yo)

    Non-Executive Chair

    • Tenure: 0.8yrs
    • Compensation: UK£4.00k
  • J. Atkinson (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£241.00k
  • Gillian D. Kent (56yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£50.00k
  • née Withey Tilleray (56yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Tim J. Aspinall

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£48.00k
  • James Saralis (39yo)

    Group CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£168.00k

Company Information

NAHL Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NAHL Group plc
  • Ticker: NAH
  • Exchange: AIM
  • Founded: 1993
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£53.567m
  • Shares outstanding: 46.18m
  • Website: https://www.nahlgroupplc.co.uk

Number of Employees


Location

  • NAHL Group plc
  • 1430 Montagu Court
  • Kettering Parkway
  • Kettering
  • Northamptonshire
  • NN15 6XR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAHAIM (London Stock Exchange AIM Market)YesNew A Ordinary SharesGBGBPMay 2014
NHLP.FOTCPK (Pink Sheets LLC)YesNew A Ordinary SharesUSUSDMay 2014

Biography

NAHL Group plc, together with its subsidiaries, engages in the marketing and services business focusing on the consumer legal services market in the United Kingdom. The company operates through Personal In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:33
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.