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NFC

Next Fifteen Communications Group AIM:NFC Stock Report

Last Price

UK£9.66

Market Cap

UK£948.8m

7D

4.1%

1Y

1.3%

Updated

16 Aug, 2022

Data

Company Financials +
NFC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends2/6

NFC Stock Overview

Next Fifteen Communications Group plc, together with its subsidiaries, provides communications services in the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.

Next Fifteen Communications Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Next Fifteen Communications Group
Historical stock prices
Current Share PriceUK£9.66
52 Week HighUK£14.76
52 Week LowUK£8.33
Beta1.36
1 Month Change2.55%
3 Month Change-26.71%
1 Year Change1.26%
3 Year Change59.93%
5 Year Change127.63%
Change since IPO9,100.00%

Recent News & Updates

Jul 21
Next Fifteen Communications Group (LON:NFC) Could Easily Take On More Debt

Next Fifteen Communications Group (LON:NFC) Could Easily Take On More Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NFCGB MediaGB Market
7D4.1%2.6%0.9%
1Y1.3%-19.0%-8.2%

Return vs Industry: NFC exceeded the UK Media industry which returned -19.6% over the past year.

Return vs Market: NFC exceeded the UK Market which returned -8.3% over the past year.

Price Volatility

Is NFC's price volatile compared to industry and market?
NFC volatility
NFC Average Weekly Movement6.7%
Media Industry Average Movement5.7%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: NFC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NFC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19812,983Tim Dysonhttps://www.next15.com

Next Fifteen Communications Group plc, together with its subsidiaries, provides communications services in the United Kingdom, Europe, Africa, the United States, and the Asia Pacific. It offers strategy and insight, online marketing, corporate and internal communications, media training, brand and message consultancy, market research, digital, marketing communications, and creative and content, as well as public, media, analyst, and investor relations services; and digital and technology products and services. The company provides its services under the Agent3, encore, Publitek, Beyond, Savanta, MBooth, MBooth Health, MACH 49, MIGHTY SOCIAL, Archetype, Conversion Rate Experts, Twogether, ODD, The Blueshirt Group, OutCast, Velocity, SMG., ELVIS, Brandwidth, Activate, Planning-inc, and Palladium brands.

Next Fifteen Communications Group Fundamentals Summary

How do Next Fifteen Communications Group's earnings and revenue compare to its market cap?
NFC fundamental statistics
Market CapUK£948.83m
Earnings (TTM)-UK£69.22m
Revenue (TTM)UK£470.06m

2.0x

P/S Ratio

-13.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NFC income statement (TTM)
RevenueUK£470.06m
Cost of RevenueUK£365.50m
Gross ProfitUK£104.55m
Other ExpensesUK£173.77m
Earnings-UK£69.22m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Sep 27, 2022

Earnings per share (EPS)-0.70
Gross Margin22.24%
Net Profit Margin-14.73%
Debt/Equity Ratio36.6%

How did NFC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-16%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NFC 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 NFC?

Other financial metrics that can be useful for relative valuation.

NFC 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/Revenue2x
Enterprise Value/EBITDA15.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NFC's PS Ratio compare to its peers?

NFC PS Ratio vs Peers
The above table shows the PS ratio for NFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.1x
YOU YouGov
6.8x14.4%UK£1.3b
FOUR 4imprint Group
1.4x4.8%UK£1.1b
ASCL Ascential
2.5x12.2%UK£1.1b
TRMR Tremor International
1.7x11.5%UK£499.9m
NFC Next Fifteen Communications Group
2x9.0%UK£948.8m

Price-To-Sales vs Peers: NFC is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (3.1x).


Price to Earnings Ratio vs Industry

How does NFC's PE Ratio compare vs other companies in the GB Media Industry?

Price-To-Sales vs Industry: NFC is expensive based on its Price-To-Sales Ratio (2x) compared to the UK Media industry average (1.5x)


Price to Sales Ratio vs Fair Ratio

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

NFC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio2.2x

Price-To-Sales vs Fair Ratio: NFC is good value based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).


Share Price vs Fair Value

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

Below Fair Value: NFC (£9.66) is trading below our estimate of fair value (£27.39)

Significantly Below Fair Value: NFC 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: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Next Fifteen Communications Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

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


69.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: NFC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NFC is expected to become profitable in the next 3 years.

Revenue vs Market: NFC's revenue (9% per year) is forecast to grow faster than the UK market (4.5% per year).

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


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Past Performance

How has Next Fifteen Communications Group 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


-72.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NFC is currently unprofitable.

Growing Profit Margin: NFC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NFC is unprofitable, and losses have increased over the past 5 years at a rate of 72% per year.

Accelerating Growth: Unable to compare NFC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NFC is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (43.5%).


Return on Equity

High ROE: NFC has a negative Return on Equity (-106.84%), as it is currently unprofitable.


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Financial Health

How is Next Fifteen Communications Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NFC's short term assets (£178.6M) do not cover its short term liabilities (£180.3M).

Long Term Liabilities: NFC's short term assets (£178.6M) do not cover its long term liabilities (£203.0M).


Debt to Equity History and Analysis

Debt Level: NFC has more cash than its total debt.

Reducing Debt: NFC's debt to equity ratio has reduced from 48.8% to 36.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NFC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NFC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.4% per year.


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Dividend

What is Next Fifteen Communications Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NFC's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: NFC's dividend (1.74%) is low compared to the top 25% of dividend payers in the UK market (5.13%).


Stability and Growth of Payments

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

Growing Dividend: NFC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: NFC is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.6%), NFC's dividend payments are well covered by cash flows.


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Management

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

6.2yrs

Average management tenure


CEO

Tim Dyson (61 yo)

30.58yrs

Tenure

UK£1,798,000

Compensation

Mr. Timothy John Bruce Dyson, also known as Tim, has been the Chief Executive Officer of Next Fifteen Communications Group PLC of 463 Communications, LLC since 1992 and heads its global operations. Mr. Dys...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD2.18M) is above average for companies of similar size in the UK market ($USD1.36M).

Compensation vs Earnings: Tim's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NFC's management team is seasoned and experienced (6.2 years average tenure).


Board Members

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

Next Fifteen Communications Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Next Fifteen Communications Group plc
  • Ticker: NFC
  • Exchange: AIM
  • Founded: 1981
  • Industry: Advertising
  • Sector: Media
  • Implied Market Cap: UK£948.828m
  • Shares outstanding: 98.22m
  • Website: https://www.next15.com

Number of Employees


Location

  • Next Fifteen Communications Group plc
  • 75 Bermondsey Street
  • London
  • Greater London
  • SE1 3XF
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/01/31
Annual Earnings2022/01/31


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.