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Sumo Group

AIM:SUMO
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SUMO
AIM
£209M
Market Cap
  1. Home
  2. GB
  3. Media
Company description

Sumo Group Plc, together with its subsidiaries, develops and provides video games in the United Kingdom. The last earnings update was 47 days ago. More info.


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SUMO Share Price and Events
7 Day Returns
-2.8%
AIM:SUMO
-0.5%
GB Entertainment
-0.6%
GB Market
1 Year Returns
2.2%
AIM:SUMO
12.6%
GB Entertainment
-5.8%
GB Market
SUMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sumo Group (SUMO) -2.8% -7.3% 7.5% 2.2% - -
GB Entertainment -0.5% -3.9% 8.8% 12.6% -20.5% 6.9%
GB Market -0.6% -2% 1.4% -5.8% 13.1% 1.3%
1 Year Return vs Industry and Market
  • SUMO underperformed the Entertainment industry which returned 12.6% over the past year.
  • SUMO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

SUMO Value

 Is Sumo Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sumo Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sumo Group.

AIM:SUMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SUMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.949 (1 + (1- 19%) (0%))
0.966
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.966 * 6.65%)
7.65%

Discounted Cash Flow Calculation for AIM:SUMO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sumo Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SUMO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.65%)
2019 13.45 Analyst x4 12.49
2020 11.89 Analyst x5 10.26
2021 12.79 Analyst x4 10.26
2022 13.10 Analyst x1 9.76
2023 13.70 Analyst x1 9.48
2024 14.18 Est @ 3.48% 9.11
2025 14.58 Est @ 2.81% 8.70
2026 14.91 Est @ 2.33% 8.27
2027 15.21 Est @ 2% 7.84
2028 15.48 Est @ 1.77% 7.41
Present value of next 10 years cash flows £93.57
AIM:SUMO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £15.48 × (1 + 1.23%) ÷ (7.65% – 1.23%)
£244.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £244.07 ÷ (1 + 7.65%)10
£116.80
AIM:SUMO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £93.57 + £116.80
£210.37
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £210.37 / 150.07
£1.4
AIM:SUMO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.40
Current discount Discount to share price of £1.39
= -1 x (£1.39 - £1.40) / £1.40
0.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sumo Group is available for.
Intrinsic value
1%
Share price is £1.39 vs Future cash flow value of £1.4
Current Discount Checks
For Sumo Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sumo Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Sumo Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sumo Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sumo Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SUMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.00
AIM:SUMO Share Price ** AIM (2019-05-24) in GBP £1.39
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 25x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sumo Group.

AIM:SUMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SUMO Share Price ÷ EPS (both in GBP)

= 1.39 ÷ 0.00

-712.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sumo Group is loss making, we can't compare its value to the GB Entertainment industry average.
  • Sumo Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Sumo Group's expected growth come at a high price?
Raw Data
AIM:SUMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -712.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
37.1%per year
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PEG Ratio Median Figure of 5 Publicly-Listed Entertainment Companies 1.29x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Sumo Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sumo Group's assets?
Raw Data
AIM:SUMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.37
AIM:SUMO Share Price * AIM (2019-05-24) in GBP £1.39
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PB Ratio Median Figure of 21 Publicly-Listed Entertainment Companies 2.23x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.49x
AIM:SUMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SUMO Share Price ÷ Book Value per Share (both in GBP)

= 1.39 ÷ 0.37

3.71x

* Primary Listing of Sumo Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sumo Group is overvalued based on assets compared to the GB Entertainment industry average.
X
Value checks
We assess Sumo Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Sumo Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SUMO Future Performance

 How is Sumo Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sumo Group expected to grow at an attractive rate?
  • Sumo Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Sumo Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Sumo Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SUMO Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SUMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 37.1%
AIM:SUMO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 15.4%
United Kingdom of Great Britain and Northern Ireland Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 21.7%
United Kingdom of Great Britain and Northern Ireland Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SUMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SUMO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 93 1
2022-12-31 77 7 2
2021-12-31 69 17 11 6
2020-12-31 59 15 8 7
2019-12-31 51 15 6 6
AIM:SUMO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 39 -6 0
2018-09-30 39 -5 -12
2018-06-30 39 -3 -23
2018-03-31 35 0 -23
2017-12-31 31 3 -23
2017-06-30 29 9 -6
2017-03-31 27 9 -5
2016-12-31 26 8 -4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sumo Group's earnings are expected to grow significantly at over 20% yearly.
  • Sumo Group's revenue is expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SUMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Sumo Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SUMO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.08 0.10 0.03 3.00
2020-12-31 0.06 0.08 0.05 3.00
2019-12-31 0.06 0.08 0.05 2.00
AIM:SUMO Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.00
2018-09-30 -0.10
2018-06-30 -0.31
2018-03-31 -0.57
2017-12-31 -3.89
2017-06-30 -549.65
2017-03-31 -0.03
2016-12-31 -396.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sumo Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sumo Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sumo Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SUMO Past Performance

  How has Sumo Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sumo Group's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sumo Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Sumo Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Sumo Group's 1-year growth to the GB Entertainment industry average as it is not currently profitable.
Earnings and Revenue History
Sumo Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sumo Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SUMO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 38.70 -0.25 10.95
2018-09-30 38.95 -11.74 13.70
2018-06-30 39.21 -23.24 13.54
2018-03-31 34.91 -23.34 12.32
2017-12-31 30.61 -23.44 11.09
2017-06-30 29.11 -5.86 8.84
2017-03-31 27.50 -5.01 9.44
2016-12-31 25.89 -4.16 10.05
2015-12-31 21.57 2.46 5.74
2014-12-31 16.12 -0.02 2.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Sumo Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Sumo Group has efficiently used its assets last year compared to the GB Entertainment industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Sumo Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Sumo Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sumo Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SUMO Health

 How is Sumo Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sumo Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sumo Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sumo Group has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sumo Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Sumo Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sumo Group Company Filings, last reported 4 months ago.

AIM:SUMO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 43.90 0.00 3.73
2018-09-30 43.90 0.00 3.73
2018-06-30 40.74 0.00 6.50
2018-03-31 40.74 0.00 6.50
2017-12-31 41.02 0.00 12.42
2017-06-30 -1.91 56.89 2.36
2017-03-31 -1.91 56.89 2.36
2016-12-31 -0.95 56.72 4.48
2015-12-31 0.97 15.57 4.35
2014-12-31 -1.16 14.75 2.47
  • Sumo Group has no debt.
  • Sumo Group currently has no debt however we can't compare to 5 years ago as we have no data for that period.
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.

  • Sumo Group has less than a year of cash runway based on current free cash flow.
  • Sumo Group has less than a year of cash runway if free cash flow continues to grow at historical rates of 93.5% each year.
X
Financial health checks
We assess Sumo Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sumo Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SUMO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sumo Group dividends. Estimated to be 0% next year.
If you bought £2,000 of Sumo Group shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sumo Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sumo Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SUMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SUMO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sumo Group has not reported any payouts.
  • Unable to verify if Sumo Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sumo Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sumo Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Sumo Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Sumo Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sumo Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sumo Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SUMO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Carl Cavers
COMPENSATION £317,000
AGE 50
CEO Bio

Mr. Carl Cavers founded Sumo Digital Ltd. in 2003 and serves as Chief Executive Officer. Mr. Cavers serves as the Chief Executive Officer and Executive Director of Sumo Group Plc. He served as the Chief Operating Officer of Sumo Digital Ltd. Mr. Cavers joined Gremlin in 1995 as Quality & Systems Manager and within three years was promoted to Studio Manager responsible for internal development. Following the acquisition of Gremlin by Infogrames (Now Atari), Carl Cavers was appointed to UK Development Director and soon after took responsibility for European Development including all internal development studios in the UK, France and Australia. Before joining Gremlin, Carl Cavers worked for a Bespoke Software Solution Developer. Carl Cavers serves as a Director of Sumo Digital Ltd. Carl Cavers also spent two years lecturing in the syllabus of the Institute of Quality Assurance (IQA). In 2015, he received the TIGA Most Outstanding Individual Award (TIGA is a trade association representing the video games industry). Carl holds an honorary doctorate from Sheffield Hallam University.

CEO Compensation
  • Carl's compensation has increased whilst company is loss making.
  • Carl's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Sumo Group management team in years:

1.7
Average Tenure
49
Average Age
  • The average tenure for the Sumo Group management team is less than 2 years, this suggests a new team.
Management Team

Carl Cavers

TITLE
Co Founder
COMPENSATION
£317K
AGE
50

David Wilton

TITLE
CFO & Director
COMPENSATION
£211K
AGE
56
TENURE
1.7 yrs

Paul Porter

TITLE
Co-Founder
AGE
46

Steven Webb

TITLE
General Counsel & Company Secretary
AGE
55
TENURE
2.3 yrs

Richard Iggo

TITLE
Marketing Director
AGE
45

Karen McLoughlin

TITLE
Group Director of Human Resources
AGE
46

Gary Dunn

TITLE
Managing Director of Sumo Digital
AGE
49
TENURE
0.1 yrs

Tim Wilson

TITLE
Managing Director of Atomhawk
Board of Directors Tenure

Average tenure and age of the Sumo Group board of directors in years:

1.5
Average Tenure
56
Average Age
  • The average tenure for the Sumo Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ken Beaty

TITLE
Non-Executive Chairman
COMPENSATION
£98K
AGE
49

Carl Cavers

TITLE
Co Founder
COMPENSATION
£317K
AGE
50
TENURE
4.5 yrs

David Wilton

TITLE
CFO & Director
COMPENSATION
£211K
AGE
56
TENURE
1.5 yrs

Paul Porter

TITLE
Co-Founder
AGE
46
TENURE
0.1 yrs

Michael Sherwin

TITLE
Independent Non-Executive Director
COMPENSATION
£7K
AGE
59
TENURE
1.4 yrs

Andrea Dunstan

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.7 yrs

Ian Livingstone

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
68
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
23. Nov 18 Buy David Wilton Individual 22. Nov 18 22. Nov 18 12,500 £1.38 £17,250
X
Management checks
We assess Sumo Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sumo Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SUMO News

Simply Wall St News

Estimating The Fair Value Of Sumo Group Plc (LON:SUMO)

by taking the expected future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model?

Simply Wall St -

How Financially Strong Is Sumo Group Plc (LON:SUMO)?

The direct benefit for Sumo Group Plc (LON:SUMO), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is SUMO will have to adhere to stricter debt covenants and have less financial flexibility. … Does SUMO's growth rate justify its decision for financial flexibility over lower cost of capital.

Simply Wall St -

Is Sumo Group Plc (LON:SUMO) Worth UK£1.80 Based On Intrinsic Value?

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … If you are reading this and its not July 2018 then I highly recommend you check out the latest calculation for Sumo Group by following the link below.

Simply Wall St -

Should You Be Concerned About Sumo Group Plc's (LON:SUMO) Shareholders?

Today, I will be analyzing Sumo Group Plc’s (AIM:SUMO) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for Sumo Group AIM:SUMO Ownership_summary Jun 7th 18 Institutional Ownership SUMO's 47.62% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Thus, investors should dig deeper into SUMO's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

A Look At The Intrinsic Value Of Sumo Group Plc (LON:SUMO)

Today, I will calculate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (£, Millions) £-4.25 £16.40 £12.90 £15.09 £17.51 Source Analyst x2 Analyst x2 Analyst x1 Extrapolated @ (17%, capped from 18.24%) Extrapolated @ (16%, capped from 18.24%) Present Value Discounted @ 8.3% £-3.92 £13.98 £10.16 £10.97 £11.75 Present Value of 5-year Cash Flow (PVCF)= £43 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … AIM:SUMO Intrinsic Value May 10th 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Sumo Group Plc's (LON:SUMO) Most Important Factor To Consider

Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt Along with a positive operating cash flow, Sumo Group also generates a positive free cash flow. … Below is a table of Sumo Group’s operating cash flow in the past year, as well as the anticipated level going forward. … Current +1 year +2 year +3 year Operating Cash Flow (OCF) UK£3.25M UK£5.92M UK£16.61M UK£14.21M OCF Growth Year-On-Year 82.10% 180.40% -14.44% OCF Growth From Current Year 410.61% 336.86% Next Steps: Given a low free cash flow yield, on the basis of cash, Sumo Group becomes a less appealing investment.

Simply Wall St -

Analysts Expect Breakeven For Sumo Group Plc (LON:SUMO)

Sumo Group Plc's (AIM:SUMO): Sumo Group Plc operates as a game development company in the United Kingdom. … View our latest analysis for Sumo Group Expectation from analysts is SUMO is on the verge of breakeven. … AIM:SUMO Past Future Earnings Mar 13th 18 Underlying developments driving SUMO’s growth isn’t the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Simply Wall St -

SUMO Company Info

Description

Sumo Group Plc, together with its subsidiaries, develops and provides video games in the United Kingdom. The company develops games across a range of console platforms, PC, handheld, and mobile devices. It also offers services to entertainment industry, including games, TV, and film. The company was founded in 2003 and is headquartered in Sheffield, the United Kingdom.

Details
Name: Sumo Group Plc
SUMO
Exchange: AIM
Founded: 2003
£208,601,549
150,073,057
Website: http://www.sumogroupplc.com
Address: Sumo Group Plc
Jessops Riverside,
Unit 32,
Sheffield,
South Yorkshire, S9 2RX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SUMO Ordinary Shares London Stock Exchange AIM Market GB GBP 21. Dec 2017
OTCPK SUMG.F Ordinary Shares Pink Sheets LLC US USD 21. Dec 2017
Number of employees
Current staff
Staff numbers
592
Sumo Group employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 22:27
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/04/09
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.