AIM:SUMO

Stock Analysis Report

Executive Summary

Sumo Group Plc, together with its subsidiaries, develops and provides video games in the United Kingdom.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SUMO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

SUMO

-0.3%

GB Entertainment

0.3%

GB Market


1 Year Return

47.4%

SUMO

7.0%

GB Entertainment

6.5%

GB Market

Return vs Industry: SUMO exceeded the UK Entertainment industry which returned 7% over the past year.

Return vs Market: SUMO exceeded the UK Market which returned 6.5% over the past year.


Shareholder returns

SUMOIndustryMarket
7 Day1.4%-0.3%0.3%
30 Day1.6%-0.3%-1.4%
90 Day20.2%1.6%2.9%
1 Year47.4%47.4%14.2%7.0%12.0%6.5%
3 Yearn/a26.8%-40.6%18.7%3.8%
5 Yearn/a44.4%-27.6%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

125.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUMO (£1.96) is trading above our estimate of fair value (£1.81)

Significantly Below Fair Value: SUMO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUMO is poor value based on its PE Ratio (125.8x) compared to the Entertainment industry average (30.3x).

PE vs Market: SUMO is poor value based on its PE Ratio (125.8x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SUMO is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: SUMO is overvalued based on its PB Ratio (5.5x) compared to the GB Entertainment industry average (1.8x).


Next Steps

Future Growth

How is Sumo Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUMO's forecast earnings growth (21.2% per year) is above the savings rate (0.5%).

Earnings vs Market: SUMO's earnings (21.2% per year) are forecast to grow faster than the UK market (12.9% per year).

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

Revenue vs Market: SUMO's revenue (15.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: SUMO's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUMO's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Sumo Group performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUMO has high quality earnings.

Growing Profit Margin: SUMO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SUMO has become profitable over the past 5 years, growing earnings by -18.5% per year.

Accelerating Growth: SUMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SUMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (11.1%).


Return on Equity

High ROE: SUMO's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sumo Group's financial position?


Financial Position Analysis

Short Term Liabilities: SUMO's short term assets (£33.6M) exceed its short term liabilities (£16.3M).

Long Term Liabilities: SUMO's short term assets (£33.6M) exceed its long term liabilities (£4.0M).


Debt to Equity History and Analysis

Debt Level: SUMO is debt free.

Reducing Debt: SUMO had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: SUMO's debt is covered by short term assets (assets are 3.77953339728E+16x debt).


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: SUMO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SUMO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%5.1%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SUMO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SUMO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUMO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUMO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUMO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Carl Cavers (51yo)

UK£450,000

Compensation

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 Op ...


CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD583.47K) is about average for companies of similar size in the UK market ($USD804.85K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carl Cavers
Co Founder0yrsUK£450.00k3.16% £9.1m
David Wilton
CFO & Director2.3yrsUK£373.00k0.23% £658.0k
Paul Porter
Co-Founder0.8yrsno data3.06% £8.8m
Steven Webb
General Counsel & Company Secretary3.1yrsno datano data
Richard Iggo
Marketing Director0yrsno datano data
Karen McLoughlin
Group Director of Human Resources0yrsno datano data
Gary Dunn
Managing Director of Sumo Digital0.8yrsno datano data
Tim Wilson
Managing Director of Atomhawk0yrsno datano data

2.4yrs

Average Tenure

50yo

Average Age

Experienced Management: SUMO's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carl Cavers
Co Founder0yrsUK£450.00k3.16% £9.1m
David Wilton
CFO & Director2.3yrsUK£373.00k0.23% £658.0k
Paul Porter
Co-Founder0.8yrsno data3.06% £8.8m
Ian Livingstone
Non-Executive Chairman0.4yrsUK£56.00k1.46% £4.2m
Michael Sherwin
Senior Independent Non-Executive Director1.1yrsUK£40.00k0.014% £39.2k
Andrea Dunstan
Independent Non-Executive Director1.4yrsUK£11.00k0.014% £39.2k

1.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SUMO's board of directors are not considered experienced ( 1.3 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 substantially diluted in the past year, with total shares outstanding growing by 86.3%.


Top Shareholders

Company Information

Sumo Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumo Group Plc
  • Ticker: SUMO
  • Exchange: AIM
  • Founded: 2003
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: UK£288.231m
  • Shares outstanding: 147.06m
  • Website: https://www.sumogroupplc.com

Number of Employees


Location

  • Sumo Group Plc
  • Jessops Riverside
  • Unit 32
  • Sheffield
  • South Yorkshire
  • S9 2RX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUMOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2017
SUMG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2017

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:04
End of Day Share Price2020/02/21 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.