AIM:SYS1

Stock Analysis Report

Executive Summary

System1 Group PLC, together with its subsidiaries, provides marketing and market research consultancy services.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has System1 Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SYS1

-0.6%

GB Media

2.0%

GB Market


1 Year Return

-8.1%

SYS1

21.3%

GB Media

3.3%

GB Market

Return vs Industry: SYS1 underperformed the UK Media industry which returned 21.3% over the past year.

Return vs Market: SYS1 underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

SYS1IndustryMarket
7 Day0%-0.6%2.0%
30 Day-10.8%-1.1%-1.0%
90 Day-19.1%4.2%-1.7%
1 Year-5.0%-8.1%25.6%21.3%8.3%3.3%
3 Year-60.1%-63.8%14.4%1.6%19.0%4.5%
5 Year-42.5%-50.3%46.5%19.4%38.4%8.4%

Price Volatility Vs. Market

How volatile is System1 Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is System1 Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SYS1 (£1.82) is trading below our estimate of fair value (£16.68)

Significantly Undervalued: SYS1 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SYS1 is good value based on its PE Ratio (18.2x) compared to the Media industry average (20.2x).

PE vs Market: SYS1 is poor value based on its PE Ratio (18.2x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: SYS1 is good value based on its PEG Ratio (0.4x)


Price Based on Value of Assets

PB vs Industry: SYS1 is overvalued based on its PB Ratio (3.2x) compared to the GB Media industry average (1.5x).


Next Steps

Future Growth

How is System1 Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SYS1's forecast earnings growth (45.7% per year) is above the savings rate (1.2%).

Earnings vs Market: SYS1's earnings (45.7% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: SYS1's revenue (8% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: SYS1's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SYS1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has System1 Group performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SYS1's earnings have declined by -11.4% per year over the past 5 years.

Accelerating Growth: SYS1's earnings growth over the past year (3.6%) exceeds its 5-year average (-11.4% per year).

Earnings vs Industry: SYS1 earnings growth over the past year (3.6%) exceeded the Media industry 2.8%.


Return on Equity

High ROE: SYS1's Return on Equity (17.6%) is considered low.


Return on Assets

ROA vs Industry: SYS1 has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: SYS1's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is System1 Group's financial position?


Financial Position Analysis

Short Term Liabilities: SYS1's short term assets (£11.9M) exceeds its short term liabilities (£5.4M)

Long Term Liabilities: SYS1's short term assets (£11.9M) exceeds its long term liabilities (£633.0K)


Debt to Equity History and Analysis

Debt Level: SYS1 is debt free.

Reducing Debt: SYS1 has not had any debt for past 5 years.

Debt Coverage: SYS1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SYS1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SYS1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: SYS1's debt is not covered by short term assets (assets are -8.5525158363619E+17x debt).


Next Steps

Dividend

What is System1 Group's current dividend yield, its reliability and sustainability?

4.29%

Expected Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.4%industryaverage2.6%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SYS1's dividend (4.12%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: SYS1's dividend (4.12%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: SYS1's dividend payments have been volatile in the past 10 years.

Growing Dividend: SYS1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), SYS1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYS1's dividends in 3 years are forecast to be well covered by earnings (23.7% payout ratio).


Next Steps

Management

What is the CEO of System1 Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

John Kearon (53yo)

0yrs

Tenure

UK£214,169

Compensation

Mr. John Victor Kearon founded System1 Group PLC (formerly Brainjuicer Group Plc) in 1999 and serves as its Chief Executive Officer. Mr. Kearon is responsible for overall strategic direction and commercial ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD271.64K) is about average for companies of similar size in the UK market ($USD317.09K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: SYS1's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

53yo

Average Age

Experienced Board: SYS1's board of directors are not considered experienced ( 1.3 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

SellUK£699,99919 Nov 18
John Kearon
EntityIndividual
Role
Chief Executive Officer
Founder
Shares358,974
Max PriceUK£1.95
BuyUK£699,99919 Nov 18
Stefan Barden
EntityIndividual
Shares358,974
Max PriceUK£1.95
BuyUK£497,51506 Nov 18
Stefan Barden
EntityIndividual
Shares261,850
Max PriceUK£1.90

Ownership Breakdown


Management Team

  • John Kearon (53yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£214.17k
  • James Geddes (56yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£377.44k
  • David Whitelam

    Managing Director of UK

    • Tenure: 4.8yrs
  • Orlando Wood

    Chief Innovation Officer

    • Tenure: 0yrs
  • Mark Johnson

    Managing Director of Europe

    • Tenure: 0yrs
  • Gabriel Aleixo

    Managing Director of LATAM

    • Tenure: 0yrs
  • Brent Snider

    President of North America

    • Tenure: 4.8yrs
  • Emma Cooper

    Managing Director of Group Operations

    • Tenure: 0yrs

Board Members

  • Robert Brand

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£36.88k
  • Graham Blashill (72yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: UK£38.22k
  • John Kearon (53yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£214.17k
  • James Geddes (56yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£377.44k
  • Sophie Tomkins (49yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£30.00k
  • Jane Wakely (47yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£27.00k

Company Information

System1 Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: System1 Group PLC
  • Ticker: SYS1
  • Exchange: AIM
  • Founded: 1999
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£22.889m
  • Shares outstanding: 12.58m
  • Website: https://www.system1group.com

Number of Employees


Location

  • System1 Group PLC
  • Russell Square House
  • 6th Floor
  • London
  • Greater London
  • WC1B 5EH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYS1AIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2006

Biography

System1 Group PLC, together with its subsidiaries, provides marketing and market research consultancy services. The company offers a range of tools, such as predictive marketing tool that uses the wisdom o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 21:32
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.

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