Mission Group (AIM:TMG) - Share price, News & Analysis

TMG fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	2/6

TMG Stock Overview

The Mission Group plc provides marketing and advertising related services in the United Kingdom, rest of Europe, Asia, and the United States.

Rewards

Trading at 76.9% below our estimate of its fair value

Earnings are forecast to grow 11.53% per year

Became profitable this year

Risk Analysis

Dividend of 3.81% is not well covered by earnings

Does not have a meaningful market cap (£57M)

Mission Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mission Group
Historical stock prices
Current Share Price	UK£0.63
52 Week High	UK£0.89
52 Week Low	UK£0.43
Beta	0.97
1 Month Change	2.44%
3 Month Change	4.13%
1 Year Change	-27.17%
3 Year Change	-25.88%
5 Year Change	43.18%
Change since IPO	-49.80%

Recent News & Updates

May 12

Is It Time To Consider Buying The Mission Group plc (LON:TMG)?

The Mission Group plc ( LON:TMG ), is not the largest company out there, but it saw a double-digit share price rise of...

Apr 03

Mission Group (LON:TMG) Seems To Use Debt Quite Sensibly

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

Shareholder Returns

	TMG	GB Media	GB Market
7D	9.6%	0.2%	0.6%
1Y	-27.2%	-12.6%	-2.7%

Return vs Industry: TMG underperformed the UK Media industry which returned -12.6% over the past year.

Return vs Market: TMG underperformed the UK Market which returned -4% over the past year.

Price Volatility

Is TMG's price volatile compared to industry and market?
TMG volatility
TMG Average Weekly Movement	8.5%
Media Industry Average Movement	7.0%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: TMG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TMG's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	1,000	James Clifton	https://www.themission.co.uk

The Mission Group plc provides marketing and advertising related services in the United Kingdom, rest of Europe, Asia, and the United States. The company offers marketing communications services specializing in the technology, medical, property, and automotive sector; public relations services; and advertising, media buying, digital marketing, events, and training services. It also provides sales promotion services; sports, fitness, and entertainment marketing services; and pricing and market access services for the healthcare sector.

Mission Group Fundamentals Summary

How do Mission Group's earnings and revenue compare to its market cap?
TMG fundamental statistics
Market Cap	UK£56.80m
Earnings (TTM)	UK£5.42m
Revenue (TTM)	UK£153.29m

10.5x

P/E Ratio

0.4x

P/S Ratio

Is TMG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TMG income statement (TTM)
Revenue	UK£153.29m
Cost of Revenue	UK£80.79m
Gross Profit	UK£72.50m
Other Expenses	UK£67.07m
Earnings	UK£5.42m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.06
Gross Margin	47.29%
Net Profit Margin	3.54%
Debt/Equity Ratio	17.5%

How did TMG perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

40%

Payout Ratio

Does TMG pay a reliable dividends?

See TMG dividend history and benchmarks

When do you need to buy TMG by to receive an upcoming dividend?
Mission Group dividend dates
Ex Dividend Date	Jul 14 2022
Dividend Pay Date	Jul 29 2022
Days until Ex dividend	51 days
Days until Dividend pay date	66 days

Does TMG pay a reliable dividends?

See TMG dividend history and benchmarks

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TMG (£0.63) is trading below our estimate of fair value (£2.73)

Significantly Below Fair Value: TMG is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: TMG is good value based on its PE Ratio (10.5x) compared to the UK Media industry average (25.6x).

PE vs Market: TMG is good value based on its PE Ratio (10.5x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: TMG is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: TMG is good value based on its PB Ratio (0.6x) compared to the GB Media industry average (2x).

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMG's forecast earnings growth (11.5% per year) is above the savings rate (0.9%).

Earnings vs Market: TMG's earnings (11.5% per year) are forecast to grow faster than the UK market (11.3% per year).

High Growth Earnings: TMG's earnings are forecast to grow, but not significantly.

Revenue vs Market: TMG's revenue is expected to decline over the next 3 years (-19% per year).

High Growth Revenue: TMG's revenue is forecast to decline over the next 3 years (-19% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Mission Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TMG has high quality earnings.

Growing Profit Margin: TMG became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TMG's earnings have declined by 16.8% per year over the past 5 years.

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

Earnings vs Industry: TMG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (68.4%).

Return on Equity

High ROE: TMG's Return on Equity (5.7%) is considered low.

Financial Health

How is Mission Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TMG's short term assets (£48.7M) exceed its short term liabilities (£38.4M).

Long Term Liabilities: TMG's short term assets (£48.7M) exceed its long term liabilities (£27.6M).

Debt to Equity History and Analysis

Debt Level: TMG's net debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: TMG's debt to equity ratio has increased from 16.1% to 17.5% over the past 5 years.

Debt Coverage: TMG's debt is well covered by operating cash flow (21.9%).

Interest Coverage: TMG's interest payments on its debt are well covered by EBIT (10.3x coverage).

Balance Sheet

Dividend

What is Mission Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.81%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: TMG's dividend (3.81%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: TMG's dividend (3.81%) is low compared to the top 25% of dividend payers in the UK market (4.86%).

Stability and Growth of Payments

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

Growing Dividend: TMG's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.9%), TMG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (129.1%), TMG's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

7.8yrs

Average management tenure

CEO

James Clifton (49 yo)

3.08yrs

Tenure

UK£437,000

Compensation

Mr. James Spencer Clifton serves as the Chief Executive Officer at Fox Murphy Ltd. Mr. Clifton serves as Chief Executive Officer of balloon dog. Prior to balloon dog he worked for WPP as HSBC's North Ameri...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD549.46K) is above average for companies of similar size in the UK market ($USD319.38K).

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

Leadership Team

Experienced Management: TMG's management team is seasoned and experienced (7.8 years average tenure).

Board Members

Experienced Board: TMG's board of directors are considered experienced (9.4 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31