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ERM

Euromoney Institutional Investor LSE:ERM Stock Report

Last Price

UK£14.16

Market Cap

UK£1.5b

7D

29.4%

1Y

37.2%

Updated

26 Jun, 2022

Data

Company Financials +
ERM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends1/6

ERM Stock Overview

Euromoney Institutional Investor PLC, together with its subsidiaries, provides business-to-business information services in the United Kingdom, North America, and internationally.

Euromoney Institutional Investor Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Euromoney Institutional Investor
Historical stock prices
Current Share PriceUK£14.16
52 Week HighUK£14.30
52 Week LowUK£8.10
Beta0.95
1 Month Change32.58%
3 Month Change53.08%
1 Year Change37.21%
3 Year Change8.76%
5 Year Change31.97%
Change since IPO943.09%

Recent News & Updates

Shareholder Returns

ERMGB MediaGB Market
7D29.4%3.2%2.3%
1Y37.2%-21.2%-8.6%

Return vs Industry: ERM exceeded the UK Media industry which returned -21.2% over the past year.

Return vs Market: ERM exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is ERM's price volatile compared to industry and market?
ERM volatility
ERM Average Weekly Movement8.3%
Media Industry Average Movement5.7%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: ERM is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ERM's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19692,567Andrew Rashbasshttps://www.euromoneyplc.com

Euromoney Institutional Investor PLC, together with its subsidiaries, provides business-to-business information services in the United Kingdom, North America, and internationally. The company operates through three segments: Fast Markets, Financial & Professional Services, and Asset Management. The Fast Market segment provides commodity price benchmarks and analysis to its clients’ business processes and workflows in the metals, mining, forest products, and agriculture industries.

Euromoney Institutional Investor Fundamentals Summary

How do Euromoney Institutional Investor's earnings and revenue compare to its market cap?
ERM fundamental statistics
Market CapUK£1.53b
Earnings (TTM)UK£10.65m
Revenue (TTM)UK£365.16m

143.8x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERM income statement (TTM)
RevenueUK£365.16m
Cost of RevenueUK£51.83m
Gross ProfitUK£313.34m
Other ExpensesUK£302.69m
EarningsUK£10.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 22, 2022

Earnings per share (EPS)0.098
Gross Margin85.81%
Net Profit Margin2.92%
Debt/Equity Ratio0%

How did ERM perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

189%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ERM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERM?

Other financial metrics that can be useful for relative valuation.

ERM 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/Revenue4.3x
Enterprise Value/EBITDA19.9x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does ERM's PE Ratio compare to its peers?

ERM PE Ratio vs Peers
The above table shows the PE ratio for ERM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average50.2x

Price-To-Earnings vs Peers: ERM is expensive based on its Price-To-Earnings Ratio (143.8x) compared to the peer average (50.2x).


Price to Earnings Ratio vs Industry

How does ERM's PE Ratio compare vs other companies in the U.K. Media Industry?

Price-To-Earnings vs Industry: ERM is expensive based on its Price-To-Earnings Ratio (143.8x) compared to the UK Media industry average (23.4x)


Price to Earnings Ratio vs Fair Ratio

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

ERM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio143.8x
Fair PE Ratio37.4x

Price-To-Earnings vs Fair Ratio: ERM is expensive based on its Price-To-Earnings Ratio (143.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).


Share Price vs Fair Value

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

Below Fair Value: ERM (£14.16) is trading below our estimate of fair value (£25.84)

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


Price to Earnings Growth Ratio

PEG Ratio: ERM is poor value based on its PEG Ratio (3.7x)


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Future Growth

How is Euromoney Institutional Investor forecast to perform in the next 1 to 3 years based on estimates from 4 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


38.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERM's forecast earnings growth (38.6% per year) is above the savings rate (0.9%).

Earnings vs Market: ERM's earnings (38.6% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: ERM's revenue (8.8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ERM's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERM's Return on Equity is forecast to be low in 3 years time (13.7%).


Discover growth companies

Past Performance

How has Euromoney Institutional Investor performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-32.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERM has a large one-off loss of £27.4M impacting its March 31 2022 financial results.

Growing Profit Margin: ERM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ERM's earnings have declined by 32% per year over the past 5 years.

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

Earnings vs Industry: ERM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (54.9%).


Return on Equity

High ROE: ERM's Return on Equity (2.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Euromoney Institutional Investor'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: ERM's short term assets (£130.7M) do not cover its short term liabilities (£269.8M).

Long Term Liabilities: ERM's short term assets (£130.7M) exceed its long term liabilities (£85.7M).


Debt to Equity History and Analysis

Debt Level: ERM is debt free.

Reducing Debt: ERM has no debt compared to 5 years ago when its debt to equity ratio was 40.7%.

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

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


Balance Sheet


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Dividend

What is Euromoney Institutional Investor current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.31%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ERM's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: ERM's dividend (1.31%) is low compared to the top 25% of dividend payers in the UK market (5.18%).


Stability and Growth of Payments

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

Growing Dividend: ERM's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (188.9%), ERM's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (51.9%), ERM's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure


CEO

Andrew Rashbass (55 yo)

6.67yrs

Tenure

UK£2,078,946

Compensation

Mr. Andrew Rashbass has been the Chief Executive Officer of Euromoney Institutional Investor PLC since October 2015 and its Director since October 1, 2015. Mr. Rashbass served as an Executive Chairman of E...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.56M) is about average for companies of similar size in the UK market ($USD2.07M).

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


Leadership Team

Experienced Management: ERM's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ERM's board of directors are considered experienced (3.8 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.


Top Shareholders

Company Information

Euromoney Institutional Investor PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Euromoney Institutional Investor PLC
  • Ticker: ERM
  • Exchange: LSE
  • Founded: 1969
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: UK£1.531b
  • Shares outstanding: 108.09m
  • Website: https://www.euromoneyplc.com

Number of Employees


Location

  • Euromoney Institutional Investor PLC
  • 8 Bouverie Street
  • London
  • Greater London
  • EC4Y 8AX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.