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ERM

Euromoney Institutional Investor LSE:ERM Stock Report

Last Price

UK£10.02

Market Cap

UK£1.1b

7D

-3.3%

1Y

-1.2%

Updated

25 May, 2022

Data

Company Financials +
ERM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends3/6

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£10.02
52 Week HighUK£11.24
52 Week LowUK£8.10
Beta0.95
1 Month Change4.38%
3 Month Change13.48%
1 Year Change-1.18%
3 Year Change-24.43%
5 Year Change-12.87%
Change since IPO638.12%

Recent News & Updates

Feb 17
Is Now The Time To Look At Buying Euromoney Institutional Investor PLC (LON:ERM)?

Is Now The Time To Look At Buying Euromoney Institutional Investor PLC (LON:ERM)?

Euromoney Institutional Investor PLC ( LON:ERM ), is not the largest company out there, but it received a lot of...

Shareholder Returns

ERMGB MediaGB Market
7D-3.3%-3.1%1.0%
1Y-1.2%-16.4%-2.8%

Return vs Industry: ERM exceeded the UK Media industry which returned -16.5% over the past year.

Return vs Market: ERM exceeded the UK Market which returned -3% over the past year.

Price Volatility

Is ERM's price volatile compared to industry and market?
ERM volatility
ERM Average Weekly Movement4.3%
Media Industry Average Movement6.9%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.4%
10% least volatile stocks in GB Market3.0%

Stable Share Price: ERM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ERM's weekly volatility (4%) has been stable over the past year.

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£1.08b
Earnings (TTM)UK£10.65m
Revenue (TTM)UK£365.16m

101.7x

P/E Ratio

3.0x

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

2.5%

Current Dividend Yield

189%

Payout Ratio

Does ERM pay a reliable dividends?

See ERM dividend history and benchmarks
When do you need to buy ERM by to receive an upcoming dividend?
Euromoney Institutional Investor dividend dates
Ex Dividend DateMay 26 2022
Dividend Pay DateJun 24 2022
Days until Ex dividend0 days
Days until Dividend pay date29 days

Does ERM pay a reliable dividends?

See ERM dividend history and benchmarks

Valuation

Is Euromoney Institutional Investor undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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: ERM (£10.02) is trading below our estimate of fair value (£24.76)

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


Price To Earnings Ratio

PE vs Industry: ERM is poor value based on its Price-To-Earnings Ratio (101.7x) compared to the UK Media industry average (25.4x).

PE vs Market: ERM is poor value based on its Price-To-Earnings Ratio (101.7x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: ERM is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: ERM is overvalued based on its Price-To-Book Ratio (2.2x) compared to the GB Media industry average (1.8x).


Future Growth

How is Euromoney Institutional Investor forecast to perform in the next 1 to 3 years based on estimates from 5 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


40.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERM's forecast earnings growth (40.1% per year) is above the savings rate (0.9%).

Earnings vs Market: ERM's earnings (40.1% per year) are forecast to grow faster than the UK market (11.3% per year).

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

Revenue vs Market: ERM's revenue (8.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ERM's revenue (8.4% 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 (14%).


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 (68.4%).


Return on Equity

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


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


Dividend

What is Euromoney Institutional Investor 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


2.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ERM's dividend (2.5%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: ERM's dividend (2.5%) is low compared to the top 25% of dividend payers in the UK market (4.82%).


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 increased 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 (69.7%), 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?

4.0yrs

Average management tenure


CEO

Andrew Rashbass (55 yo)

6.58yrs

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 ($USD2.61M) is above average for companies of similar size in the UK market ($USD1.87M).

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 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£1.083b
  • 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 Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 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.