LSE:FUTR

Stock Analysis Report

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Executive Summary

Future plc, together with its subsidiaries, publishes content for technology, gaming and entertainment, music, creative and photography, home interest, education, and television, as well as hobbies and knowledge, and B2B sectors primarily in the United States and the United Kingdom.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FUTR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

FUTR

6.9%

GB Media

2.6%

GB Market


1 Year Return

49.1%

FUTR

-32.7%

GB Media

-10.3%

GB Market

Return vs Industry: FUTR exceeded the UK Media industry which returned -34.7% over the past year.

Return vs Market: FUTR exceeded the UK Market which returned -11.5% over the past year.


Shareholder returns

FUTRIndustryMarket
7 Day5.9%6.9%2.6%
30 Day25.8%4.5%2.3%
90 Day55.2%16.0%6.9%
1 Year49.2%49.1%-30.5%-32.7%-6.7%-10.3%
3 Year454.5%370.8%-35.6%-44.4%-3.9%-15.4%
5 Year1,021.4%852.3%-33.8%-48.5%16.9%-9.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FUTR (£14.82) is trading below our estimate of fair value (£17.81)

Significantly Below Fair Value: FUTR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FUTR is poor value based on its PE Ratio (60.6x) compared to the GB Media industry average (15.1x).

PE vs Market: FUTR is poor value based on its PE Ratio (60.6x) compared to the UK market (16x).


Price to Earnings Growth Ratio

PEG Ratio: FUTR is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: FUTR is overvalued based on its PB Ratio (3.8x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is Future forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUTR's forecast earnings growth (25.7% per year) is above the savings rate (1.2%).

Earnings vs Market: FUTR's earnings (25.7% per year) are forecast to grow faster than the UK market (23% per year).

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

Revenue vs Market: FUTR's revenue (15.3% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: FUTR's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FUTR's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Future performed over the past 5 years?

67.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FUTR has a large one-off loss of £12.8M impacting its March 31 2020 financial results.

Growing Profit Margin: FUTR's current net profit margins (8.4%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: FUTR has become profitable over the past 5 years, growing earnings by 67.1% per year.

Accelerating Growth: FUTR's earnings growth over the past year (208.3%) exceeds its 5-year average (67.1% per year).

Earnings vs Industry: FUTR earnings growth over the past year (208.3%) exceeded the Media industry -3.5%.


Return on Equity

High ROE: FUTR's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Future's financial position?


Financial Position Analysis

Short Term Liabilities: FUTR's short term assets (£231.8M) exceed its short term liabilities (£78.5M).

Long Term Liabilities: FUTR's short term assets (£231.8M) exceed its long term liabilities (£146.8M).


Debt to Equity History and Analysis

Debt Level: FUTR's debt to equity ratio (35.1%) is considered satisfactory.

Reducing Debt: FUTR's debt to equity ratio has increased from 0.1% to 35.1% over the past 5 years.

Debt Coverage: FUTR's debt is well covered by operating cash flow (43.8%).

Interest Coverage: FUTR's interest payments on its debt are well covered by EBIT (26.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Future current dividend yield, its reliability and sustainability?

0.067%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FUTR's dividend (0.067%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: FUTR's dividend (0.067%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: FUTR is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: FUTR is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FUTR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FUTR'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?

1.1yrs

Average management tenure


CEO

Zillah Byng-Thorne (45 yo)

6.33yrs

Tenure

UK£5,678,000

Compensation

Ms. Zillah Byng-Thorne has been an Independent Non-Executive Director of Flutter Entertainment plc (formerly known as Paddy Power Betfair plc) since February 2, 2016. She has been the Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Zillah's total compensation ($USD7.43M) is above average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zillah Byng-Thorne
CEO & Executive Director6.33yrsUK£5.68m0.49%
£ 7.0m
Penelope Ladkin-Brand
Chief Strategy Officer0.17yrUK£3.87m0.55%
£ 7.8m
Rachel Addison
Chief Financial Officer0.17yrno datano data
Claire Maclellan
Chief Operating Officer1.08yrsno datano data
Li Ying Kevin
Chief Technology Officerno datano datano data
Sophie Wybrew-Bond
Group Marketing Director0.42yrno datano data
Daniel Dawkins
Global Editor In Chief of Gamesradar+no datano datano data
Neville Daniels
Managing Director of Australiano datano datano data
Aaron Asadi
Managing Director of eCommerce1.58yrsno datano data
Ben Greenish
Managing Director Commercial & Home Interestno datano datano data
Luke Edson
U.S. Chief Revenue Officer2.58yrsno datano data
Jason MacLellan
Senior Vice President of Operations & IT1.08yrsno datano data

1.1yrs

Average Tenure

Experienced Management: FUTR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zillah Byng-Thorne
CEO & Executive Director6.33yrsUK£5.68m0.49%
£ 7.0m
Richard Norman Huntingford
Independent Non-Executive Chairman2.5yrsUK£120.00k0.025%
£ 363.0k
Hugo Drayton
Senior Independent Non-Executive Director1.83yrsUK£53.00kno data
Alan Philip Newman
Independent Non-Executive Director2.5yrsUK£50.00k0.0090%
£ 129.7k
Meredith Amdur
Independent Non-Executive Director0.50yrno datano data
Rob Hattrell
Non-Executive Director1.83yrsUK£45.00kno data

2.2yrs

Average Tenure

62yo

Average Age

Experienced Board: FUTR's board of directors are not considered experienced ( 2.2 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 diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

Future plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Future plc
  • Ticker: FUTR
  • Exchange: LSE
  • Founded: 1985
  • Industry: Publishing
  • Sector: Media
  • Market Cap: UK£1.435b
  • Shares outstanding: 96.83m
  • Website: https://www.futureplc.com

Number of Employees


Location

  • Future plc
  • Quay House
  • The Ambury
  • Bath
  • Somerset
  • BA1 1UA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRNW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1999
FUTRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1999
FNWADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1999
FUTRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1999

Biography

Future plc, together with its subsidiaries, publishes content for technology, gaming and entertainment, music, creative and photography, home interest, education, and television, as well as hobbies and kno ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:31
End of Day Share Price2020/08/11 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.