LSE:HNT

Stock Analysis Report

Executive Summary

Huntsworth plc, together with its subsidiaries, operates as a healthcare and communications company in the United Kingdom and rest of Europe, the United States, and internationally.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HNT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

HNT

-0.09%

GB Media

-0.5%

GB Market


1 Year Return

-17.2%

HNT

3.2%

GB Media

3.7%

GB Market

Return vs Industry: HNT underperformed the UK Media industry which returned 3.2% over the past year.

Return vs Market: HNT underperformed the UK Market which returned 3.7% over the past year.


Shareholder returns

HNTIndustryMarket
7 Day-3.7%-0.09%-0.5%
30 Day-2.0%2.4%2.0%
90 Day-11.1%2.8%5.6%
1 Year-15.1%-17.2%7.2%3.2%9.2%3.7%
3 Year141.4%123.3%0.04%-12.5%23.4%7.7%
5 Year127.7%96.0%13.3%-9.7%34.2%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HNT (£0.88) is trading below our estimate of fair value (£1.66)

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


Price To Earnings Ratio

PE vs Industry: HNT is poor value based on its PE Ratio (26.5x) compared to the Media industry average (19.7x).

PE vs Market: HNT is poor value based on its PE Ratio (26.5x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: HNT is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HNT is overvalued based on its PB Ratio (1.8x) compared to the GB Media industry average (1.3x).


Next Steps

Future Growth

How is Huntsworth forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNT's forecast earnings growth (27.4% per year) is above the savings rate (1.2%).

Earnings vs Market: HNT's earnings (27.4% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: HNT's revenue (7.3% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: HNT's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HNT's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Huntsworth performed over the past 5 years?

58.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNT has a high level of non-cash earnings.

Growing Profit Margin: HNT's current net profit margins (4.7%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: HNT's earnings have grown significantly by 58.9% per year over the past 5 years.

Accelerating Growth: HNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HNT had negative earnings growth (-36.1%) over the past year, making it difficult to compare to the Media industry average (3.7%).


Return on Equity

High ROE: HNT's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Huntsworth's financial position?


Financial Position Analysis

Short Term Liabilities: HNT's short term assets (£123.9M) exceeds its short term liabilities (£104.0M)

Long Term Liabilities: HNT's short term assets (123.9M) do not cover its long term liabilities (217.2M)


Debt to Equity History and Analysis

Debt Level: HNT's debt to equity ratio (51.4%) is considered high

Reducing Debt: HNT's debt to equity ratio has increased from 17.9% to 51.4% over the past 5 years.

Debt Coverage: HNT's debt is well covered by operating cash flow (29.9%).

Interest Coverage: HNT's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HNT's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.61%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.0%markettop25%5.3%industryaverage4.0%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: HNT's dividend (2.61%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: HNT's dividend (2.61%) is low compared to the top 25% of dividend payers in the UK market (5.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.5%), HNT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HNT's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Paul Taaffe 0

4.6yrs

Tenure

UK£2,714,000

Compensation

Mr. Paul Taaffe has been the Chief Executive Officer of Huntsworth plc since April 07, 2015. Mr. Taaffe served as the Chairman and Chief Executive Officer of Hill & Knowlton Ltd. until January 2011. Mr. Ta ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD3.49M) is above average for companies of similar size in the UK market ($USD894.05K).

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


Management Age and Tenure

0.3yrs

Average Tenure

Experienced Management: HNT's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: HNT's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Management Team

  • Tom Chandos (66yo)

    Head of Media Sector - Grayling

    • Tenure: 0yrs
  • Paul Taaffe

    CEO & Director

    • Tenure: 4.6yrs
    • Compensation: UK£2.71m
  • Neil Jones (53yo)

    COO & Director

    • Tenure: 0yrs
    • Compensation: UK£1.96m
  • Martin Morrow

    Company Secretary

    • Tenure: 6.9yrs
  • Theresa Dolge

    Executive VP & Chief Media Relations Officer

    • Tenure: 0yrs
  • Helen Apostolidis

    Chief Talent Officer

    • Tenure: 0.3yrs
  • Ben Jackson

    CFO & Director

    • Tenure: 0.08yrs

Board Members

  • Paul Taaffe

    CEO & Director

    • Tenure: 4.6yrs
    • Compensation: UK£2.71m
  • Andy Boland (48yo)

    Senior Independent Director

    • Tenure: 1.8yrs
  • David Lowden (62yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
  • Neil Jones (53yo)

    COO & Director

    • Tenure: 0yrs
    • Compensation: UK£1.96m
  • Nicky Dulieu (55yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
  • Liz Anderson (62yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
  • Pat Billingham

    Independent Non-Executive Director

    • Tenure: 3.9yrs
  • Ben Jackson

    CFO & Director

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: Huntsworth plc
  • Ticker: HNT
  • Exchange: LSE
  • Founded: 1983
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£325.902m
  • Shares outstanding: 369.50m
  • Website: https://www.huntsworth.com

Number of Employees


Location

  • Huntsworth plc
  • 26 Southampton Buildings
  • 8th Floor
  • London
  • Greater London
  • WC2A 1AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
HWTF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HNTlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Huntsworth plc, together with its subsidiaries, operates as a healthcare and communications company in the United Kingdom and rest of Europe, the United States, and internationally. The company operates th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 20:38
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.