LSE:HYVE

Stock Analysis Report

Executive Summary

Hyve Group Plc engages in the organization of trade exhibitions, conferences, and related activities.

Rewards

Trading at 82.9% below its fair value

Earnings are forecast to grow 70.63% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 12.64% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

16.8%

HYVE

11.1%

GB Media

10.0%

GB Market


1 Year Return

-72.2%

HYVE

-35.4%

GB Media

-23.0%

GB Market

Return vs Industry: HYVE underperformed the UK Media industry which returned -33.8% over the past year.

Return vs Market: HYVE underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

HYVEIndustryMarket
7 Day16.8%11.1%10.0%
30 Day-74.4%-29.0%-17.6%
90 Day-80.6%-43.3%-27.3%
1 Year-71.4%-72.2%-32.7%-35.4%-18.9%-23.0%
3 Year-78.7%-87.8%-42.9%-50.2%-12.9%-24.2%
5 Year-80.4%-89.6%-43.1%-54.8%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HYVE (£0.2) is trading below our estimate of fair value (£1.16)

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


Price To Earnings Ratio

PE vs Industry: HYVE is poor value based on its PE Ratio (46.4x) compared to the Media industry average (17.3x).

PE vs Market: HYVE is poor value based on its PE Ratio (46.4x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: HYVE is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HYVE is good value based on its PB Ratio (0.5x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is Hyve Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

70.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HYVE's forecast earnings growth (70.6% per year) is above the savings rate (0.5%).

Earnings vs Market: HYVE's earnings (70.6% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: HYVE's revenue (9.4% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: HYVE's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HYVE's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Hyve Group performed over the past 5 years?

-58.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HYVE has a large one-off loss of £12.5M impacting its September 30 2019 financial results.

Growing Profit Margin: HYVE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HYVE's earnings have declined by -58.6% per year over the past 5 years.

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

Earnings vs Industry: HYVE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-1.8%).


Return on Equity

High ROE: HYVE's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is Hyve Group's financial position?


Financial Position Analysis

Short Term Liabilities: HYVE's short term assets (£95.4M) do not cover its short term liabilities (£145.8M).

Long Term Liabilities: HYVE's short term assets (£95.4M) do not cover its long term liabilities (£169.8M).


Debt to Equity History and Analysis

Debt Level: HYVE's debt to equity ratio (45%) is considered high.

Reducing Debt: HYVE's debt to equity ratio has increased from 41% to 45% over the past 5 years.

Debt Coverage: HYVE's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: HYVE's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: HYVE's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

12.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HYVE's dividend (12.64%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: HYVE's dividend (12.64%) is in the top 25% of dividend payers in the UK market (7.3%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (587%), HYVE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HYVE's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Mark Shashoua (49yo)

3.5s

Tenure

UK£823,000

Compensation

Mr. Mark Shashoua has been the Chief Executive Officer and Executive Director of ITE Group plc since September 1, 2016. Mr. Shashoua served as the Chief Executive Officer at i2i Events Group from November  ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.02M) is above average for companies of similar size in the UK market ($USD761.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Shashoua
CEO & Executive Director3.5yrsUK£823.00k0.23% £370.8k
Andrew Beach
CFO & Director3.42yrsUK£455.00k0.020% £31.6k
John Gulliver
Chief Operating Officerno datano datano data
Melissa McVeigh
Director of Communicationsno datano datano data
Martin Beck
Head of Salesno datano datano data
Lydia Matthews
Head of Contentno datano datano data
Karin Hausmann
Head of Lead Generationno datano datano data
Iain Scotland
Head of Customer Successno datano datano data
Corina Hedley
Head of Event Operationno datano datano data
Jared S. Cranney
Company Secretary0.33yrno datano data

3.4yrs

Average Tenure

Experienced Management: HYVE's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Shashoua
CEO & Executive Director3.5yrsUK£823.00k0.23% £370.8k
Andrew Beach
CFO & Director3.42yrsUK£455.00k0.020% £31.6k
Nicholas Backhouse
Independent Non-Executive Director0.83yrUK£20.00k0.0062% £9.9k
Richard Last
Independent Non-Executive Chairman2yrsUK£173.00k0.074% £118.7k
Stephen Puckett
Senior Independent Non-Executive Director1.17yrsUK£61.00k0.0034% £5.4k
Sharon Baylay
Independent Non-Executive Director5.92yrsUK£57.00k0.0035% £5.6k

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: HYVE's board of directors are not considered experienced ( 2.7 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: HYVE 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 47.6%.


Top Shareholders

Company Information

Hyve Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hyve Group Plc
  • Ticker: HYVE
  • Exchange: LSE
  • Founded: 1985
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£160.867m
  • Shares outstanding: 813.28m
  • Website: https://www.hyve.group

Number of Employees


Location

  • Hyve Group Plc
  • 2 Kingdom Street
  • London
  • Greater London
  • W2 6JG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYVELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
ITEP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
IEGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ITEG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJun 2013

Biography

Hyve Group Plc engages in the organization of trade exhibitions, conferences, and related activities. The company serves technology, beauty and healthcare, building and interior, education technology, energy, fashion, food and packaging, manufacturing industrial technology, retail, transport and logistic, travel and tourism, and other sectors. It operates in Asia, central Asia, Eastern and Southern Europe, Russia, the United Kingdom, and internationally. The company was formerly known as ITE Group plc and changed its name to Hyve Group Plc in September 2019. Hyve Group Plc was incorporated in 1985 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:53
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
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.