LSE:SFOR

Stock Analysis Report

Executive Summary

S4 Capital plc, together with its subsidiaries, operates as a digital advertising and marketing services company in the Americas, Europe, the Middle East, and the Asia Pacific.


Snowflake Analysis

Excellent balance sheet with high growth potential.

Share Price & News

How has S4 Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

SFOR

-7.1%

GB Media

0.1%

GB Market


1 Year Return

8.6%

SFOR

-41.0%

GB Media

-23.6%

GB Market

Return vs Industry: SFOR exceeded the UK Media industry which returned -43.6% over the past year.

Return vs Market: SFOR exceeded the UK Market which returned -25.9% over the past year.


Shareholder returns

SFORIndustryMarket
7 Day-4.3%-7.1%0.1%
30 Day-20.3%-29.1%-15.5%
90 Day-23.8%-47.1%-27.0%
1 Year8.6%8.6%-38.7%-41.0%-19.8%-23.6%
3 Yearn/a-47.2%-53.8%-13.5%-24.3%
5 Yearn/a-48.4%-59.1%-1.6%-23.5%

Price Volatility Vs. Market

How volatile is S4 Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S4 Capital 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: SFOR (£1.46) is trading below our estimate of fair value (£3.55)

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


Price To Earnings Ratio

PE vs Industry: SFOR is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: SFOR is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SFOR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFOR is overvalued based on its PB Ratio (1.2x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is S4 Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

33.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFOR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: SFOR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SFOR's is expected to become profitable in the next 3 years.

Revenue vs Market: SFOR's revenue (21.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: SFOR's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFOR's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has S4 Capital performed over the past 5 years?

27.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SFOR is currently unprofitable.

Growing Profit Margin: SFOR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if SFOR's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare SFOR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SFOR is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-1.8%).


Return on Equity

High ROE: SFOR has a negative Return on Equity (-2.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is S4 Capital's financial position?


Financial Position Analysis

Short Term Liabilities: SFOR's short term assets (£192.5M) exceed its short term liabilities (£183.9M).

Long Term Liabilities: SFOR's short term assets (£192.5M) exceed its long term liabilities (£124.3M).


Debt to Equity History and Analysis

Debt Level: SFOR's debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SFOR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SFOR's debt is well covered by operating cash flow (58%).

Interest Coverage: SFOR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is S4 Capital's current dividend yield, its reliability and sustainability?

3.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SFOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SFOR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFOR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFOR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

1.3yrs

Average board tenure


CEO

S4 Capital has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Martin Sorrell
Executive Chairman1.58yrsUK£140.00k11.15% £75.4m
Peter Rademaker
Executive Director & Group CFO1.33yrsUK£19.00k0.18% £1.2m
Wesley ter Haar
Executive Director1.33yrsUK£14.00kno data
Victor Knaap
Executive Director1.33yrsUK£14.00kno data
Sung Pyo Kim
Executive Director1.33yrsUK£3.00k2.09% £14.1m
Christopher Martin
Executive Director1.33yrsUK£3.00k1.84% £12.4m
Scott Spirit
Chief Growth Officer & Director0.75yrno data0.035% £234.8k
Daniel Pinto
Non-Executive Director1.33yrsUK£500.000.0048% £32.5k
Paul Roy
Non-Executive Director1.58yrsUK£6.00k0.41% £2.8m
Rupert Walker
Non-Executive Director1.58yrsUK£6.00k0.33% £2.3m

1.3yrs

Average Tenure

52yo

Average Age

Experienced Board: SFOR's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 48.5%.


Top Shareholders

Company Information

S4 Capital plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S4 Capital plc
  • Ticker: SFOR
  • Exchange: LSE
  • Founded:
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£676.408m
  • Shares outstanding: 464.89m
  • Website: https://www.s4capital.com

Number of Employees


Location

  • S4 Capital plc
  • 12 St. James's Place
  • London
  • Greater London
  • SW1A 1NX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFORLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2018
SCPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2018
9S4BST (Boerse-Stuttgart)YesOrdinary SharesDEEURSep 2018

Biography

S4 Capital plc, together with its subsidiaries, operates as a digital advertising and marketing services company in the Americas, Europe, the Middle East, and the Asia Pacific. It operates through Assets at Scale, Platform and E-Commerce, Creative Content and Innovation, and Media Planning and Buying segments. The Assets at Scale segment creates dynamic and data-driven content for global brands. The Platform and E-Commerce segment designs and develops branded e-commerce and apps. The Creative Content and Innovation segment produces digital content and films using and adapting the latest technology and trends, such as artificial intelligence, voice, augmented reality, and virtual reality. The Media Planning and Buying segment offers campaign management analytics, creative production and ad serving, and training and education, as well as platform and systems integration and transition services. The company 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 Analysis2020/04/07 01:15
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.