Animalcare Group (AIM:ANCR) - Share price, News & Analysis

Q: What is the Fair Price of ANCR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ANCR (£2.67) is trading below our estimate of [[fair value]] (£3.46)

ANCR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	1/6

ANCR Stock Overview

Rewards

Trading at 22.8% below our estimate of its fair value

Risk Analysis

Earnings have declined by 25.8% per year over past 5 years

Animalcare Group Competitors

Allergy Therapeutics

AIM:AGY

UK£133.6m

ECO Animal Health Group

AIM:EAH

UK£76.5m

Alliance Pharma

AIM:APH

UK£604.5m

Shield Therapeutics

AIM:STX

UK£16.8m

Price History & Performance

Summary of all time highs, changes and price drops for Animalcare Group
Historical stock prices
Current Share Price	UK£2.67
52 Week High	UK£4.30
52 Week Low	UK£2.55
Beta	0.73
1 Month Change	-11.74%
3 Month Change	-20.30%
1 Year Change	-24.15%
3 Year Change	68.45%
5 Year Change	n/a
Change since IPO	-25.83%

Recent News & Updates

Jun 21

Is There An Opportunity With Animalcare Group plc's (LON:ANCR) 20% Undervaluation?

Does the June share price for Animalcare Group plc ( LON:ANCR ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

	ANCR	GB Pharmaceuticals	GB Market
7D	-2.9%	0.4%	-1.1%
1Y	-24.1%	18.7%	-9.7%

Return vs Industry: ANCR underperformed the UK Pharmaceuticals industry which returned 18.8% over the past year.

Return vs Market: ANCR underperformed the UK Market which returned -9.5% over the past year.

Price Volatility

Is ANCR's price volatile compared to industry and market?
ANCR volatility
ANCR Average Weekly Movement	2.5%
Pharmaceuticals Industry Average Movement	5.5%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

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

Volatility Over Time: ANCR's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	211	Jenny Winters	https://www.animalcaregroup.com

Animalcare Group plc engages in the development, sale, and distribution of licensed veterinary pharmaceuticals and identification products, and services for companion and production animals, and equine veterinary markets. It is also involved in the wholesale and marketing of veterinary pharmaceuticals. The company serves customers in Belgium, the Netherlands, the United Kingdom, Germany, Spain, Italy, Portugal, other European countries, Asia, the Middle East, Africa, and internationally.

Animalcare Group Fundamentals Summary

How do Animalcare Group's earnings and revenue compare to its market cap?
ANCR fundamental statistics
Market Cap	UK£160.45m
Earnings (TTM)	-UK£77.00k
Revenue (TTM)	UK£74.02m

2.2x

P/S Ratio

-2,086x

P/E Ratio

Is ANCR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ANCR income statement (TTM)
Revenue	UK£74.02m
Cost of Revenue	UK£34.61m
Gross Profit	UK£39.42m
Other Expenses	UK£39.50m
Earnings	-UK£77.00k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0013
Gross Margin	53.25%
Net Profit Margin	-0.10%
Debt/Equity Ratio	11.7%

How did ANCR perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

-3,435%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ANCR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ANCR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ANCR. This is calculated by dividing ANCR's market cap by their current preferred multiple.
What is ANCR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£160.45m

ANCR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	16x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ANCR's PS Ratio compare to its peers?

ANCR PS Ratio vs Peers

The above table shows the PS ratio for ANCR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4.3x
AGY Allergy Therapeutics	1.7x	5.2%	UK£133.6m
EAH ECO Animal Health Group	0.8x	3.0%	UK£76.5m
APH Alliance Pharma	3.7x	8.3%	UK£604.5m
STX Shield Therapeutics	11x	69.9%	UK£16.8m
ANCR Animalcare Group	2.2x	3.2%	UK£160.4m

Forward PS

Price-To-Sales vs Peers: ANCR is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (4.3x).

Price to Earnings Ratio vs Industry

How does ANCR's PE Ratio compare vs other companies in the GB Pharmaceuticals Industry?

Price-To-Sales vs Industry: ANCR is good value based on its Price-To-Sales Ratio (2.2x) compared to the UK Pharmaceuticals industry average (4.9x)

Price to Sales Ratio vs Fair Ratio

What is ANCR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ANCR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.2x
Fair PS Ratio	3.4x

Price-To-Sales vs Fair Ratio: ANCR is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).

Share Price vs Fair Value

What is the Fair Price of ANCR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ANCR (£2.67) is trading below our estimate of fair value (£3.46)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.2%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ANCR's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if ANCR's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if ANCR's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ANCR's revenue (3.2% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: ANCR's revenue (3.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ANCR's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Animalcare Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ANCR is currently unprofitable.

Growing Profit Margin: ANCR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ANCR is unprofitable, and losses have increased over the past 5 years at a rate of 25.8% per year.

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

Earnings vs Industry: ANCR is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (2.2%).

Return on Equity

High ROE: ANCR has a negative Return on Equity (-0.097%), as it is currently unprofitable.

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Financial Health

How is Animalcare Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ANCR's short term assets (£24.3M) exceed its short term liabilities (£14.5M).

Long Term Liabilities: ANCR's short term assets (£24.3M) exceed its long term liabilities (£16.8M).

Debt to Equity History and Analysis

Debt Level: ANCR's net debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: ANCR's debt to equity ratio has reduced from 123.5% to 11.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ANCR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ANCR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 36.1% per year.

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Dividend

What is Animalcare Group current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ANCR's dividend (1.8%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.91%).

High Dividend: ANCR's dividend (1.8%) is low compared to the top 25% of dividend payers in the UK market (5.28%).

Stability and Growth of Payments

Stable Dividend: ANCR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ANCR's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: ANCR is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.7%), ANCR's dividend payments are well covered by cash flows.

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Management

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

4.9yrs

Average management tenure

CEO

Jenny Winters (62 yo)

3.67yrs

Tenure

UK£473,000

Compensation

Ms. Jennifer Ann Julia Winters, also known as Jenny, BSc, serves as an Independent Non-Executive Director at EKF Diagnostics Holdings plc since February 1, 2022. She serves as Chief Executive Officer at An...

CEO Compensation Analysis

Compensation vs Market: Jenny's total compensation ($USD569.02K) is about average for companies of similar size in the UK market ($USD696.27K).

Compensation vs Earnings: Jenny's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: ANCR's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: ANCR's board of directors are considered experienced (4.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31