AIM:APH

Stock Analysis Report

Executive Summary

Alliance Pharma plc operates as a pharmaceutical company in the United Kingdom, Republic of Ireland, Mainland Europe, the United States, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.6%

APH

-1.6%

GB Pharmaceuticals

-0.4%

GB Market


1 Year Return

8.2%

APH

11.7%

GB Pharmaceuticals

2.9%

GB Market

Return vs Industry: APH underperformed the UK Pharmaceuticals industry which returned 11.7% over the past year.

Return vs Market: APH exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

APHIndustryMarket
7 Day-6.6%-1.6%-0.4%
30 Day0%-5.3%-1.4%
90 Day1.4%5.4%-2.1%
1 Year10.4%8.2%15.1%11.7%8.0%2.9%
3 Year63.0%53.5%44.2%30.1%18.0%3.6%
5 Year146.2%120.2%83.8%53.5%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APH (£0.71) is trading below our estimate of fair value (£1.25)

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


Price To Earnings Ratio

PE vs Industry: APH is good value based on its PE Ratio (17.2x) compared to the Pharmaceuticals industry average (21.4x).

PE vs Market: APH is poor value based on its PE Ratio (17.2x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: APH is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: APH is good value based on its PB Ratio (1.4x) compared to the GB Pharmaceuticals industry average (2.6x).


Next Steps

Future Growth

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

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APH's forecast earnings growth (14.1% per year) is above the savings rate (1.2%).

Earnings vs Market: APH's earnings (14.1% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: APH's earnings are forecast to grow, but not significantly.

Revenue vs Market: APH's revenue (7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: APH's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APH's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Alliance Pharma performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APH's earnings have grown significantly by 20.6% per year over the past 5 years.

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

Earnings vs Industry: APH had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (6.9%).


Return on Equity

High ROE: APH's Return on Equity (8.3%) is considered low.


Return on Assets

ROA vs Industry: APH's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: APH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Alliance Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: APH's short term assets (£60.3M) do not cover its short term liabilities (£94.2M)

Long Term Liabilities: APH's short term assets (60.3M) exceeds its long term liabilities (55.2M)


Debt to Equity History and Analysis

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

Reducing Debt: APH's debt to equity ratio has reduced from 38.6% to 35.1% over the past 5 years.

Debt Coverage: APH's debt is well covered by operating cash flow (30.1%).

Interest Coverage: APH's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

2.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Alliance Pharma before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.1%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: APH's dividend (2.06%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: APH's dividend (2.06%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: APH's dividends per share have been stable in the past 10 years.

Growing Dividend: APH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), APH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APH's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Peter Butterfield (43yo)

1.4yrs

Tenure

UK£328,988

Compensation

Mr. Peter Jonathan Butterfield has been Chief Executive Officer of Alliance Pharma plc since May 01, 2018. Mr. Butterfield served as Deputy Chief Executive Officer and Chief Operating Officer of Alliance P ...


CEO Compensation Analysis

Compensation vs. Market: Peter has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

3.9yrs

Average Tenure

Experienced Management: APH's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

Experienced Board: APH's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

BuyUK£9,79223 Jan 19
Richard Crispin Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceUK£0.65
SellUK£771,10012 Nov 18
John Dawson
EntityIndividual
Shares1,100,000
Max PriceUK£0.70

Ownership Breakdown


Management Team

  • Peter Butterfield (43yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£328.99k
  • Dan Thomas

    Chief Corporate Development Officer

    • Tenure: 0yrs
  • Janice Timberlake

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Stephen Kidner

    Chief Scientific & Operations Officer

    • Tenure: 0yrs
  • Steve Lobb

    Head of Hydromol

    • Tenure: 0yrs
  • David Hope

    Head of Secondary Care

    • Tenure: 0yrs
  • Alex Duggan

    Chief Commercial Officer

    • Tenure: 5.4yrs
  • Rajiv Ghidiyal

    Head of APAC

    • Tenure: 0yrs
  • Andrew Franklin (53yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£241.90k
  • Karim Husny

    Head of International

    • Tenure: 3.8yrs

Board Members

  • Nigel Clifford (60yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£41.07k
  • Jo LeCouilliard (56yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Richard Crispin Jones (53yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • David Cook (52yo)

    Independent Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£72.34k
  • Peter Butterfield (43yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£328.99k
  • Andrew Franklin (53yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£241.90k

Company Information

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


Key Information

  • Name: Alliance Pharma plc
  • Ticker: APH
  • Exchange: AIM
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£371.113m
  • Shares outstanding: 522.69m
  • Website: https://www.alliancepharmaceuticals.com

Number of Employees


Location

  • Alliance Pharma plc
  • Avonbridge House
  • Bath Road
  • Chippenham
  • Wiltshire
  • SN15 2BB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2003
DVLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2003

Biography

Alliance Pharma plc operates as a pharmaceutical company in the United Kingdom, Republic of Ireland, Mainland Europe, the United States, and internationally. The company acquires, markets, and sells pharma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:42
End of Day Share Price2019/10/18 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.