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.

Rewards

Trading at 47% below its fair value

Earnings are forecast to grow 15.58% per year

Pays a reliable dividend of 1.71%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


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

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


Market Performance


7 Day Return

-1.0%

APH

-3.3%

GB Pharmaceuticals

-0.2%

GB Market


1 Year Return

29.0%

APH

10.8%

GB Pharmaceuticals

6.1%

GB Market

Return vs Industry: APH exceeded the UK Pharmaceuticals industry which returned 10.8% over the past year.

Return vs Market: APH exceeded the UK Market which returned 6.1% over the past year.


Shareholder returns

APHIndustryMarket
7 Day-1.0%-3.3%-0.2%
30 Day0.9%-8.0%-2.7%
90 Day14.3%-1.4%3.9%
1 Year31.6%29.0%15.2%10.8%11.8%6.1%
3 Year87.7%77.0%38.5%23.1%17.5%2.6%
5 Year167.1%139.7%62.5%31.4%34.8%3.7%

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?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APH (£0.85) is trading below our estimate of fair value (£1.61)

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 (20.6x) compared to the Pharmaceuticals industry average (21x).

PE vs Market: APH is poor value based on its PE Ratio (20.6x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: APH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: APH is good value based on its PB Ratio (1.7x) compared to the GB Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APH's forecast earnings growth (15.6% per year) is above the savings rate (0.5%).

Earnings vs Market: APH's earnings (15.6% per year) are forecast to grow faster than the UK market (12.2% per year).

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

Revenue vs Market: APH's revenue (6.2% per year) is forecast to grow faster than the UK market (3.4% per year).

High Growth Revenue: APH's revenue (6.2% 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 (10.2%).


Next Steps

Past Performance

How has Alliance Pharma performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APH has high quality earnings.

Growing Profit Margin: APH's current net profit margins (16.5%) are lower than last year (22.9%).


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 (-12.4%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed 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?

1.71%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.8%markettop25%5.1%industryaverage3.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: APH's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: APH's dividend (1.71%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

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 (32.4% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Peter Butterfield (43yo)

1.8yrs

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's total compensation ($USD428.57K) is below average for companies of similar size in the UK market ($USD850.27K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Butterfield
CEO & Executive Director1.8yrsUK£328.99k0.071% £319.7k
Andrew Franklin
CFO & Executive Director4.4yrsUK£241.90k0.024% £109.7k
Stephen Kidner
Chief Scientific & Operations Officer0yrsno datano data
Daniel Thomas
Chief Corporate Development Officer0yrsno datano data
Janice Timberlake
Chief Human Resources Officer0yrsno datano data
Steve Lobb
Head of Hydromol0yrsno datano data
David Hope
Head of Secondary Care0yrsno datano data
Alex Duggan
Chief Commercial Officer5.8yrsno datano data
Rajiv Ghidiyal
Head of APAC0yrsno datano data
Karim Husny
Head of International4.1yrsno datano data

4.3yrs

Average Tenure

Experienced Management: APH's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Butterfield
CEO & Executive Director1.8yrsUK£328.99k0.071% £319.7k
Andrew Franklin
CFO & Executive Director4.4yrsUK£241.90k0.024% £109.7k
Nigel Clifford
Independent Non-Executive Director5.1yrsUK£41.07k0.034% £154.3k
Jo LeCouilliard
Independent Non-Executive Director1.1yrsno datano data
Richard Crispin Jones
Independent Non-Executive Director1.1yrsno data0.0028% £12.8k
David Cook
Independent Non-Executive Chairman1.9yrsUK£72.34k0.019% £87.4k

3.2yrs

Average Tenure

53yo

Average Age

Experienced Board: APH's board of directors are considered experienced (3.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

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£452.184m
  • Shares outstanding: 529.49m
  • 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 pharmaceutical and healthcare products. It owns or licenses the rights to approximately 90 pharmaceutical and consumer healthcare products. The company also provides prescription only medicines, over the counter medications, cosmetics, and nutritional supplements, as well as medical devices. In addition, it offers products in various therapeutic areas, including acquired healthcare, cardiovascular, central nervous system, child health, consumer health, dermatology, endocrinology, gastroenterology, obstetrics and gynecology, oral health, oncology, stoma care, toxicology, travel health, urology, vitamins and minerals, and others. Further, the company provides its products under the Kelo-Cote, Nizoral, MacuShield, Vamousse, Xonvea, Flamma Franchise, Aloclair, Hydromol, Forceval, Haemopressin, Optiflo, Oxyplastine, Ashton & Parsons, and Ametop brand names. The company distributes its products through wholesalers, retail pharmacies, hospitals, and network of distributors. Alliance Pharma plc was founded in 1996 and is headquartered in Chippenham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:42
End of Day Share Price2020/02/14 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.