AIM:APH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: APH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

APH

1.7%

GB Pharmaceuticals

-2.4%

GB Market


1 Year Return

1.1%

APH

-6.0%

GB Pharmaceuticals

-8.0%

GB Market

Return vs Industry: APH exceeded the UK Pharmaceuticals industry which returned -6.2% over the past year.

Return vs Market: APH exceeded the UK Market which returned -7.5% over the past year.


Shareholder returns

APHIndustryMarket
7 Day0%1.7%-2.4%
30 Day11.5%3.6%-0.5%
90 Day18.9%3.4%18.1%
1 Year1.9%1.1%-2.5%-6.0%-4.4%-8.0%
3 Year33.1%27.5%46.6%30.5%3.7%-9.0%
5 Year92.5%76.0%70.2%36.7%43.1%15.6%

Long-Term 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?

42.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APH (£0.88) is trading below our estimate of fair value (£1.54)

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


Price To Earnings Ratio

PE vs Industry: APH is poor value based on its PE Ratio (41.7x) compared to the GB Pharmaceuticals industry average (18.1x).

PE vs Market: APH is poor value based on its PE Ratio (41.7x) compared to the UK market (22.8x).


Price to Earnings Growth Ratio

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


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 (4.9x).


Next Steps

Future Growth

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

9.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if APH's forecast earnings growth is above the savings rate (1%).

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

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

Revenue vs Market: APH's revenue (9.2% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: APH's revenue (9.2% 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 APH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alliance Pharma performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APH has a large one-off loss of £13.6M impacting its June 30 2020 financial results.

Growing Profit Margin: APH's current net profit margins (8.5%) are lower than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: APH's earnings have grown by 7.8% 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 (-48.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (21.9%).


Return on Equity

High ROE: APH's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Alliance Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: APH's short term assets (£67.9M) exceed its short term liabilities (£21.4M).

Long Term Liabilities: APH's short term assets (£67.9M) do not cover its long term liabilities (£105.8M).


Debt to Equity History and Analysis

Debt Level: APH's debt to equity ratio (26.7%) is considered satisfactory.

Reducing Debt: APH's debt to equity ratio has reduced from 37.4% to 26.7% over the past 5 years.

Debt Coverage: APH's debt is well covered by operating cash flow (44.3%).

Interest Coverage: APH's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APH's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.51%).

High Dividend: APH's dividend (1.22%) is low compared to the top 25% of dividend payers in the UK market (4.52%).


Stability and Growth of Payments

Stable Dividend: APH's dividend payments have been volatile 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 (25.4%), 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 (29.9% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Peter Butterfield (44 yo)

2.67yrs

Tenure

UK£1,734,693

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 ($USD2.38M) is above average for companies of similar size in the UK market ($USD1.03M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Butterfield
CEO & Executive Director2.67yrsUK£1.73m0.077%
£ 363.0k
Andrew Franklin
CFO & Executive Director5.33yrsUK£778.53k0.024%
£ 113.0k
Stephen Kidner
Chief Scientific & Operations Officerno datano datano data
Daniel Thomas
Chief Corporate Development Officerno datano datano data
Janice Timberlake
Chief People and Infrastructure Officerno datano datano data
Steve Lobb
Head of Hydromolno datano datano data
David Hope
Head of Secondary Careno datano datano data
Alex Duggan
Chief Commercial Officer6.67yrsno datano data
Rajiv Ghidiyal
Head of APACno datano datano data
Karim Husny
Head of International5yrsno datano data
Chris Delafield
Global Marketing Head of Kelo-Cote4yrsno datano data
Rhodri Smith
Head of Sourcingno datano datano data

5.0yrs

Average Tenure

Experienced Management: APH's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Butterfield
CEO & Executive Director2.67yrsUK£1.73m0.077%
£ 363.0k
Andrew Franklin
CFO & Executive Director5.33yrsUK£778.53k0.024%
£ 113.0k
Nigel Clifford
Independent Non-Executive Director6yrsUK£42.85k0.034%
£ 159.0k
Jo LeCouilliard
Independent Non-Executive Director2yrsUK£37.85kno data
Richard Crispin Jones
Independent Non-Executive Director2yrsUK£41.60k0.0028%
£ 13.2k
David Cook
Independent Non-Executive Chairman2.83yrsUK£76.07k0.044%
£ 206.0k

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: APH's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


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£468.969m
  • Shares outstanding: 532.92m
  • 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 distributes ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/27 20:17
End of Day Share Price2021/01/27 00:00
Earnings2020/06/30
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.