AIM:ERGO

Stock Analysis Report

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Executive Summary

Ergomed plc, together with its subsidiaries, provides clinical trial planning, management, and monitoring; and drug safety and medical information services in the United Kingdom and Rest of Europe, the Middle East, Africa, North America, Asia, and Australia.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

ERGO

0.2%

GB Life Sciences

-1.5%

GB Market


1 Year Return

74.0%

ERGO

-5.9%

GB Life Sciences

-14.9%

GB Market

Return vs Industry: ERGO exceeded the UK Life Sciences industry which returned -6.5% over the past year.

Return vs Market: ERGO exceeded the UK Market which returned -15.5% over the past year.


Shareholder returns

ERGOIndustryMarket
7 Day-1.0%0.2%-1.5%
30 Day11.8%4.4%0.9%
90 Day4.9%16.8%7.5%
1 Year74.0%74.0%-5.4%-5.9%-10.9%-14.9%
3 Year146.8%146.8%4.1%2.9%-4.0%-15.8%
5 Year169.9%169.9%32.3%30.1%13.6%-11.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERGO (£4.75) is trading below our estimate of fair value (£4.79)

Significantly Below Fair Value: ERGO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ERGO is good value based on its PE Ratio (39.7x) compared to the GB Life Sciences industry average (48.1x).

PE vs Market: ERGO is poor value based on its PE Ratio (39.7x) compared to the UK market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: ERGO is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ERGO is overvalued based on its PB Ratio (6.1x) compared to the GB Life Sciences industry average (3.6x).


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERGO's forecast earnings growth (20.5% per year) is above the savings rate (1.2%).

Earnings vs Market: ERGO's earnings (20.5% per year) are forecast to grow slower than the UK market (21.6% per year).

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

Revenue vs Market: ERGO's revenue (13.2% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: ERGO's revenue (13.2% 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 ERGO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ergomed performed over the past 5 years?

-35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERGO has a large one-off loss of £2.7M impacting its December 31 2019 financial results.

Growing Profit Margin: ERGO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ERGO has become profitable over the past 5 years, growing earnings by -35.1% per year.

Accelerating Growth: ERGO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ERGO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Life Sciences industry (8.4%).


Return on Equity

High ROE: ERGO's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is Ergomed's financial position?


Financial Position Analysis

Short Term Liabilities: ERGO's short term assets (£32.0M) exceed its short term liabilities (£15.9M).

Long Term Liabilities: ERGO's short term assets (£32.0M) exceed its long term liabilities (£4.4M).


Debt to Equity History and Analysis

Debt Level: ERGO is debt free.

Reducing Debt: ERGO had no debt 5 years ago.

Debt Coverage: ERGO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ERGO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ergomed current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ERGO'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 ERGO'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?

1.4yrs

Average management tenure


CEO

Ergomed has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Miroslav Reljanovic
Founder & Executive Chairman1.5yrsUK£214.16k22.51% £51.7m
Richard Barfield
CFO & Executive Director1.08yrsUK£264.82k0.21% £475.0k
Lewis Cameron
COO & Executive Directorno datano data0.023% £51.8k
Sanja Juric
General Counsel & Company Secretary3yrsno datano data
Shazia Rahman
Head of HR & Resourcingno datano datano data
Michael Forstner
Head of Risk Management & Pharmacoepidemiology2.17yrsno datano data
Roy Ovel
Chief Commercial Officer1.25yrsno datano data
Sally Amanuel
Head of Regulatory & Clinical Delivery1.08yrsno datano data
Alex Artyomenko
Head of Rare Disease & RWE Research1.5yrsno datano data
Gordana Tonkovic
Head of Clinical Developmentno datano datano data
Sladana Sturlic
Head of Clinical Operationsno datano datano data
Hans-Peter Hucke
Global Head of Data Management & Biostatisticsno datano datano data

1.4yrs

Average Tenure

61yo

Average Age

Experienced Management: ERGO's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Miroslav Reljanovic
Founder & Executive Chairman1.5yrsUK£214.16k22.51% £51.7m
Richard Barfield
CFO & Executive Director1.08yrsUK£264.82k0.21% £475.0k
Lewis Cameron
COO & Executive Directorno datano data0.023% £51.8k
Ian Johnson
Non-Executive Director0.92yrUK£18.40k0.021% £47.5k
Rolf Kristian Berndtson Soderstrom
Senior Independent Director0.17yrUK£25.45k0.021% £47.5k
Michael Spiteri
Independent Non-Executive Director1.75yrsUK£52.88kno data

1.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ERGO's board of directors are not considered experienced ( 1.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ergomed plc
  • Ticker: ERGO
  • Exchange: AIM
  • Founded: 1997
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£229.596m
  • Shares outstanding: 48.34m
  • Website: https://www.ergomedplc.com

Number of Employees


Location

  • Ergomed plc
  • The Surrey Research Park
  • 1 Occam Court
  • Guildford
  • Surrey
  • GU2 7HJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERGOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2014
2EMXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 2014
2EMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014

Biography

Ergomed plc, together with its subsidiaries, provides clinical trial planning, management, and monitoring; and drug safety and medical information services in the United Kingdom and Rest of Europe, the Middle East, Africa, North America, Asia, and Australia. It operates through two segments, Clinical Research Outsourcing and Pharmacovigilance. The company provides and manages clinical development, trial management, and pharmacovigilance services for pharmaceutical and generics companies, as well as small and mid-sized drug development companies. It focuses on various therapeutic areas, including oncology, haematology, allergy, respiratory, neurology, and CNS, as well as develops orphan drugs. The company also provides site support services. Ergomed plc was formerly known as Ergomed Clinical Research Limited and changed its name to Ergomed plc in June 2014. Ergomed plc was founded in 1997 and is headquartered in Guildford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 20:58
End of Day Share Price2020/07/13 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.