LSE:GNS

Stock Analysis Report

Executive Summary

Genus plc operates as an animal genetics company in North America, Latin America, rest of Europe, the Middle East, Russia, Africa, and Asia.

Rewards

Earnings are forecast to grow 28.62% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (9.1%)

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

GNS

0.5%

GB Biotechs

0.9%

GB Market


1 Year Return

35.0%

GNS

15.9%

GB Biotechs

8.7%

GB Market

Return vs Industry: GNS exceeded the UK Biotechs industry which returned 15.9% over the past year.

Return vs Market: GNS exceeded the UK Market which returned 8.7% over the past year.


Shareholder returns

GNSIndustryMarket
7 Day-0.4%0.5%0.9%
30 Day3.1%5.6%-0.5%
90 Day7.4%12.5%0.9%
1 Year36.4%35.0%16.8%15.9%14.3%8.7%
3 Year79.1%73.2%32.0%29.4%18.8%3.6%
5 Year166.4%151.0%52.4%48.6%42.6%9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

250.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNS (£30.92) is trading above our estimate of fair value (£17.87)

Significantly Below Fair Value: GNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNS is poor value based on its PE Ratio (250.3x) compared to the Biotechs industry average (29.6x).

PE vs Market: GNS is poor value based on its PE Ratio (250.3x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GNS is poor value based on its PEG Ratio (8.7x)


Price to Book Ratio

PB vs Industry: GNS is overvalued based on its PB Ratio (4x) compared to the GB Biotechs industry average (1.9x).


Next Steps

Future Growth

How is Genus forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNS's forecast earnings growth (28.6% per year) is above the savings rate (0.5%).

Earnings vs Market: GNS's earnings (28.6% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: GNS's revenue (6.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GNS's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNS's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Genus performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNS has a large one-off loss of £36.5M impacting its June 30 2019 financial results.

Growing Profit Margin: GNS's current net profit margins (1.6%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: GNS's earnings have declined by -9.8% per year over the past 5 years.

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

Earnings vs Industry: GNS had negative earnings growth (-81.7%) over the past year, making it difficult to compare to the Biotechs industry average (5.4%).


Return on Equity

High ROE: GNS's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genus's financial position?


Financial Position Analysis

Short Term Liabilities: GNS's short term assets (£209.2M) exceed its short term liabilities (£104.2M).

Long Term Liabilities: GNS's short term assets (£209.2M) do not cover its long term liabilities (£217.6M).


Debt to Equity History and Analysis

Debt Level: GNS's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: GNS's debt to equity ratio has reduced from 29.6% to 20.7% over the past 5 years.

Debt Coverage: GNS's debt is well covered by operating cash flow (32.1%).

Interest Coverage: GNS's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: GNS's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

0.89%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.0%markettop25%5.2%industryaverage1.1%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: GNS's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: GNS's dividend (0.9%) is low compared to the top 25% of dividend payers in the UK market (5.19%).


Stability and Growth of Payments

Stable Dividend: GNS is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GNS is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GNS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GNS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Stephen Wilson (59yo)

0.3yrs

Tenure

UK£1,508,000

Compensation

Mr. Stephen Wilson serves as Chief Executive Officer and Director of Genus plc since September 13, 2019. Mr. Wilson served as Group Finance Director of Genus plc since March 1, 2013 and served as its Execu ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.99M) is about average for companies of similar size in the UK market ($USD2.34M).

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


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: GNS's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GNS's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: GNS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£215,10320 Sep 19
Dan Hartley
EntityIndividual
Role
Chief Legal Officer
Group General Counsel & Company Secretary
Shares7,267
Max PriceUK£29.60
SellUK£387,61220 Sep 19
Stephen Wilson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares13,095
Max PriceUK£29.60

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Management Team

  • Bill Christianson

    Chief Operating Officer

    • Tenure: 0yrs
  • Angelle Rosata

    Group Human Resources Director

    • Tenure: 2.4yrs
  • Stephen Wilson (59yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: UK£1.51m
  • Jerry Thompson

    Chief Operating Officer of Genus ABS Beef

    • Tenure: 7.4yrs
  • Dan Hartley

    Group General Counsel & Company Secretary

    • Tenure: 5.5yrs
  • Nate Zwald

    Chief Operating Officer of Genus ABS Dairy

    • Tenure: 2.8yrs
  • Elena Rice

    Head of R&D and Chief Scientific Officer

    • Tenure: 0.4yrs
  • Janet Duane

    Interim Group Finance Director & Group Financial Controller

    • Tenure: 0.3yrs

Board Members

  • Ian Charles

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£55.00k
  • Lesley Mary Knox (66yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£57.00k
  • Bob Lawson (74yo)

    Independent Non-Executive Chairman

    • Tenure: 9.1yrs
    • Compensation: UK£171.00k
  • Lykele van der Broek (65yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£60.00k
  • Stephen Wilson (59yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: UK£1.51m
  • Lysanne Gray

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£61.00k

Company Information

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


Key Information

  • Name: Genus plc
  • Ticker: GNS
  • Exchange: LSE
  • Founded: 1994
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£2.000b
  • Shares outstanding: 64.67m
  • Website: https://www.genusplc.com

Number of Employees


Location

  • Genus plc
  • Matrix House
  • Basing View
  • Basingstoke
  • Hampshire
  • RG21 4DZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1998
GENS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1998
GBEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1998
GNSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1998

Biography

Genus plc operates as an animal genetics company in North America, Latin America, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates in three segments: Genus PIC, Genus ABS, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:33
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.