LSE:GNS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

-1.5%

GNS

-5.1%

GB Biotechs

1.2%

GB Market


1 Year Return

39.4%

GNS

52.2%

GB Biotechs

4.6%

GB Market

Return vs Industry: GNS underperformed the UK Biotechs industry which returned 52.1% over the past year.

Return vs Market: GNS exceeded the UK Market which returned 4.6% over the past year.


Shareholder returns

GNSIndustryMarket
7 Day-1.5%-5.1%1.2%
30 Day-6.5%-4.5%0.7%
90 Day24.6%23.7%2.6%
1 Year40.4%39.4%52.9%52.2%10.6%4.6%
3 Year116.3%110.4%32.1%30.2%8.6%-4.5%
5 Year255.7%238.2%61.1%58.1%39.5%12.6%

Long-Term 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?

66.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNS (£49.58) is trading above our estimate of fair value (£19.17)

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 (66.7x) compared to the XE Biotechs industry average (34.4x).

PE vs Market: GNS is poor value based on its PE Ratio (66.7x) compared to the UK market (24.2x).


Price to Earnings Growth Ratio

PEG Ratio: GNS is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: GNS is good value based on its PB Ratio (6.4x) compared to the GB Biotechs industry average (7.1x).


Next Steps

Future Growth

How is Genus forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNS's forecast earnings growth (18.2% per year) is above the savings rate (1%).

Earnings vs Market: GNS's earnings (18.2% per year) are forecast to grow slower than the UK market (22.6% per year).

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

Revenue vs Market: GNS's revenue (8% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: GNS's revenue (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 (12%).


Next Steps

Past Performance

How has Genus performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNS has high quality earnings.

Growing Profit Margin: GNS's current net profit margins (8.5%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: GNS's earnings have declined by 6.7% per year over the past 5 years.

Accelerating Growth: GNS's earnings growth over the past year (24.8%) exceeds its 5-year average (-6.7% per year).

Earnings vs Industry: GNS earnings growth over the past year (24.8%) exceeded the Biotechs industry -5.6%.


Return on Equity

High ROE: GNS's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Genus's financial position?


Financial Position Analysis

Short Term Liabilities: GNS's short term assets (£228.9M) exceed its short term liabilities (£122.9M).

Long Term Liabilities: GNS's short term assets (£228.9M) exceed its long term liabilities (£220.7M).


Debt to Equity History and Analysis

Debt Level: GNS's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: GNS's debt to equity ratio has reduced from 35.6% to 23% over the past 5 years.

Debt Coverage: GNS's debt is well covered by operating cash flow (69.5%).

Interest Coverage: GNS's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNS's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: GNS's dividend (0.61%) is low compared to the top 25% of dividend payers in the UK market (4.51%).


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

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

3.9yrs

Average management tenure


CEO

Stephen Wilson (60 yo)

1.5yrs

Tenure

UK£2,075,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD2.86M) is above average for companies of similar size in the UK market ($USD1.93M).

Compensation vs Earnings: Stephen's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Wilson
CEO & Executive Director1.5yrsUK£2.08m0.10%
£ 3.2m
Alison Henriksen
CFO & Executive Director1.17yrsUK£721.22kno data
William Christianson
Chief Operating Officer9.17yrsno data0.074%
£ 2.4m
Elena Rice
Head of R&D and Chief Scientific Officer1.67yrsno datano data
Dan Hartley
Group General Counsel & Company Secretary6.75yrsno data0.093%
£ 3.0m
Angelle Rosata
Group Human Resources Director3.67yrsno datano data
Jerry Thompson
Chief Operating Officer of Genus ABS Beef8.67yrsno datano data
Nate Zwald
Chief Operating Officer of Genus ABS Dairy4.08yrsno datano data
Janet Duane
Group Financial Controllerno datano datano data

3.9yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Stephen Wilson
CEO & Executive Director1.5yrsUK£2.08m0.10%
£ 3.2m
Alison Henriksen
CFO & Executive Director1.17yrsUK£721.22kno data
Ian Charles
Independent Non-Executive Director2.67yrsUK£72.00kno data
Iain G. Ferguson
Independent Non-Executive Chairman0.33yrno data0.0039%
£ 123.8k
Lesley Mary Knox
Senior Independent Non-Executive Director2.33yrsUK£63.00k0.0031%
£ 99.1k
Lykele van der Broek
Independent Non-Executive Director6.67yrsUK£66.00k0.0058%
£ 186.0k
Lysanne Gray
Independent Non-Executive Director4.92yrsUK£60.00kno data

2.7yrs

Average Tenure

65yo

Average Age

Experienced Board: GNS's board of directors are not considered experienced ( 2.7 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: GNS insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£3.208b
  • Shares outstanding: 64.70m
  • 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, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments:...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 20:27
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.