AIM:LOK

Stock Analysis Report

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Executive Summary

Lok'nStore Group Plc develops and operates self-storage centers primarily in Southern England. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Lok'nStore Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.6%

LOK

-2.4%

GB Real Estate

-2.0%

GB Market


1 Year Return

-3.0%

LOK

-18.7%

GB Real Estate

-17.2%

GB Market

Return vs Industry: LOK exceeded the UK Real Estate industry which returned -17.3% over the past year.

Return vs Market: LOK exceeded the UK Market which returned -16.4% over the past year.


Shareholder returns

LOKIndustryMarket
7 Day-7.6%-2.4%-2.0%
30 Day0%0.9%-0.5%
90 Day-11.0%2.6%-4.4%
1 Year-1.0%-3.0%-17.6%-18.7%-14.1%-17.2%
3 Year50.1%40.0%-18.8%-24.9%-10.3%-21.4%
5 Year87.4%66.7%3.5%-11.1%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lok'nStore Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOK (£5.25) is trading below our estimate of fair value (£13.69)

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


Price To Earnings Ratio

PE vs Industry: LOK is poor value based on its PE Ratio (49.4x) compared to the GB Real Estate industry average (14.2x).

PE vs Market: LOK is poor value based on its PE Ratio (49.4x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LOK is poor value based on its PEG Ratio (91.2x)


Price to Book Ratio

PB vs Industry: LOK is overvalued based on its PB Ratio (1.3x) compared to the GB Real Estate industry average (0.8x).


Next Steps

Future Growth

How is Lok'nStore Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOK's forecast earnings growth (0.5% per year) is below the savings rate (1.2%).

Earnings vs Market: LOK's earnings (0.5% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: LOK's revenue (5.7% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: LOK's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOK's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has Lok'nStore Group performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOK has high quality earnings.

Growing Profit Margin: LOK's current net profit margins (17.7%) are lower than last year (22%).


Past Earnings Growth Analysis

Earnings Trend: LOK's earnings have grown by 7.8% per year over the past 5 years.

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

Earnings vs Industry: LOK had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Real Estate industry average (-17.3%).


Return on Equity

High ROE: LOK's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Lok'nStore Group's financial position?


Financial Position Analysis

Short Term Liabilities: LOK's short term assets (£13.7M) exceed its short term liabilities (£6.4M).

Long Term Liabilities: LOK's short term assets (£13.7M) do not cover its long term liabilities (£75.9M).


Debt to Equity History and Analysis

Debt Level: LOK's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: LOK's debt to equity ratio has reduced from 60.1% to 36.3% over the past 5 years.

Debt Coverage: LOK's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: LOK's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Lok'nStore Group current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LOK's dividend (2.29%) is higher than the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: LOK's dividend (2.29%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


Stability and Growth of Payments

Stable Dividend: LOK's dividend payments have been volatile in the past 10 years.

Growing Dividend: LOK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116%), LOK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LOK's dividends in 3 years are not forecast to be well covered by earnings (101.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Neil James Newman-Shepherd (43 yo)

0.17

Tenure

UK£147,960

Compensation

Mr. Neil James John Newman-Shepherd serves as Group Managing Director at Lok'n Store Group plc since August 1, 2020. He served as Group Sales Director at Lok'nStore Group Plc since September 2014 until Aug ...


CEO Compensation Analysis

Compensation vs Market: Neil James's total compensation ($USD193.43K) is below average for companies of similar size in the UK market ($USD672.96K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Jacobs
Executive Chairman0.17yrUK£264.50k18.02%
£ 27.4m
Neil James Newman-Shepherd
Group MD & Executive Director0.17yrUK£147.96k0.059%
£ 90.1k
Raymond Davies
Group Finance Director & Executive Director16.75yrsUK£193.05k0.22%
£ 337.7k
Kevin Elster
Operations Managerno datano datano data
Eve Steer
Legal Managerno datano datano data
Sobayo Soyemi
Financial Controller & Management Accountantno datano datano data
Philippa Myers
Assistant Company Secretary4.92yrsno datano data

2.5yrs

Average Tenure

61yo

Average Age

Experienced Management: LOK's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Jacobs
Executive Chairman0.17yrUK£264.50k18.02%
£ 27.4m
Neil James Newman-Shepherd
Group MD & Executive Director0.17yrUK£147.96k0.059%
£ 90.1k
Raymond Davies
Group Finance Director & Executive Director16.75yrsUK£193.05k0.22%
£ 337.7k
Jeff Woyda
Independent Non-Executive Director0.083yrno datano data
Simon Thomas
Non-Executive Director23.75yrsUK£35.70k5.28%
£ 8.0m
Richard Holmes
Independent Non Executive Director20.75yrsUK£22.30k0.94%
£ 1.4m
Edward T. Luker
Independent Senior Non-Executive Directorno dataUK£27.87k0.099%
£ 151.2k
Charles Peal
Independent Non Executive Director13.75yrsUK£22.30k2.25%
£ 3.4m

13.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: LOK's board of directors are seasoned and experienced ( 13.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Lok'nStore Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lok'nStore Group Plc
  • Ticker: LOK
  • Exchange: AIM
  • Founded: 1995
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: UK£152.147m
  • Shares outstanding: 28.98m
  • Website: https://www.loknstore.co.uk

Number of Employees


Location

  • Lok'nStore Group Plc
  • 112 Hawley Lane
  • Farnborough
  • Hampshire
  • GU14 8JE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOKAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2000

Biography

Lok'nStore Group Plc develops and operates self-storage centers primarily in Southern England. The company operates a packaging shop in each of its storage centers that sells storage related goods, such as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 20:45
End of Day Share Price2020/10/27 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.