LSE:CLI

Stock Analysis Report

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Executive Summary

CLS Holdings plc, together with its subsidiaries, engages in the investment, development, and management of commercial properties in the United Kingdom, Germany, and France. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0%

CLI

1.6%

GB Real Estate

-2.3%

GB Market


1 Year Return

-11.0%

CLI

-5.5%

GB Real Estate

1.0%

GB Market

Return vs Industry: CLI underperformed the UK Real Estate industry which returned -5.5% over the past year.

Return vs Market: CLI underperformed the UK Market which returned 1.1% over the past year.


Shareholder returns

CLIIndustryMarket
7 Day0%1.6%-2.3%
30 Day1.9%3.7%0.3%
90 Day5.8%8.0%4.2%
1 Year-7.6%-11.0%-3.9%-5.5%7.1%1.0%
3 Year9.7%-0.2%0.5%-7.4%9.7%-3.4%
5 Year63.9%44.4%-21.0%-29.1%36.9%10.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLI (£2.19) is trading above our estimate of fair value (£1)

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


Price To Earnings Ratio

PE vs Industry: CLI is good value based on its PE Ratio (10.1x) compared to the GB Real Estate industry average (18.4x).

PE vs Market: CLI is good value based on its PE Ratio (10.1x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: CLI is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CLI is good value based on its PB Ratio (0.7x) compared to the GB Real Estate industry average (0.9x).


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLI's forecast earnings growth (9.7% per year) is above the savings rate (1%).

Earnings vs Market: CLI's earnings (9.7% per year) are forecast to grow slower than the UK market (23.1% per year).

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

Revenue vs Market: CLI's revenue (6.3% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: CLI's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLI's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has CLS Holdings performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLI has a large one-off gain of £48.7M impacting its June 30 2020 financial results.

Growing Profit Margin: CLI's current net profit margins (62.3%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CLI's earnings have declined by 2.9% per year over the past 5 years.

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

Earnings vs Industry: CLI had negative earnings growth (-39.7%) over the past year, making it difficult to compare to the Real Estate industry average (-34.1%).


Return on Equity

High ROE: CLI's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is CLS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CLI's short term assets (£255.6M) exceed its short term liabilities (£179.2M).

Long Term Liabilities: CLI's short term assets (£255.6M) do not cover its long term liabilities (£948.4M).


Debt to Equity History and Analysis

Debt Level: CLI's debt to equity ratio (74.9%) is considered high.

Reducing Debt: CLI's debt to equity ratio has reduced from 107.1% to 74.9% over the past 5 years.

Debt Coverage: CLI's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: CLI's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLI's dividend (3.38%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: CLI's dividend (3.38%) is low compared to the top 25% of dividend payers in the UK market (4.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CLI has been paying a dividend for less than 10 years.

Growing Dividend: CLI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.1%), CLI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLI's dividends in 3 years are forecast to be covered by earnings (59.5% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Fredrik Widlund (52 yo)

6.25yrs

Tenure

UK£1,078,000

Compensation

Mr. Fredrik Widlund has been the Chief Executive Officer of CLS Holdings plc since November 3, 2014 and also serves as its Executive Director. Mr. Widlund has experience in business leadership, property an...


CEO Compensation Analysis

Compensation vs Market: Fredrik's total compensation ($USD1.50M) is about average for companies of similar size in the UK market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fredrik Widlund
CEO & Director6.25yrsUK£1.08m0.046%
£ 408.8k
Andrew Michael Kirkman
CFO & Director1.58yrsUK£889.00k0.059%
£ 530.4k
Gary Wickham
Head of Legal5.08yrsno datano data
David Fuller
Head of Group Human Resources & Company Secretaryno datano datano data
Philippe Alexis
Head of Franceno datano datano data
Rolf Mensing
Head of German Operations4.92yrsno datano data
Simon Wigzell
Head of Group Propertyno datano data0.032%
£ 284.7k
Dan Howson
Head of UK7.08yrsno datano data
Ben Husbands
Head of Tax4.83yrsno datano data
Greg Snow
Head of ITno datano datano data
Rachel Broughton
Head of Developmentno datano datano data
Alain Millet
Group Treasurer15.08yrsno datano data

5.1yrs

Average Tenure

51yo

Average Age

Experienced Management: CLI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fredrik Widlund
CEO & Director6.25yrsUK£1.08m0.046%
£ 408.8k
Andrew Michael Kirkman
CFO & Director1.58yrsUK£889.00k0.059%
£ 530.4k
Anna Seeley
Non-Executive Deputy Chair of the Board4.92yrsUK£80.00k0.0030%
£ 26.9k
Bengt Mortstedt
Non-Executive Director3.92yrsUK£74.00k6.52%
£ 58.2m
Denise Jagger
Independent Non-Executive Director1.5yrsUK£23.00kno data
Christopher Jarvis
Non-Executive Director12.25yrsUK£67.00k0.012%
£ 106.1k
Lennart Sten
Independent Non-Executive Chairman1.5yrsUK£118.00k0.0070%
£ 62.5k
Elizabeth Edwards
Senior Independent Director0.83yrUK£59.00k0.0024%
£ 21.5k
William John Holland
Independent Non-Executive Director1.25yrsUK£6.00k0.0018%
£ 16.4k

1.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CLI's board of directors are not considered experienced ( 1.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: CLS Holdings plc
  • Ticker: CLI
  • Exchange: LSE
  • Founded: 1987
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: UK£892.197m
  • Shares outstanding: 407.40m
  • Website: https://www.clsholdings.com

Number of Employees


Location

  • CLS Holdings plc
  • 16 Tinworth Street
  • London
  • Greater London
  • SE11 5AL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLILSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1994
CLILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1994
838DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994

Biography

CLS Holdings plc, together with its subsidiaries, engages in the investment, development, and management of commercial properties in the United Kingdom, Germany, and France. It operates in two segments, In...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 20:26
End of Day Share Price2021/02/26 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.