Grainger
Market Cap
UK£1.6b
Last Updated
2019/10/22 20:32 UTC
Data Sources
Company Financials +
Executive Summary
Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom.
Snowflake
Fundamentals
Good value with acceptable track record.
Similar Companies
Share Price & News
How has Grainger's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
0.9%
GRI
2.1%
GB Real Estate
0.08%
GB Market
1 Year Return
-3.2%
GRI
6.4%
GB Real Estate
3.5%
GB Market
Return vs Industry: GRI underperformed the UK Real Estate industry which returned 6.4% over the past year.
Return vs Market: GRI underperformed the UK Market which returned 3.5% over the past year.
Shareholder returns
| GRI | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 2.1% | 0.08% |
| 30 Day | 7.5% | 4.8% | -1.3% |
| 90 Day | 11.0% | 6.0% | -2.2% |
| 1 Year | 9.4%-3.2% | 10.7%6.4% | 9.0%3.5% |
| 3 Year | 39.3%18.9% | -1.6%-8.6% | 18.1%3.1% |
| 5 Year | 72.8%43.5% | 22.0%7.2% | 36.2%5.3% |
Price Volatility Vs. Market
How volatile is Grainger's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Grainger (LON:GRI) Shareholders Booked A 44% Gain In The Last Five Years1 month ago | Simply Wall St
Why Grainger plc (LON:GRI) Should Be In Your Dividend Portfolio1 month ago | Simply Wall St
Here's What Grainger plc's (LON:GRI) P/E Ratio Is Telling UsValuation
Is Grainger 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: GRI (£2.65) is trading below our estimate of fair value (£7.04)
Significantly Below Fair Value: GRI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GRI is poor value based on its PE Ratio (13.5x) compared to the Real Estate industry average (12.3x).
PE vs Market: GRI is good value based on its PE Ratio (13.5x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: GRI is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: GRI is overvalued based on its PB Ratio (1.2x) compared to the GB Real Estate industry average (1.1x).
Next Steps
Future Growth
How is Grainger forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
19.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GRI's forecast earnings growth (19.7% per year) is above the savings rate (1.2%).
Earnings vs Market: GRI's earnings (19.7% per year) are forecast to grow faster than the UK market (12.4% per year).
High Growth Earnings: GRI's earnings are forecast to grow, but not significantly.
Revenue vs Market: GRI's revenue is expected to decline over the next 3 years (-7.8% per year).
High Growth Revenue: GRI's revenue is forecast to decline over the next 3 years (-7.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GRI's Return on Equity is forecast to be low in 3 years time (6.6%).
Next Steps
Past Performance
How has Grainger performed over the past 5 years?
7.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: GRI's earnings have grown by 7.3% per year over the past 5 years.
Accelerating Growth: GRI's earnings growth over the past year (15.5%) exceeds its 5-year average (7.3% per year).
Earnings vs Industry: GRI earnings growth over the past year (15.5%) exceeded the Real Estate industry 9%.
Return on Equity
High ROE: GRI's Return on Equity (8%) is considered low.
Return on Assets
ROA vs Industry: GRI's Return on Assets is below or equal to the Real Estate industry average last year.
Return on Capital Employed
ROCE Improving: GRI's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Grainger's financial position?
Financial Position Analysis
Short Term Liabilities: GRI's short term assets (£931.5M) exceeds its short term liabilities (£90.0M)
Long Term Liabilities: GRI's short term assets (931.5M) do not cover its long term liabilities (1.2B)
Debt to Equity History and Analysis
Debt Level: GRI's debt to equity ratio (103.6%) is considered high
Reducing Debt: GRI's debt to equity ratio has reduced from 209.9% to 103.6% over the past 5 years.
Debt Coverage: GRI's debt is not well covered by operating cash flow (13.4%).
Interest Coverage: GRI's interest payments on its debt are well covered by EBIT (5.4x coverage).
Balance Sheet
Inventory Level: GRI has a high level of physical assets or inventory.
Debt Coverage by Assets: GRI's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Grainger's current dividend yield, its reliability and sustainability?
1.98%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: GRI's dividend (1.98%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).
High Dividend: GRI's dividend (1.98%) is low compared to the top 25% of dividend payers in the UK market (5.37%).
Stable Dividend: GRI's dividend payments have been volatile in the past 10 years.
Growing Dividend: GRI's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.7%), GRI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GRI's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).
Next Steps
Management
What is the CEO of Grainger's salary, the management and board of directors tenure and is there insider trading?
3.7yrs
Average management tenure
CEO
Helen Gordon (59yo)
3.8yrs
Tenure
UK£1
Compensation
Ms. Helen C. Gordon, MRICS, has been an Independent Non-Executive Director of Derwent London Plc since January 1, 2018. She has been the Chief Executive Officer at Grainger Plc since January 01, 2016. Ms. ...
CEO Compensation Analysis
Compensation vs. Market: Helen's total compensation ($USD1.30) is too low to compare against companies of similar size in the UK market ($USD1.82M).
Compensation vs Earnings: Helen's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.7yrs
Average Tenure
59yo
Average Age
Experienced Management: GRI's management team is considered experienced (3.7 years average tenure).
Board Age and Tenure
2.7yrs
Average Tenure
57yo
Average Age
Experienced Board: GRI's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 126 |
| Max Price | UK£2.41 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 124 |
| Max Price | UK£2.41 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 13,465 |
| Max Price | UK£2.43 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 5,579 |
| Max Price | UK£2.43 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 4,747 |
| Max Price | UK£2.09 |
Ownership Breakdown
Management Team
Helen Gordon (59yo)
CEO & Executive Director
- Tenure: 3.8yrs
- Compensation: UK£1.00
David Prescott
Director of Strategy & Corporate Finance
- Tenure: 1.2yrs
Kurt Mueller
Director of Corporate Affairs
- Tenure: 0yrs
Adam McGhin
Group General Counsel & Company Secretary
- Tenure: 0yrs
David Smith (60yo)
Group Accounting Director
- Tenure: 0yrs
Vanessa Simms (43yo)
CFO & Executive Director
- Tenure: 3.7yrs
- Compensation: UK£827.00k
Andrew Saunderson
Director of Investment and PDMR
- Tenure: 0yrs
Anish Thobhani
Customer Operations Director
- Tenure: 0yrs
Board Members
Justin Read (57yo)
Non-Executive Director
- Tenure: 2.7yrs
- Compensation: UK£53.00k
Mark Clare (62yo)
Non-Executive Chairman of the Board
- Tenure: 2.7yrs
- Compensation: UK£165.00k
Andrew C. Carr-Locke (65yo)
Senior Independent Director
- Tenure: 1.7yrs
- Compensation: UK£61.00k
Helen Gordon (59yo)
CEO & Executive Director
- Tenure: 3.8yrs
- Compensation: UK£1.00
Rob Wilkinson (46yo)
Non-Executive Director
- Tenure: 4yrs
- Compensation: UK£47.00k
Vanessa Simms (43yo)
CFO & Executive Director
- Tenure: 3.7yrs
- Compensation: UK£827.00k
Janette Bell (55yo)
Director
- Tenure: 0.7yrs
Company Information
Grainger plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Grainger plc
- Ticker: GRI
- Exchange: LSE
- Founded: 1912
- Industry: Real Estate Operating Companies
- Sector: Real Estate
- Market Cap: UK£1.617b
- Shares outstanding: 609.87m
- Website: https://www.graingerplc.co.uk
Number of Employees
Location
- Grainger plc
- Citygate
- St James' Boulevard
- Newcastle upon Tyne
- Tyne and Wear
- NE1 4JE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GRI | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| GRIL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| 1U4 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom. The company operates through three segments: Residential, Development, and Fun ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 20:32 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/03/31 |
| Annual Earnings | 2018/09/30 |
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.