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Market Cap

UK£1.9b

Last Updated

2021/04/10 19:34 UTC

Data Sources

Company Financials +

Executive Summary

Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

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

Volatility Over Time: GRI's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

GRI

2.9%

GB Real Estate

2.7%

GB Market


1 Year Return

5.3%

GRI

27.7%

GB Real Estate

24.4%

GB Market

Return vs Industry: GRI underperformed the UK Real Estate industry which returned 27.7% over the past year.

Return vs Market: GRI underperformed the UK Market which returned 24.4% over the past year.


Shareholder returns

GRIIndustryMarket
7 Day4.7%2.9%2.7%
30 Day2.8%3.0%3.9%
90 Day-2.1%4.3%2.4%
1 Year7.3%5.3%30.2%27.7%30.3%24.4%
3 Year11.7%-4.7%3.7%-4.3%15.2%1.5%
5 Year52.7%25.7%-16.9%-25.5%42.8%15.7%

Long-Term 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

Valuation

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

19.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRI (£2.83) is trading above our estimate of fair value (£0.77)

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


Price To Earnings Ratio

PE vs Industry: GRI is poor value based on its PE Ratio (19.8x) compared to the GB Real Estate industry average (17.5x).

PE vs Market: GRI is good value based on its PE Ratio (19.8x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: GRI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GRI is overvalued based on its PB Ratio (1.3x) compared to the GB Real Estate industry average (0.9x).


Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRI's forecast earnings growth (14% per year) is above the savings rate (1%).

Earnings vs Market: GRI's earnings (14% per year) are forecast to grow slower than the UK market (20.9% per year).

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

Revenue vs Market: GRI's revenue (4.6% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: GRI's revenue (4.6% per year) is forecast to grow slower than 20% 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 (4.8%).


Past Performance

How has Grainger performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRI has a large one-off gain of £29.8M impacting its September 30 2020 financial results.

Growing Profit Margin: GRI's current net profit margins (43.4%) are lower than last year (51.6%).


Past Earnings Growth Analysis

Earnings Trend: GRI's earnings have grown by 14% per year over the past 5 years.

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

Earnings vs Industry: GRI had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Real Estate industry average (-16.2%).


Return on Equity

High ROE: GRI's Return on Equity (6.3%) is considered low.


Financial Health

How is Grainger's financial position?


Financial Position Analysis

Short Term Liabilities: GRI's short term assets (£1.1B) exceed its short term liabilities (£94.2M).

Long Term Liabilities: GRI's short term assets (£1.1B) do not cover its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: GRI's debt to equity ratio (96.5%) is considered high.

Reducing Debt: GRI's debt to equity ratio has reduced from 222.2% to 96.5% over the past 5 years.

Debt Coverage: GRI's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: GRI's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Grainger current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRI's dividend (1.93%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: GRI's dividend (1.93%) is low compared to the top 25% of dividend payers in the UK market (4.24%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), 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 (63.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Helen Gordon (60 yo)

5.25yrs

Tenure

UK£1,746,000

Compensation

Ms. Helen C. Gordon, MRICS, has been an Independent Non-Executive Director of Derwent London Plc since January 1, 2018. Ms. Gordon has been the Chief Executive Officer at Grainger Plc since January 01, 201...


CEO Compensation Analysis

Compensation vs Market: Helen's total compensation ($USD2.40M) is above average for companies of similar size in the UK market ($USD1.78M).

Compensation vs Earnings: Helen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: GRI's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: GRI's board of directors are considered experienced (4.2 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

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£1.903b
  • Shares outstanding: 672.83m
  • 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


Biography

Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom. It also provides property and asset management services. The company was found...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 19:34
End of Day Share Price2021/04/09 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.