Grainger
Market Cap
UK£1.7b
Last Updated
2020/03/30 20:37 UTC
Data Sources
Company Financials +
Executive Summary
Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
14.5%
GRI
10.3%
GB Real Estate
10.0%
GB Market
1 Year Return
6.3%
GRI
-19.7%
GB Real Estate
-23.0%
GB Market
Return vs Industry: GRI exceeded the UK Real Estate industry which returned -18.7% over the past year.
Return vs Market: GRI exceeded the UK Market which returned -22.7% over the past year.
Shareholder returns
| GRI | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.5% | 10.3% | 10.0% |
| 30 Day | -14.8% | -30.7% | -17.6% |
| 90 Day | -19.4% | -36.2% | -27.3% |
| 1 Year | 8.3%6.3% | -17.6%-19.7% | -18.9%-23.0% |
| 3 Year | 20.6%3.1% | -21.2%-27.7% | -12.9%-24.2% |
| 5 Year | 45.6%20.7% | -14.1%-24.1% | 1.6%-21.8% |
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
A Sliding Share Price Has Us Looking At Grainger plc's (LON:GRI) P/E Ratio2 weeks ago | Simply Wall St
Does Grainger plc's (LON:GRI) CEO Pay Matter?1 month ago | Simply Wall St
Can We See Significant Institutional Ownership On The Grainger plc (LON:GRI) Share Register?Valuation
Is Grainger undervalued compared to its fair value and its price relative to the market?
12.71x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GRI (£2.52) is trading above our estimate of fair value (£0.87)
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 (12.7x) compared to the Real Estate industry average (12.2x).
PE vs Market: GRI is poor value based on its PE Ratio (12.7x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: GRI is poor value based on its PEG Ratio (1.6x)
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 (0.8x).
Next Steps
Future Growth
How is Grainger forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
8.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GRI's forecast earnings growth (8% per year) is above the savings rate (0.5%).
Earnings vs Market: GRI's earnings (8% per year) are forecast to grow slower than the UK market (15.4% 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 (-2.6% per year).
High Growth Revenue: GRI's revenue is forecast to decline over the next 3 years (-2.6% 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 (5%).
Next Steps
Past Performance
How has Grainger performed over the past 5 years?
14.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRI has a large one-off gain of £52.3M impacting its September 30 2019 financial results.
Growing Profit Margin: GRI's current net profit margins (51.6%) are higher than last year (32.3%).
Past Earnings Growth Analysis
Earnings Trend: GRI's earnings have grown by 14.2% per year over the past 5 years.
Accelerating Growth: GRI's earnings growth over the past year (31.5%) exceeds its 5-year average (14.2% per year).
Earnings vs Industry: GRI earnings growth over the past year (31.5%) exceeded the Real Estate industry -2.2%.
Return on Equity
High ROE: GRI's Return on Equity (9.4%) is considered low.
Next Steps
Financial Health
How is Grainger's financial position?
Financial Position Analysis
Short Term Liabilities: GRI's short term assets (£929.8M) exceed its short term liabilities (£195.3M).
Long Term Liabilities: GRI's short term assets (£929.8M) do not cover its long term liabilities (£1.2B).
Debt to Equity History and Analysis
Debt Level: GRI's debt to equity ratio (105.8%) is considered high.
Reducing Debt: GRI's debt to equity ratio has reduced from 216.9% to 105.8% over the past 5 years.
Debt Coverage: GRI's debt is not well covered by operating cash flow (14.2%).
Interest Coverage: GRI's interest payments on its debt are well covered by EBIT (4.3x 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 0.7x debt).
Next Steps
Dividend
What is Grainger's current dividend yield, its reliability and sustainability?
2.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GRI's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: GRI's dividend (2.06%) is low compared to the top 25% of dividend payers in the UK market (7.3%).
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 (26.1%), 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 (60.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Helen Gordon (59yo)
4.17s
Tenure
UK£1,068,000
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 ($USD1.32M) is below average for companies of similar size in the UK market ($USD1.93M).
Compensation vs Earnings: Helen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.17yrs | UK£1.07m | 0.036% £611.2k | |
| CFO & Executive Director | 4yrs | UK£674.00k | 0.0064% £108.7k | |
| Director of Investment and PDMR | no data | no data | no data | |
| Group Accounting Director | no data | no data | no data | |
| Director of Strategy & Corporate Finance | 1.58yrs | no data | no data | |
| Director of Corporate Affairs | no data | no data | no data | |
| Group General Counsel & Company Secretary | no data | no data | no data | |
| Director of Property Services & Compliance | no data | no data | no data | |
| Customer Operations Director | no data | no data | no data |
4.0yrs
Average Tenure
59yo
Average Age
Experienced Management: GRI's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.17yrs | UK£1.07m | 0.036% £611.2k | |
| CFO & Executive Director | 4yrs | UK£674.00k | 0.0064% £108.7k | |
| Independent Non-Executive Director | 3yrs | UK£56.00k | 0.0031% £51.8k | |
| Independent Non-Executive Chairman of the Board | 3yrs | UK£165.00k | 0.024% £407.1k | |
| Senior Independent Director | 2yrs | UK£65.00k | 0.0022% £37.1k | |
| Independent Non-Executive Director | 4.42yrs | UK£47.00k | 0.0031% £51.8k | |
| Independent Non-Executive Director | 1yr | UK£30.00k | no data |
3.0yrs
Average Tenure
57yo
Average Age
Experienced Board: GRI's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GRI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39%.
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£1.694b
- Shares outstanding: 671.01m
- 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 Funds. It also provides property and asset management services. The company was founded in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 20:37 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.