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GRI

GraingerLSE:GRI Stock Report

Last Price

UK£2.96

Market Cap

UK£2.2b

7D

-1.9%

1Y

8.1%

Updated

23 Jan, 2022

Data

Company Financials +
GRI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends4/6

GRI Stock Overview

Grainger plc, together with its subsidiaries, designs, owns, operates, manages, and rents residential properties in the United Kingdom.

Grainger Competitors

CLS Holdings

LSE:CLI

UK£930.9m

Helical

LSE:HLCL

UK£526.0m

Property Franchise Group

AIM:TPFG

UK£100.6m

London & Associated Properties

LSE:LAS

UK£10.2m

Price History & Performance

Summary of all time highs, changes and price drops for Grainger
Historical stock prices
Current Share PriceUK£2.96
52 Week HighUK£3.40
52 Week LowUK£2.57
Beta0.72
1 Month Change-4.64%
3 Month Change-3.71%
1 Year Change8.10%
3 Year Change30.71%
5 Year Change25.72%
Change since IPO1,155.09%

Recent News & Updates

Dec 14
Grainger (LON:GRI) Will Pay A Dividend Of UK£0.033

Grainger (LON:GRI) Will Pay A Dividend Of UK£0.033

Grainger plc's ( LON:GRI ) investors are due to receive a payment of UK£0.033 per share on 14th of February. The...

Nov 21
Grainger (LON:GRI) Is Due To Pay A Dividend Of UK£0.033

Grainger (LON:GRI) Is Due To Pay A Dividend Of UK£0.033

The board of Grainger plc ( LON:GRI ) has announced that it will pay a dividend of UK£0.033 per share on the 14th of...

Sep 30
Are Grainger plc (LON:GRI) Investors Paying Above The Intrinsic Value?

Are Grainger plc (LON:GRI) Investors Paying Above The Intrinsic Value?

Does the September share price for Grainger plc ( LON:GRI ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

GRIGB Real EstateGB Market
7D-1.9%-1.2%-1.3%
1Y8.1%11.9%7.8%

Return vs Industry: GRI underperformed the UK Real Estate industry which returned 11.9% over the past year.

Return vs Market: GRI matched the UK Market which returned 7.8% over the past year.

Price Volatility

Is GRI's price volatile compared to industry and market?
GRI volatility
GRI Average Weekly Movement2.8%
Real Estate Industry Average Movement3.8%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

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.

About the Company

FoundedEmployeesCEOWebsite
1912322Helen Gordonhttps://www.graingerplc.co.uk

Grainger plc, together with its subsidiaries, designs, owns, operates, manages, and rents residential properties in the United Kingdom. It also provides property and asset management services. The company was incorporated in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.

Grainger Fundamentals Summary

How do Grainger's earnings and revenue compare to its market cap?
GRI fundamental statistics
Market CapUK£2.19b
Earnings (TTM)UK£109.50m
Revenue (TTM)UK£248.90m

20.0x

P/E Ratio

8.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRI income statement (TTM)
RevenueUK£248.90m
Cost of RevenueUK£101.60m
Gross ProfitUK£147.30m
ExpensesUK£37.80m
EarningsUK£109.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

May 12, 2022

Earnings per share (EPS)0.15
Gross Margin59.18%
Net Profit Margin43.99%
Debt/Equity Ratio77.7%

How did GRI perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

19.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRI (£2.96) is trading above our estimate of fair value (£0.96)

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 (20x) compared to the UK Real Estate industry average (13.5x).

PE vs Market: GRI is poor value based on its PE Ratio (20x) compared to the UK market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GRI is poor value based on its PEG Ratio (1.8x)


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 4 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRI's forecast earnings growth (11% per year) is above the savings rate (0.9%).

Earnings vs Market: GRI's earnings (11% per year) are forecast to grow slower than the UK market (12.1% 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 (-33.6% per year).

High Growth Revenue: GRI's revenue is forecast to decline over the next 3 years (-33.6% 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 (3.8%).


Past Performance

How has Grainger performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRI has a large one-off gain of £68.5M impacting its September 30 2021 financial results.

Growing Profit Margin: GRI's current net profit margins (44%) are higher than last year (38.7%).


Past Earnings Growth Analysis

Earnings Trend: GRI's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: GRI's earnings growth over the past year (32.2%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: GRI earnings growth over the past year (32.2%) underperformed the Real Estate industry 44.5%.


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 (£967.3M) exceed its short term liabilities (£114.5M).

Long Term Liabilities: GRI's short term assets (£967.3M) do not cover its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: GRI's net debt to equity ratio (59.5%) is considered high.

Reducing Debt: GRI's debt to equity ratio has reduced from 126.9% to 77.7% over the past 5 years.

Debt Coverage: GRI's debt is not well covered by operating cash flow (10.9%).

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?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRI's dividend (1.74%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: GRI's dividend (1.74%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


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 (31.9%), 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 (65.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Helen Gordon (61 yo)

6yrs

Tenure

UK£1,580,000

Compensation

Ms. Helen C. Gordon, MRICS, has been an Independent Non-Executive Director of Derwent London Plc since January 1, 2018. She is Senior Independent Director of Derwent London Plc since October 31, 2021. Ms....


CEO Compensation Analysis

Compensation vs Market: Helen's total compensation ($USD2.14M) is about average for companies of similar size in the UK market ($USD1.83M).

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


Leadership Team

Experienced Management: GRI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: GRI's board of directors are considered experienced (4.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Grainger plc's 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
  • Implied Market Cap: UK£2.187b
  • Shares outstanding: 738.33m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 18:52
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.