LSE:UTG

Stock Analysis Report

Executive Summary

Unite Students is the UK's largest manager and developer of purpose-built student accommodation serving the country's world-leading higher education sector.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Unite Group is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Unite Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

UTG

0.8%

GB REITs

-0.2%

GB Market


1 Year Return

18.0%

UTG

-2.0%

GB REITs

-1.8%

GB Market

UTG outperformed the REITs industry which returned -2.1% over the past year.

UTG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.


Share holder returns

UTGIndustryMarket
7 Day0.9%0.8%-0.2%
30 Day2.1%5.8%4.0%
90 Day9.7%2.8%0.5%
1 Year21.7%18.0%2.5%-2.0%2.9%-1.8%
3 Year86.9%69.4%15.2%-1.2%20.7%6.3%
5 Year183.8%145.9%32.5%6.2%33.2%5.1%

Price Volatility Vs. Market

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


Simply Wall St News

2 months ago | Simply Wall St

Will The Unite Group plc's (LON:UTG) Earnings Grow In Next 12 Months?

Valuation

Is Unite Group undervalued based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Unite Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Unite Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Unite Group is good value based on earnings compared to the GB REITs industry average.

Unite Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Unite Group is poor value based on expected growth next year.


Price Based on Value of Assets

Unite Group is overvalued based on assets compared to the GB REITs industry average.


Next Steps

Future Growth

How is Unite Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unite Group's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Unite Group's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Unite Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Unite Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Unite Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unite Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Unite Group performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Unite Group's year on year earnings growth rate has been positive over the past 5 years.

Unite Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Unite Group's 1-year earnings growth is negative, it can't be compared to the GB REITs industry average.


Return on Equity

Unite Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Unite Group used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.


Return on Capital Employed

Unite Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Unite Group's financial position?


Financial Position Analysis

Unite Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Unite Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Unite Group's level of debt (27.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.8% vs 27.2% today).

Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Unite Group's current dividend yield, its reliability and sustainability?

3.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unite Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

Unite Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.42%).

Whilst dividend payments have been stable, Unite Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Unite Group only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Unite Group's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Richard Smith (45yo)

3.3yrs

Tenure

UK£1,995,708

Compensation

Mr. Richard S. Smith has been the Chief Executive Officer of The Unite Group plc since June 2016 and has been its Executive Director since January 1, 2012. Mr. Smith served as the Managing Director of Oper ...


CEO Compensation Analysis

Richard's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Richard's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

The average tenure for the Unite Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

The tenure for the Unite Group board of directors is about average.


Insider Trading

Unite Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£406,37531 Jul 19
Richard Smith
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares38,972
Max PriceUK£10.43

Ownership Breakdown


Management Team

  • Joe Lister (48yo)

    CFO & Director

    • Tenure: 11.7yrs
    • Compensation: UK£1.64m
  • Mark Creedy

    Managing Director of Fund Management

    • Tenure: 0yrs
  • Richard Smith (45yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£2.00m
  • Chris Szpojnarowicz

    Company Secretary

    • Tenure: 6.3yrs
  • Caroline Hall

    PA to CFO & Corporate Development Director

    • Tenure: 0yrs
  • Candice Macdonald

    Head of Corporate Communications

    • Tenure: 0yrs
  • John Blanshard

    Chief Customer Officer

    • Tenure: 0yrs

Board Members

  • Joe Lister (48yo)

    CFO & Director

    • Tenure: 11.7yrs
    • Compensation: UK£1.64m
  • Phil White (70yo)

    Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: UK£190.14k
  • Richard Akers (58yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£16.22k
  • Liz McMeikan (57yo)

    Senior Independent Director

    • Tenure: 1.6yrs
    • Compensation: UK£63.14k
  • Ross Paterson (48yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£56.25k
  • Tim Wilson (70yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: UK£54.95k
  • Richard Smith (45yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£2.00m
  • Ilaria Del Beato

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£4.26k

Company Information

The Unite Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Unite Group plc
  • Ticker: UTG
  • Exchange: LSE
  • Founded: 1991
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: UK£3.080b
  • Shares outstanding: 290.33m
  • Website: https://www.unite-group.co.uk

Number of Employees


Location

  • The Unite Group plc
  • South Quay House
  • Temple Back
  • Bristol
  • BS1 6FL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1999
U1BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1999
UTGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1999
UTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1999

Biography

Unite Students is the UK's largest manager and developer of purpose-built student accommodation serving the country's world-leading higher education sector. We currently provide homes for almost 50,000 stu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 20:36
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.