LSE:UTG

Stock Analysis Report

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Executive Summary

Unite Students is the UK's largest owner, manager and developer of purpose-built student accommodation serving the country's world-leading Higher Education sector.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

Stable Share Price: UTG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

UTG

1.2%

GB REITs

1.1%

GB Market


1 Year Return

-8.8%

UTG

-7.1%

GB REITs

-11.5%

GB Market

Return vs Industry: UTG matched the UK REITs industry which returned -7.9% over the past year.

Return vs Market: UTG exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

UTGIndustryMarket
7 Day0.5%1.2%1.1%
30 Day-0.2%2.4%0.6%
90 Day23.5%9.6%3.6%
1 Year-7.9%-8.8%-4.2%-7.1%-7.9%-11.5%
3 Year48.3%38.2%-2.1%-13.8%-5.1%-16.5%
5 Year51.7%34.1%-6.3%-23.2%14.8%-10.6%

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

Valuation

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

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UTG (£9.37) is trading below our estimate of fair value (£16.62)

Significantly Below Fair Value: UTG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UTG is unprofitable, so we can't compare its PE Ratio to the GB REITs industry average.

PE vs Market: UTG is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UTG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UTG is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Unite Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

102.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UTG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: UTG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UTG's is expected to become profitable in the next 3 years.

Revenue vs Market: UTG's revenue (7.3% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: UTG's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UTG's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Unite Group performed over the past 5 years?

-33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UTG is currently unprofitable.

Growing Profit Margin: UTG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UTG is unprofitable, and losses have increased over the past 5 years at a rate of 33.3% per year.

Accelerating Growth: Unable to compare UTG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UTG is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-9%).


Return on Equity

High ROE: UTG has a negative Return on Equity (-9.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Unite Group's financial position?


Financial Position Analysis

Short Term Liabilities: UTG's short term assets (£625.6M) exceed its short term liabilities (£120.0M).

Long Term Liabilities: UTG's short term assets (£625.6M) do not cover its long term liabilities (£2.0B).


Debt to Equity History and Analysis

Debt Level: UTG's debt to equity ratio (56.7%) is considered high.

Reducing Debt: UTG's debt to equity ratio has increased from 41% to 56.7% over the past 5 years.

Debt Coverage: UTG's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: UTG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.03%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UTG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UTG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UTG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UTG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UTG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UTG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Richard Smith (46 yo)

4.17yrs

Tenure

UK£2,730,949

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

Compensation vs Market: Richard's total compensation ($USD3.57M) is about average for companies of similar size in the UK market ($USD3.26M).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Smith
CEO & Director4.17yrsUK£2.73m0.058%
£ 2.2m
Joseph Lister
CFO & Director12.58yrsUK£2.22m0.12%
£ 4.4m
Caroline Hall
PA to CFO & Corporate Development Directorno datano datano data
Christopher Szpojnarowicz
Company Secretary7.25yrsno datano data
Candice Macdonald
Head of Corporate Communicationsno datano datano data
Mark Creedy
Managing Director of Fund Managementno datano datano data
John Blanshard
Chief Customer Officerno datano datano data
Nick Hayes
Group Property Director1.58yrsno datano data

5.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: UTG's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Smith
CEO & Director4.17yrsUK£2.73m0.058%
£ 2.2m
Joseph Lister
CFO & Director12.58yrsUK£2.22m0.12%
£ 4.4m
Philip White
Independent Chairman of the Board11.25yrsUK£195.05k0.0038%
£ 143.3k
Richard Akers
Independent Non-Executive Director1.92yrsUK£48.50k0.0024%
£ 91.0k
Steve Smith
Non-Executive Director0.33yrno datano data
Elizabeth McMeikan
Senior Independent Director2.5yrsUK£63.98k0.0019%
£ 72.4k
Ross Paterson
Independent Non-Executive Director2.92yrsUK£58.00k0.0021%
£ 78.0k
Shirley Pearce
Independent Non-Executive Director0.75yrUK£8.00kno data
Ilaria Del Beato
Independent Non-Executive Director1.67yrsUK£48.26kno data
Thomas Jackson
Non-Executive Director0.75yrno datano data

2.2yrs

Average Tenure

54yo

Average Age

Experienced Board: UTG's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 37.1%.


Top Shareholders

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£3.731b
  • Shares outstanding: 398.14m
  • 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 owner, manager and developer of purpose-built student accommodation serving the country's world-leading Higher Education sector. Following our successful £1.4bn acquisiti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 21:27
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.