AIM:SHOE

Stock Analysis Report

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Executive Summary

Shoe Zone plc operates as a footwear retailer in the United Kingdom and the Republic of Ireland. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Shoe Zone's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHOE is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: SHOE's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-8.7%

SHOE

-1.1%

GB Specialty Retail

-0.6%

GB Market


1 Year Return

-71.2%

SHOE

0.9%

GB Specialty Retail

-6.5%

GB Market

Return vs Industry: SHOE underperformed the UK Specialty Retail industry which returned 0.9% over the past year.

Return vs Market: SHOE underperformed the UK Market which returned -6.5% over the past year.


Shareholder returns

SHOEIndustryMarket
7 Day-8.7%-1.1%-0.6%
30 Day4.0%3.0%5.2%
90 Day15.4%2.9%15.1%
1 Year-71.2%-71.2%1.2%0.9%-2.7%-6.5%
3 Year-63.5%-68.4%12.7%5.0%5.1%-7.7%
5 Year-65.2%-74.6%11.8%-3.2%46.8%18.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHOE (£0.53) is trading above our estimate of fair value (£0.32)

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


Price To Earnings Ratio

PE vs Industry: SHOE is good value based on its PE Ratio (9.2x) compared to the GB Specialty Retail industry average (19.5x).

PE vs Market: SHOE is good value based on its PE Ratio (9.2x) compared to the UK market (23.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SHOE is good value based on its PB Ratio (1x) compared to the GB Specialty Retail industry average (1.6x).


Next Steps

Future Growth

How is Shoe Zone forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.7%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shoe Zone has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Shoe Zone performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHOE has a large one-off loss of £2.9M impacting its April 4 2020 financial results.

Growing Profit Margin: SHOE's current net profit margins (1.8%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: SHOE's earnings have declined by 5.4% per year over the past 5 years.

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

Earnings vs Industry: SHOE had negative earnings growth (-69.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-13.3%).


Return on Equity

High ROE: SHOE's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Shoe Zone's financial position?


Financial Position Analysis

Short Term Liabilities: SHOE's short term assets (£37.0M) exceed its short term liabilities (£31.7M).

Long Term Liabilities: SHOE's short term assets (£37.0M) do not cover its long term liabilities (£57.1M).


Debt to Equity History and Analysis

Debt Level: SHOE is debt free.

Reducing Debt: SHOE had no debt 5 years ago.

Debt Coverage: SHOE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SHOE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Shoe Zone current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SHOE'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 SHOE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHOE'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?

1.4yrs

Average management tenure


CEO

Anthony Edward Smith (53 yo)

1.42yrs

Tenure

UK£303,342

Compensation

Mr. Anthony Edward Pennington Smith served as Chief Executive of Shoe Zone plc since August 30, 2019. Mr. Smith was the Executive Chairman of the Board of Shoe Zone Plc from June 21, 2016 until August 30, ...


CEO Compensation Analysis

Compensation vs Market: Anthony Edward's total compensation ($USD416.43K) is about average for companies of similar size in the UK market ($USD334.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Smith
Chairman & COO1yrUK£139.41k22.43%
£ 5.8m
Anthony Edward Smith
Chief Executive & Executive Director1.42yrsUK£303.34k28.06%
£ 7.2m
Peter Foot
Finance Director & Director1yrno datano data
Catherine Bowen
Company Secretary1.33yrsno datano data

1.4yrs

Average Tenure

Experienced Management: SHOE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Smith
Chairman & COO1yrUK£139.41k22.43%
£ 5.8m
Anthony Edward Smith
Chief Executive & Executive Director1.42yrsUK£303.34k28.06%
£ 7.2m
Peter Foot
Finance Director & Director1yrno datano data
Malcolm Collins
Independent Non-Executive Director4.58yrsUK£20.00kno data
Victoria Norrish
Non-Executive Director0.42yrno datano data

1.0yrs

Average Tenure

54yo

Average Age

Experienced Board: SHOE's board of directors are not considered experienced ( 1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shoe Zone plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shoe Zone plc
  • Ticker: SHOE
  • Exchange: AIM
  • Founded: 2014
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: UK£25.793m
  • Shares outstanding: 49.99m
  • Website: https://www.shoezone.com

Number of Employees


Location

  • Shoe Zone plc
  • Haramead Business Centre
  • Humberstone Road
  • Leicester
  • Leicestershire
  • LE1 2LH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHOEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2014

Biography

Shoe Zone plc operates as a footwear retailer in the United Kingdom and the Republic of Ireland. The company offers shoes for men, women, boys, and girls. It operates 500 stores and shoezone.com, a Website...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 19:34
End of Day Share Price2021/01/21 00:00
Earnings2020/04/04
Annual Earnings2019/10/05


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.