AIM:UCG

Stock Analysis Report

United Carpets Group

Executive Summary

United Carpets Group plc, through its subsidiaries, operates and franchises carpet and bed retail outlets in the United Kingdom.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.1%

UCG

20.2%

GB Specialty Retail

8.6%

GB Market


1 Year Return

-52.4%

UCG

-23.6%

GB Specialty Retail

-19.4%

GB Market

Return vs Industry: UCG underperformed the UK Specialty Retail industry which returned -26.2% over the past year.

Return vs Market: UCG underperformed the UK Market which returned -21.5% over the past year.


Shareholder returns

UCGIndustryMarket
7 Day11.1%20.2%8.6%
30 Day-28.6%-12.3%-3.5%
90 Day-56.5%-33.6%-23.0%
1 Year-48.7%-52.4%-21.1%-23.6%-15.5%-19.4%
3 Year-67.4%-75.0%-27.4%-34.4%-8.8%-19.9%
5 Year-58.0%-72.2%-27.5%-38.8%4.2%-19.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UCG (£0.03) is trading below our estimate of fair value (£0.06)

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


Price To Earnings Ratio

PE vs Industry: UCG is good value based on its PE Ratio (4.7x) compared to the Specialty Retail industry average (8.9x).

PE vs Market: UCG is good value based on its PE Ratio (4.7x) compared to the UK market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: UCG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UCG is good value based on its PB Ratio (0.6x) compared to the GB Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is United Carpets Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCG's earnings are forecast to decline over the next 3 years (-23.4% per year).

Earnings vs Market: UCG's earnings are forecast to decline over the next 3 years (-23.4% per year).

High Growth Earnings: UCG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UCG's revenue (7.6% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: UCG's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UCG's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has United Carpets Group performed over the past 5 years?

-13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCG has a high level of non-cash earnings.

Growing Profit Margin: UCG's current net profit margins (1.6%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: UCG's earnings have declined by -13.6% per year over the past 5 years.

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

Earnings vs Industry: UCG had negative earnings growth (-44.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (1.5%).


Return on Equity

High ROE: UCG's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is United Carpets Group's financial position?


Financial Position Analysis

Short Term Liabilities: UCG's short term assets (£9.6M) do not cover its short term liabilities (£10.4M).

Long Term Liabilities: UCG's short term assets (£9.6M) do not cover its long term liabilities (£17.4M).


Debt to Equity History and Analysis

Debt Level: UCG is debt free.

Reducing Debt: UCG has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

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

16.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UCG's dividend (16.8%) is higher than the bottom 25% of dividend payers in the UK market (2.49%).

High Dividend: UCG's dividend (16.8%) is in the top 25% of dividend payers in the UK market (6.84%)


Stability and Growth of Payments

Stable Dividend: UCG's dividend payments have been volatile in the past 10 years.

Growing Dividend: UCG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.6%), UCG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UCG's dividends in 3 years are not forecast to be well covered by earnings (168% payout ratio).


Next Steps

Management

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

UK£293k

CEO Compensation


CEO

Paul Eyre (60yo)

no data

Tenure

UK£293,000

Compensation

Mr. Paul Eyre is the Founder of United Carpets Group PLC and serves as its Chief Executive Officer. Mr. Eyre has over 30 years experience within the carpet sector and came into the industry through the car ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD363.84K) is about average for companies of similar size in the UK market ($USD330.32K).

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


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

United Carpets Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Carpets Group plc
  • Ticker: UCG
  • Exchange: AIM
  • Founded: 1997
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: UK£2.035m
  • Shares outstanding: 81.40m
  • Website: https://www.unitedcarpetsandbeds.com

Number of Employees


Location

  • United Carpets Group plc
  • Moorhead House
  • Moorhead Way
  • Rotherham
  • South Yorkshire
  • S66 1YY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UCGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2005

Biography

United Carpets Group plc, through its subsidiaries, operates and franchises carpet and bed retail outlets in the United Kingdom. The company provides carpets; beds; laminate and vinyl floorings; luxury vinyl tiles; rugs; and artificial grass. It also offers accessories, such as pillows, door bars, adhesives, grippers, and scotia and profiles for laminates, as well as underlays for carpets and laminates. In addition, the company is involved in the warehousing activities; and the leasing and sub-letting of store networks. The company operates a network of 59 stores. United Carpets Group plc was founded in 1997 and is based in Rotherham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 20:47
End of Day Share Price2020/04/09 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.