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.

Rewards

Trading at 55.5% below its fair value

Earnings are forecast to grow 10.82% per year

Risk Analysis

Does not have a meaningful market cap (£4M)

Unstable dividend track record

Profit margins (1.7%) are lower than last year (5.9%)



Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

UCG

1.3%

GB Specialty Retail

0.5%

GB Market


1 Year Return

-25.2%

UCG

22.0%

GB Specialty Retail

7.0%

GB Market

Return vs Industry: UCG underperformed the UK Specialty Retail industry which returned 22% over the past year.

Return vs Market: UCG underperformed the UK Market which returned 7% over the past year.


Shareholder returns

UCGIndustryMarket
7 Day0%1.3%0.5%
30 Day-1.9%2.6%-0.3%
90 Day-7.8%7.2%0.4%
1 Year-19.2%-25.2%26.5%22.0%12.6%7.0%
3 Year-34.9%-49.5%6.4%-4.5%18.7%3.6%
5 Year-8.2%-37.8%11.3%-6.1%41.8%9.3%

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 (£0.05) is trading below our estimate of fair value (£0.11)

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 (9.8x) compared to the Specialty Retail industry average (15.6x).

PE vs Market: UCG is good value based on its PE Ratio (9.8x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: UCG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: UCG is good value based on its PB Ratio (0.8x) compared to the GB Specialty Retail industry average (1x).


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?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCG's forecast earnings growth (10.8% per year) is above the savings rate (0.5%).

Earnings vs Market: UCG's earnings (10.8% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: UCG's earnings are forecast to grow, but not significantly.

Revenue vs Market: UCG's revenue (10.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: UCG's revenue (10.7% 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 (9.9%).


Next Steps

Past Performance

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

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCG has high quality earnings.

Growing Profit Margin: UCG's current net profit margins (1.7%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: UCG's earnings have declined by -5.9% 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 (-67.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (2.9%).


Return on Equity

High ROE: UCG's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United Carpets Group's financial position?


Financial Position Analysis

Short Term Liabilities: UCG's short term assets (£8.1M) exceed its short term liabilities (£5.2M).

Long Term Liabilities: UCG's short term assets (£8.1M) exceed its long term liabilities (£680.0K).


Debt to Equity History and Analysis

Debt Level: UCG is debt free.

Reducing Debt: UCG has no debt compared to 5 years ago when its debt to equity ratio was 0.04%.

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

Inventory Level: UCG has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if UCG's debt is covered by short term assets.


Next Steps

Dividend

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

8.32%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%1.9%markettop25%5.2%industryaverage2.8%forecastin3Years9.7%

Current dividend yield vs market & industry

Notable Dividend: UCG's dividend (8.32%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: UCG's dividend (8.32%) is in the top 25% of dividend payers in the UK market (5.2%)


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 (81.8%), UCG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UCG's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

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

UK£293k

CEO Compensation


CEO

Paul Eyre (60yo)

0yrs

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 ($USD386.07K) is about average for companies of similar size in the UK market ($USD334.31K).

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


Insider Trading

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.


Management Team

  • Ian Bowness (62yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: UK£241.00k
  • Paul Eyre (60yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£293.00k
  • Deborah Grayson (57yo)

    Commercial Director & Director

    • Tenure: 0yrs
    • Compensation: UK£223.00k
  • Paul Newton (51yo)

    Operations Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£226.00k

Board Members

  • Ian Bowness (62yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: UK£241.00k
  • Peter Cowgill (66yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£47.00k
  • Paul Eyre (60yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£293.00k
  • Ken Piggott (70yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£38.00k
  • Deborah Grayson (57yo)

    Commercial Director & Director

    • Tenure: 0yrs
    • Compensation: UK£223.00k
  • Paul Newton (51yo)

    Operations Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£226.00k

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£4.111m
  • 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 vin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:46
End of Day Share Price2019/12/10 00:00
Earnings2019/03/31
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.