AIM:ULS

Stock Analysis Report

Executive Summary

ULS Technology plc, through its subsidiaries, engages in the development and hosting of Internet based software applications for legal and property services businesses in the United Kingdom.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has ULS Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.0%

ULS

0.9%

GB Online Retail

-2.2%

GB Market


1 Year Return

-45.0%

ULS

-10.8%

GB Online Retail

-25.9%

GB Market

Return vs Industry: ULS underperformed the UK Online Retail industry which returned -11.3% over the past year.

Return vs Market: ULS underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

ULSIndustryMarket
7 Day10.0%0.9%-2.2%
30 Day-24.2%-11.5%-20.3%
90 Day-42.5%-15.9%-29.5%
1 Year-42.6%-45.0%-10.3%-10.8%-22.2%-25.9%
3 Year-57.7%-61.1%33.3%30.3%-16.1%-26.6%
5 Year-8.1%-21.0%59.7%53.8%-4.6%-26.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ULS Technology undervalued compared to its fair value and its price relative to the market?

0.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ULS (£0.39) is trading below our estimate of fair value (£0.39)

Significantly Below Fair Value: ULS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ULS is good value based on its PE Ratio (7.3x) compared to the Online Retail industry average (16.4x).

PE vs Market: ULS is good value based on its PE Ratio (7.3x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ULS is overvalued based on its PB Ratio (2.1x) compared to the GB Online Retail industry average (2.1x).


Next Steps

Future Growth

How is ULS Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-36.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ULS's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if ULS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ULS's revenue is expected to decline over the next 3 years (-36.7% per year).

High Growth Revenue: ULS's revenue is forecast to decline over the next 3 years (-36.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ULS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ULS Technology performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULS has high quality earnings.

Growing Profit Margin: ULS's current net profit margins (11.8%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: ULS's earnings have grown by 16.1% per year over the past 5 years.

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

Earnings vs Industry: ULS had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Online Retail industry average (-7.2%).


Return on Equity

High ROE: ULS's Return on Equity (28.1%) is considered high.


Next Steps

Financial Health

How is ULS Technology's financial position?


Financial Position Analysis

Short Term Liabilities: ULS's short term assets (£4.7M) do not cover its short term liabilities (£9.3M).

Long Term Liabilities: ULS's short term assets (£4.7M) exceed its long term liabilities (£3.6M).


Debt to Equity History and Analysis

Debt Level: ULS's debt to equity ratio (52%) is considered high.

Reducing Debt: ULS's debt to equity ratio has increased from 35.4% to 52% over the past 5 years.

Debt Coverage: ULS's debt is well covered by operating cash flow (77.3%).

Interest Coverage: ULS's interest payments on its debt are well covered by EBIT (34x coverage).


Balance Sheet

Inventory Level: ULS has a low level of unsold assets or inventory.

Debt Coverage by Assets: ULS's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is ULS Technology's current dividend yield, its reliability and sustainability?

6.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ULS's dividend (6.49%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: ULS's dividend (6.49%) is low compared to the top 25% of dividend payers in the UK market (7.42%).


Stability and Growth of Payments

Stable Dividend: ULS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ULS's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), ULS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Steve Goodall

2s

Tenure

UK£231,271

Compensation

Mr. Stephen Goodall, also known as Steve, has been Managing Director of ULS Technology plc since May 2, 2017 and Chief Executive Officer and Director since April 4, 2018. Mr. Goodall has been responsible f ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD283.17K) is about average for companies of similar size in the UK market ($USD335.78K).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Stephen Goodall
CEO, MD & Director2yrsUK£231.27kno data
Andrew Weston
Co-Founderno dataUK£129.61k1.97% £491.5k
John Williams
Finance Directorno dataUK£162.37k0.074% £18.6k
Martin Rowland
Independent Chairman0.17yrUK£11.73kno data
Oliver Rupert Scott
Non-Executive Director0.25yrno datano data
Elaine Bucknor
Independent Non-Executive Director1.83yrsUK£29.64kno data

1.0yrs

Average Tenure

51yo

Average Age

Experienced Board: ULS'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

ULS Technology plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ULS Technology plc
  • Ticker: ULS
  • Exchange: AIM
  • Founded: 2003
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£24.975m
  • Shares outstanding: 64.87m
  • Website: https://www.ulstechnology.com

Number of Employees


Location

  • ULS Technology plc
  • The Old Grammar School
  • Church Road
  • Thame
  • Oxfordshire
  • OX9 3AJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ULSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2014

Biography

ULS Technology plc, through its subsidiaries, engages in the development and hosting of Internet based software applications for legal and property services businesses in the United Kingdom. It provides software solutions that support online legal comparison services. The company also provides risk management and compliance consultancy services for solicitors and licensed conveyancers. Its solutions also cover mortgage lenders, builders and developers, intermediaries, estate agents, and energy performance certificates. The company, primarily, provides its services through white-labels to mortgage brokers, banks, building societies, and price comparison Websites. ULS Technology plc was founded in 2003 and is based in Thame, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:52
End of Day Share Price2020/04/03 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.