LSE:BWNG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

N Brown Group plc operates as a digital fashion retailer in the United Kingdom. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BWNG is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: BWNG's weekly volatility has decreased from 18% to 12% over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

2.2%

BWNG

2.1%

GB Online Retail

1.2%

GB Market


1 Year Return

-50.5%

BWNG

53.2%

GB Online Retail

-9.6%

GB Market

Return vs Industry: BWNG underperformed the UK Online Retail industry which returned 53.2% over the past year.

Return vs Market: BWNG underperformed the UK Market which returned -9.1% over the past year.


Shareholder returns

BWNGIndustryMarket
7 Day2.2%2.1%1.2%
30 Day1.5%3.2%8.6%
90 Day18.6%-0.8%5.4%
1 Year-49.6%-50.5%53.8%53.2%-6.1%-9.6%
3 Year-74.4%-78.0%97.7%92.9%-0.6%-12.6%
5 Year-78.0%-83.2%185.4%170.3%23.3%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is N Brown 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: BWNG (£0.57) is trading below our estimate of fair value (£17.77)

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


Price To Earnings Ratio

PE vs Industry: BWNG is good value based on its PE Ratio (6.3x) compared to the GB Online Retail industry average (30.6x).

PE vs Market: BWNG is good value based on its PE Ratio (6.3x) compared to the UK market (20.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BWNG is good value based on its PB Ratio (0.5x) compared to the GB Online Retail industry average (5.3x).


Next Steps

Future Growth

How is N Brown Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BWNG's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if BWNG'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: BWNG's revenue (3.1% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: BWNG's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWNG's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has N Brown Group performed over the past 5 years?

-41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWNG has a large one-off loss of £8.0M impacting its August 29 2020 financial results.

Growing Profit Margin: BWNG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BWNG's earnings have declined by 41.2% per year over the past 5 years.

Accelerating Growth: BWNG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BWNG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-0.6%).


Return on Equity

High ROE: BWNG's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is N Brown Group's financial position?


Financial Position Analysis

Short Term Liabilities: BWNG's short term assets (£695.3M) exceed its short term liabilities (£140.7M).

Long Term Liabilities: BWNG's short term assets (£695.3M) exceed its long term liabilities (£477.6M).


Debt to Equity History and Analysis

Debt Level: BWNG's debt to equity ratio (136.8%) is considered high.

Reducing Debt: BWNG's debt to equity ratio has increased from 56.8% to 136.8% over the past 5 years.

Debt Coverage: BWNG's debt is well covered by operating cash flow (27.8%).

Interest Coverage: BWNG's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.37%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.8yrs

Average management tenure


CEO

Steve Johnson

2.08yrs

Tenure

UK£479,000

Compensation

Mr. Stephen Johnson, also known as Steve, has been Chief Executive Officer of N Brown Group plc since February 26, 2019 and serves as its Member of Executive Board. He served as Interim Group CEO at N Brow...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD636.70K) is about average for companies of similar size in the UK market ($USD621.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Johnson
CEO, Member of Executive Board & Executive Director2.08yrsUK£479.00k0.021%
£ 36.1k
Rachel Izzard
CFO, Director & Member of Executive Board0.42yrno datano data
Theresa Casey
General Counsel5.67yrsno datano data
Alyson Fadil
Chief People Officer & Member of Executive Board2.58yrsno datano data
Adam Warne
Chief Information Officer & Member of Executive Board2.58yrsno datano data
Kenyatte Nelson
Chief Brand Officer & Member of the Executive Board1.42yrsno datano data
Sarah Welsh
CEO of Retail & Member of Executive Board0.67yrno datano data
Dan Joy
CEO of Financial Service & Member of Management Board0.83yrno datano data
Will MacLaren
Director of Investor Relations & Corporate Communicationsno datano datano data

1.8yrs

Average Tenure

Experienced Management: BWNG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Johnson
CEO, Member of Executive Board & Executive Director2.08yrsUK£479.00k0.021%
£ 36.1k
Rachel Izzard
CFO, Director & Member of Executive Board0.42yrno datano data
David Alliance
Non-Executive Director52.83yrsUK£51.00k30.08%
£ 51.2m
Matthew Davies
Independent Non-Executive Chairman2.5yrsUK£255.00k0.011%
£ 18.6k
Gill Barr
Independent Non-Executive Director2.83yrsUK£69.00k0.0030%
£ 5.1k
Victoria Mitchell
Independent Non-Executive Director0.83yrno datano data
Richard Moross
Independent Non-Executive Director4.08yrsUK£67.00kno data
Michael Alexander Ross
Independent Non-Executive Director2.83yrsUK£63.00kno data
Ronald McMillan
Senior Independent Non-Executive Director7.58yrsUK£79.00k0.018%
£ 29.9k
Margaret Jones
Independent Non-Executive Director6.08yrsUK£70.00kno data

2.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BWNG's board of directors are not considered experienced ( 2.8 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

N Brown Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: N Brown Group plc
  • Ticker: BWNG
  • Exchange: LSE
  • Founded: 1859
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£170.262m
  • Shares outstanding: 284.24m
  • Website: https://www.nbrown.co.uk

Number of Employees


Location

  • N Brown Group plc
  • Griffin House
  • 40 Lever Street
  • Manchester
  • Greater Manchester
  • M60 6ES
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBRN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BWNGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BWNGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BGUADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

N Brown Group plc operates as a digital fashion retailer in the United Kingdom. The company offers a range of clothing, footwear, and homeware products for men, women, and kids under the JD Williams, Simpl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 22:07
End of Day Share Price2020/11/23 00:00
Earnings2020/08/29
Annual Earnings2020/02/29


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.