LSE:BWNG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-45.4%

BWNG

1.6%

GB Online Retail

6.2%

GB Market


1 Year Return

-85.2%

BWNG

-12.3%

GB Online Retail

-22.7%

GB Market

Return vs Industry: BWNG underperformed the UK Online Retail industry which returned -12.3% over the past year.

Return vs Market: BWNG underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

BWNGIndustryMarket
7 Day-45.4%1.6%6.2%
30 Day-74.6%-11.1%-17.8%
90 Day-90.9%-16.8%-27.7%
1 Year-84.4%-85.2%-11.8%-12.3%-18.6%-22.7%
3 Year-91.7%-93.0%22.0%19.5%-13.4%-24.6%
5 Year-93.9%-95.5%63.2%57.5%1.3%-22.0%

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 (£0.15) is trading below our estimate of fair value (£1.63)

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


Price To Earnings Ratio

PE vs Industry: BWNG is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: BWNG is unprofitable, so we can't compare its PE Ratio to the UK market.


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 (0.1x) compared to the GB Online Retail industry average (2.3x).


Next Steps

Future Growth

How is N Brown Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: BWNG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BWNG's is expected to become profitable in the next 3 years.

Revenue vs Market: BWNG's revenue (0.3% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: BWNG's revenue (0.3% 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 (14.9%).


Next Steps

Past Performance

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

-61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWNG is currently unprofitable.

Growing Profit Margin: BWNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BWNG is unprofitable, and losses have increased over the past 5 years at a rate of -61.1% per year.

Accelerating Growth: Unable to compare BWNG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BWNG is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-7.2%).


Return on Equity

High ROE: BWNG has a negative Return on Equity (-5.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is N Brown Group's financial position?


Financial Position Analysis

Short Term Liabilities: BWNG's short term assets (£785.0M) exceed its short term liabilities (£169.6M).

Long Term Liabilities: BWNG's short term assets (£785.0M) exceed its long term liabilities (£561.2M).


Debt to Equity History and Analysis

Debt Level: BWNG's debt to equity ratio (173.4%) is considered high.

Reducing Debt: BWNG's debt to equity ratio has increased from 50.6% to 173.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BWNG's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BWNG has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BWNG has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

44.88%

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 payouts.

High Dividend: Unable to evaluate BWNG's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

1.9yrs

Average management tenure


CEO

Steve Johnson

1.42s

Tenure

UK£471,850

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 ($USD585.68K) is above average for companies of similar size in the UK market ($USD332.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Johnson
CEO, Member of Executive Board & Executive Director1.42yrsUK£471.85k0.021% £8.8k
Craig Lovelace
CFO, Member of Executive Board & Executive Director4.83yrsUK£578.00k0.016% £6.8k
Ralph Tucker
Chief Product & Trading Officer and Member of Executive Board5yrsno datano data
Alyson Fadil
Chief People Officer & Member of Executive Board1.92yrsno datano data
Adam Warne
Chief Information Officer & Member of Executive Board1.92yrsno datano data
Will MacLaren
Director of Investor Relations & Corporate Communicationsno datano datano data
Theresa Casey
General Counsel & Company Secretary5yrsno datano data
Kenyatte Nelson
Chief Brand Officer0.75yrno datano data

1.9yrs

Average Tenure

Experienced Management: BWNG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Johnson
CEO, Member of Executive Board & Executive Director1.42yrsUK£471.85k0.021% £8.8k
Craig Lovelace
CFO, Member of Executive Board & Executive Director4.83yrsUK£578.00k0.016% £6.8k
David Alliance
Non-Executive Director52.17yrsUK£50.00k29.43% £12.2m
Matthew Davies
Independent Non-Executive Chairman1.83yrsUK£220.00k0.011% £4.5k
Gill Barr
Independent Non-Executive Director2.17yrsUK£62.00k0.0030% £1.2k
Victoria Mitchell
Non-Executive Director0.17yrno datano data
Richard Moross
Independent Non-Executive Director3.42yrsUK£53.00kno data
Michael Alexander Ross
Independent Non-Executive Director2.17yrsUK£57.00kno data
Ronald McMillan
Independent Senior Non-Executive Director6.92yrsUK£63.00k0.018% £7.3k
Margaret Jones
Independent Non-Executive Director5.42yrsUK£74.00kno data

2.8yrs

Average Tenure

53yo

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.


Recent Insider Transactions

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£41.620m
  • Shares outstanding: 285.07m
  • 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

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, Simply Be, Jacamo, Oxendales, Figleaves, House of Bath, High and Mighty, Premier Man, Slimma, Diva, Dannimac, and Ambrose Wilson brands. It also provides financial services. The company was founded in 1859 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:43
End of Day Share Price2020/03/27 00:00
Earnings2019/08/31
Annual Earnings2019/03/02


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.