LSE:BWNG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential and fair value.


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


Market Performance


7 Day Return

-1.6%

BWNG

2.7%

GB Online Retail

-0.06%

GB Market


1 Year Return

0%

BWNG

18.9%

GB Online Retail

4.6%

GB Market

Return vs Industry: BWNG underperformed the UK Online Retail industry which returned 14.3% over the past year.

Return vs Market: BWNG underperformed the UK Market which returned 4.4% over the past year.


Shareholder returns

BWNGIndustryMarket
7 Day-1.6%2.7%-0.06%
30 Day-4.9%-1.4%1.8%
90 Day7.9%3.1%4.5%
1 Year6.0%0%19.6%18.9%10.1%4.6%
3 Year-28.6%-40.8%44.4%41.6%22.4%6.9%
5 Year-53.4%-65.2%114.0%105.0%33.3%3.1%

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 (£1.17) is trading below our estimate of fair value (£2.52)

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 (1.1x) compared to the GB Online Retail industry average (4.2x).


Next Steps

Future Growth

How is N Brown Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

75.1%

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 (1.2%).

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 (4.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: BWNG's revenue (4.2% 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 (18.6%).


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 has large one-off items impacting its financial results.

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 (21.4%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceeds its short term liabilities (£169.6M)

Long Term Liabilities: BWNG's short term assets (£785.0M) exceeds 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.

Debt Coverage: BWNG's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: BWNG is unprofitable, therefore interest payments are not well covered by earnings.


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).


Next Steps

Dividend

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

6.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase N Brown Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.1%marketbottom25%2.0%markettop25%5.3%industryaverage3.2%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: BWNG's dividend (6.06%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: BWNG's dividend (6.06%) is in the top 25% of dividend payers in the UK market (5.34%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: BWNG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BWNG's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Steve Johnson 0

1.1yrs

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 ($USD611.95K) is below average for companies of similar size in the UK market ($USD891.00K).

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


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: BWNG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: BWNG's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£10,02707 May 19
Stephen Johnson
EntityIndividual
Role
Chief Executive Officer
CEO, Member of Executive Board & Executive Director
Shares7,265
Max PriceUK£1.38
BuyUK£13,70602 May 19
Stephen Johnson
EntityIndividual
Role
Chief Executive Officer
CEO, Member of Executive Board & Executive Director
Shares11,631
Max PriceUK£1.18
BuyUK£10,95902 May 19
Stephen Johnson
EntityIndividual
Role
Chief Executive Officer
CEO, Member of Executive Board & Executive Director
Shares8,975
Max PriceUK£1.22
BuyUK£9,86427 Feb 19
Stephen Johnson
EntityIndividual
Role
Chief Executive Officer
CEO, Member of Executive Board & Executive Director
Shares9,300
Max PriceUK£1.06

Ownership Breakdown

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


Management Team

  • Ralph Tucker

    Chief Product & Trading Officer and Member of Executive Board

    • Tenure: 4.7yrs
  • Craig Lovelace (46yo)

    CFO, Member of Executive Board & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£578.00k
  • Theresa Casey (50yo)

    General Counsel & Company Secretary

    • Tenure: 4.7yrs
  • Aly Fadil

    Chief People Officer & Member of Executive Board

    • Tenure: 1.6yrs
  • Steve Johnson

    CEO, Member of Executive Board & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£471.85k
  • Adam Warne

    Chief Information Officer & Member of Executive Board

    • Tenure: 1.6yrs
  • Will MacLaren

    Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Kenyatte Nelson

    Chief Brand Officer

    • Tenure: 0.4yrs

Board Members

  • David Alliance (86yo)

    Non-Executive Director

    • Tenure: 51.8yrs
    • Compensation: UK£50.00k
  • Matt Davies (48yo)

    Independent Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: UK£220.00k
  • Gill Barr (61yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£62.00k
  • Richard Moross (41yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£53.00k
  • Michael Alexander Ross (50yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£57.00k
  • Ron McMillan (67yo)

    Independent Senior Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£63.00k
  • Craig Lovelace (46yo)

    CFO, Member of Executive Board & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£578.00k
  • Margaret Jones (64yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£74.00k
  • Steve Johnson

    CEO, Member of Executive Board & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£471.85k

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£333.815m
  • 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, Simpl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 21:02
End of Day Share Price2019/11/18 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.