LSE:MOTR

Stock Analysis Report

Executive Summary

Motorpoint Group Plc operates as an independent vehicle retailer in the United Kingdom.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.9%

MOTR

5.9%

GB Specialty Retail

1.7%

GB Market


1 Year Return

6.1%

MOTR

-28.1%

GB Specialty Retail

-21.8%

GB Market

Return vs Industry: MOTR exceeded the UK Specialty Retail industry which returned -31.7% over the past year.

Return vs Market: MOTR exceeded the UK Market which returned -23.6% over the past year.


Shareholder returns

MOTRIndustryMarket
7 Day5.9%5.9%1.7%
30 Day-30.4%-24.4%-12.0%
90 Day-28.4%-39.5%-25.3%
1 Year9.3%6.1%-25.7%-28.1%-17.9%-21.8%
3 Year32.3%20.8%-32.3%-38.7%-11.8%-22.8%
5 Yearn/a-34.0%-44.3%0.1%-22.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Motorpoint Group undervalued compared to its fair value and its price relative to the market?

37.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOTR (£1.99) is trading below our estimate of fair value (£3.27)

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


Price To Earnings Ratio

PE vs Industry: MOTR is poor value based on its PE Ratio (11.5x) compared to the Specialty Retail industry average (7.4x).

PE vs Market: MOTR is good value based on its PE Ratio (11.5x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MOTR is overvalued based on its PB Ratio (10.8x) compared to the GB Specialty Retail industry average (0.6x).


Next Steps

Future Growth

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

7.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if MOTR'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: MOTR's revenue (7.8% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: MOTR's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Motorpoint Group performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOTR has high quality earnings.

Growing Profit Margin: MOTR's current net profit margins (1.6%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: MOTR's earnings have grown significantly by 20.2% per year over the past 5 years.

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

Earnings vs Industry: MOTR had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (1.5%).


Return on Equity

High ROE: Whilst MOTR's Return on Equity (95.4%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Motorpoint Group's financial position?


Financial Position Analysis

Short Term Liabilities: MOTR's short term assets (£100.5M) exceed its short term liabilities (£94.9M).

Long Term Liabilities: MOTR's short term assets (£100.5M) exceed its long term liabilities (£45.3M).


Debt to Equity History and Analysis

Debt Level: MOTR's debt to equity ratio (379.9%) is considered high.

Reducing Debt: MOTR's debt to equity ratio has increased from 158.7% to 379.9% over the past 5 years.

Debt Coverage: MOTR's debt is well covered by operating cash flow (37.4%).

Interest Coverage: MOTR's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MOTR's dividend (3.77%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: MOTR's dividend (3.77%) is low compared to the top 25% of dividend payers in the UK market (7.08%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MOTR has been paying a dividend for less than 10 years.

Growing Dividend: MOTR's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), MOTR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOTR's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Mark Carpenter (47yo)

6.92s

Tenure

UK£287,000

Compensation

Mr. Mark Gwilym Carpenter has been the Chief Executive Officer at Motorpoint Group plc since May 2013. Mr. Carpenter served as Chief Financial Officer of Motorpoint Group plc. He has 14 years’ experience i ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD352.62K) is below average for companies of similar size in the UK market ($USD752.36K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Carpenter
CEO & Director6.92yrsUK£287.00k9.84% £17.7m
James Gilmour
CFO & Director4yrsUK£222.00k0.19% £348.9k
Cat Mcguckin
Human Resource Directorno datano datano data
Manjit Virk
Company Secretary3.92yrsno datano data

4.7yrs

Average Tenure

Experienced Management: MOTR's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Carpenter
CEO & Director6.92yrsUK£287.00k9.84% £17.7m
James Gilmour
CFO & Director4yrsUK£222.00k0.19% £348.9k
Adele Cooper
Independent Non-Executive Director0.083yrno datano data
Gordon Hurst
Independent Non-Executive Director3.92yrsUK£48.00k0.072% £129.3k
Mark Morris
Non-Executive Chairman4yrsUK£100.00k9.55% £17.1m
Mary McNamara
Senior Independent Non-Executive Director3.5yrsUK£53.00k0.073% £130.3k

4.0yrs

Average Tenure

58yo

Average Age

Experienced Board: MOTR's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MOTR insiders have only sold shares 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

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


Key Information

  • Name: Motorpoint Group plc
  • Ticker: MOTR
  • Exchange: LSE
  • Founded: 1998
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: UK£179.467m
  • Shares outstanding: 90.18m
  • Website: https://www.motorpointplc.com

Number of Employees


Location

  • Motorpoint Group plc
  • Chartwell Drive
  • West Meadows Industrial Estate
  • Derby
  • Derbyshire
  • DE21 6BZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOTRLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2016
MOTRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2016
MTPT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2016

Biography

Motorpoint Group Plc operates as an independent vehicle retailer in the United Kingdom. It primarily sells nearly-new vehicles and vehicles from various brands, including Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi, BMW, and Mercedes-Benz. The company operates 12 retail sites across Great Britain. It also operates Auction4Cars.com, a business to business digital auction platform for selling part-exchange vehicles. In addition, the company sells motor related services comprising extended guarantees, paint protection, and gap insurance. Motorpoint Group Plc was founded in 1998 and is headquartered in Derby, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 22:48
End of Day Share Price2020/04/08 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.