LSE:STU

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Studio Retail Group

Executive Summary

Studio Retail Group plc operates as a digital value retailer in the United Kingdom, Europe, Asia, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: STU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

STU

1.0%

GB Online Retail

-3.7%

GB Market


1 Year Return

23.7%

STU

35.7%

GB Online Retail

-19.3%

GB Market

Return vs Industry: STU underperformed the UK Online Retail industry which returned 35.7% over the past year.

Return vs Market: STU exceeded the UK Market which returned -19.3% over the past year.


Shareholder returns

STUIndustryMarket
7 Day0.4%1.0%-3.7%
30 Day-3.2%-12.9%-4.2%
90 Day12.2%12.1%-4.3%
1 Year23.7%23.7%36.2%35.7%-16.2%-19.3%
3 Year37.6%37.6%87.2%82.5%-13.3%-24.0%
5 Year-0.2%-0.2%163.4%149.2%10.2%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate STU's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate STU's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: STU is poor value based on its PE Ratio (29.4x) compared to the GB Online Retail industry average (29.2x).

PE vs Market: STU is poor value based on its PE Ratio (29.4x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: STU is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: STU is good value based on its PB Ratio (2.7x) compared to the GB Online Retail industry average (3.5x).


Next Steps

Future Growth

How is Studio Retail Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STU's forecast earnings growth (36.9% per year) is above the savings rate (1.2%).

Earnings vs Market: STU's earnings (36.9% per year) are forecast to grow faster than the UK market (23.8% per year).

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

Revenue vs Market: STU's revenue (6.4% per year) is forecast to grow faster than the UK market (5.8% per year).

High Growth Revenue: STU's revenue (6.4% 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 STU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Studio Retail Group performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STU has a large one-off loss of £26.8M impacting its March 27 2020 financial results.

Growing Profit Margin: STU's current net profit margins (1.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: STU has become profitable over the past 5 years, growing earnings by 34.6% per year.

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

Earnings vs Industry: STU had negative earnings growth (-65.6%) over the past year, making it difficult to compare to the Online Retail industry average (-0.6%).


Return on Equity

High ROE: STU's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Studio Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: STU's short term assets (£376.8M) exceed its short term liabilities (£93.0M).

Long Term Liabilities: STU's short term assets (£376.8M) exceed its long term liabilities (£320.1M).


Debt to Equity History and Analysis

Debt Level: STU's debt to equity ratio (374.9%) is considered high.

Reducing Debt: STU's debt to equity ratio has increased from 296.4% to 374.9% over the past 5 years.

Debt Coverage: STU's debt is not well covered by operating cash flow (1.5%).

Interest Coverage: STU's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Studio Retail Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.5yrs

Average management tenure


CEO

Phil Maudsley (59 yo)

3.5yrs

Tenure

UK£781,000

Compensation

Mr. Philip B. Maudsley, also known as Phil, has been Chief Executive at Studio Retail Group plc (formerly known as Findel plc) since April 6, 2017. He was appointed Managing Director of Express Gifts in 20 ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD1.01M) is above average for companies of similar size in the UK market ($USD673.68K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philip Maudsley
Group CEO & Executive Director3.5yrsUK£781.00k0.34%
£ 701.9k
Stuart Caldwell
Group CFO & Director3.25yrsUK£490.00k0.061%
£ 125.7k
Paul Kendrick
MD of Studio Retail Ltd. & Executive Director0.83yrUK£233.00k0.018%
£ 36.4k
Arthur Alexion
Deputy Managing Directorno datano datano data
Mark Ashcroft
Company Secretary9.75yrsno data0.0013%
£ 2.7k
Chris Mahady
Managing Director of Findel Educationno datano datano data

3.5yrs

Average Tenure

Experienced Management: STU's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Maudsley
Group CEO & Executive Director3.5yrsUK£781.00k0.34%
£ 701.9k
Stuart Caldwell
Group CFO & Director3.25yrsUK£490.00k0.061%
£ 125.7k
Paul Kendrick
MD of Studio Retail Ltd. & Executive Director0.83yrUK£233.00k0.018%
£ 36.4k
M. Burke
Non-Executive Chairman3.75yrsUK£153.00k0.070%
£ 144.0k
Gregor Ball
Senior Independent Director2.25yrsUK£61.00k0.022%
£ 44.6k
Clare Askem
Independent Non-Executive Director1.58yrsUK£41.00kno data
Francois-Regis Coumau
Independent Non-Executive Director7.17yrsUK£47.00k0.047%
£ 97.3k
Elaine O'Donnell
Independent Non-Executive Director2.58yrsUK£51.00k0.011%
£ 23.3k

2.9yrs

Average Tenure

51yo

Average Age

Experienced Board: STU's board of directors are not considered experienced ( 2.9 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

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


Key Information

  • Name: Studio Retail Group plc
  • Ticker: STU
  • Exchange: LSE
  • Founded: 1955
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£205.484m
  • Shares outstanding: 85.62m
  • Website: https://www.studioretail.group

Number of Employees


Location

  • Studio Retail Group plc
  • Church Bridge House
  • Henry Street
  • Accrington
  • Lancashire
  • BB5 4EE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STULSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
STULBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Studio Retail Group plc operates as a digital value retailer in the United Kingdom, Europe, Asia, and internationally. The company operates through two segments, Studio and Education. Its Studio segment en ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 21:44
End of Day Share Price2020/10/30 00:00
Earnings2020/03/27
Annual Earnings2020/03/27


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.