LSE:STU

Stock Analysis Report

Studio Retail Group

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


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


Market Performance


7 Day Return

1.0%

STU

3.3%

GB Online Retail

10.0%

GB Market


1 Year Return

-11.9%

STU

-13.2%

GB Online Retail

-23.0%

GB Market

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

Return vs Market: STU exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

STUIndustryMarket
7 Day1.0%3.3%10.0%
30 Day-31.0%-12.7%-17.6%
90 Day-38.8%-18.6%-27.3%
1 Year-11.9%-11.9%-12.8%-13.2%-18.9%-23.0%
3 Year-27.5%-27.5%20.0%17.6%-12.9%-24.2%
5 Year-37.4%-37.4%60.8%55.1%1.6%-21.8%

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?

9.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STU (£1.45) is trading above our estimate of fair value (£0.18)

Significantly Below Fair Value: STU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STU is good value based on its PE Ratio (9.7x) compared to the Online Retail industry average (18x).

PE vs Market: STU is good value based on its PE Ratio (9.7x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: STU is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: STU is overvalued based on its PB Ratio (2.5x) compared to the GB Online Retail industry average (2.3x).


Next Steps

Future Growth

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

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STU's forecast earnings growth (23.1% per year) is above the savings rate (0.5%).

Earnings vs Market: STU's earnings (23.1% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: STU's revenue (5.2% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: STU's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STU's Return on Equity is forecast to be high in 3 years time (33%)


Next Steps

Past Performance

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

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STU has a large one-off loss of £5.3M impacting its September 27 2019 financial results.

Growing Profit Margin: STU's current net profit margins (2.5%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: STU has become profitable over the past 5 years, growing earnings by 24.8% 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 (-50.3%) over the past year, making it difficult to compare to the Online Retail industry average (-7.2%).


Return on Equity

High ROE: Whilst STU's Return on Equity (25.39%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Studio Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: STU's short term assets (£378.7M) exceed its short term liabilities (£111.5M).

Long Term Liabilities: STU's short term assets (£378.7M) exceed its long term liabilities (£309.4M).


Debt to Equity History and Analysis

Debt Level: STU's debt to equity ratio (521.9%) is considered high.

Reducing Debt: STU's debt to equity ratio has increased from 275.2% to 521.9% over the past 5 years.


Balance Sheet

Inventory Level: STU has a high level of physical assets or inventory.

Debt Coverage by Assets: STU's debt is covered by short term assets (assets are 1.4x 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: STU is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: STU is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Studio Retail Group's 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 payouts.

High Dividend: Unable to evaluate STU'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 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?

2.9yrs

Average management tenure


CEO

Phil Maudsley (58yo)

2.92s

Tenure

UK£926,000

Compensation

Mr. Philip B. Maudsley, also known as Phil, has been Chief Executive at Findel plc since April 6, 2017. Mr. Maudsley served as the Managing Director of Home Shopping Business at Findel plc since September  ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD1.15M) is above average for companies of similar size in the UK market ($USD761.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philip Maudsley
Group CEO & Executive Director2.92yrsUK£926.00k0.34% £424.0k
Stuart Caldwell
Group CFO & Director2.67yrsUK£563.00k0.061% £75.9k
Arthur Alexion
Deputy Managing Directorno datano datano data
Paul Kendrick
MD & Executive Director0.25yrno data0.018% £22.0k
Mark Ashcroft
Company Secretary9.17yrsno data0.0013% £1.6k
Chris Mahady
Managing Director of Findel Education4.83yrsno datano data

2.9yrs

Average Tenure

Experienced Management: STU's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Maudsley
Group CEO & Executive Director2.92yrsUK£926.00k0.34% £424.0k
Stuart Caldwell
Group CFO & Director2.67yrsUK£563.00k0.061% £75.9k
Paul Kendrick
MD & Executive Director0.25yrno data0.018% £22.0k
M. Burke
Non-Executive Chairman3.17yrsUK£150.00k0.070% £87.0k
Gregor Ball
Senior Independent Director1.67yrsUK£57.00k0.022% £26.9k
Clare Askem
Independent Non-Executive Director1yrUK£1.00kno data
Francois-Regis Coumau
Non-Executive Director6.58yrsUK£40.00k0.047% £58.8k
Elaine O'Donnell
Independent Non-Executive Director2yrsUK£47.00k0.011% £14.1k

2.3yrs

Average Tenure

49yo

Average Age

Experienced Board: STU's board of directors are not considered experienced ( 2.3 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

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£124.146m
  • 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

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. The Studio segment engages in the sale of various products covering leisurewear, electrical, household, textile, bedding, furniture, nursery products, gifts, and greeting cards through a combination of direct marketing and online via the studio.co.uk and ace.co.uk Websites. The Education segment supplies school and early years resources to primary, secondary, and nursery educational establishments. The company was formerly known as Findel plc and changed its name to Studio Retail Group plc in July 2019. Studio Retail Group plc was founded in 1955 and is based in Accrington, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:44
End of Day Share Price2020/03/30 00:00
Earnings2019/09/27
Annual Earnings2019/03/29


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.