AIM:BILL

Stock Analysis Report

Billing Services Group

Executive Summary

Billing Services Group Limited provides financial clearinghouse services for merchants, online stores, and telecommunications companies.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

BILL

8.3%

GB IT

3.9%

GB Market


1 Year Return

27.7%

BILL

4.4%

GB IT

-22.4%

GB Market

Return vs Industry: BILL exceeded the UK IT industry which returned 2.7% over the past year.

Return vs Market: BILL exceeded the UK Market which returned -23% over the past year.


Shareholder returns

BILLIndustryMarket
7 Day-3.2%8.3%3.9%
30 Day-1.6%-16.7%-16.1%
90 Day42.9%-29.1%-26.1%
1 Year63.5%27.7%6.8%4.4%-18.2%-22.4%
3 Year-12.5%-45.5%62.3%51.3%-11.7%-23.1%
5 Year60.3%0%78.1%64.0%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Billing Services 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: BILL (£0.03) is trading below our estimate of fair value (£0.43)

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


Price To Earnings Ratio

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

PE vs Market: BILL 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 BILL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BILL is good value based on its PB Ratio (0.4x) compared to the GB IT industry average (2.1x).


Next Steps

Future Growth

How is Billing Services Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Billing Services Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Billing Services Group performed over the past 5 years?

-45.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BILL is currently unprofitable.

Growing Profit Margin: BILL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BILL is unprofitable, and losses have increased over the past 5 years at a rate of -45.6% per year.

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

Earnings vs Industry: BILL is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (17.5%).


Return on Equity

High ROE: BILL has a negative Return on Equity (-47.4%), as it is currently unprofitable.


Next Steps

Financial Health

How is Billing Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: BILL's short term assets ($10.3M) exceed its short term liabilities ($4.9M).

Long Term Liabilities: BILL's short term assets ($10.3M) exceed its long term liabilities ($453.0K).


Debt to Equity History and Analysis

Debt Level: BILL's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: BILL's debt to equity ratio has reduced from 59% to 0.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BILL's debt is covered by short term assets (assets are 88.2x 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: BILL has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if BILL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

77.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BILL's dividend (77.99%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: BILL's dividend (77.99%) is in the top 25% of dividend payers in the UK market (7.48%)


Stability and Growth of Payments

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

Growing Dividend: BILL's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Norm Phipps (59yo)

7.83s

Tenure

US$584,970

Compensation

Mr. Norman M. Phipps, also known as Norm has been the Chief Executive Officer of Billing Services Group Limited since May 31, 2012 and has been its Chief Financial Officer since 2003. Mr. Phipps served as ...


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD584.97K) is above average for companies of similar size in the UK market ($USD335.89K).

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


Board Members

NamePositionTenureCompensationOwnership
Norman Phipps
CEO, CFO & Executive Director7.83yrsUS$584.97k6.46% $319.3k
Jason Wolff
Non-Executive Co-Chairman2.17yrsno datano data
Denham Hervey Eke
Non-Executive Co-Chairman2.17yrsno datano data

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: BILL's board of directors are not considered experienced ( 2.2 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

Billing Services Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Billing Services Group Limited
  • Ticker: BILL
  • Exchange: AIM
  • Founded: 2005
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£4.943m
  • Shares outstanding: 164.77m
  • Website: https://www.bsgclearing.com

Location

  • Billing Services Group Limited
  • 7411 John Smith Drive
  • Suite 1500
  • San Antonio
  • Texas
  • 78229
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BILLAIM (London Stock Exchange AIM Market)YesCommon StockGBGBPJun 2005
B4SDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2005

Biography

Billing Services Group Limited provides financial clearinghouse services for merchants, online stores, and telecommunications companies. It offers Wi-Fi solutions, including user access solutions, Wi-Fi estate management, and roaming services to mobile carriers and network operators; and VoiceLog, which provides third party voice verification and call recording services primarily to the telecommunications, cable, and utilities industries. The company also offers local exchange carrier phone clearing, billing, and settlement services to telecommunication providers; USBI that provides clearinghouse services, including billing, management, and reporting services for providers of residential and commercial long distance calls; and ZPDI, which offers clearinghouse services comprising billing, management, and reporting services for the operator services industry. Billing Services Group Limited was founded in 2005 and is headquartered in San Antonio, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:03
End of Day Share Price2020/03/31 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.