AIM:CNIC

Stock Analysis Report

Executive Summary

CentralNic Group Plc, through its subsidiaries, provides domain name services worldwide.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-12.9%

CNIC

-11.4%

GB IT

-8.6%

GB Market


1 Year Return

52.9%

CNIC

27.8%

GB IT

-1.3%

GB Market

Return vs Industry: CNIC exceeded the UK IT industry which returned 27.8% over the past year.

Return vs Market: CNIC exceeded the UK Market which returned -1.3% over the past year.


Shareholder returns

CNICIndustryMarket
7 Day-12.9%-11.4%-8.6%
30 Day-12.4%-7.9%-8.4%
90 Day23.3%-7.4%-5.3%
1 Year52.9%52.9%30.7%27.8%4.0%-1.3%
3 Year58.3%58.3%101.3%87.6%7.6%-6.1%
5 Year111.4%111.4%104.3%87.7%23.4%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNIC (£0.77) is trading below our estimate of fair value (£1.16)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CNIC is good value based on its PB Ratio (2.2x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

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

114.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNIC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: CNIC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CNIC's is expected to become profitable in the next 3 years.

Revenue vs Market: CNIC's revenue (34% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: CNIC's revenue (34% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has CentralNic Group performed over the past 5 years?

-53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNIC is currently unprofitable.

Growing Profit Margin: CNIC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CNIC is unprofitable, and losses have increased over the past 5 years at a rate of -53.7% per year.

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

Earnings vs Industry: CNIC is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12.3%).


Return on Equity

High ROE: CNIC has a negative Return on Equity (-9.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is CentralNic Group's financial position?


Financial Position Analysis

Short Term Liabilities: CNIC's short term assets ($46.6M) do not cover its short term liabilities ($77.6M).

Long Term Liabilities: CNIC's short term assets ($46.6M) exceed its long term liabilities ($21.4M).


Debt to Equity History and Analysis

Debt Level: CNIC's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CNIC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CNIC's debt is covered by short term assets (assets are 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: Whilst unprofitable CNIC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CNIC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.5% per year.


Next Steps

Dividend

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

1.05%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


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: No need to calculate the sustainability of CNIC'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?

2.8yrs

Average management tenure


CEO

Ben Crawford (54yo)

11.1yrs

Tenure

US$538,000

Compensation

Mr. Benjamin Peter Crawford, also known as Ben, has been the Chief Executive Officer of CentralNic Group Plc since 2009. Mr. Crawford has also been the Chief Executive Officer of CentralNic Ltd. since 2009 ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD692.65K) is about average for companies of similar size in the UK market ($USD663.19K).

Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Crawford
CEO & Executive Director11.1yrsUS$538.00kno data
Donald Baladasan
Group MD & Executive Director2.6yrsUS$389.00k0.20% $267.3k
Robert Pooke
Consultant4yrsno datano data
Michael Riedl
CFO & Director1yrsno data0.60% $808.6k
Alexander Siffrin
COO & Director0.6yrsno datano data
Gavin Brown
Chief Technology Officer15.1yrsno datano data
Andy Churley
Group Marketing Director3.3yrsno datano data
Sarah Ryan
Group Corporate Development Director2.8yrsno datano data
Vladimír Vano
Group Economist & Head of Communications for the Slovak Market2.2yrsno datano data

2.8yrs

Average Tenure

46yo

Average Age

Experienced Management: CNIC's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benjamin Crawford
CEO & Executive Director11.1yrsUS$538.00kno data
Donald Baladasan
Group MD & Executive Director2.6yrsUS$389.00k0.20% $267.3k
Michael Riedl
CFO & Director1yrsno data0.60% $808.6k
Alexander Siffrin
COO & Director0.6yrsno datano data
Iain McDonald
Non-Executive Chairman0.2yrsUS$96.00k0.059% $79.7k
Samuel Mansour Dayani
Non-Executive Director0yrsUS$20.00k2.03% $2.7m
Thomas Rickert
Non-Executive Director6.4yrsUS$101.00kno data
Thomas Pridmore
Non Executive Director6.4yrsUS$101.00kno data
Mike Turner
Non-Executive Director4.4yrsUS$127.00kno data

2.6yrs

Average Tenure

47yo

Average Age

Experienced Board: CNIC's board of directors are not considered experienced ( 2.6 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: CNIC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 71.5%.


Top Shareholders

Company Information

CentralNic Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CentralNic Group Plc
  • Ticker: CNIC
  • Exchange: AIM
  • Founded: 2004
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: UK£135.040m
  • Shares outstanding: 182.49m
  • Website: https://www.centralnicgroup.com

Number of Employees


Location

  • CentralNic Group Plc
  • Saddlers House
  • 4th Floor
  • London
  • Greater London
  • EC2V 6BR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNICAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2013

Biography

CentralNic Group Plc, through its subsidiaries, provides domain name services worldwide. It operates through Reseller, Small Business, and Corporate segments. The Reseller segment offers services through the registry service provider mechanism; acts as a reseller platform provider; and sells domain names of .SK extension to registrars. It provides domain names and consultancy services to retailers. The Small Business provides domain names and ancillary services to end users. The Corporate segment offers technical and consultancy services to corporate clients; licenses a company developed registry management platform; and sells domain names. The company offers registry services, distribution, and strategic consultancy for new top level domains (TLDs), country code TLD’s, and second-level domains, as well as domain management services. It also operates as an owner and registrant of a portfolio of domain names, which it uses as domain extensions and for resale on the domain name aftermarket. The company was founded in 2004 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:35
End of Day Share Price2020/02/28 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.