AIM:GBG

Stock Analysis Report

Executive Summary

GB Group plc, together with its subsidiaries, provides identity data intelligence services in the United Kingdom, the United States, Australia, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

GBG

-0.5%

GB Software

0.08%

GB Market


1 Year Return

3.3%

GBG

9.6%

GB Software

3.5%

GB Market

Return vs Industry: GBG underperformed the UK Software industry which returned 9.6% over the past year.

Return vs Market: GBG matched the UK Market which returned 3.5% over the past year.


Shareholder returns

GBGIndustryMarket
7 Day-1.9%-0.5%0.08%
30 Day-5.2%1.2%-1.3%
90 Day-11.4%-10.2%-2.2%
1 Year3.9%3.3%16.0%9.6%9.0%3.5%
3 Year110.3%106.9%2.8%-13.8%18.1%3.1%
5 Year272.8%261.0%66.7%34.0%36.2%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

68.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GBG (£5.27) is trading above our estimate of fair value (£2.97)

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


Price To Earnings Ratio

PE vs Industry: GBG is poor value based on its PE Ratio (68.5x) compared to the Software industry average (27.5x).

PE vs Market: GBG is poor value based on its PE Ratio (68.5x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: GBG is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: GBG is good value based on its PB Ratio (3.2x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

How is GB Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBG's forecast earnings growth (23.3% per year) is above the savings rate (1.2%).

Earnings vs Market: GBG's earnings (23.3% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: GBG's revenue (14% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: GBG's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GBG's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has GB Group performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GBG's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: GBG's earnings growth over the past year (14.1%) is below its 5-year average (22.3% per year).

Earnings vs Industry: GBG earnings growth over the past year (14.1%) exceeded the Software industry 7%.


Return on Equity

High ROE: GBG's Return on Equity (3.8%) is considered low.


Return on Assets

ROA vs Industry: GBG's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: GBG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is GB Group's financial position?


Financial Position Analysis

Short Term Liabilities: GBG's short term assets (£76.4M) exceeds its short term liabilities (£71.8M)

Long Term Liabilities: GBG's short term assets (76.4M) do not cover its long term liabilities (116.7M)


Debt to Equity History and Analysis

Debt Level: GBG's debt to equity ratio (27%) is considered satisfactory

Reducing Debt: GBG's debt to equity ratio has increased from 0.2% to 27% over the past 5 years.

Debt Coverage: GBG's debt is well covered by operating cash flow (28.6%).

Interest Coverage: GBG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: GBG's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.57%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GBG's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: GBG's dividend (0.57%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: GBG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GBG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GBG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of GB Group's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Chris Clark (50yo)

2.5yrs

Tenure

UK£1,197,000

Compensation

Mr. Christopher Graham Clark, also known as Chris, has been the Chief Executive Officer of GB Group plc since April 1, 2017. Mr. Clark served as Managing Director of UK, Ireland & EMEA at Experian plc unti ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD1.54M) is about average for companies of similar size in the UK market ($USD1.82M).

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


Management Age and Tenure

7.2yrs

Average Tenure

53yo

Average Age

Experienced Management: GBG's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: GBG's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: GBG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUK£180,81720 Sep 19
Nicolas Brown
EntityIndividual
Role
Member of the Board of Directors
Group MD & Executive Director
Shares32,521
Max PriceUK£5.56
SellUK£780,21005 Aug 19
David Wilson
EntityIndividual
Role
Member of the Board of Directors
CFO, COO & Executive Director
Shares129,603
Max PriceUK£6.02
BuyUK£282,45026 Jun 19
Christopher Clark
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares54,626
Max PriceUK£5.18
BuyUK£179,19921 Jun 19
David Wilson
EntityIndividual
Role
Member of the Board of Directors
CFO, COO & Executive Director
Shares33,185
Max PriceUK£5.40
BuyUK£50,00012 Feb 19
Elizabeth Catchpole
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares12,195
Max PriceUK£4.10
BuyUK£199,99812 Feb 19
David Rasche
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares48,780
Max PriceUK£4.10
BuyUK£155,68512 Feb 19
David Wilson
EntityIndividual
Role
Member of the Board of Directors
CFO, COO & Executive Director
Shares37,972
Max PriceUK£4.10
BuyUK£159,99812 Feb 19
Christopher Clark
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares39,024
Max PriceUK£4.10
BuyUK£155,68112 Feb 19
Nicolas Brown
EntityIndividual
Role
Member of the Board of Directors
Group MD & Executive Director
Shares37,971
Max PriceUK£4.10
BuyUK£40,00012 Feb 19
Charmaine Carmichael
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares9,756
Max PriceUK£4.10

Ownership Breakdown


Management Team

  • John-Henri Constantin (53yo)

    Group Company Secretary & General Counsel

    • Tenure: 17.8yrs
  • Dave Wilson (57yo)

    CFO, COO & Executive Director

    • Tenure: 10yrs
    • Compensation: UK£694.00k
  • Chris Clark (50yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£1.20m
  • Nick Brown (58yo)

    Group MD & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£692.00k
  • Tony Stansfield

    Chief Technology Officer

    • Tenure: 7.2yrs
  • Mark Mamone (50yo)

    Group Chief Information Officer

    • Tenure: 0yrs
  • David Green

    Managing Director of Loqate

    • Tenure: 4.5yrs
  • Gus Tomlinson

    Head of Strategy and Data

    • Tenure: 1.5yrs
  • Justin Duling

    Senior Vice President and Commercial Director for GBG Loqate

    • Tenure: 0yrs
  • Tyler Brock

    Vice President of Sales

    • Tenure: 0yrs

Board Members

  • Liz Catchpole (54yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£59.00k
  • David Rasche (69yo)

    Independent Chairman

    • Tenure: 8.9yrs
    • Compensation: UK£135.00k
  • Dave Wilson (57yo)

    CFO, COO & Executive Director

    • Tenure: 10yrs
    • Compensation: UK£694.00k
  • Chris Clark (50yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£1.20m
  • Charmaine Carmichael (48yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£51.00k
  • Nick Brown (58yo)

    Group MD & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£692.00k

Company Information

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


Key Information

  • Name: GB Group plc
  • Ticker: GBG
  • Exchange: AIM
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£1.022b
  • Shares outstanding: 193.85m
  • Website: https://www.gbgplc.com

Number of Employees


Location

  • GB Group plc
  • The Foundation
  • Herons Way
  • Chester
  • Cheshire
  • CH4 9GB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1993
0GBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993

Biography

GB Group plc, together with its subsidiaries, provides identity data intelligence services in the United Kingdom, the United States, Australia, and internationally. It operates in two segments, Fraud, Risk ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:38
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
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.