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GBG

GB GroupAIM:GBG Stock Report

Market Cap

UK£1.8b

7D

8.3%

1Y

12.3%

Updated

16 Oct, 2021

Data

Company Financials +
GBG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends0/6

GBG Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for GB Group
Historical stock prices
Current Share PriceUK£9.21
52 Week HighUK£7.75
52 Week LowUK£9.99
Beta0.68
1 Month Change0.55%
3 Month Change11.58%
1 Year Change12.26%
3 Year Change71.41%
5 Year Change273.05%
Change since IPO322.25%

Recent News & Updates

Sep 16
Here's Why I Think GB Group (LON:GBG) Is An Interesting Stock

Here's Why I Think GB Group (LON:GBG) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Aug 28
Calculating The Fair Value Of GB Group plc (LON:GBG)

Calculating The Fair Value Of GB Group plc (LON:GBG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of GB Group plc ( LON:GBG...

Jul 23
Increases to CEO Compensation Might Be Put On Hold For Now at GB Group plc (LON:GBG)

Increases to CEO Compensation Might Be Put On Hold For Now at GB Group plc (LON:GBG)

CEO Chris Clark has done a decent job of delivering relatively good performance at GB Group plc ( LON:GBG ) recently...

Shareholder Returns

GBGGB SoftwareGB Market
7D8.3%1.5%1.7%
1Y12.3%4.3%22.9%

Return vs Industry: GBG exceeded the UK Software industry which returned 4.3% over the past year.

Return vs Market: GBG underperformed the UK Market which returned 22.9% over the past year.

Price Volatility

Is GBG's price volatile compared to industry and market?
GBG volatility
GBG Beta0.68
Industry Beta0.75
Market Beta1

Stable Share Price: GBG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GBG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19891,024Chris Clarkhttps://www.gbgplc.com

GB Group plc, together with its subsidiaries, provides identity data intelligence products and services in the United Kingdom, the United States, Australia, and internationally. The company operates through three segments: Location, Identity, and Fraud. Its solutions help organizations recognize and verify identities of their customers in their business processes.

GB Group Fundamentals Summary

How do GB Group's earnings and revenue compare to its market cap?
GBG fundamental statistics
Market CapUK£1.81b
Earnings (TTM)UK£26.88m
Revenue (TTM)UK£217.66m

67.5x

P/E Ratio

8.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GBG income statement (TTM)
RevenueUK£217.66m
Cost of RevenueUK£65.10m
Gross ProfitUK£152.56m
ExpensesUK£125.69m
EarningsUK£26.88m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)0.14
Gross Margin70.09%
Net Profit Margin12.35%
Debt/Equity Ratio0%

How did GBG perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

46%

Payout Ratio

Valuation

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

67.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GBG (£9.21) is trading above our estimate of fair value (£8.37)

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 (67.5x) compared to the UK Software industry average (60.7x).

PE vs Market: GBG is poor value based on its PE Ratio (67.5x) compared to the UK market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: GBG is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: GBG is overvalued based on its PB Ratio (5x) compared to the GB Software industry average (4.3x).


Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBG's forecast earnings growth (11.6% per year) is above the savings rate (0.9%).

Earnings vs Market: GBG's earnings (11.6% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: GBG's earnings are forecast to grow, but not significantly.

Revenue vs Market: GBG's revenue (7.7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: GBG's revenue (7.7% 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 GBG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has GB Group performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBG has high quality earnings.

Growing Profit Margin: GBG's current net profit margins (12.3%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: GBG's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: GBG's earnings growth over the past year (57.5%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: GBG earnings growth over the past year (57.5%) exceeded the Software industry -1.9%.


Return on Equity

High ROE: GBG's Return on Equity (7.4%) is considered low.


Financial Health

How is GB Group's financial position?


Financial Position Analysis

Short Term Liabilities: GBG's short term assets (£85.7M) do not cover its short term liabilities (£90.0M).

Long Term Liabilities: GBG's short term assets (£85.7M) exceed its long term liabilities (£26.0M).


Debt to Equity History and Analysis

Debt Level: GBG is debt free.

Reducing Debt: GBG has no debt compared to 5 years ago when its debt to equity ratio was 6.8%.

Debt Coverage: GBG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GBG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GBG's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: GBG's dividend (0.74%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

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

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

3.5yrs

Average management tenure


CEO

Chris Clark (52 yo)

4.5yrs

Tenure

UK£1,329,000

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 ($USD1.83M) is about average for companies of similar size in the UK market ($USD1.66M).

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


Leadership Team

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


Board Members

Experienced Board: GBG's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GBG insiders have only sold shares 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

GB Group plc's 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£1.814b
  • Shares outstanding: 197.02m
  • Website: https://www.gbgplc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:51
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.