AIM:GBG

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 20.75% per year

Earnings grew by 40.2% over the past year

Risk Analysis

No risks detected for GBG from our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GBG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

GBG

-1.7%

GB Software

-1.9%

GB Market


1 Year Return

65.3%

GBG

6.1%

GB Software

-16.2%

GB Market

Return vs Industry: GBG exceeded the UK Software industry which returned 7.1% over the past year.

Return vs Market: GBG exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

GBGIndustryMarket
7 Day7.0%-1.7%-1.9%
30 Day21.3%-1.5%0.7%
90 Day29.6%0.7%-4.8%
1 Year65.3%65.3%7.5%6.1%-13.0%-16.2%
3 Year103.4%101.4%-25.1%-34.5%-9.4%-20.6%
5 Year221.5%213.9%29.0%6.5%13.5%-12.0%

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?

98.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GBG (£8.71) is trading above our estimate of fair value (£4.57)

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 (98.8x) compared to the GB Software industry average (33.5x).

PE vs Market: GBG is poor value based on its PE Ratio (98.8x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GBG is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: GBG is overvalued based on its PB Ratio (4.9x) compared to the GB Software industry average (3.7x).


Next Steps

Future Growth

How is GB Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBG's forecast earnings growth (20.8% per year) is above the savings rate (1.2%).

Earnings vs Market: GBG's earnings (20.8% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: GBG's revenue (6.9% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: GBG's revenue (6.9% 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 (9.9%).


Next Steps

Past Performance

How has GB Group performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBG has high quality earnings.

Growing Profit Margin: GBG's current net profit margins (8.6%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: GBG's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: GBG's earnings growth over the past year (40.2%) exceeds its 5-year average (19.3% per year).

Earnings vs Industry: GBG earnings growth over the past year (40.2%) exceeded the Software industry 7.7%.


Return on Equity

High ROE: GBG's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is GB Group's financial position?


Financial Position Analysis

Short Term Liabilities: GBG's short term assets (£96.0M) exceed its short term liabilities (£86.5M).

Long Term Liabilities: GBG's short term assets (£96.0M) exceed its long term liabilities (£94.8M).


Debt to Equity History and Analysis

Debt Level: GBG's debt to equity ratio (18%) is considered satisfactory.

Reducing Debt: GBG's debt to equity ratio has increased from 9.5% to 18% over the past 5 years.

Debt Coverage: GBG's debt is well covered by operating cash flow (67.8%).

Interest Coverage: GBG's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.38%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GBG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GBG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GBG's dividend payments have been 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?

8.5yrs

Average management tenure


CEO

Chris Clark (51 yo)

3.5yrs

Tenure

UK£1,330,000

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 ($USD1.75M) is about average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Clark
CEO & Executive Director3.5yrsUK£1.33m0.17%
£ 2.9m
David Wilson
CFO, COO & Executive Director11yrsUK£708.00k0.11%
£ 1.9m
Nicolas Brown
Group MD & Executive Director3.5yrsUK£706.00k0.28%
£ 4.8m
Tony Stansfield
Chief Technology Officer8.17yrsno datano data
Mark Mamone
Group Chief Information Officerno datano datano data
John-Henri Constantin
Group Company Secretary & General Counsel18.75yrsno data0.049%
£ 825.1k
Tyler Brock
Vice President of Salesno datano datano data
David Green
Managing Director of Loqate5.5yrsno datano data
Gus Tomlinson
Head of Strategy and Data2.5yrsno datano data
Justin Duling
Senior Vice President and Commercial Director for GBG Loqateno datano datano data
Christina Luttrell
Senior Vice President of Operationsno datano datano data
Richard Jarvis
Deputy Finance Director8.92yrsno datano data

8.5yrs

Average Tenure

54yo

Average Age

Experienced Management: GBG's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Clark
CEO & Executive Director3.5yrsUK£1.33m0.17%
£ 2.9m
David Wilson
CFO, COO & Executive Director11yrsUK£708.00k0.11%
£ 1.9m
Nicolas Brown
Group MD & Executive Director3.5yrsUK£706.00k0.28%
£ 4.8m
Elizabeth Catchpole
Independent Non-Executive Director3.08yrsUK£68.00k0.0063%
£ 106.2k
David Rasche
Independent Chairman9.92yrsUK£144.00k0.36%
£ 6.1m
Natalie Gammon
Additional Independent Non-Executive Director0.92yrUK£20.00kno data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: GBG's board of directors are considered experienced (3.5 years average tenure).


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

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£1.700b
  • Shares outstanding: 195.16m
  • 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
GBGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993

Biography

GB Group plc, together with its subsidiaries, provides identity data intelligence services in the United Kingdom, the United States, Australia, and internationally. The company operates through Fraud, Iden ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 20:40
End of Day Share Price2020/10/21 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.