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GBG

GB GroupAIM:GBG Stock Report

Last Price

UK£6.10

Market Cap

UK£1.5b

7D

-9.6%

1Y

-29.9%

Updated

24 Jan, 2022

Data

Company Financials +
GBG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends0/6

GBG Stock 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£6.10
52 Week HighUK£9.80
52 Week LowUK£6.06
Beta0.61
1 Month Change-15.70%
3 Month Change-33.42%
1 Year Change-29.86%
3 Year Change33.08%
5 Year Change110.17%
Change since IPO179.59%

Recent News & Updates

Dec 21
Calculating The Intrinsic Value Of GB Group plc (LON:GBG)

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

How far off is GB Group plc ( LON:GBG ) from its intrinsic value? Using the most recent financial data, we'll take a...

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...

Shareholder Returns

GBGGB SoftwareGB Market
7D-9.6%-5.8%-5.1%
1Y-29.9%-3.5%5.1%

Return vs Industry: GBG underperformed the UK Software industry which returned 0.3% over the past year.

Return vs Market: GBG underperformed the UK Market which returned 7.8% over the past year.

Price Volatility

Is GBG's price volatile compared to industry and market?
GBG volatility
GBG Average Weekly Movement5.2%
Software Industry Average Movement4.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: GBG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GBG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19891,200Chris 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£1.53b
Earnings (TTM)UK£26.29m
Revenue (TTM)UK£223.27m

58.2x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GBG income statement (TTM)
RevenueUK£223.27m
Cost of RevenueUK£66.43m
Gross ProfitUK£156.84m
ExpensesUK£130.55m
EarningsUK£26.29m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 31, 2022

Earnings per share (EPS)0.10
Gross Margin70.25%
Net Profit Margin11.78%
Debt/Equity Ratio0%

How did GBG perform over the long term?

See historical performance and comparison

Valuation

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

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GBG (£6.1) is trading below our estimate of fair value (£7.3)

Significantly Below Fair Value: GBG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GBG is poor value based on its PE Ratio (58.2x) compared to the UK Software industry average (48.2x).

PE vs Market: GBG is poor value based on its PE Ratio (58.2x) compared to the UK market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GBG is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: GBG's PB Ratio (4x) is in line with the GB Software industry average.


Future Growth

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

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBG's forecast earnings growth (28.9% per year) is above the savings rate (0.9%).

Earnings vs Market: GBG's earnings (28.9% per year) are forecast to grow faster than the UK market (12.1% per year).

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

Revenue vs Market: GBG's revenue (15.7% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: GBG's revenue (15.7% 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 (7%).


Past Performance

How has GB Group performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBG has high quality earnings.

Growing Profit Margin: GBG's current net profit margins (11.8%) are higher than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: GBG's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: GBG's earnings growth over the past year (13.1%) is below its 5-year average (24% per year).

Earnings vs Industry: GBG earnings growth over the past year (13.1%) underperformed the Software industry 15.4%.


Return on Equity

High ROE: GBG's Return on Equity (7%) is considered low.


Financial Health

How is GB Group's financial position?


Financial Position Analysis

Short Term Liabilities: GBG's short term assets (£96.1M) exceed its short term liabilities (£82.8M).

Long Term Liabilities: GBG's short term assets (£96.1M) exceed its long term liabilities (£24.9M).


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 18.9%.

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?

0.75%

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?

5.8yrs

Average management tenure


CEO

Chris Clark (52 yo)

4.75yrs

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 ($USD1.79M) is about average for companies of similar size in the UK market ($USD1.58M).

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 seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: GBG's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28%.


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
  • Implied Market Cap: UK£1.531b
  • Shares outstanding: 251.18m
  • 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 Analysis2022/01/24 21:55
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
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.