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GBG

GB Group AIM:GBG Stock Report

Last Price

UK£4.18

Market Cap

UK£1.1b

7D

-5.6%

1Y

-52.1%

Updated

06 Jul, 2022

Data

Company Financials +
GBG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
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.

GB Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GB Group
Historical stock prices
Current Share PriceUK£4.18
52 Week HighUK£9.76
52 Week LowUK£3.83
Beta0.58
1 Month Change-24.85%
3 Month Change-25.59%
1 Year Change-52.07%
3 Year Change-25.05%
5 Year Change23.91%
Change since IPO91.84%

Recent News & Updates

Jun 18
Here's Why GB Group (LON:GBG) Can Manage Its Debt Responsibly

Here's Why GB Group (LON:GBG) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

GBGGB SoftwareGB Market
7D-5.6%-0.3%-2.7%
1Y-52.1%-26.1%-10.6%

Return vs Industry: GBG underperformed the UK Software industry which returned -26.7% over the past year.

Return vs Market: GBG underperformed the UK Market which returned -10.9% over the past year.

Price Volatility

Is GBG's price volatile compared to industry and market?
GBG volatility
GBG Average Weekly Movement8.4%
Software Industry Average Movement5.3%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: GBG is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GBG's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19891,276Chris 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£1.05b
Earnings (TTM)UK£15.26m
Revenue (TTM)UK£242.48m

69.0x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GBG income statement (TTM)
RevenueUK£242.48m
Cost of RevenueUK£70.55m
Gross ProfitUK£171.93m
Other ExpensesUK£156.67m
EarningsUK£15.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.061
Gross Margin70.91%
Net Profit Margin6.29%
Debt/Equity Ratio16.3%

How did GBG perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

54%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GBG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GBG?

Other financial metrics that can be useful for relative valuation.

GBG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.8x
Enterprise Value/EBITDA27.3x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does GBG's PE Ratio compare to its peers?

GBG PE Ratio vs Peers
The above table shows the PE ratio for GBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average51.6x
BYIT Bytes Technology Group
31.1x7.7%UK£1.0b
LTG Learning Technologies Group
61.3x55.2%UK£913.9m
FDP FD Technologies
90.7x21.2%UK£582.8m
ALFA Alfa Financial Software Holdings
23.1x-5.2%UK£444.1m
GBG GB Group
69x32.1%UK£1.1b

Price-To-Earnings vs Peers: GBG is expensive based on its Price-To-Earnings Ratio (69x) compared to the peer average (51.6x).


Price to Earnings Ratio vs Industry

How does GBG's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: GBG is expensive based on its Price-To-Earnings Ratio (69x) compared to the UK Software industry average (40.2x)


Price to Earnings Ratio vs Fair Ratio

What is GBG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GBG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69x
Fair PE Ratio43.2x

Price-To-Earnings vs Fair Ratio: GBG is expensive based on its Price-To-Earnings Ratio (69x) compared to the estimated Fair Price-To-Earnings Ratio (43.2x).


Share Price vs Fair Value

What is the Fair Price of GBG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GBG (£4.18) is trading below our estimate of fair value (£6.55)

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


Price to Earnings Growth Ratio

PEG Ratio: GBG is poor value based on its PEG Ratio (2.2x)


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBG's forecast earnings growth (32.1% per year) is above the savings rate (0.9%).

Earnings vs Market: GBG's earnings (32.1% per year) are forecast to grow faster than the UK market (11% per year).

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

Revenue vs Market: GBG's revenue (13.8% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: GBG's revenue (13.8% 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 (7.8%).


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Past Performance

How has GB Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GBG has high quality earnings.

Growing Profit Margin: GBG's current net profit margins (6.3%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: GBG's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: GBG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GBG had negative earnings growth (-43.2%) over the past year, making it difficult to compare to the Software industry average (-13.7%).


Return on Equity

High ROE: GBG's Return on Equity (1.9%) is considered low.


Discover strong past performing companies

Financial Health

How is GB Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GBG's short term assets (£101.0M) do not cover its short term liabilities (£115.8M).

Long Term Liabilities: GBG's short term assets (£101.0M) do not cover its long term liabilities (£199.2M).


Debt to Equity History and Analysis

Debt Level: GBG's net debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: GBG's debt to equity ratio has increased from 13.1% to 16.3% over the past 5 years.

Debt Coverage: GBG's debt is well covered by operating cash flow (34.8%).

Interest Coverage: GBG's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GBG's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.93%).

High Dividend: GBG's dividend (0.91%) is low compared to the top 25% of dividend payers in the UK market (5.3%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

6.3yrs

Average management tenure


CEO

Chris Clark (53 yo)

5.25yrs

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 ($USD1.58M) is about average for companies of similar size in the UK market ($USD2.05M).

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 (6.3 years average tenure).


Board Members

Experienced Board: GBG's board of directors are considered experienced (4.8 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 28.3%.


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£1.054b
  • Shares outstanding: 251.96m
  • 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 Analysis2022/07/06 00:00
End of Day Share Price2022/07/06 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.