AIM:GRC

Stock Analysis Report

GRC International Group

Executive Summary

GRC International Group plc, through its subsidiaries, provides various products and services to address the information technology (IT) governance, risk management, and compliance requirements of organizations in the United Kingdom, the United States, Europe, and internationally.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

GRC

-4.6%

GB IT

-4.4%

GB Market


1 Year Return

-80.9%

GRC

35.1%

GB IT

1.4%

GB Market

Return vs Industry: GRC underperformed the UK IT industry which returned 35.1% over the past year.

Return vs Market: GRC underperformed the UK Market which returned 1.4% over the past year.


Shareholder returns

GRCIndustryMarket
7 Day-2.3%-4.6%-4.4%
30 Day34.4%-3.6%-6.3%
90 Day-17.3%-0.1%-2.7%
1 Year-80.9%-80.9%38.2%35.1%6.7%1.4%
3 Yearn/a112.2%97.8%12.6%-1.5%
5 Yearn/a117.1%99.4%28.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GRC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GRC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GRC is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: GRC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRC is good value based on its PB Ratio (2.7x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is GRC International Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GRC International Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has GRC International Group performed over the past 5 years?

-69.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRC is currently unprofitable.

Growing Profit Margin: GRC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRC is unprofitable, and losses have increased over the past 5 years at a rate of -69.3% per year.

Accelerating Growth: Unable to compare GRC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRC is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12.3%).


Return on Equity

High ROE: GRC has a negative Return on Equity (-104.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GRC International Group's financial position?


Financial Position Analysis

Short Term Liabilities: GRC's short term assets (£3.3M) do not cover its short term liabilities (£11.0M).

Long Term Liabilities: GRC's short term assets (£3.3M) exceed its long term liabilities (£638.2K).


Debt to Equity History and Analysis

Debt Level: GRC's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GRC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GRC's debt is covered by short term assets (assets are 1.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GRC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GRC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -63.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if GRC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRC'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?

2.3yrs

Average management tenure


CEO

Alan Calder (62yo)

2.3yrs

Tenure

UK£253,000

Compensation

Mr. Alan Philip Calder is the Chief Executive Officer of GRC International Group PLC since October 27, 2017 and serves as its Director since April 2002. Mr. Calder founded IT Governance Limited in 2002, be ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD329.15K) is about average for companies of similar size in the UK market ($USD325.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Calder
CEO & Executive Director2.3yrsUK£253.00k30.55% £6.5m
Christopher Hartshorne
Finance Director2.8yrsUK£106.00k0.012% £2.5k
Neil Acworth
Chief Information Officer & Executive Director2.8yrsUK£111.00k1.37% £292.6k
Stephen Watkins
Executive Director11.8yrsUK£116.00k4.68% £1.0m

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: GRC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Calder
CEO & Executive Director2.3yrsUK£253.00k30.55% £6.5m
Christopher Hartshorne
Finance Director2.8yrsUK£106.00k0.012% £2.5k
Neil Acworth
Chief Information Officer & Executive Director2.8yrsUK£111.00k1.37% £292.6k
Stephen Watkins
Executive Director11.8yrsUK£116.00k4.68% £1.0m
Richard Piper
Independent Non-Executive Director2yrsUK£35.00k0.59% £126.5k
Andrew Brode
Non-Executive Chairman2yrsno data16.74% £3.6m

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: GRC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 13.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: GRC International Group plc
  • Ticker: GRC
  • Exchange: AIM
  • Founded: 2002
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£21.409m
  • Shares outstanding: 99.58m
  • Website: https://www.grci.group

Number of Employees


Location

  • GRC International Group plc
  • Clive Court
  • Unit 3
  • Ely
  • Cambridgeshire
  • CB7 4EA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRCAIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPMar 2018

Biography

GRC International Group plc, through its subsidiaries, provides various products and services to address the information technology (IT) governance, risk management, and compliance requirements of organizations in the United Kingdom, the United States, Europe, and internationally. It operates through four divisions: Training, Consultancy, Publishing and Distribution, and Software. The company provides classroom-based and Web-based training courses related to data protection, cyber security, ISO 27001 certification, and related topics. It also offers on-site and remote support services to design and implement data protection and cyber security policies and procedures; specialist legal advice; technical services comprising penetration testing, payment card industry data security standard assessments, and cyber essentials certification and consultancy services; and staff awareness solutions. In addition, it publishes books and pocket guides; sells books and documentation templates supplied by third parties; and creates and sells documentation templates to assist its customers to document their IT systems and procedures. Further, the company creates and sells software solutions, such as software-as-a-service products, including e-learning, risk assessment and data flow mapping tools, data seeding and watermarking solutions; and vsRisk, a program for identifying and recording management decisions relating to the information security risk levels within an organization. It sells books, documentation templates, and software through its Website. The company serves commercial businesses, national and local government departments, NHS and universities, organizations, and professionals firms. GRC International Group plc was incorporated in 2002 and is headquartered in Ely, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:26
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.