AIM:MPAY

Stock Analysis Report

Executive Summary

Mi-Pay Group plc engages in assessing, managing, and mitigating fraud risks in the cardholder-not-present payment solutions market in the United Kingdom, Ireland, rest of Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

MPAY

4.1%

GB IT

1.9%

GB Market


1 Year Return

-25.0%

MPAY

8.0%

GB IT

2.4%

GB Market

Return vs Industry: MPAY underperformed the UK IT industry which returned 8% over the past year.

Return vs Market: MPAY underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

MPAYIndustryMarket
7 Day3.4%4.1%1.9%
30 Day7.1%-2.7%-1.1%
90 Day-25.0%-5.2%-1.8%
1 Year-25.0%-25.0%10.7%8.0%7.4%2.4%
3 Year-68.8%-68.8%65.7%53.6%18.2%3.7%
5 Year-78.6%-78.6%72.9%57.1%35.7%6.1%

Price Volatility Vs. Market

How volatile is Mi-Pay Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mi-Pay Group undervalued compared to its fair value and its price relative to the market?

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MPAY (£0.08) is trading below our estimate of fair value (£0.12)

Significantly Undervalued: MPAY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MPAY is overvalued based on its PB Ratio (15.4x) compared to the GB IT industry average (2.5x).


Next Steps

Future Growth

How is Mi-Pay Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.1%

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 Mi-Pay 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 Mi-Pay Group performed over the past 5 years?

57.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MPAY is unprofitable, but has reduced losses over the past 5 years at a rate of 57.8% per year.

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

Earnings vs Industry: MPAY is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (4.2%).


Return on Equity

High ROE: MPAY has a negative Return on Equity (-83.28%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MPAY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MPAY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Mi-Pay Group's financial position?


Financial Position Analysis

Short Term Liabilities: MPAY's short term assets (£5.2M) exceeds its short term liabilities (£5.1M)

Long Term Liabilities: MPAY's short term assets (5.2M) exceeds its long term liabilities (181.2K)


Debt to Equity History and Analysis

Debt Level: MPAY is debt free.

Reducing Debt: MPAY had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MPAY's debt is covered by short term assets.


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: Whilst unprofitable MPAY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MPAY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.3% per year.


Next Steps

Dividend

What is Mi-Pay Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if MPAY'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 MPAY's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Mi-Pay Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

John Beale (44yo)

1.8yrs

Tenure

UK£161,697

Compensation

Mr. John Nicholas Beale has been Chief Executive Officer of Mi-Pay Group plc since 2018 and also serves as its Company Secretary. Mr. Beale had been the Chief Financial Officer at Mi-Pay Group plc since A ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: MPAY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

50.5yo

Average Age

Experienced Board: MPAY's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Michael Dickerson (52yo)

    Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£37.58k
  • Allen Atwell (64yo)

    Technology Consultant & Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: UK£91.00k
  • John Beale (44yo)

    CEO, Company Secretary & Director

    • Tenure: 1.8yrs
    • Compensation: UK£161.70k
  • Andrew Bowen

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Seamus Keating (55yo)

    Non-Executive Director

    • Tenure: 5.5yrs
  • Michael Dickerson (52yo)

    Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£37.58k
  • Ed Lascelles (43yo)

    Non Executive Director

    • Tenure: 5.5yrs
  • Allen Atwell (64yo)

    Technology Consultant & Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: UK£91.00k
  • John Beale (44yo)

    CEO, Company Secretary & Director

    • Tenure: 1.8yrs
    • Compensation: UK£161.70k
  • Huub Sparnaay Sparnaaij (49yo)

    Non-Executive Director

    • Tenure: 0.8yrs

Company Information

Mi-Pay Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mi-Pay Group plc
  • Ticker: MPAY
  • Exchange: AIM
  • Founded: 2003
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£3.430m
  • Shares outstanding: 45.73m
  • Website: https://www.mi-pay.com

Number of Employees


Location

  • Mi-Pay Group plc
  • 30 Crown Place
  • Earl Street
  • London
  • Surrey
  • EC2A 4ES
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPAYAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPDec 2005

Biography

Mi-Pay Group plc engages in assessing, managing, and mitigating fraud risks in the cardholder-not-present payment solutions market in the United Kingdom, Ireland, rest of Europe, and internationally. It pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:51
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.