AIM:NASA

Stock Analysis Report

Executive Summary

Nasstar plc, together with its subsidiaries, provides hosted managed and cloud computing services primarily in the United Kingdom.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

NASA

0.07%

GB IT

-0.4%

GB Market


1 Year Return

-3.8%

NASA

7.6%

GB IT

2.9%

GB Market

Return vs Industry: NASA underperformed the UK IT industry which returned 7.6% over the past year.

Return vs Market: NASA underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

NASAIndustryMarket
7 Day4.7%0.07%-0.4%
30 Day0%-3.5%-1.4%
90 Day-1.7%-5.9%-2.1%
1 Year-3.1%-3.8%10.2%7.6%7.9%2.9%
3 Year31.0%28.6%74.1%61.3%18.0%3.6%
5 Year31.6%28.6%69.9%54.3%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: NASA (£0.11) is trading above our estimate of fair value (£0.11)

Significantly Undervalued: NASA is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: NASA 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 NASA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NASA is overvalued based on its PB Ratio (2.6x) compared to the GB IT industry average (2.5x).


Next Steps

Future Growth

How is Nasstar forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

139.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NASA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NASA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NASA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NASA's revenue (7.1% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: NASA's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NASA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nasstar performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NASA is unprofitable, but has reduced losses over the past 5 years at a rate of 5.7% per year.

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

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


Return on Equity

High ROE: NASA has a negative Return on Equity (-0.79%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Nasstar's financial position?


Financial Position Analysis

Short Term Liabilities: NASA's short term assets (£8.9M) exceeds its short term liabilities (£8.3M)

Long Term Liabilities: NASA's short term assets (8.9M) exceeds its long term liabilities (2.6M)


Debt to Equity History and Analysis

Debt Level: NASA's debt to equity ratio (7.7%) is considered satisfactory

Reducing Debt: NASA's debt to equity ratio has increased from 2.7% to 7.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NASA's debt is covered by short term assets (assets are 4.682880x 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: Whilst unprofitable NASA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NASA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.9% per year.


Next Steps

Dividend

What is Nasstar's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.0%markettop25%5.4%industryaverage2.6%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NASA's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: NASA's dividend (0.8%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: NASA is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: NASA is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NASA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NASA'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 Nasstar's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Nigel Redwood 0

5.8yrs

Tenure

UK£326,000

Compensation

Mr. Nigel Redwood has been Chief Executive Officer of Nasstar plc since January 2014. Mr. Redwood has been Managing Director at e-know.net Limited since September 2003. He joined e-know.net in 2002 and he ...


CEO Compensation Analysis

Compensation vs. Market: Nigel's total compensation ($USD419.63K) is about average for companies of similar size in the UK market ($USD320.52K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: NASA's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

Experienced Board: NASA's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

BuyUK£165,62820 Aug 19
Close Asset Management Limited
EntityCompany
Shares1,495,513
Max PriceUK£0.11
SellUK£6,59314 Aug 19
Close Asset Management Limited
EntityCompany
Shares59,533
Max PriceUK£0.11

Ownership Breakdown


Management Team

  • Nigel Redwood

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: UK£326.00k
  • Niki Redwood

    Finance Director

    • Tenure: 5.8yrs
    • Compensation: UK£258.00k
  • David McCarthy

    Managing Director

    • Tenure: 3.8yrs
  • Mark Flynn

    Head of Sales

    • Tenure: 2.8yrs

Board Members

  • Peter Daresbury (66yo)

    Non-Executive Chairman

    • Tenure: 14.8yrs
    • Compensation: UK£40.00k
  • Mike Read (71yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£24.00k
  • Nick Bate

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£25.00k
  • Nigel Redwood

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: UK£326.00k
  • Niki Redwood

    Finance Director

    • Tenure: 5.8yrs
    • Compensation: UK£258.00k

Company Information

Nasstar plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nasstar plc
  • Ticker: NASA
  • Exchange: AIM
  • Founded: 2005
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: UK£64.689m
  • Shares outstanding: 575.01m
  • Website: https://www.nasstar.com

Number of Employees


Location

  • Nasstar plc
  • Datapoint House
  • 400 Queensway Business Park
  • Telford
  • Shropshire
  • TF1 7UL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NASAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2005

Biography

Nasstar plc, together with its subsidiaries, provides hosted managed and cloud computing services primarily in the United Kingdom. The company offers nSecureSign, which enables secure digital signing of va ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:39
End of Day Share Price2019/10/18 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.