AIM:NUC

Stock Analysis Report

Nucleus Financial Group

Executive Summary

Nucleus Financial Group Plc operates an online wrap platform for the financial services industry.


Snowflake Analysis

Outstanding track record with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NUC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

NUC

-0.8%

GB Software

-0.9%

GB Market


1 Year Return

-0.6%

NUC

14.3%

GB Software

6.2%

GB Market

Return vs Industry: NUC underperformed the UK Software industry which returned 14.3% over the past year.

Return vs Market: NUC underperformed the UK Market which returned 6.2% over the past year.


Shareholder returns

NUCIndustryMarket
7 Day-5.7%-0.8%-0.9%
30 Day-0.9%-1.8%-3.1%
90 Day25.2%8.1%3.9%
1 Year2.1%-0.6%22.1%14.3%11.9%6.2%
3 Yearn/a13.7%-4.0%17.3%2.4%
5 Yearn/a55.9%29.3%34.1%3.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NUC (£1.67) is trading below our estimate of fair value (£2.4)

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


Price To Earnings Ratio

PE vs Industry: NUC is good value based on its PE Ratio (21.2x) compared to the Software industry average (31.9x).

PE vs Market: NUC is poor value based on its PE Ratio (21.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NUC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NUC is overvalued based on its PB Ratio (7x) compared to the GB Software industry average (3.4x).


Next Steps

Future Growth

How is Nucleus Financial Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUC's forecast earnings growth (16.1% per year) is above the savings rate (0.5%).

Earnings vs Market: NUC's earnings (16.1% per year) are forecast to grow faster than the UK market (12.2% per year).

High Growth Earnings: NUC's earnings are forecast to grow, but not significantly.

Revenue vs Market: NUC's revenue (5.7% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: NUC's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUC's Return on Equity is forecast to be high in 3 years time (30.8%)


Next Steps

Past Performance

How has Nucleus Financial Group performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUC has high quality earnings.

Growing Profit Margin: NUC's current net profit margins (11.9%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: NUC's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: NUC's earnings growth over the past year (15.3%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: NUC earnings growth over the past year (15.3%) exceeded the Software industry 8%.


Return on Equity

High ROE: NUC's Return on Equity (33.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nucleus Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: NUC's short term assets (£27.1M) exceed its short term liabilities (£10.6M).

Long Term Liabilities: NUC's short term assets (£27.1M) exceed its long term liabilities (£4.1M).


Debt to Equity History and Analysis

Debt Level: NUC is debt free.

Reducing Debt: NUC has no debt compared to 5 years ago when its debt to equity ratio was 10.1%.

Debt Coverage: NUC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NUC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

What is Nucleus Financial Group's current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.8%markettop25%5.1%industryaverage2.3%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: NUC's dividend (3%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: NUC's dividend (3%) is low compared to the top 25% of dividend payers in the UK market (5.15%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NUC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NUC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.8%), NUC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NUC's dividends in 3 years are forecast to be covered by earnings (64% payout ratio).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

David Ferguson 0

UK£2,628,000

Compensation

Mr. David Ritchie Ferguson is the Co-Founder of Nucleus Financial Services Limited and has been its Chief Executive Officer since July 2006 and serves as its Director. Mr. Ferguson serves as Chief Executiv ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.42M) is above average for companies of similar size in the UK market ($USD597.90K).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
David Ferguson
Co-Founder0yrsUK£2.63m2.39% £3.0m
Stuart Geard
CFO & Executive Director10.9yrsUK£1.98m1.26% £1.6m
Jonathan Polin
Non-Executive Director3.6yrsUK£35.00kno data
James Anthony Samuels
Independent Non-Executive Chair2.9yrsUK£83.00k0.070% £88.9k
Margaret Hassall
Independent Non-Executive Director1.6yrsUK£16.00kno data
Tracy Dunley-Owen
Independent Non-Executive Director1.6yrsUK£16.00kno data
Jeremy Gibson
Non-Independent Non-Executive Director7yrsUK£37.00kno data
John Levin
Independent Non-Executive Director2.8yrsUK£35.00kno data

3.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NUC's board of directors are considered experienced (3.3 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nucleus Financial Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nucleus Financial Group Plc
  • Ticker: NUC
  • Exchange: AIM
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£126.349m
  • Shares outstanding: 75.89m
  • Website: https://www.nucleusfinancial.com

Number of Employees


Location

  • Nucleus Financial Group Plc
  • Greenside
  • 12 Blenheim Place
  • Edinburgh
  • EH7 5JH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2018

Biography

Nucleus Financial Group Plc operates an online wrap platform for the financial services industry. The company’s wrap platform offers adviser users custody, trading, payment, reporting, fee-handling, research, and integration services across various tax wrappers and asset choices, including cash, OEICs, unit trusts, offshore funds, structured products and listed securities, ETFs, and investment trusts. It also operates Narrate, a portfolio reporting tool. The company was founded in 2006 and is headquartered in Edinburgh, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:33
End of Day Share Price2020/02/18 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.