| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
RCN Stock Overview
Redcentric plc provides IT managed services in the United Kingdom.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£1.23 |
| 52 Week High | UK£1.50 |
| 52 Week Low | UK£1.14 |
| Beta | 0.27 |
| 1 Month Change | -1.21% |
| 3 Month Change | -5.39% |
| 1 Year Change | 3.36% |
| 3 Year Change | 69.77% |
| 5 Year Change | 33.70% |
| Change since IPO | 36.67% |
Recent News & Updates
Redcentric plc's (LON:RCN) CEO Compensation Is Looking A Bit Stretched At The Moment
CEO Peter Brotherton has done a decent job of delivering relatively good performance at Redcentric plc ( LON:RCN...
Redcentric's (LON:RCN) Earnings Are Of Questionable Quality
Redcentric plc ( LON:RCN ) announced strong profits, but the stock was stagnant. We did some digging, and we found some...
Shareholder Returns
| RCN | GB IT | GB Market | |
|---|---|---|---|
| 7D | 1.0% | -2.8% | -0.5% |
| 1Y | 3.4% | 10.5% | 8.7% |
Return vs Industry: RCN underperformed the UK IT industry which returned 10.5% over the past year.
Return vs Market: RCN underperformed the UK Market which returned 8.7% over the past year.
Price Volatility
| RCN volatility | |
|---|---|
| RCN Average Weekly Movement | 3.3% |
| IT Industry Average Movement | 5.5% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.5% |
| 10% least volatile stocks in GB Market | 2.4% |
Stable Share Price: RCN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RCN's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 399 | Peter Brotherton | https://www.redcentricplc.com |
Redcentric plc provides IT managed services in the United Kingdom. It offers network services, including connectivity, software-defined wide area network, local area network, managed wide area network, secure remote access, and cloud managed wireless network services; and cloud services consisting of infrastructure as a service, hybrid cloud, colocation hosting, cloud migration, platform as a service, online data backup and recovery, managed hosted desktops, and disaster recovery services. The company also provides communication services comprising IP telephony, SIP trunks, unified communications, collaboration, call management and reporting, and call recording services; and IT security services, including network security, application security, identity and access management, network security monitoring and analytics, and distributed denial of service mitigation services.
Redcentric Fundamentals Summary
| RCN fundamental statistics | |
|---|---|
| Market Cap | UK£192.70m |
| Earnings (TTM) | UK£9.80m |
| Revenue (TTM) | UK£89.48m |
19.7x
P/E Ratio2.2x
P/S RatioIs RCN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RCN income statement (TTM) | |
|---|---|
| Revenue | UK£89.48m |
| Cost of Revenue | UK£32.56m |
| Gross Profit | UK£56.92m |
| Expenses | UK£47.13m |
| Earnings | UK£9.80m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jul 14, 2022
| Earnings per share (EPS) | 0.063 |
| Gross Margin | 63.62% |
| Net Profit Margin | 10.95% |
| Debt/Equity Ratio | 1.4% |
How did RCN perform over the long term?
See historical performance and comparisonDividends
2.9%
Current Dividend Yield57%
Payout RatioValuation
Is Redcentric undervalued compared to its fair value and its price relative to the market?
27.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCN (£1.23) is trading below our estimate of fair value (£1.7)
Significantly Below Fair Value: RCN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RCN is good value based on its PE Ratio (19.7x) compared to the UK IT industry average (40.3x).
PE vs Market: RCN is poor value based on its PE Ratio (19.7x) compared to the UK market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: RCN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RCN is good value based on its PB Ratio (2.6x) compared to the GB IT industry average (4.3x).
Future Growth
How is Redcentric forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-14.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCN's earnings are forecast to decline over the next 3 years (-14% per year).
Earnings vs Market: RCN's earnings are forecast to decline over the next 3 years (-14% per year).
High Growth Earnings: RCN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RCN's revenue (9.1% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: RCN's revenue (9.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RCN's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Redcentric performed over the past 5 years?
24.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCN has a large one-off gain of £4.5M impacting its September 30 2021 financial results.
Growing Profit Margin: RCN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RCN has become profitable over the past 5 years, growing earnings by 24.5% per year.
Accelerating Growth: RCN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RCN has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (26.7%).
Return on Equity
High ROE: RCN's Return on Equity (13%) is considered low.
Financial Health
How is Redcentric's financial position?
Financial Position Analysis
Short Term Liabilities: RCN's short term assets (£24.3M) do not cover its short term liabilities (£29.6M).
Long Term Liabilities: RCN's short term assets (£24.3M) exceed its long term liabilities (£17.3M).
Debt to Equity History and Analysis
Debt Level: RCN has more cash than its total debt.
Reducing Debt: RCN's debt to equity ratio has reduced from 36.4% to 1.4% over the past 5 years.
Debt Coverage: RCN's debt is well covered by operating cash flow (2127.1%).
Interest Coverage: RCN's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Dividend
What is Redcentric current dividend yield, its reliability and sustainability?
2.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCN's dividend (2.93%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: RCN's dividend (2.93%) is low compared to the top 25% of dividend payers in the UK market (4.05%).
Stability and Growth of Payments
Stable Dividend: RCN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RCN's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.2%), RCN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Peter Brotherton (54 yo)
3.17yrs
Tenure
UK£672,000
Compensation
Mr. Peter James Brotherton has been Executive Director at Redcentric plc since November 28, 2016 and has been its Chief Executive Officer since November 22, 2018 and was its Secretary since November 28, 20...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD918.90K) is above average for companies of similar size in the UK market ($USD570.76K).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RCN's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: RCN's board of directors are not considered experienced ( 1.8 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Redcentric plc's employee growth, exchange listings and data sources
Key Information
- Name: Redcentric plc
- Ticker: RCN
- Exchange: AIM
- Founded: 1997
- Industry: IT Consulting and Other Services
- Sector: Software
- Implied Market Cap: UK£192.702m
- Shares outstanding: 156.67m
- Website: https://www.redcentricplc.com
Number of Employees
Location
- Redcentric plc
- Central House
- Beckwith Knowle
- Harrogate
- North Yorkshire
- HG3 1UG
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 18:58 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.