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Market Cap

UK£40.6m

Last Updated

2021/05/08 18:16 UTC

Data Sources

Company Financials +

Executive Summary

Shearwater Group plc provides operational resilience solutions in the United Kingdom, Europe, North America, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SWG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SWG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

SWG

-2.6%

GB Software

2.1%

GB Market


1 Year Return

-29.0%

SWG

5.5%

GB Software

26.3%

GB Market

Return vs Industry: SWG underperformed the UK Software industry which returned 5.4% over the past year.

Return vs Market: SWG underperformed the UK Market which returned 26.6% over the past year.


Shareholder returns

SWGIndustryMarket
7 Day-2.0%-2.6%2.1%
30 Day27.2%-5.1%3.5%
90 Day17.6%-2.1%8.8%
1 Year-29.0%-29.0%15.1%5.5%31.9%26.3%
3 Year-58.4%-58.4%19.0%5.0%12.9%-0.1%
5 Year79.5%79.5%31.8%7.6%51.5%22.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWG (£1.71) is trading below our estimate of fair value (£2.6)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SWG is good value based on its PB Ratio (0.7x) compared to the GB Software industry average (4.3x).


Future Growth

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

53.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: SWG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SWG's is expected to become profitable in the next 3 years.

Revenue vs Market: SWG's revenue (13% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: SWG's revenue (13% 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 SWG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Shearwater Group performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWG is currently unprofitable.

Growing Profit Margin: SWG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SWG is unprofitable, and losses have increased over the past 5 years at a rate of 25.3% per year.

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

Earnings vs Industry: SWG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (4.4%).


Return on Equity

High ROE: SWG has a negative Return on Equity (-1.64%), as it is currently unprofitable.


Financial Health

How is Shearwater Group's financial position?


Financial Position Analysis

Short Term Liabilities: SWG's short term assets (£12.1M) exceed its short term liabilities (£8.7M).

Long Term Liabilities: SWG's short term assets (£12.1M) exceed its long term liabilities (£4.2M).


Debt to Equity History and Analysis

Debt Level: SWG's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: SWG's debt to equity ratio has increased from 0.1% to 1.4% over the past 5 years.


Balance Sheet


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 SWG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SWG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12% per year.


Dividend

What is Shearwater Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SWG'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 SWG'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?

0.3yrs

Average management tenure


CEO

Phil Higgins (54 yo)

2.08yrs

Tenure

UK£170,000

Compensation

Mr. Philip Leslie Higgins, also known as Phil, serves as Chief Executive Officer since April 12, 2019 and has been an Executive Director of Shearwater Group PLC since December 11, 2018. Mr. Higgins serves ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD237.79K) is about average for companies of similar size in the UK market ($USD338.66K).

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


Leadership Team

Experienced Management: SWG's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SWG's board of directors are considered experienced (4.3 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

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


Key Information

  • Name: Shearwater Group plc
  • Ticker: SWG
  • Exchange: AIM
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£40.596m
  • Shares outstanding: 23.81m
  • Website: https://shearwatergroup.com

Number of Employees


Location

  • Shearwater Group plc
  • 1 King William Street
  • London
  • Greater London
  • EC4N 7AF
  • United Kingdom

Listings


Biography

Shearwater Group plc provides operational resilience solutions in the United Kingdom, Europe, North America, and internationally. It operates through two segments, software and services. The company offers...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 18:16
End of Day Share Price2021/05/07 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.