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SysGroup

AIM:SYS
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SYS
AIM
£19M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

SysGroup plc, together with its subsidiaries, provides cloud hosting and managed IT services the United Kingdom and internationally. The last earnings update was 147 days ago. More info.


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SYS Share Price and Events
7 Day Returns
0%
AIM:SYS
1.2%
GB IT
0.6%
GB Market
1 Year Returns
-3.5%
AIM:SYS
-0.1%
GB IT
1.1%
GB Market
SYS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SysGroup (SYS) 0% -6% -7.1% -3.5% -45.8% -48%
GB IT 1.2% 7.3% 14.5% -0.1% 55.4% -6.4%
GB Market 0.6% 3.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • SYS underperformed the IT industry which returned -0.1% over the past year.
  • SYS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
SYS
Industry
5yr Volatility vs Market

SYS Value

 Is SysGroup undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SysGroup to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SysGroup.

AIM:SYS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SYS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 19%) (10.35%))
1.096
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.096 * 6.65%)
8.51%

Discounted Cash Flow Calculation for AIM:SYS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SysGroup is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SYS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.51%)
2019 1.21 Est @ 29.31% 1.11
2020 1.46 Est @ 20.88% 1.24
2021 1.68 Est @ 14.99% 1.32
2022 1.86 Est @ 10.86% 1.34
2023 2.01 Est @ 7.97% 1.34
2024 2.13 Est @ 5.95% 1.31
2025 2.23 Est @ 4.53% 1.26
2026 2.31 Est @ 3.54% 1.20
2027 2.37 Est @ 2.85% 1.14
2028 2.43 Est @ 2.36% 1.07
Present value of next 10 years cash flows £12.33
AIM:SYS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £2.43 × (1 + 1.23%) ÷ (8.51% – 1.23%)
£33.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £33.75 ÷ (1 + 8.51%)10
£14.91
AIM:SYS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £12.33 + £14.91
£27.24
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £27.24 / 49.42
£0.55
AIM:SYS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.55
Current discount Discount to share price of £0.39
= -1 x (£0.39 - £0.55) / £0.55
29.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SysGroup is available for.
Intrinsic value
29%
Share price is £0.39 vs Future cash flow value of £0.55119
Current Discount Checks
For SysGroup to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SysGroup's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SysGroup's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SysGroup's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SysGroup's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SYS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £-0.01
AIM:SYS Share Price ** AIM (2019-04-18) in GBP £0.39
United Kingdom of Great Britain and Northern Ireland IT Industry PE Ratio Median Figure of 24 Publicly-Listed IT Companies 27.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SysGroup.

AIM:SYS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SYS Share Price ÷ EPS (both in GBP)

= 0.39 ÷ -0.01

-33.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SysGroup is loss making, we can't compare its value to the GB IT industry average.
  • SysGroup is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does SysGroup's expected growth come at a high price?
Raw Data
AIM:SYS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -33.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland IT Industry PEG Ratio Median Figure of 17 Publicly-Listed IT Companies 1.5x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for SysGroup, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SysGroup's assets?
Raw Data
AIM:SYS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £0.48
AIM:SYS Share Price * AIM (2019-04-18) in GBP £0.39
United Kingdom of Great Britain and Northern Ireland IT Industry PB Ratio Median Figure of 45 Publicly-Listed IT Companies 3.76x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
AIM:SYS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SYS Share Price ÷ Book Value per Share (both in GBP)

= 0.39 ÷ 0.48

0.82x

* Primary Listing of SysGroup.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SysGroup is good value based on assets compared to the GB IT industry average.
X
Value checks
We assess SysGroup's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. SysGroup has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SYS Future Performance

 How is SysGroup expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 SysGroup 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.3%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SysGroup expected to grow at an attractive rate?
  • Unable to compare SysGroup's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare SysGroup's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Unable to compare SysGroup's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
AIM:SYS Future Growth Rates Data Sources
Data Point Source Value (per year)
United Kingdom of Great Britain and Northern Ireland IT Industry Earnings Growth Rate Market Cap Weighted Average 14.3%
United Kingdom of Great Britain and Northern Ireland IT Industry Revenue Growth Rate Market Cap Weighted Average 9.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SYS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SYS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 12 1 0
2018-06-30 11 1 0
2018-03-31 10 1 0
2017-09-30 8 1 -1
2017-06-30 8 1 -1
2017-03-31 7 1 -1
2016-12-31 6 1 -1
2016-09-30 4 0 0
2016-06-30 3 1 0
2016-03-31 3 1 0
2015-12-31 3 1 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if SysGroup is high growth as no earnings estimate data is available.
  • Unable to determine if SysGroup is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SYS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from SysGroup Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SYS Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 -0.01
2018-06-30 0.00
2018-03-31 0.01
2017-09-30 -0.03
2017-06-30 -0.05
2017-03-31 -0.07
2016-12-31 -0.05
2016-09-30 -0.03
2016-06-30 -0.02
2016-03-31 -0.01
2015-12-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if SysGroup will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine SysGroup's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. SysGroup's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. SysGroup's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess SysGroup's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SysGroup has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SYS Past Performance

  How has SysGroup performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SysGroup's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SysGroup does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare SysGroup's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare SysGroup's 1-year growth to the GB IT industry average as it is not currently profitable.
Earnings and Revenue History
SysGroup's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SysGroup Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SYS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 12.31 -0.27 5.81
2018-06-30 11.38 -0.01 5.41
2018-03-31 10.45 0.24 5.01
2017-09-30 8.41 -0.59 4.56
2017-06-30 7.79 -0.96 4.16
2017-03-31 7.17 -1.33 3.77
2016-12-31 5.54 -0.87 3.00
2016-09-30 3.92 -0.41 2.22
2016-06-30 3.22 -0.24 1.90
2016-03-31 2.52 -0.07 1.57
2015-12-31 2.95 -0.14 1.72
2015-09-30 3.38 -0.21 1.86
2015-06-30 3.63 -0.15 1.88
2015-03-31 3.89 -0.08 1.89
2014-12-31 3.60 -0.22 1.70
2014-09-30 3.31 -0.35 1.52
2014-06-30 2.82 -0.52 1.44
2014-03-31 2.33 -0.68 1.36
2013-12-31 1.96 -0.90 1.32
2013-09-30 1.60 -1.13 1.28
2013-06-30 1.58 -1.01 1.13
2013-03-31 1.56 -0.90 0.99
2012-12-31 1.54 -0.58 0.84
2012-09-30 1.51 -0.26 0.69
2012-06-30 1.48 -0.27 0.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if SysGroup has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if SysGroup has efficiently used its assets last year compared to the GB IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if SysGroup improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess SysGroup's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SysGroup has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SYS Health

 How is SysGroup's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SysGroup's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SysGroup is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SysGroup's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SysGroup's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SysGroup Company Filings, last reported 6 months ago.

AIM:SYS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 11.06 1.99 1.15
2018-06-30 11.06 1.99 1.15
2018-03-31 11.34 2.23 1.32
2017-09-30 11.28 0.28 2.69
2017-06-30 11.28 0.28 2.69
2017-03-31 11.09 0.41 3.47
2016-12-31 11.09 0.41 3.47
2016-09-30 11.34 0.21 3.88
2016-06-30 11.34 0.21 3.88
2016-03-31 4.94 0.31 0.51
2015-12-31 4.94 0.31 0.51
2015-09-30 4.07 0.48 0.44
2015-06-30 4.07 0.48 0.44
2015-03-31 4.13 0.51 0.43
2014-12-31 4.13 0.51 0.43
2014-09-30 3.80 0.50 0.27
2014-06-30 3.80 0.50 0.27
2014-03-31 3.09 0.51 1.00
2013-12-31 3.09 0.51 1.00
2013-09-30 -0.86 1.04 0.26
2013-06-30 -0.86 1.04 0.26
2013-03-31 -0.45 0.87 0.37
2012-12-31 -0.45 0.87 0.37
2012-09-30 -0.53 0.72 0.58
2012-06-30 -0.53 0.72 0.58
  • SysGroup's level of debt (18%) compared to net worth is satisfactory (less than 40%).
  • SysGroup had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
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.

  • SysGroup has less than a year of cash runway based on current free cash flow.
  • SysGroup has less than a year of cash runway if free cash flow continues to grow at historical rates of 83.2% each year.
X
Financial health checks
We assess SysGroup's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SysGroup has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SYS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SysGroup dividends.
If you bought £2,000 of SysGroup shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SysGroup's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SysGroup's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SYS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland IT Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SysGroup has not reported any payouts.
  • Unable to verify if SysGroup's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SysGroup's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SysGroup has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess SysGroup's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SysGroup afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SysGroup has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SYS Management

 What is the CEO of SysGroup's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adam Binks
COMPENSATION £120,528
AGE 34
TENURE AS CEO 1 years
CEO Bio

Mr. Adam Thomas Binks has been the Chief Executive Officer of SysGroup plc since April 3, 2018 and was its Chief Operating Officer from August 2014 to April 3, 2018. Mr. Binks has been a Director of SysGroup plc since October 31, 2017. He is responsible for the day-to-day operations of SysGroup Group. He has become an integral part of the management team during his tenure and has played a pivotal role in the Group's transformation to becoming a managed services provider. He has held senior management and board level positions over the last 14 years within the managed services and telecoms sector. Prior to joining the Group, he was responsible for the Sales and Technical functions of Vispa Limited, a cloud hosting and connectivity provider. Prior to this, he held senior positions at both Aspire Internet Limited and Legend Communications plc. He serves as a Director of Beta Bidco Limited, Mustarrow Limited, Netplan Group Limited, Netplan Internet Solutions Limited, Newbold Ventures Limited, Node Group Limited, Numbers Directory Limited, Project Clover Limited, SysGroup (DIS) Limited, SysGroup (EH) Limited, SysGroup (NH) Limited and System Professional Limited. He served as a Director of Alphadex Limited, Layerone Hosting Limited, MyGeoDeal Limited and SC Capital Partners LLP. He served as a Director of EurISP Limited when it filed for voluntary liquidation in June 2009.

CEO Compensation
  • Insufficient data for Adam to compare compensation growth.
  • Adam's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the SysGroup management team in years:

1
Average Tenure
  • The average tenure for the SysGroup management team is less than 2 years, this suggests a new team.
Management Team

Adam Binks

TITLE
CEO & Director
COMPENSATION
£121K
AGE
34
TENURE
1 yrs

Martin Audcent

TITLE
Chief Financial Officer
AGE
44
TENURE
0.8 yrs

Emmy Lippold

TITLE
Group Marketing Director
TENURE
1.3 yrs

Colin Deamer

TITLE
Group Sales Director
Board of Directors Tenure

Average tenure and age of the SysGroup board of directors in years:

1.4
Average Tenure
49
Average Age
  • The average tenure for the SysGroup board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Edelson

TITLE
Non-Executive Chairman
COMPENSATION
£40K
AGE
73
TENURE
1.4 yrs

Adam Binks

TITLE
CEO & Director
COMPENSATION
£121K
AGE
34
TENURE
1.5 yrs

Mark Quartermaine

TITLE
Independent Non-Executive Director
COMPENSATION
£13K
AGE
55
TENURE
1.4 yrs

Mike Fletcher

TITLE
Independent Non-Executive Director
COMPENSATION
£8K
AGE
43
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by SysGroup insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
25. Feb 19 Buy John Edelson Individual 25. Feb 19 25. Feb 19 131,579 £0.38 £50,000
X
Management checks
We assess SysGroup's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SysGroup has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SYS News

Simply Wall St News

Investors Who Bought SysGroup Shares Three Years Ago Are Now Down 43%

Shareholders of unprofitable companies usually expect strong revenue growth. … That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. … While its revenue increased, the share price dropped at a rate of 17% per year.

Simply Wall St -

Is SysGroup plc's (LON:SYS) Balance Sheet Strong Enough To Weather A Storm?

SysGroup plc (LON:SYS) is a small-cap stock with a market capitalization of UK£9.6m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

Should You Be Tempted To Sell SysGroup plc (LON:SYS) At Its Current PE Ratio?

While SYS might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … What you need to know about the P/E ratio

Simply Wall St -

SysGroup plc (LON:SYS): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like SysGroup plc (LON:SYS), with a market cap of UK£9.59m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Is SysGroup plc's (LON:SYS) Balance Sheet Strong Enough To Weather A Storm?

Additionally, SYS has produced UK£1.10M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 269.78%, indicating that SYS’s operating cash is sufficient to cover its debt. … At the current liabilities level of UK£2.36M liabilities, the company has been able to meet these obligations given the level of current assets of UK£4.78M, with a current ratio of 2.03x. … Investors' risk associated with debt is virtually non-existent with SYS, and the company has plenty of headroom and ability to raise debt should it need to in the future.Next Steps: SYS’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

Where SysGroup plc (LON:SYS) Stands In Earnings Growth Against Its Industry

When SysGroup plc (AIM:SYS) announced its most recent earnings (30 September 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Each year, for the past five years SysGroup's top-line has increased by 28.54% on average, implying that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses.

Simply Wall St -

Who Are The Top Investors In SysGroup plc (LON:SYS)?

Insider Ownership Another important group of shareholders are company insiders. … Private Company Ownership Potential investors in SYS should also look at another important group of investors: private companies, with a stake of 0.22%, who are primarily invested because of strategic and capital gain interests. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Why You Need To Look At This Factor Before Buying SysGroup plc (LON:SYS)

A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … SYS's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

What Investors Should Know About SysGroup plc's (LON:SYS) Financial Strength

On top of this, SYS has generated £1.1M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 269.78%, indicating that SYS’s current level of operating cash is high enough to cover debt. … SYS’s level of debt is low relative to its total equity, at 2.48%. … SYS's risk around capital structure is almost non-existent, and the company has the headroom and ability to raise debt should it need to in the future.Next Steps: SYS’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

What’s Ahead For SysGroup plc (LON:SYS)?

AIM:SYS PE PEG Gauge Jan 3rd 18 The software tech industry is trading at a PE ratio of 35x, higher than the rest of the UK stock market PE of 18x. … If SysGroup has been on your watchlist for a while, now may be the time to enter into the stock, if you like its ability to deliver growth and are not highly concentrated in the tech industry. … Use our free playform to see my list of over 1000 other tech companies trading on the market.

Simply Wall St -

SYS Company Info

Description

SysGroup plc, together with its subsidiaries, provides cloud hosting and managed IT services the United Kingdom and internationally. It operates through two segments, Managed Services and Value Added Resale (VAR) of Products/Services. The Managed Services segment offers various forms of managed services to customers. The Value Added Resale (VAR) of Products/Services segment provides various forms of value added reseller sales services where it acts as a reseller. It serves customers under Netplan, Systemprofessional, and Rockford brand names. The company was formerly known as Daily Internet PLC and changed its name to SysGroup plc in July 2016. SysGroup plc was founded in 2006 and is based in Liverpool, the United Kingdom.

Details
Name: SysGroup plc
SYS
Exchange: AIM
Founded: 2006
£19,273,679
49,419,690
Website: http://www.sysgroup.com
Address: SysGroup plc
Walker House,
Exchange Flags,
Liverpool,
Merseyside, L2 3YL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SYS Ordinary Shares London Stock Exchange AIM Market GB GBP 10. Mar 2008
Number of employees
Current staff
Staff numbers
74
SysGroup employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 21:19
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2018/11/26
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.