AIM:SYS

Stock Analysis Report

Executive Summary

SysGroup plc, together with its subsidiaries, provides managed IT, cloud hosting, and IT consultancy services in the United Kingdom and internationally.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SYS

-5.6%

GB IT

-2.4%

GB Market


1 Year Return

-26.9%

SYS

-2.9%

GB IT

-25.9%

GB Market

Return vs Industry: SYS underperformed the UK IT industry which returned -2.4% over the past year.

Return vs Market: SYS underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

SYSIndustryMarket
7 Day0%-5.6%-2.4%
30 Day-9.5%-20.7%-18.0%
90 Day-13.6%-32.5%-29.1%
1 Year-26.9%-26.9%-0.7%-2.9%-22.2%-25.9%
3 Year-40.6%-40.6%52.9%42.4%-16.0%-26.6%
5 Year-51.7%-51.7%70.7%57.0%-4.5%-26.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SYS (£0.29) is trading above our estimate of fair value (£0.28)

Significantly Below Fair Value: SYS is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SYS is good value based on its PB Ratio (0.7x) compared to the GB IT industry average (2.1x).


Next Steps

Future Growth

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

129.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SYS's revenue (16.9% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: SYS's revenue (16.9% 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 SYS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SysGroup performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYS is currently unprofitable.

Growing Profit Margin: SYS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SYS is unprofitable, and losses have increased over the past 5 years at a rate of -19.1% per year.

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

Earnings vs Industry: SYS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (17.5%).


Return on Equity

High ROE: SYS has a negative Return on Equity (-4.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is SysGroup's financial position?


Financial Position Analysis

Short Term Liabilities: SYS's short term assets (£4.9M) do not cover its short term liabilities (£6.4M).

Long Term Liabilities: SYS's short term assets (£4.9M) exceed its long term liabilities (£3.1M).


Debt to Equity History and Analysis

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

Reducing Debt: SYS's debt to equity ratio has increased from 6.9% to 7.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SYS's debt is covered by short term assets (assets are 3.3x 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 SYS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SYS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -3.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

2.0yrs

Average management tenure


CEO

Adam Binks (35yo)

2s

Tenure

UK£249,000

Compensation

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 SysGro ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD304.88K) is about average for companies of similar size in the UK market ($USD335.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adam Binks
CEO & Director2yrsUK£249.00k0.33% £46.3k
Martin Audcent
CFO, Secretary & Directorno dataUK£128.00k0.12% £17.0k
Emmy Lippold
Group Marketing Director2.33yrsno datano data
Colin Deamer
Group Sales Directorno datano datano data

2.0yrs

Average Tenure

Experienced Management: SYS's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Binks
CEO & Director2yrsUK£249.00k0.33% £46.3k
Martin Audcent
CFO, Secretary & Directorno dataUK£128.00k0.12% £17.0k
John Edelson
Non-Executive Chairman2.42yrsUK£40.00k1.74% £244.6k
Mark Quartermaine
Independent Non-Executive Director2.42yrsUK£40.00kno data
Michael Fletcher
Independent Non-Executive Director2.25yrsUK£40.00kno data

2.4yrs

Average Tenure

45yo

Average Age

Experienced Board: SYS's board of directors are not considered experienced ( 2.4 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 been substantially diluted in the past year, with total shares outstanding growing by 68.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: SysGroup plc
  • Ticker: SYS
  • Exchange: AIM
  • Founded: 2007
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: UK£14.085m
  • Shares outstanding: 49.42m
  • Website: https://www.sysgroupplc.com

Number of Employees


Location

  • SysGroup plc
  • Walker House
  • Exchange Flags
  • Liverpool
  • Merseyside
  • L2 3YL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2008

Biography

SysGroup plc, together with its subsidiaries, provides managed IT, cloud hosting, and IT consultancy services in the United Kingdom and internationally. It operates through two segments, Managed IT Services and Value Added Resale (VAR). The Managed IT Services segment offers enterprise hosting, private and public cloud, IT support, and consultancy services. The VAR segment is involved in the resale of hardware and software licenses; and provision of third party support services. The company serves customers under the Netplan, System Professional, 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 incorporated in 2007 and is headquartered in Liverpool, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:08
End of Day Share Price2020/04/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.