AIM:UNG

Stock Analysis Report

Executive Summary

Universe Group plc designs, develops, and supports point-of-sale, payment, and loyalty solutions and systems for the petrol forecourt and convenience store markets in the United Kingdom and Belgium.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

UNG

3.0%

GB IT

-0.5%

GB Market


1 Year Return

38.3%

UNG

17.2%

GB IT

3.7%

GB Market

Return vs Industry: UNG exceeded the UK IT industry which returned 17.2% over the past year.

Return vs Market: UNG exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

UNGIndustryMarket
7 Day0%3.0%-0.5%
30 Day1.0%6.9%2.0%
90 Day16.7%2.6%5.6%
1 Year38.3%38.3%19.7%17.2%9.2%3.7%
3 Year-43.6%-43.6%94.1%79.6%23.4%7.7%
5 Year-13.6%-13.6%80.3%63.6%34.2%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNG (£0.05) is trading above our estimate of fair value (£0.02)

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


Price To Earnings Ratio

PE vs Industry: UNG is good value based on its PE Ratio (13.9x) compared to the IT industry average (25.8x).

PE vs Market: UNG is good value based on its PE Ratio (13.9x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: UNG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: UNG is good value based on its PB Ratio (0.5x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

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

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNG's forecast earnings growth (25.8% per year) is above the savings rate (1.2%).

Earnings vs Market: UNG's earnings (25.8% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UNG's revenue (17.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: UNG's revenue (17.6% 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 UNG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Universe Group performed over the past 5 years?

-11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNG has high quality earnings.

Growing Profit Margin: UNG's current net profit margins (4.2%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: UNG's earnings have declined by -11.9% per year over the past 5 years.

Accelerating Growth: UNG's earnings growth over the past year (69.8%) exceeds its 5-year average (-11.9% per year).

Earnings vs Industry: UNG earnings growth over the past year (69.8%) exceeded the IT industry 7.3%.


Return on Equity

High ROE: UNG's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Universe Group's financial position?


Financial Position Analysis

Short Term Liabilities: UNG's short term assets (£12.0M) exceeds its short term liabilities (£8.9M)

Long Term Liabilities: UNG's short term assets (12.0M) exceeds its long term liabilities (4.6M)


Debt to Equity History and Analysis

Debt Level: UNG's debt to equity ratio (13.7%) is considered satisfactory

Reducing Debt: UNG's debt to equity ratio has increased from 0.1% to 13.7% over the past 5 years.

Debt Coverage: UNG's debt is well covered by operating cash flow (60.8%).

Interest Coverage: UNG's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: UNG's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate UNG'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 UNG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UNG'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 UNG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Jeremy Michael Lewis (56yo)

6.2yrs

Tenure

UK£261,000

Compensation

Mr. Jeremy Michael James Lewis, ACA has been the Chief Executive Officer of Universe Group plc since September 23, 2013. Mr. Lewis was a Partner of Canis Capital Managemen LLP, Catalis Development Services ...


CEO Compensation Analysis

Compensation vs Market: Jeremy Michael's total compensation ($USD335.25K) is about average for companies of similar size in the UK market ($USD319.49K).

Compensation vs Earnings: Jeremy Michael's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.6yrs

Average Tenure

Experienced Management: UNG's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: UNG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Jeremy Michael Lewis (56yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£261.00k
  • Daryl Paton (55yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£197.00k
  • Janet Barraclough

    Director of Sales & Marketing

    • Tenure: 7.6yrs
  • Alasdair Mackay

    Technical Director

    • Tenure: 7.6yrs
  • Judith Legg

    Head of Human Resources

    • Tenure: 7.6yrs

Board Members

  • Malcolm Coster (74yo)

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£30.00k
  • Jeremy Michael Lewis (56yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£261.00k
  • Daryl Paton (55yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£197.00k
  • Andrew Blazye (60yo)

    Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: UK£84.00k
  • Ivan Brooks (54yo)

    Non-Executive Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Universe Group plc
  • Ticker: UNG
  • Exchange: AIM
  • Founded: 1979
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£13.205m
  • Shares outstanding: 260.19m
  • Website: https://www.universe-group.co.uk

Number of Employees


Location

  • Universe Group plc
  • Southampton International Park
  • George Curl Way
  • Southampton
  • Hampshire
  • SO18 2RX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1992

Biography

Universe Group plc designs, develops, and supports point-of-sale, payment, and loyalty solutions and systems for the petrol forecourt and convenience store markets in the United Kingdom and Belgium. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 20:32
End of Day Share Price2019/11/13 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.