AIM:UNG

Stock Analysis Report

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Executive Summary

Universe Group plc offers real-time mission critical solutions in the United Kingdom, Belgium, and Ireland. More Details


Snowflake Analysis

Adequate balance sheet and fair 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

-2.4%

GB IT

0.4%

GB Market


1 Year Return

7.5%

UNG

13.2%

GB IT

-13.8%

GB Market

Return vs Industry: UNG underperformed the UK IT industry which returned 13.2% over the past year.

Return vs Market: UNG exceeded the UK Market which returned -13.8% over the past year.


Shareholder returns

UNGIndustryMarket
7 Day0%-2.4%0.4%
30 Day-6.5%-2.1%-0.3%
90 Day-4.4%9.5%-1.7%
1 Year7.5%7.5%14.3%13.2%-10.4%-13.8%
3 Year-36.8%-36.8%67.7%58.2%-4.3%-15.8%
5 Year-41.1%-41.1%144.2%125.6%22.8%-4.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNG (£0.05) is trading below our estimate of fair value (£2.19)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: UNG is good value based on its PB Ratio (0.6x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is Universe Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.0%

Forecasted Software industry annual growth in earnings


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 Universe Group 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Universe Group performed over the past 5 years?

-31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNG is currently unprofitable.

Growing Profit Margin: UNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UNG is unprofitable, and losses have increased over the past 5 years at a rate of 31.8% per year.

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

Earnings vs Industry: UNG is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (5.9%).


Return on Equity

High ROE: UNG has a negative Return on Equity (-6.18%), as it is currently unprofitable.


Next Steps

Financial Health

How is Universe Group's financial position?


Financial Position Analysis

Short Term Liabilities: UNG's short term assets (£13.2M) exceed its short term liabilities (£11.1M).

Long Term Liabilities: UNG's short term assets (£13.2M) exceed its long term liabilities (£4.1M).


Debt to Equity History and Analysis

Debt Level: UNG's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: UNG's debt to equity ratio has increased from 1.1% to 12.1% over the past 5 years.

Debt Coverage: UNG's debt is well covered by operating cash flow (264.5%).

Interest Coverage: UNG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate UNG'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 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

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Jeremy Michael Lewis (57 yo)

7yrs

Tenure

UK£289,000

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 ($USD374.40K) is about average for companies of similar size in the UK market ($USD345.91K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Michael Lewis
CEO & Executive Director7yrsUK£289.00k0.20%
£ 28.6k
Daryl Paton
CFO, Company Secretary & Executive Director3.17yrsUK£218.00kno data
Alasdair Mackay
Technical Director8.42yrsno datano data
Janet Barraclough
Director of Sales & Marketing8.42yrsno datano data
Judith Legg
Head of Human Resources8.42yrsno datano data

8.4yrs

Average Tenure

Experienced Management: UNG's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Michael Lewis
CEO & Executive Director7yrsUK£289.00k0.20%
£ 28.6k
Daryl Paton
CFO, Company Secretary & Executive Director3.17yrsUK£218.00kno data
Malcolm Coster
Independent Non-Executive Director13.08yrsUK£41.00k0.60%
£ 84.3k
Andrew Blazye
Independent Non-Executive Chairman3yrsUK£84.00k0.11%
£ 16.1k
Ivan Brooks
Non-Executive Director1.42yrsUK£26.00k0.077%
£ 10.8k

3.2yrs

Average Tenure

57yo

Average Age

Experienced Board: UNG's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: 1991
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£14.032m
  • Shares outstanding: 261.07m
  • 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 offers real-time mission critical solutions in the United Kingdom, Belgium, and Ireland. The company provides software licenses and hardware; service and installations; data services; an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 04:23
End of Day Share Price2020/09/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.