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NCC

NCC GroupLSE:NCC Stock Report

Last Price

UK£2.21

Market Cap

UK£683.0m

7D

-3.7%

1Y

-16.6%

Updated

21 Jan, 2022

Data

Company Financials +
NCC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends4/6

NCC Stock Overview

NCC Group plc engages in the cyber and software resilience business in the United Kingdom, the Asian-Pacific, North America, and Europe.

NCC Group Competitors

Trifork Holding

CPSE:TRIFOR

kr.4.7b

NNIT

CPSE:NNIT

kr.2.6b

Price History & Performance

Summary of all time highs, changes and price drops for NCC Group
Historical stock prices
Current Share PriceUK£2.21
52 Week HighUK£3.48
52 Week LowUK£2.14
Beta0.76
1 Month Change-6.17%
3 Month Change-11.09%
1 Year Change-16.63%
3 Year Change75.00%
5 Year Change17.91%
Change since IPO649.58%

Recent News & Updates

Oct 29
Here's Why We Think NCC Group plc's (LON:NCC) CEO Compensation Looks Fair for the time being

Here's Why We Think NCC Group plc's (LON:NCC) CEO Compensation Looks Fair for the time being

Despite strong share price growth of 38% for NCC Group plc ( LON:NCC ) over the last few years, earnings growth has...

Oct 01
NCC Group (LON:NCC) Has Re-Affirmed Its Dividend Of UK£0.032

NCC Group (LON:NCC) Has Re-Affirmed Its Dividend Of UK£0.032

NCC Group plc ( LON:NCC ) will pay a dividend of UK£0.032 on the 12th of November. This payment means that the dividend...

Sep 17
NCC Group (LON:NCC) Has Affirmed Its Dividend Of UK£0.032

NCC Group (LON:NCC) Has Affirmed Its Dividend Of UK£0.032

NCC Group plc's ( LON:NCC ) investors are due to receive a payment of UK£0.032 per share on 12th of November. Based on...

Shareholder Returns

NCCGB ITGB Market
7D-3.7%2.4%-0.5%
1Y-16.6%9.7%8.7%

Return vs Industry: NCC underperformed the UK IT industry which returned 9.7% over the past year.

Return vs Market: NCC underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is NCC's price volatile compared to industry and market?
NCC volatility
NCC Average Weekly Movement4.6%
IT Industry Average Movement5.7%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: NCC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NCC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19992,000Adam Palserhttps://www.nccgroup.com/uk

NCC Group plc engages in the cyber and software resilience business in the United Kingdom, the Asian-Pacific, North America, and Europe. It operates in two segments, Assurance and Software Resilience. The company offers assessment and advisory services, which include risk management, supply chain risk, cloud and infrastructure, application and security software, mobile, managed vulnerability scanning, hardware and embedded systems, and cryptography, as well as calibrator and cyber security review solutions.

NCC Group Fundamentals Summary

How do NCC Group's earnings and revenue compare to its market cap?
NCC fundamental statistics
Market CapUK£683.02m
Earnings (TTM)UK£10.00m
Revenue (TTM)UK£270.50m

68.3x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NCC income statement (TTM)
RevenueUK£270.50m
Cost of RevenueUK£159.90m
Gross ProfitUK£110.60m
ExpensesUK£100.60m
EarningsUK£10.00m

Last Reported Earnings

May 31, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)0.032
Gross Margin40.89%
Net Profit Margin3.70%
Debt/Equity Ratio12.5%

How did NCC perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

131%

Payout Ratio

Valuation

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

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCC (£2.21) is trading below our estimate of fair value (£3.44)

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


Price To Earnings Ratio

PE vs Industry: NCC is poor value based on its PE Ratio (68.3x) compared to the UK IT industry average (38.8x).

PE vs Market: NCC is poor value based on its PE Ratio (68.3x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: NCC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NCC is good value based on its PB Ratio (2.6x) compared to the GB IT industry average (4.5x).


Future Growth

How is NCC Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCC's forecast earnings growth (36.4% per year) is above the savings rate (0.9%).

Earnings vs Market: NCC's earnings (36.4% per year) are forecast to grow faster than the UK market (12.1% per year).

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

Revenue vs Market: NCC's revenue (9.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: NCC's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCC's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

How has NCC Group performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCC has a large one-off loss of £12.7M impacting its May 31 2021 financial results.

Growing Profit Margin: NCC's current net profit margins (3.7%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: NCC's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: NCC's earnings growth over the past year (56.3%) exceeds its 5-year average (40.2% per year).

Earnings vs Industry: NCC earnings growth over the past year (56.3%) exceeded the IT industry 26.7%.


Return on Equity

High ROE: NCC's Return on Equity (3.8%) is considered low.


Financial Health

How is NCC Group's financial position?


Financial Position Analysis

Short Term Liabilities: NCC's short term assets (£190.8M) exceed its short term liabilities (£101.1M).

Long Term Liabilities: NCC's short term assets (£190.8M) exceed its long term liabilities (£65.0M).


Debt to Equity History and Analysis

Debt Level: NCC has more cash than its total debt.

Reducing Debt: NCC's debt to equity ratio has increased from 10.5% to 12.5% over the past 5 years.

Debt Coverage: NCC's debt is well covered by operating cash flow (117.2%).

Interest Coverage: NCC's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NCC's dividend (2.11%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: NCC's dividend (2.11%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: NCC's dividends per share have been stable in the past 10 years.

Growing Dividend: NCC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (130.8%), NCC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NCC's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Adam Palser

4.08yrs

Tenure

UK£1,120,000

Compensation

Mr. Adam Palser serves as Chief Executive Officer and Executive Director of NCC Group plc since December 01, 2017. Mr. Palser served as the Chief Executive Officer at NSL Limited since February 10, 2015 an...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD1.52M) is above average for companies of similar size in the UK market ($USD1.06M).

Compensation vs Earnings: Adam's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NCC's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: NCC'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.4%.


Top Shareholders

Company Information

NCC Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: NCC Group plc
  • Ticker: NCC
  • Exchange: LSE
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: UK£683.017m
  • Shares outstanding: 309.76m
  • Website: https://www.nccgroup.com/uk

Number of Employees


Location

  • NCC Group plc
  • XYZ Building
  • 2 Hardman Boulevard
  • Manchester
  • Greater Manchester
  • M3 3AQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:13
End of Day Share Price2022/01/21 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.