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Market Cap

UK£901.9m

Last Updated

2021/05/18 05:23 UTC

Data Sources

Company Financials +

Executive Summary

NCC Group plc provides cyber security and risk mitigation services in the United Kingdom, North America, rest of Europe, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NCC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NCC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

13.0%

NCC

-1.0%

GB IT

0.2%

GB Market


1 Year Return

95.7%

NCC

40.1%

GB IT

22.8%

GB Market

Return vs Industry: NCC exceeded the UK IT industry which returned 40.1% over the past year.

Return vs Market: NCC exceeded the UK Market which returned 22.8% over the past year.


Shareholder returns

NCCIndustryMarket
7 Day13.0%-1.0%0.2%
30 Day3.4%-7.2%0.1%
90 Day8.1%5.9%5.1%
1 Year100.3%95.7%42.4%40.1%28.3%22.8%
3 Year50.4%39.8%67.7%59.2%9.4%-3.1%
5 Year11.1%-0.8%176.5%149.6%47.0%19.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

64.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NCC (£2.92) is trading above our estimate of fair value (£1.99)

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


Price To Earnings Ratio

PE vs Industry: NCC is poor value based on its PE Ratio (64.6x) compared to the UK IT industry average (52.3x).

PE vs Market: NCC is poor value based on its PE Ratio (64.6x) compared to the UK market (25.6x).


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 (3.9x) 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 7 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCC's forecast earnings growth (34.4% per year) is above the savings rate (0.9%).

Earnings vs Market: NCC's earnings (34.4% per year) are forecast to grow faster than the UK market (17.7% per year).

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

Revenue vs Market: NCC's revenue (10.8% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: NCC's revenue (10.8% 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 (10.1%).


Past Performance

How has NCC Group performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCC has high quality earnings.

Growing Profit Margin: NCC's current net profit margins (4.7%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: NCC's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: NCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NCC had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the IT industry average (6.1%).


Return on Equity

High ROE: NCC's Return on Equity (6%) is considered low.


Financial Health

How is NCC Group's financial position?


Financial Position Analysis

Short Term Liabilities: NCC's short term assets (£177.7M) exceed its short term liabilities (£92.5M).

Long Term Liabilities: NCC's short term assets (£177.7M) exceed its long term liabilities (£137.5M).


Debt to Equity History and Analysis

Debt Level: NCC's debt to equity ratio (46.6%) is considered high.

Reducing Debt: NCC's debt to equity ratio has increased from 46.2% to 46.6% over the past 5 years.

Debt Coverage: NCC's debt is well covered by operating cash flow (50.1%).

Interest Coverage: NCC's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NCC's dividend (1.59%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: NCC's dividend (1.59%) is low compared to the top 25% of dividend payers in the UK market (4.12%).


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 (102.9%), 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 (40.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Adam Palser

3.42yrs

Tenure

UK£742,000

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 ($USD1.05M) is about average for companies of similar size in the UK market ($USD1.37M).

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


Leadership Team

Experienced Management: NCC's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: NCC's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NCC 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 10.9%.


Top Shareholders

Company Information

NCC Group plc's company bio, 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
  • Market Cap: UK£901.949m
  • Shares outstanding: 308.89m
  • 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


Biography

NCC Group plc provides cyber security and risk mitigation services in the United Kingdom, North America, rest of Europe, and internationally. It operates through two segments, Assurance and Software Resili...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 05:23
End of Day Share Price2021/05/17 00:00
Earnings2020/11/30
Annual Earnings2020/05/31


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.