AIM:MIDW

Stock Analysis Report

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Executive Summary

Midwich Group Plc distributes audio visual (AV) and document solutions to the trade markets in the United Kingdom, Ireland, Continental Europe, Asia Pacific, and North America.


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

MIDW

1.5%

GB Electronic

2.8%

GB Market


1 Year Return

-26.5%

MIDW

20.1%

GB Electronic

-7.7%

GB Market

Return vs Industry: MIDW underperformed the UK Electronic industry which returned 19.2% over the past year.

Return vs Market: MIDW underperformed the UK Market which returned -7.6% over the past year.


Shareholder returns

MIDWIndustryMarket
7 Day-0.3%1.5%2.8%
30 Day11.8%7.8%2.2%
90 Day-15.4%11.2%9.2%
1 Year-25.8%-26.5%20.9%20.1%-4.0%-7.7%
3 Year6.5%0.3%43.5%38.1%-3.4%-15.0%
5 Yearn/a121.9%106.2%20.4%-6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIDW (£3.85) is trading above our estimate of fair value (£3.12)

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


Price To Earnings Ratio

PE vs Industry: MIDW is poor value based on its PE Ratio (17.8x) compared to the GB Electronic industry average (16.6x).

PE vs Market: MIDW is poor value based on its PE Ratio (17.8x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MIDW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MIDW is overvalued based on its PB Ratio (5.3x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

How is Midwich Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MIDW's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if MIDW's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: MIDW's revenue (10.2% per year) is forecast to grow faster than the UK market (5.6% per year).

High Growth Revenue: MIDW's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MIDW's Return on Equity is forecast to be high in 3 years time (26.3%)


Next Steps

Past Performance

How has Midwich Group performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIDW has high quality earnings.

Growing Profit Margin: MIDW's current net profit margins (2.5%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: MIDW's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: MIDW's earnings growth over the past year (16.9%) is below its 5-year average (26.8% per year).

Earnings vs Industry: MIDW earnings growth over the past year (16.9%) exceeded the Electronic industry 2.4%.


Return on Equity

High ROE: Whilst MIDW's Return on Equity (27.87%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Midwich Group's financial position?


Financial Position Analysis

Short Term Liabilities: MIDW's short term assets (£205.8M) exceed its short term liabilities (£163.0M).

Long Term Liabilities: MIDW's short term assets (£205.8M) exceed its long term liabilities (£53.1M).


Debt to Equity History and Analysis

Debt Level: MIDW's debt to equity ratio (101.7%) is considered high.

Reducing Debt: MIDW's debt to equity ratio has reduced from 618.6% to 101.7% over the past 5 years.

Debt Coverage: MIDW's debt is well covered by operating cash flow (26.2%).

Interest Coverage: MIDW's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.86%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MIDW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MIDW is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MIDW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

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

2.4yrs

Average management tenure


CEO

Stephen Fenby (56 yo)

10.58yrs

Tenure

UK£401,000

Compensation

Mr. Stephen Barry Fenby has been Group Managing Director at Midwich Group Plc at Midwich Limited since 2010. He has been a Director at Midwich Group Plc since April 13, 2016. Mr. Fenby served as Company Se ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD524.66K) is below average for companies of similar size in the UK market ($USD915.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Fenby
Group MD & Director10.58yrsUK£401.00k23.63%
£ 79.5m
Stephen Lamb
Group Finance Director2.08yrsUK£497.00k0.012%
£ 41.2k
Thomas Sumner
European Managing Director1.58yrsno datano data
Frederick Broadbent
Managing Director of Asia Pacificno datano datano data
Stephen Beahan
Managing Director of Invision UKno datano datano data
Allan Leonhardsen
Managing Director of Holdan4.58yrsno datano data
Mark Lowe
Managing Director of UK & Ireland1.58yrsno datano data
Miguel Mezquita
Managing Director of Earpro2.42yrsno datano data
Rick ter Wee
Managing Director of Van Domburg2.42yrsno datano data
Ed Van Domburg
Managing Director of Van Domburg2.42yrsno datano data
David Marshall
Managing Director of Sound Technology19.58yrsno datano data
Chris Horsley
Managing Director of Blonde Robot1.25yrsno datano data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: MIDW's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Fenby
Group MD & Director10.58yrsUK£401.00k23.63%
£ 79.5m
Stephen Lamb
Group Finance Director2.08yrsUK£497.00k0.012%
£ 41.2k
Andrew Herbert
Independent Non-Executive Chairmanno dataUK£81.00k0.038%
£ 127.1k
Michael Ashley
Independent Non-Executive Director4.33yrsUK£41.00k0.0016%
£ 5.6k
Hilary Wright
Independent Non-Executive Director2.42yrsUK£41.00k0.0046%
£ 15.4k

3.4yrs

Average Tenure

56yo

Average Age

Experienced Board: MIDW'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: MIDW 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 9.9%.


Top Shareholders

Company Information

Midwich Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Midwich Group Plc
  • Ticker: MIDW
  • Exchange: AIM
  • Founded: 1976
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£336.650m
  • Shares outstanding: 87.44m
  • Website: https://www.midwichgroupplc.com

Number of Employees


Location

  • Midwich Group Plc
  • Vinces Road
  • Diss
  • Norfolk
  • IP22 4YT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MIDWAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2016

Biography

Midwich Group Plc distributes audio visual (AV) and document solutions to the trade markets in the United Kingdom, Ireland, Continental Europe, Asia Pacific, and North America. The company’s products suppo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 21:37
End of Day Share Price2020/08/13 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.