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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

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


Market Performance


7 Day Return

5.8%

MIDW

-6.0%

GB Electronic

-2.3%

GB Market


1 Year Return

-14.0%

MIDW

24.2%

GB Electronic

1.1%

GB Market

Return vs Industry: MIDW underperformed the UK Electronic industry which returned 24.2% over the past year.

Return vs Market: MIDW underperformed the UK Market which returned 1% over the past year.


Shareholder returns

MIDWIndustryMarket
7 Day5.8%-6.0%-2.3%
30 Day-2.2%-5.6%1.8%
90 Day0.2%5.1%5.5%
1 Year-14.0%-14.0%25.3%24.2%7.2%1.1%
3 Year-19.0%-22.9%49.6%43.9%9.8%-3.3%
5 Yearn/a139.7%123.4%36.9%10.5%

Long-Term 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?

67.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIDW (£4.5) is trading above our estimate of fair value (£1.22)

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 (66.4x) compared to the GB Electronic industry average (47.2x).

PE vs Market: MIDW is poor value based on its PE Ratio (66.4x) compared to the UK market (23.9x).


Price to Earnings Growth Ratio

PEG Ratio: MIDW is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MIDW is overvalued based on its PB Ratio (3.9x) compared to the GB Electronic industry average (2.8x).


Next Steps

Future Growth

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

64.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIDW's forecast earnings growth (64.4% per year) is above the savings rate (1%).

Earnings vs Market: MIDW's earnings (64.4% per year) are forecast to grow faster than the UK market (23.3% per year).

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

Revenue vs Market: MIDW's revenue (8.3% per year) is forecast to grow faster than the UK market (7.3% per year).

High Growth Revenue: MIDW's revenue (8.3% 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 low in 3 years time (17.8%).


Next Steps

Past Performance

How has Midwich Group performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIDW has high quality earnings.

Growing Profit Margin: MIDW's current net profit margins (0.8%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: MIDW's earnings have grown by 17% per year over the past 5 years.

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

Earnings vs Industry: MIDW had negative earnings growth (-61.3%) over the past year, making it difficult to compare to the Electronic industry average (-5.2%).


Return on Equity

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


Next Steps

Financial Health

How is Midwich Group's financial position?


Financial Position Analysis

Short Term Liabilities: MIDW's short term assets (£223.4M) exceed its short term liabilities (£154.8M).

Long Term Liabilities: MIDW's short term assets (£223.4M) exceed its long term liabilities (£56.0M).


Debt to Equity History and Analysis

Debt Level: MIDW's debt to equity ratio (59.9%) is considered high.

Reducing Debt: MIDW's debt to equity ratio has reduced from 483.6% to 59.9% over the past 5 years.

Debt Coverage: MIDW's debt is well covered by operating cash flow (37.2%).

Interest Coverage: MIDW's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.15%

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

Management

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

2.9yrs

Average management tenure


CEO

Stephen Fenby (56 yo)

11.08yrs

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 ($USD558.42K) is about average for companies of similar size in the UK market ($USD781.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Fenby
Group MD & Director11.08yrsUK£401.00k22.21%
£ 87.4m
Stephen Lamb
Group Finance Director2.58yrsUK£497.00k0.012%
£ 48.1k
Thomas Sumner
European Managing Director2.08yrsno 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 Holdan5.08yrsno datano data
Mark Lowe
Managing Director of UK & Ireland2.08yrsno datano data
Miguel Mezquita
Managing Director of Earpro2.92yrsno datano data
Rick ter Wee
Managing Director of Van Domburg2.92yrsno datano data
Ed Van Domburg
Managing Director of Van Domburg2.92yrsno datano data
David Marshall
Managing Director of Sound Technology20.08yrsno datano data
Chris Horsley-Wyatt
Managing Director of Blonde Robot1.75yrsno datano data

2.9yrs

Average Tenure

55yo

Average Age

Experienced Management: MIDW's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Fenby
Group MD & Director11.08yrsUK£401.00k22.21%
£ 87.4m
Stephen Lamb
Group Finance Director2.58yrsUK£497.00k0.012%
£ 48.1k
Andrew Herbert
Independent Non-Executive Chairmanno dataUK£81.00k0.046%
£ 180.0k
Michael Ashley
Independent Non-Executive Director4.83yrsUK£41.00k0.0016%
£ 6.5k
Hilary Wright
Independent Non-Executive Director2.92yrsUK£41.00k0.0046%
£ 18.0k

3.9yrs

Average Tenure

56yo

Average Age

Experienced Board: MIDW's board of directors are considered experienced (3.9 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

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£393.487m
  • 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 Analysis2021/03/01 19:22
End of Day Share Price2021/03/01 00:00
Earnings2020/06/30
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.