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Midwich Group

AIM:MIDW
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MIDW
AIM
£489M
Market Cap
  1. Home
  2. GB
  3. Tech
Company description

Midwich Group Plc distributes audio visual (AV) and document solutions to the trade markets in the United Kingdom, Ireland, France, Australasia, Germany, Iberia, and Benelux. The last earnings update was 32 days ago. More info.


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MIDW Share Price and Events
7 Day Returns
-2.5%
AIM:MIDW
0.1%
GB Electronic
1.3%
GB Market
1 Year Returns
-0.8%
AIM:MIDW
-0.7%
GB Electronic
-5%
GB Market
MIDW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Midwich Group (MIDW) -2.5% -2.8% 5.6% -0.8% 144% -
GB Electronic 0.1% -2% 5.2% -0.7% 80.3% 80.7%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • MIDW outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
MIDW
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Midwich Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Midwich Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Midwich Group.

AIM:MIDW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:MIDW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 19%) (8.65%))
1.08
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.08 * 6.65%)
8.41%

Discounted Cash Flow Calculation for AIM:MIDW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Midwich Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:MIDW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.41%)
2019 9.70 Analyst x1 8.95
2020 25.35 Analyst x2 21.57
2021 20.00 Analyst x1 15.70
2022 16.77 Est @ -16.16% 12.14
2023 14.93 Est @ -10.94% 9.97
2024 13.84 Est @ -7.29% 8.53
2025 13.19 Est @ -4.74% 7.50
2026 12.80 Est @ -2.95% 6.71
2027 12.58 Est @ -1.7% 6.08
2028 12.48 Est @ -0.82% 5.57
Present value of next 10 years cash flows £102.72
AIM:MIDW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £12.48 × (1 + 1.23%) ÷ (8.41% – 1.23%)
£175.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £175.93 ÷ (1 + 8.41%)10
£78.48
AIM:MIDW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £102.72 + £78.48
£181.19
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £181.19 / 79.59
£2.28
AIM:MIDW Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.28
Current discount Discount to share price of £6.15
= -1 x (£6.15 - £2.28) / £2.28
-170.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Midwich Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Midwich Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Midwich Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:MIDW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.19
AIM:MIDW Share Price ** AIM (2019-05-20) in GBP £6.15
United Kingdom of Great Britain and Northern Ireland Electronic Industry PE Ratio Median Figure of 21 Publicly-Listed Electronic Companies 20.55x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Midwich Group.

AIM:MIDW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:MIDW Share Price ÷ EPS (both in GBP)

= 6.15 ÷ 0.19

33.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Midwich Group is overvalued based on earnings compared to the GB Electronic industry average.
  • Midwich Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Midwich Group's expected growth come at a high price?
Raw Data
AIM:MIDW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
16.6%per year
United Kingdom of Great Britain and Northern Ireland Electronic Industry PEG Ratio Median Figure of 12 Publicly-Listed Electronic Companies 2.1x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

AIM:MIDW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.18x ÷ 16.6%

2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Midwich Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Midwich Group's assets?
Raw Data
AIM:MIDW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.68
AIM:MIDW Share Price * AIM (2019-05-20) in GBP £6.15
United Kingdom of Great Britain and Northern Ireland Electronic Industry PB Ratio Median Figure of 33 Publicly-Listed Electronic Companies 2.15x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
AIM:MIDW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:MIDW Share Price ÷ Book Value per Share (both in GBP)

= 6.15 ÷ 0.68

9.07x

* Primary Listing of Midwich Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Midwich Group is overvalued based on assets compared to the GB Electronic industry average.
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Value checks
We assess Midwich Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Midwich Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Midwich Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Midwich Group expected to grow at an attractive rate?
  • Midwich Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Midwich Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Midwich Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:MIDW Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:MIDW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 16.6%
AIM:MIDW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 7.1%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:MIDW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:MIDW Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 824 1
2022-12-31 792 2
2021-12-31 758 32 26 3
2020-12-31 712 34 23 4
2019-12-31 672 21 21 3
AIM:MIDW Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 574 22 15
2018-09-30 549 17 16
2018-06-30 524 13 17
2018-03-31 498 15 15
2017-12-31 472 17 14
2017-09-30 448 13 12
2017-06-30 423 8 11
2017-03-31 397 6 10
2016-12-31 370 4 8
2016-09-30 351 7 6
2016-06-30 331 10 4
2016-03-31 323 14 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Midwich Group's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
  • Midwich Group's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:MIDW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Midwich Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:MIDW Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.30 0.32 0.28 3.00
2020-12-31 0.28 0.30 0.25 3.00
2019-12-31 0.25 0.27 0.23 3.00
AIM:MIDW Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.19
2018-09-30 0.20
2018-06-30 0.21
2018-03-31 0.19
2017-12-31 0.17
2017-09-30 0.16
2017-06-30 0.14
2017-03-31 0.13
2016-12-31 0.11
2016-09-30 0.08
2016-06-30 4.32
2016-03-31 5.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Midwich Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Midwich Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Midwich Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Midwich Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Midwich Group's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Midwich Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Midwich Group's 1-year earnings growth is less than its 5-year average (8.6% vs 27.8%)
  • Midwich Group's earnings growth has not exceeded the GB Electronic industry average in the past year (8.6% vs 21.9%).
Earnings and Revenue History
Midwich Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Midwich Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:MIDW Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 573.68 14.72 72.48
2018-09-30 549.08 15.84 67.74
2018-06-30 524.47 16.95 63.01
2018-03-31 498.20 15.25 58.91
2017-12-31 471.94 13.56 54.81
2017-09-30 447.65 12.45 52.49
2017-06-30 423.36 11.35 50.17
2017-03-31 396.75 9.78 47.33
2016-12-31 370.14 8.22 44.50
2016-09-30 350.74 6.27 42.05
2016-06-30 331.33 4.32 39.61
2016-03-31 322.81 4.66 38.17
2015-12-31 314.28 5.01 36.73
2014-12-31 280.75 4.80 32.63
2013-12-31 233.74 6.54 24.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Midwich Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Midwich Group used its assets more efficiently than the GB Electronic industry average last year based on Return on Assets.
  • Midwich Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Midwich Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Midwich Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Midwich Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Midwich Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Midwich Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Midwich Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Midwich Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Midwich Group Company Filings, last reported 4 months ago.

AIM:MIDW Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 58.35 42.36 16.69
2018-09-30 58.35 42.36 16.69
2018-06-30 54.86 66.34 24.81
2018-03-31 54.86 66.34 24.81
2017-12-31 53.09 50.50 28.20
2017-09-30 53.09 50.50 28.20
2017-06-30 47.43 43.43 20.60
2017-03-31 47.43 43.43 20.60
2016-12-31 46.59 35.20 20.16
2016-09-30 46.59 35.20 20.16
2016-06-30 42.34 28.76 14.88
2016-03-31 42.34 28.76 14.88
2015-12-31 12.38 48.48 18.10
2014-12-31 8.41 52.11 11.30
2013-12-31 26.39 28.94 9.03
  • Midwich Group's level of debt (72.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (110.1% vs 72.6% today).
  • Debt is well covered by operating cash flow (52.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.4x coverage).
X
Financial health checks
We assess Midwich Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Midwich Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.47%
Current annual income from Midwich Group dividends. Estimated to be 2.76% next year.
If you bought £2,000 of Midwich Group shares you are expected to receive £49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Midwich Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Midwich Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:MIDW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Electronic Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:MIDW Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.18 1.00
2021-12-31 0.18 3.00
2020-12-31 0.17 4.00
2019-12-31 0.16 3.00
AIM:MIDW Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-12 0.152 2.538
2018-04-16 0.138 2.308
2018-03-13 0.138 2.500
2017-03-20 0.086 2.099
2016-09-13 0.031 1.227

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Midwich Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Midwich Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Midwich Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
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Income/ dividend checks
We assess Midwich Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Midwich Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Midwich Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Midwich Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stephen Fenby
COMPENSATION £606,000
AGE 54
TENURE AS CEO 9.3 years
CEO Bio

Mr. Stephen Barry Fenby serves as the Managing Director of Midwich Limited. Mr. Fenby has been Group Managing Director at Midwich Group Plc since 2010 and serves as its Director. Mr. Fenby served as Company Secretary at Midwich Group plc from May 11, 2018 to 2018. He has been instrumental in the development of the business over the last few years, including leading Midwich's acquisitions of UK and overseas businesses acquiring specialist businesses in the UK, Ireland, France, Germany, Australia and New Zealand. He has led Midwich’s acquisition and development programme. After qualifying as a Chartered Accountant with Ernst & Young, he joined Deloitte and worked for 16 years in the corporate finance team, latterly in the Cambridge office. He joined Midwich as Finance Director in 2004. He serves as a Director of PSCO Limited, Midwich Employees Trustees Limited, Invision UK Ltd., True Colours Distribution Limited and Sidev Midwich Australia. He served as PSCO Group Limited, AV Couriers Limited, Nearly New Audio Visual Ltd., PSCO Rental Limited, Yellowglade Limited, RWS Drums & Percussion Limited, R.W. Salt Communications Limited, M&R 320 Limited, Synergix Ltd., Tayvin 320 Limited and Cuckoo Holdings Limited. He served as a Director of Midwich Limited. He is an associate of both the Institute of Chartered Accountants in England and Wales and the Chartered Institute of Management Accountants. Mr. Fenby holds a BSc in Accounting and Financial Analysis from the University of Warwick.

CEO Compensation
  • Stephen's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Stephen's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Midwich Group management team in years:

1.2
Average Tenure
49
Average Age
  • The average tenure for the Midwich Group management team is less than 2 years, this suggests a new team.
Management Team

Stephen Fenby

TITLE
Group MD & Director
COMPENSATION
£606K
AGE
54
TENURE
9.3 yrs

Stephen Lamb

TITLE
Group Finance Director
AGE
44
TENURE
0.8 yrs

Stephen Beahan

TITLE
Managing Director of Invision UK
AGE
59

Allan Leonhardsen

TITLE
Managing Director of Holdan
TENURE
3.3 yrs

Miguel Mezquita

TITLE
Managing Director of Earpro
TENURE
1.2 yrs

Rick ter Wee

TITLE
Managing Director of Van Domburg
TENURE
1.2 yrs

Ed Van Domburg

TITLE
Managing Director of Van Domburg
TENURE
1.2 yrs

David Marshall

TITLE
Managing Director of Sound Technology
TENURE
18.3 yrs

Lutz Kern

TITLE
Joint Managing Director of Kern & Stelly
AGE
49

Andreas Stelly

TITLE
Joint Managing Director of Kern & Stelly
AGE
49
Board of Directors Tenure

Average tenure and age of the Midwich Group board of directors in years:

1.2
Average Tenure
54
Average Age
  • The average tenure for the Midwich Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Andrew Herbert

TITLE
Non-Executive Chairman
COMPENSATION
£49K
AGE
58

Stephen Fenby

TITLE
Group MD & Director
COMPENSATION
£606K
AGE
54

Stephen Lamb

TITLE
Group Finance Director
AGE
44
TENURE
0.8 yrs

Mike Ashley

TITLE
Non-Executive Director
COMPENSATION
£32K
AGE
50
TENURE
3.1 yrs

Hilary Wright

TITLE
Independent Non-Executive Director
AGE
58
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • Midwich Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
29. Apr 19 Sell Stephen Fenby Individual 26. Apr 19 26. Apr 19 -1,000,000 £6.25 £-6,250,000
10. Dec 18 Buy Stephen Fenby Individual 07. Dec 18 07. Dec 18 40,000 £5.01 £200,200
07. Dec 18 Buy Hilary Wright Individual 06. Dec 18 06. Dec 18 2,000 £5.18 £10,354
11. Oct 18 Buy Stephen Lamb Individual 11. Oct 18 11. Oct 18 2,500 £5.85 £14,537
09. Oct 18 Buy Stephen Lamb Individual 09. Oct 18 09. Oct 18 4,831 £6.60 £31,739
X
Management checks
We assess Midwich Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Midwich Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Midwich Group Plc's (LON:MIDW) CEO Pay Matters To You

See our latest analysis for Midwich Group How Does Stephen Fenby's Compensation Compare With Similar Sized Companies? … According to our data, Midwich Group Plc has a market capitalization of UK£489m, and pays its CEO total annual compensation worth UK£606k. … Midwich Group Plc has reduced its earnings per share by an average of 130% a year, over the last three years (measured with a line of best fit).

Simply Wall St -

How Financially Strong Is Midwich Group Plc (LON:MIDW)?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Midwich Group Plc (LON:MIDW), with a market cap of UK£479m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

What Do Analysts Think About The Future Of Midwich Group Plc's (LON:MIDW)?

On 31 December 2018, Midwich Group Plc (LON:MIDW) announced its earnings update. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 28%.

Simply Wall St -

What Should We Expect From Midwich Group Plc's (LON:MIDW) Earnings Over The Next Few Years?

Midwich Group Plc's (LON:MIDW) announced its latest earnings update in December 2018, whicha

Simply Wall St -

Does The Hype Around Midwich Group Plc's (LON:MIDW) Growth Justify Its March Share Price?

Growth expectations for Midwich Group Plc (LON:MIDW) are high, but many investors are starting to ask whether its last close at £5.7 can still be rationalized by the future potential. … Check out our latest analysis for Midwich Group? … If you are bullish about Midwich Group's growth potential then you are certainly not alone

Simply Wall St -

Did Midwich Group Plc (LON:MIDW) Insiders Buy Up More Shares?

So before you buy or sell Midwich Group Plc (LON:MIDW), you may well want to know whether insiders have been buying or selling. … In any event it's generally a positive if insiders are buying shares at around the current price. … Overall, Midwich Group insiders were net buyers last year

Simply Wall St -

Why We Think Midwich Group Plc (LON:MIDW) Could Be Worth Looking At

Attractive stocks have exceptional fundamentals. … In the case of Midwich Group Plc (LON:MIDW), there's … track record

Simply Wall St -

Is There Now An Opportunity In Midwich Group Plc (LON:MIDW)?

saw a double-digit share price rise of over 10% in the past couple of months on the AIM. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Can Midwich Group Plc (LON:MIDW) Maintain Its Strong Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Midwich Group has a return on equity of 32% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What To Know Before Buying Midwich Group Plc (LON:MIDW) For Its Dividend

Midwich Group Plc (LON:MIDW) has paid a dividend to shareholders in the last few years. … Does Midwich Group tick all the boxes of a great dividend stock? … Check out our latest analysis for Midwich Group

Simply Wall St -

Company Info

Description

Midwich Group Plc distributes audio visual (AV) and document solutions to the trade markets in the United Kingdom, Ireland, France, Australasia, Germany, Iberia, and Benelux. The company’s products support various AV categories, such as large format displays, projectors, audio and digital signage products, technical and professional video products, and printers, as well as scanners and consumables. It serves professional AV integrators and IT resellers in corporate, education, retail, residential, and hospitality sectors. The company was formerly known as Jade 320 Limited and changed its name to Midwich Group Plc in April 2016. Midwich Group Plc was founded in 1979 and is based in Diss, the United Kingdom.

Details
Name: Midwich Group Plc
MIDW
Exchange: AIM
Founded: 1979
£489,497,023
79,593,012
Website: http://www.midwichgroupplc.com
Address: Midwich Group Plc
Vinces Road,
Diss,
Norfolk, IP22 4YT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM MIDW Ordinary Shares London Stock Exchange AIM Market GB GBP 06. May 2016
Number of employees
Current staff
Staff numbers
900
Midwich Group employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 22:33
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/04/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.