AIM:MIDW

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.4%

MIDW

-2.4%

GB Electronic

-0.4%

GB Market


1 Year Return

-15.4%

MIDW

8.4%

GB Electronic

2.9%

GB Market

Return vs Industry: MIDW underperformed the UK Electronic industry which returned 8.4% over the past year.

Return vs Market: MIDW underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

MIDWIndustryMarket
7 Day-0.4%-2.4%-0.4%
30 Day-2.3%-5.0%-1.4%
90 Day-9.5%-6.0%-2.1%
1 Year-13.1%-15.4%10.2%8.4%8.0%2.9%
3 Year156.4%136.3%47.4%40.7%18.0%3.6%
5 Yearn/a122.7%103.4%35.8%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?

28.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIDW (£5.14) is trading above our estimate of fair value (£3.81)

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 (28.1x) compared to the Electronic industry average (19.6x).

PE vs Market: MIDW is poor value based on its PE Ratio (28.1x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: MIDW is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MIDW is overvalued based on its PB Ratio (7.4x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIDW's forecast earnings growth (15.4% per year) is above the savings rate (1.2%).

Earnings vs Market: MIDW's earnings (15.4% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: MIDW's earnings are forecast to grow, but not significantly.

Revenue vs Market: MIDW's revenue (5.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: MIDW's revenue (5.8% 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 (35.9%)


Next Steps

Past Performance

How has Midwich Group performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MIDW's earnings have grown significantly by 30.4% 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 (-14.4%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: Whilst MIDW's Return on Equity (24.46%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MIDW's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: MIDW's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Midwich Group's financial position?


Financial Position Analysis

Short Term Liabilities: MIDW's short term assets (£214.2M) exceeds its short term liabilities (£171.1M)

Long Term Liabilities: MIDW's short term assets (214.2M) exceeds its long term liabilities (57.6M)


Debt to Equity History and Analysis

Debt Level: MIDW's debt to equity ratio (140.3%) is considered high

Reducing Debt: MIDW's debt to equity ratio has reduced from 232.4% to 140.3% over the past 5 years.

Debt Coverage: MIDW's debt is well covered by operating cash flow (30%).

Interest Coverage: MIDW's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet

Inventory Level: MIDW has a high level of physical assets or inventory.

Debt Coverage by Assets: MIDW's debt is covered by short term assets (assets are 2.454940x debt).


Next Steps

Dividend

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

2.96%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MIDW's dividend (2.96%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: MIDW's dividend (2.96%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: Whilst dividend payments have been stable, MIDW has been paying a dividend for less than 10 years.

Growing Dividend: MIDW's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.5%), MIDW's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIDW's dividends in 3 years are forecast to be well covered by earnings (46.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Stephen Fenby (55yo)

9.8yrs

Tenure

UK£420,000

Compensation

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 Compan ...


CEO Compensation Analysis

Compensation vs. Market: Stephen's total compensation ($USD545.11K) is about average for companies of similar size in the UK market ($USD875.35K).

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


Management Age and Tenure

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: MIDW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

55yo

Average Age

Experienced Board: MIDW's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MIDW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£119,75016 Sep 19
Stephen Fenby
EntityIndividual
Role
Chief Executive Officer
Group MD & Director
Shares25,000
Max PriceUK£4.79
BuyUK£153,00010 Sep 19
Stephen Fenby
EntityIndividual
Role
Chief Executive Officer
Group MD & Director
Shares30,000
Max PriceUK£5.10
BuyUK£160,09804 Jul 19
Stephen Fenby
EntityIndividual
Role
Chief Executive Officer
Group MD & Director
Shares30,000
Max PriceUK£5.34
SellUK£6,250,00029 Apr 19
Stephen Fenby
EntityIndividual
Role
Chief Executive Officer
Group MD & Director
Shares1,000,000
Max PriceUK£6.25
BuyUK£200,20010 Dec 18
Stephen Fenby
EntityIndividual
Role
Chief Executive Officer
Group MD & Director
Shares40,000
Max PriceUK£5.01
BuyUK£10,35407 Dec 18
Hilary Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,000
Max PriceUK£5.18

Ownership Breakdown


Management Team

  • Tom Sumner (33yo)

    European Managing Director

    • Tenure: 0.8yrs
  • Stephen Fenby (55yo)

    Group MD & Director

    • Tenure: 9.8yrs
    • Compensation: UK£420.00k
  • Stephen Beahan (60yo)

    Managing Director of Invision UK

    • Tenure: 0yrs
  • Allan Leonhardsen

    Managing Director of Holdan

    • Tenure: 3.8yrs
  • Mark Lowe

    Managing Director of UK & Ireland

    • Tenure: 0.8yrs
  • Miguel Mezquita

    Managing Director of Earpro

    • Tenure: 1.6yrs
  • Rick ter Wee

    Managing Director of Van Domburg

    • Tenure: 1.6yrs
  • Ed Van Domburg

    Managing Director of Van Domburg

    • Tenure: 1.6yrs
  • David Marshall

    Managing Director of Sound Technology

    • Tenure: 18.8yrs
  • Stephen Lamb (45yo)

    Group Finance Director

    • Tenure: 1.3yrs
    • Compensation: UK£389.59k

Board Members

  • Andrew Herbert (59yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£81.00k
  • Mike Ashley (51yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£41.00k
  • Hilary Wright (59yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£34.00k
  • Stephen Fenby (55yo)

    Group MD & Director

    • Tenure: 9.8yrs
    • Compensation: UK£420.00k
  • Stephen Lamb (45yo)

    Group Finance Director

    • Tenure: 1.3yrs
    • Compensation: UK£389.59k

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: 1979
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£413.884m
  • Shares outstanding: 79.59m
  • 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, France, Australasia, Germany, Iberia, and Benelux. The company’s products support ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:59
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.