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Stadium Group

AIM:SDM
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SDM
AIM
£46M
Market Cap
  1. Home
  2. GB
  3. Tech
Last updated 2018/04/18 09:24
Company description

Stadium Group plc provides design-led integrated electronic technology solutions. More info.


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  • Stadium Group has significant price volatility in the past 3 months.
SHARE PRICE
3 Month History
SDM
Industry
5yr Volatility vs Market

Value

 Is Stadium 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
  • It is not possible to calculate the future cash flow value for Stadium Group. This is due to cash flow or dividend data being unavailable. The share price is £1.21.
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 Stadium Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Stadium Group's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Stadium Group is good value based on earnings compared to the GB Electronic industry average.
  • Stadium Group is good value based on earnings compared to the GB market.
Price based on expected Growth
Does Stadium Group's expected growth come at a high price?
  • Unable to calculate PEG ratio for Stadium Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Stadium Group's assets?
  • Stadium Group is good value based on assets compared to the GB Electronic industry average.
X
Value checks
We assess Stadium 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. Stadium Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

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

Future Performance

 How is Stadium Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Stadium Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

  • Stadium Group is not covered by any 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
7.4%
Expected Electronic industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Stadium Group expected to grow at an attractive rate?
  • Unable to compare Stadium Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Stadium Group's earnings growth to the GB market average as no estimate data is available.
  • Unable to compare Stadium Group's revenue growth to the GB market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if Stadium Group is high growth as no earnings estimate data is available.
  • Unable to determine if Stadium Group is high growth as no revenue estimate data is available.
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.
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.
  • Unable to establish if Stadium Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Stadium Group is trading at Stadium Group'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Stadium Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Tech companies here
  3. Stadium Group's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Stadium 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 GB market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the GB 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.
Stadium Group has a total score of 0/6, 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 Stadium 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 Stadium 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.
  • Stadium Group's year on year earnings growth rate has been positive over the past 5 years.
  • Stadium Group's 1-year earnings growth exceeds its 5-year average (92% vs 8%)
  • Stadium Group's earnings growth has exceeded the GB Electronic industry average in the past year (92% vs 47%).
Earnings and Revenue History
Stadium 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.
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.
  • Stadium Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Stadium Group used its assets less efficiently than the GB Electronic industry average last year based on Return on Assets.
  • Stadium Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Stadium 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.
Stadium Group has a total score of 4/6, 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 Stadium 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 Stadium Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Stadium Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Stadium Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Stadium 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 2.3x 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.
  • Stadium Group's level of debt (60.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (43.2% vs 60.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 14.2x coverage).
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Financial health checks
We assess Stadium 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 short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Stadium Group has a total score of 3/6, see the detailed checks below.


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

Dividends

 What is Stadium 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
2.44%
Current annual income from Stadium Group dividends.
If you bought £2,000 of Stadium 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?
  • Stadium Group's dividend is above the low risk savings rate (1.64%).
  • Stadium Group's dividend is below the markets top dividend payers (4.03%).
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.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Stadium Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by net profit (9.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
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Income/ dividend checks
We assess Stadium Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Stadium Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Stadium Group has a total score of 2/6, 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 Stadium 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
Charlie Peppiatt, image provided by Google.
Charlie Peppiatt
COMPENSATION £246,000
AGE 47
TENURE AS CEO 4.8 years
CEO Bio

Mr. Charles St. John Stewart Peppiatt, also known as Charlie, has been the Chief Executive Officer at Stadium Group Plc since June 1, 2013 and Stadium Power Limited since June 2013. Mr. Peppiatt served as Group Operations Director of Stadium Group Plc from October 2011 to June 1, 2013. During eighteen years with Laird, he held other senior roles in USA, Europe and Asia as Vice President of Operations (Mobile Antenna Systems), General Manager of Laird Technologies Beijing & Shenzhen, Operations Director LSSD and Managing Director of Intron Ltd. Mr. Peppiatt served as the Vice President of Global Operations of Laird Technologies since 2009. He serves as a Director of Stadium Group Plc and Stadium Power Limited. He won China’s National ‘Great Wall’ award in 2010 for lean manufacturing and operational excellence at Laird’s Beijing facility.

CEO Compensation
  • Charlie's compensation has been consistent with company performance over the past year.
  • Charlie's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure of the Stadium Group management team in years:

3
Average Tenure
  • The tenure for the Stadium Group management team is about average.
Management Team

Charlie Peppiatt

TITLE
CEO & Director
COMPENSATION
£246K
AGE
47
TENURE
4.8 yrs

Winston North

TITLE
Group Finance Director and Company Secretary
AGE
50
TENURE
0.9 yrs

Chris Short

TITLE
UK Operations Director

Sohan Singh

TITLE
Managing Director of Stadium Asia
TENURE
3.3 yrs

Tony McFadden

TITLE
Chief Commercial Officer
TENURE
3 yrs

Craig Helm

TITLE
Managing Director

Chris Harrison

TITLE
Head of R&D Wireless

Wayne Derbyshire

TITLE
Sales Director of EMEA
TENURE
2.8 yrs
Board of Directors Tenure

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

8.1
Average Tenure
54.5
Average Age
  • The tenure for the Stadium Group board of directors is about average.
Board of Directors

Nick Brayshaw

TITLE
Non-Executive Chairman
COMPENSATION
£69K
AGE
61
TENURE
12 yrs

Charlie Peppiatt

TITLE
CEO & Director
COMPENSATION
£246K
AGE
47

Chris Gill

TITLE
Senior Independent Director
COMPENSATION
£39K
AGE
54
TENURE
12 yrs

David Flint

TITLE
Non-Executive Director
AGE
56
TENURE
0.3 yrs
Recent Insider Trading
  • More shares have been bought than sold by Stadium Group insiders in the past 3 months.
Who owns this company?
X
Management checks
We assess Stadium Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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. Stadium 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.

Company News

External News
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Simply Wall St News

How Does Stadium Group plc's (LON:SDM) Earnings Growth Stack Up Against Industry Performance?

In this article, I will take a look at Stadium Group plc's (AIM:SDM) most recent earnings update (30 June 2017) and compare these latest figures against its performance over the past few years, along with how the rest of SDM's industry performed. … Check out our latest analysis for Stadium Group Were SDM's earnings stronger than its past performances and the industry? … Since these figures are relatively myopic, I’ve computed an annualized five-year value for Stadium Group's earnings, which stands at UK£1.51M This means that, generally, Stadium Group has been able to consistently improve its bottom line over the last few years as well.

Simply Wall St -

Is Stadium Group plc (LON:SDM) A Financially Sound Company?

On top of this, SDM has generated cash from operations of UK£4.24M in the last twelve months, leading to an operating cash to total debt ratio of 53.83%, signalling that SDM’s operating cash is sufficient to cover its debt. … We can check to see whether SDM is able to meet its debt obligations by looking at the net interest coverage ratio. … In SDM's, case, the ratio of 46.34x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as SDM’s high interest coverage is seen as responsible and safe practice.Next Steps: SDM’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

What You Must Know About Stadium Group plc's (AIM:SDM) Financial Strength

Additionally, SDM has generated £4M in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 0.54x, indicating that SDM’s operating cash is not sufficient to cover its debt. … SDM’s debt and cash flow levels indicate room for improvement. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue.

Simply Wall St -

What Does Stadium Group plc's (AIM:SDM) Share Price Indicate?

Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … If you are no longer interested in Stadium Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Did Stadium Group plc (AIM:SDM) Create Value For Shareholders?

However, ROE only measures returns against equity, not debt. … Return on Equity = Net Profit ÷ Shareholders Equity Returns are usually compared to costs to measure the efficiency of capital. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity AIM:SDM Last Perf Oct 25th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Company Info

Map
Description

Stadium Group plc provides design-led integrated electronic technology solutions. It operates through EMS and Technology segments. It designs, integrates, and manufactures machine-to-machine wireless solutions that provide connectivity and data sharing between devices comprising various wireless network technologies, including radio frequency identification (RFID), NFC, Bluetooth, GSM/GPRS/EDGE, WCDMA/HAPA, CDMA, and LTE for OEM devices in the vehicle tracking, telematics, fleet management, smart metering, asset tracking, wearable technology, handheld devices, infotainment, industrial process control, and security systems markets. The company also designs and manufactures power supply solutions, such as AC/DC adapters, LED drivers, DC-DC converters, transformers, intelligent battery chargers, medical power supplies, and customized power solutions for the CCTV, fire and security, medical, industrial, and specialist lighting markets. In addition, it provides intelligent human machine interface solutions, including capacitive switching, touch, and backlighting technology products; and membrane keypads, as well as control panel solutions comprising RFID and card readers for use in various markets that include defense, marine, aviation, medical, broadcast, and point of sale. Further, the company offers integrated electronic manufacturing services consisting of design, prototype, new product introduction, global procurement, in house tooling and molding, PCB assembly, box build and test, packaging, and global logistics, as well as electronics assembly, RF controls, and system integration products for the lighting, security, medical and mobility, HVAC, smart metering, and automotive markets. Stadium Group plc was founded in 1911 and is headquartered in Reading, the United Kingdom.

Details
Name: Stadium Group plc
SDM
Exchange: AIM
Founded: 1911
£46,195,527
38,178,122
Website: http://www.stadiumgroupplc.com
Address: Stadium Group plc
Chancerygate Business Centre,
Cradock Road,
Reading,
Berkshire, RG2 0AH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SDM Ordinary Shares London Stock Exchange AIM Market GB GBP 11. Mar 1996
Number of employees
Current staff
Staff numbers
648
Stadium Group employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/04/18 09:24
Last estimates confirmation: 2017/03/14
Last earnings update: 2017/12/31
Last annual earnings update: 2017/12/31


All dates 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.