AIM:REDD

Stock Analysis Report

Executive Summary

Redde plc provides a package of motor claims accident management, incident management, fleet management, and legal services in the United Kingdom.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.5%

REDD

-0.4%

GB Transportation

0.7%

GB Market


1 Year Return

-33.7%

REDD

4.6%

GB Transportation

3.6%

GB Market

Return vs Industry: REDD underperformed the UK Transportation industry which returned 4.6% over the past year.

Return vs Market: REDD underperformed the UK Market which returned 3.6% over the past year.


Shareholder returns

REDDIndustryMarket
7 Day11.5%-0.4%0.7%
30 Day-2.5%-0.08%-0.5%
90 Day-0.5%2.3%-1.8%
1 Year-27.0%-33.7%11.6%4.6%9.1%3.6%
3 Year-21.7%-37.3%29.3%12.3%19.3%4.2%
5 Year129.4%62.8%28.0%3.5%35.7%4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REDD (£1.18) is trading below our estimate of fair value (£1.19)

Significantly Below Fair Value: REDD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: REDD is poor value based on its PE Ratio (10.5x) compared to the Transportation industry average (10.4x).

PE vs Market: REDD is good value based on its PE Ratio (10.5x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: REDD is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: REDD is overvalued based on its PB Ratio (2.2x) compared to the GB Transportation industry average (1.9x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REDD's forecast earnings growth (6.7% per year) is above the savings rate (1.2%).

Earnings vs Market: REDD's earnings (6.7% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: REDD's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: REDD's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if REDD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Redde performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REDD's earnings have grown by 12.6% per year over the past 5 years.

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

Earnings vs Industry: REDD had negative earnings growth (-0.06%) over the past year, making it difficult to compare to the Transportation industry average (18.9%).


Return on Equity

High ROE: REDD's Return on Equity (21.4%) is considered high.


Return on Assets

ROA vs Industry: REDD has a higher Return on Assets than the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: REDD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Redde's financial position?


Financial Position Analysis

Short Term Liabilities: REDD's short term assets (£231.5M) exceeds its short term liabilities (£199.2M)

Long Term Liabilities: REDD's short term assets (231.5M) exceeds its long term liabilities (27.8M)


Debt to Equity History and Analysis

Debt Level: REDD's debt to equity ratio (5.6%) is considered satisfactory

Reducing Debt: REDD's debt to equity ratio has increased from 0.2% to 5.6% over the past 5 years.

Debt Coverage: REDD's debt is well covered by operating cash flow (133.9%).

Interest Coverage: REDD's interest payments on its debt are well covered by EBIT (158.9x coverage).


Balance Sheet

Inventory Level: REDD has a low level of unsold assets or inventory.

Debt Coverage by Assets: REDD's debt is covered by short term assets (assets are 25.7x debt).


Next Steps

Dividend

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

9.87%

Current Dividend Yield


Dividend Yield vs Market

company9.9%marketbottom25%2.0%markettop25%5.3%industryaverage6.9%forecastin3Years9.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REDD's dividend (9.87%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: REDD's dividend (9.87%) is in the top 25% of dividend payers in the UK market (5.33%)

Stable Dividend: REDD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: REDD's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.3%), REDD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REDD's dividends in 3 years are forecast to be covered by earnings (78.9% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Martin Ward (52yo)

8yrs

Tenure

UK£509,000

Compensation

Mr. Martin Ward has been Chief Executive Officer at Redde plc since October 2011. Mr. Ward served as Group Managing Director of Redde plc since April 8, 2009. Mr. Ward served as Managing Director of Albany ...


CEO Compensation Analysis

Compensation vs. Market: Martin's total compensation ($USD655.89K) is about average for companies of similar size in the UK market ($USD882.08K).

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


Management Age and Tenure

8.0yrs

Average Tenure

54yo

Average Age

Experienced Management: REDD's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: REDD's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£25,00014 Mar 19
Avril Palmer-Baunack
EntityIndividual
Shares23,837
Max PriceUK£1.05
BuyUK£24,99914 Mar 19
Martin Ward
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares23,854
Max PriceUK£1.05
BuyUK£13,20114 Mar 19
Stephen Oakley
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares12,500
Max PriceUK£1.06
BuyUK£50,00012 Mar 19
Avril Palmer-Baunack
EntityIndividual
Shares56,497
Max PriceUK£0.89
BuyUK£50,00012 Mar 19
Martin Ward
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares56,497
Max PriceUK£0.89
BuyUK£22,26212 Mar 19
Stephen Oakley
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares26,380
Max PriceUK£0.84

Ownership Breakdown


Management Team

  • Nick Tilley

    Company Secretary

    • Tenure: 17.8yrs
  • Tim Williams

    Chief Human Resources Officer

    • Tenure: 3.3yrs
  • Alan Gilbert

    Group Technical Director

    • Tenure: 10.3yrs
  • Martin Ward (52yo)

    CEO & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£509.00k
  • Mark Chessman (54yo)

    COO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£197.00k
  • Stephen Oakley (67yo)

    CFO & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£354.00k

Board Members

  • Mark McCafferty (60yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£52.00k
  • Martin Ward (52yo)

    CEO & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£509.00k
  • John Davies (70yo)

    Interim Non Executive Chairman

    • Tenure: 0.2yrs
    • Compensation: UK£52.00k
  • Mark Chessman (54yo)

    COO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£197.00k
  • Stephen Oakley (67yo)

    CFO & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£354.00k

Company Information

Redde plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Redde plc
  • Ticker: REDD
  • Exchange: AIM
  • Founded: 1992
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£362.098m
  • Shares outstanding: 306.86m
  • Website: https://www.redde.com

Number of Employees


Location

  • Redde plc
  • Pinesgate
  • Lower Bristol Road
  • Bath
  • Somerset
  • BA2 3DP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REDDAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 1997
1HP1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1997

Biography

Redde plc provides a package of motor claims accident management, incident management, fleet management, and legal services in the United Kingdom. The company offers vehicle replacement, repair management, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.