AIM:ROL

Stock Analysis Report

Executive Summary

Rotala Plc, together with its subsidiaries, provides bus services in the United Kingdom.

Snowflake

Fundamentals

Undervalued with high growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ROL

3.3%

GB Transportation

0.2%

GB Market


1 Year Return

-2.7%

ROL

4.8%

GB Transportation

1.7%

GB Market

Return vs Industry: ROL underperformed the UK Transportation industry which returned 4.8% over the past year.

Return vs Market: ROL underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

ROLIndustryMarket
7 Day0%3.3%0.2%
30 Day0.9%2.2%-1.7%
90 Day-12.3%4.8%-3.1%
1 Year2.1%-2.7%11.8%4.8%6.7%1.7%
3 Year1.5%-10.8%33.9%16.1%17.7%3.1%
5 Year14.1%-4.5%30.9%5.9%36.1%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROL (£0.54) is trading below our estimate of fair value (£1.05)

Significantly Below Fair Value: ROL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ROL is poor value based on its PE Ratio (10.4x) compared to the Transportation industry average (10.2x).

PE vs Market: ROL is good value based on its PE Ratio (10.4x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: ROL is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ROL is good value based on its PB Ratio (0.7x) compared to the GB Transportation industry average (1.9x).


Next Steps

Future Growth

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

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROL's forecast earnings growth (31.1% per year) is above the savings rate (1.2%).

Earnings vs Market: ROL's earnings (31.1% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: ROL's revenue (25.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ROL's revenue (25.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Rotala performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROL's earnings have grown significantly by 21.9% per year over the past 5 years.

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

Earnings vs Industry: ROL had negative earnings growth (-12.5%) over the past year, making it difficult to compare to the Transportation industry average (18.9%).


Return on Equity

High ROE: ROL's Return on Equity (7%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Rotala's financial position?


Financial Position Analysis

Short Term Liabilities: ROL's short term assets (£23.9M) do not cover its short term liabilities (£28.3M)

Long Term Liabilities: ROL's short term assets (23.9M) exceeds its long term liabilities (18.2M)


Debt to Equity History and Analysis

Debt Level: ROL's debt to equity ratio (57%) is considered high

Reducing Debt: ROL's debt to equity ratio has increased from 45.6% to 57% over the past 5 years.

Debt Coverage: ROL's debt is well covered by operating cash flow (27.1%).

Interest Coverage: ROL's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ROL's debt is covered by short term assets (assets are 1.189330x debt).


Next Steps

Dividend

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

5.05%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Rotala before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.0%marketbottom25%2.0%markettop25%5.4%industryaverage6.8%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROL's dividend (5.05%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: ROL's dividend (5.05%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

Growing Dividend: ROL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.9%), ROL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.9yrs

Average board tenure


CEO

Simon Dunn (43yo)

0yrs

Tenure

UK£299,000

Compensation

Mr. Simon Lee Dunn serves as the Chief Executive Officer of Rotala PLC and served as its Managing Director. Mr. Dunn worked in the transport industry all of his working life and has been working for the Fl ...


CEO Compensation Analysis

Compensation vs. Market: Simon's total compensation ($USD388.07K) is about average for companies of similar size in the UK market ($USD318.91K).

Compensation vs Earnings: Simon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

7.9yrs

Average Tenure

65yo

Average Age

Experienced Board: ROL's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£150,08002 Aug 19
Graham Spooner
EntityIndividual
Role
Vice Chairman
Non-Executive - Deputy Chairman
Shares268,000
Max PriceUK£0.56
BuyUK£59,92002 Aug 19
John Humphrey Gunn
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares107,000
Max PriceUK£0.56
BuyUK£70,00002 Aug 19
Robert Anthony Dunn
EntityIndividual
Role
Member of the Board of Directors
Executive Director & MD - North West
Shares125,000
Max PriceUK£0.56
BuyUK£9,80002 Aug 19
Kim Taylor
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares17,500
Max PriceUK£0.56
BuyUK£29,68002 Aug 19
Simon Dunn
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares53,000
Max PriceUK£0.56
BuyUK£4,98002 Jan 19
Simon Dunn
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares10,640
Max PriceUK£0.47
BuyUK£64,37501 Nov 18
Graham Peacock
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares125,000
Max PriceUK£0.52

Ownership Breakdown


Management Team

  • Bob Dunn (65yo)

    Executive Director & MD - North West

    • Tenure: 0yrs
    • Compensation: UK£168.00k
  • Kim Taylor (65yo)

    Group Finance Director

    • Tenure: 14.7yrs
    • Compensation: UK£106.00k
  • Simon Dunn (43yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£299.00k
  • David Leonard

    Regional Head of Service Delivery

    • Tenure: 0.08yrs

Board Members

  • Graham Spooner (65yo)

    Non-Executive - Deputy Chairman

    • Tenure: 2.8yrs
    • Compensation: UK£40.00k
  • John Humphrey Gunn (77yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£80.00k
  • Bob Dunn (65yo)

    Executive Director & MD - North West

    • Tenure: 0yrs
    • Compensation: UK£168.00k
  • Kim Taylor (65yo)

    Group Finance Director

    • Tenure: 14.7yrs
    • Compensation: UK£106.00k
  • Graham Peacock (69yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£32.00k
  • Simon Dunn (43yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£299.00k

Company Information

Rotala PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rotala PLC
  • Ticker: ROL
  • Exchange: AIM
  • Founded: 2005
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£27.345m
  • Shares outstanding: 50.09m
  • Website: https://www.rotalaplc.com

Number of Employees


Location

  • Rotala PLC
  • Hallbridge Way
  • Tipton Road
  • Tividale
  • West Midlands
  • B69 3HW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2005

Biography

Rotala Plc, together with its subsidiaries, provides bus services in the United Kingdom. The company operates commercial and subsidized bus routes for businesses, local authorities, and public and private  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:55
End of Day Share Price2019/10/21 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.