LSE:NTG

Stock Analysis Report

Executive Summary

Northgate plc provides light commercial vehicle hire services in the United Kingdom, Spain, and the Republic of Ireland.

Snowflake

Fundamentals

Average dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

LSE:NTG

0.3%

GB Transportation

1.6%

GB Market


1 Year Return

-22.3%

LSE:NTG

-3.3%

GB Transportation

-0.08%

GB Market

NTG underperformed the Transportation industry which returned -2.7% over the past year.

NTG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

NTGIndustryMarket
7 Day1.4%0.3%1.6%
30 Day-0.3%1.2%4.6%
90 Day5.2%6.9%-0.1%
1 Year-18.1%-22.3%2.8%-3.3%4.7%-0.08%
3 Year-12.8%-23.7%24.8%8.7%21.8%7.3%
5 Year-23.3%-37.3%19.4%-3.8%30.7%3.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Northgate's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Northgate's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Northgate is good value based on earnings compared to the GB Transportation industry average.

Northgate is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Northgate is poor value based on expected growth next year.


Price Based on Value of Assets

Northgate is good value based on assets compared to the GB Transportation industry average.


Next Steps

Future Growth

How is Northgate expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Northgate's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Northgate's earnings are expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Northgate's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Northgate's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Northgate's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Northgate is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Northgate performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Northgate's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Northgate's 1-year earnings growth exceeds its 5-year average (18.9% vs -4.1%)

Northgate's earnings growth has not exceeded the GB Transportation industry average in the past year (18.9% vs 18.9%).


Return on Equity

Northgate has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Northgate used its assets more efficiently than the GB Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Northgate's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Northgate's financial position?


Financial Position Analysis

Northgate is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Northgate's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Northgate's level of debt (84%) 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 (93.8% vs 84% today).

Debt is not well covered by operating cash flow (8.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

6.10%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Northgate's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

Northgate's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

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

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Kevin Bradshaw (49yo)

2.7yrs

Tenure

UK£1,032,000

Compensation

Mr. Kevin Michael Bradshaw has been the Chief Executive Officer at Northgate plc since January 11, 2017. Mr. Bradshaw served as the Chief Executive Officer of The Garden Centre Group Ltd. He served as the  ...


CEO Compensation Analysis

Kevin's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Kevin's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Northgate management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Northgate board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Philip Vincent

    Group CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£580.22k
  • Kevin Bradshaw (49yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: UK£1.03m
  • Katie Tasker-Wood

    Company Secretary

    • Tenure: 2.8yrs

Board Members

  • Bill Spencer (59yo)

    Senior Independent Director

    • Tenure: 2.9yrs
    • Compensation: UK£84.00k
  • John Pattullo (66yo)

    Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£18.00k
  • Avril Palmer-Baunack (55yo)

    Non-Executive Chairman

    • Tenure: 0.08yrs
  • Philip Vincent

    Group CFO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£580.22k
  • Kevin Bradshaw (49yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: UK£1.03m
  • Jill Caseberry (54yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£65.00k
  • Claire Miles (47yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£55.00k

Company Information

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


Key Information

  • Name: Northgate plc
  • Ticker: NTG
  • Exchange: LSE
  • Founded: 1981
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£427.189m
  • Shares outstanding: 131.85m
  • Website: https://www.northgateplc.com

Number of Employees


Location

  • Northgate plc
  • Northgate Centre
  • Lingfield Way
  • Darlington
  • County Durham
  • DL1 4PZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
NGTE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
NTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
21WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980

Biography

Northgate plc provides light commercial vehicle hire services in the United Kingdom, Spain, and the Republic of Ireland. It also sells used vehicles; supplies other related goods and services; and offers f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 21:11
End of Day Share Price2019/09/16 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.