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

5.2%

NTG

7.5%

GB Transportation

1.7%

GB Market


1 Year Return

-16.8%

NTG

2.7%

GB Transportation

2.9%

GB Market

Return vs Industry: NTG underperformed the UK Transportation industry which returned 2.7% over the past year.

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


Shareholder returns

NTGIndustryMarket
7 Day5.2%7.5%1.7%
30 Day4.4%4.3%-0.7%
90 Day-0.9%5.6%-1.8%
1 Year-12.2%-16.8%9.6%2.7%8.0%2.9%
3 Year-10.7%-21.8%34.1%16.3%18.2%3.8%
5 Year-16.7%-31.8%29.6%4.8%35.6%6.1%

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 compared to its fair value and its price relative to the market?

8.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NTG (£3.34) is trading above our estimate of fair value (£2.55)

Significantly Undervalued: NTG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NTG is good value based on its PE Ratio (8.7x) compared to the Transportation industry average (10.4x).

PE vs Market: NTG is good value based on its PE Ratio (8.7x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NTG is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NTG is good value based on its PB Ratio (0.8x) compared to the GB Transportation industry average (1.9x).


Next Steps

Future Growth

How is Northgate forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTG's forecast earnings growth (4.5% per year) is above the savings rate (1.2%).

Earnings vs Market: NTG's earnings (4.5% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: NTG's revenue (3.7% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: NTG's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NTG's Return on Equity is forecast to be low in 3 years time (8.6%).


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

Earnings Trend: NTG's earnings have declined by -4.1% per year over the past 5 years.

Accelerating Growth: NTG's earnings growth over the past year (18.9%) exceeds its 5-year average (-4.1% per year).

Earnings vs Industry: NTG earnings growth over the past year (18.9%) underperformed the Transportation industry 18.9%.


Return on Equity

High ROE: NTG's Return on Equity (9.1%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Northgate's financial position?


Financial Position Analysis

Short Term Liabilities: NTG's short term assets (£137.5M) exceeds its short term liabilities (£130.2M)

Long Term Liabilities: NTG's short term assets (137.5M) do not cover its long term liabilities (434.6M)


Debt to Equity History and Analysis

Debt Level: NTG's debt to equity ratio (84%) is considered high

Reducing Debt: NTG's debt to equity ratio has reduced from 93.8% to 84% over the past 5 years.

Debt Coverage: NTG's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: NTG's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

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

Debt Coverage by Assets: NTG's 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?

5.48%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.0%markettop25%5.4%industryaverage6.8%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NTG's dividend (5.48%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: NTG's dividend (5.48%) is in the top 25% of dividend payers in the UK market (5.41%)

Stable Dividend: NTG's dividend payments have been volatile in the past 10 years.

Growing Dividend: NTG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.4%), NTG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTG's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Kevin Bradshaw (49yo)

2.8yrs

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

Compensation vs. Market: Kevin's total compensation ($USD1.33M) is above average for companies of similar size in the UK market ($USD875.32K).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: NTG's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

0.2yrs

Average Tenure

55yo

Average Age

Experienced Board: NTG's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Philip Vincent

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£580.22k
  • Kevin Bradshaw (49yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.03m
  • Katie Tasker-Wood

    Company Secretary

    • Tenure: 2.8yrs

Board Members

  • John Pattullo (66yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.08yrs
    • Compensation: UK£18.00k
  • Avril Palmer-Baunack (55yo)

    Non-Executive Chairman

    • Tenure: 0.2yrs
  • Alexander Butcher (61yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Philip Vincent

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£580.22k
  • Kevin Bradshaw (49yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.03m
  • Claire Miles (47yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£55.00k
  • Fernando Ubeda

    Non-Executive Director

    • Tenure: 0.08yrs

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£444.018m
  • 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
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 Analysis2019/10/17 21:16
End of Day Share Price2019/10/17 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.