LSE:REDD

Stock Analysis Report

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Executive Summary

Redde Northgate plc provides light commercial vehicle rental services in the United Kingdom, Spain, and the Republic of Ireland. More Details


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: REDD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.2%

REDD

-3.9%

GB Transportation

-3.7%

GB Market


1 Year Return

-48.4%

REDD

-51.9%

GB Transportation

-19.3%

GB Market

Return vs Industry: REDD exceeded the UK Transportation industry which returned -51.8% over the past year.

Return vs Market: REDD underperformed the UK Market which returned -19.7% over the past year.


Shareholder returns

REDDIndustryMarket
7 Day-11.2%-3.9%-3.7%
30 Day-5.0%-1.8%-4.2%
90 Day7.4%0.9%-4.3%
1 Year-45.5%-48.4%-50.2%-51.9%-16.2%-19.3%
3 Year-55.0%-61.3%-45.6%-52.1%-13.3%-24.0%
5 Year-46.5%-57.5%-25.4%-37.4%10.2%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REDD (£1.81) is trading below our estimate of fair value (£2.46)

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


Price To Earnings Ratio

PE vs Industry: REDD is poor value based on its PE Ratio (36.4x) compared to the XE Transportation industry average (11x).

PE vs Market: REDD is poor value based on its PE Ratio (36.4x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: REDD is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: REDD is good value based on its PB Ratio (0.5x) compared to the GB Transportation industry average (0.6x).


Next Steps

Future Growth

How is Redde Northgate forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REDD's forecast earnings growth (48% per year) is above the savings rate (1.2%).

Earnings vs Market: REDD's earnings (48% per year) are forecast to grow faster than the UK market (23.9% per year).

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

Revenue vs Market: REDD's revenue (16.1% per year) is forecast to grow faster than the UK market (5.8% per year).

High Growth Revenue: REDD's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REDD's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Redde Northgate performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REDD has a large one-off loss of £42.3M impacting its April 30 2020 financial results.

Growing Profit Margin: REDD's current net profit margins (1%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: REDD's earnings have declined by 14.6% 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 (-85.1%) over the past year, making it difficult to compare to the Transportation industry average (-25.6%).


Return on Equity

High ROE: REDD's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Redde Northgate's financial position?


Financial Position Analysis

Short Term Liabilities: REDD's short term assets (£412.4M) exceed its short term liabilities (£326.7M).

Long Term Liabilities: REDD's short term assets (£412.4M) do not cover its long term liabilities (£593.9M).


Debt to Equity History and Analysis

Debt Level: REDD's debt to equity ratio (62%) is considered high.

Reducing Debt: REDD's debt to equity ratio has reduced from 81.8% to 62% over the past 5 years.

Debt Coverage: REDD's debt is not well covered by operating cash flow (6.2%).

Interest Coverage: REDD's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

7.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REDD's dividend (7.25%) is higher than the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: REDD's dividend (7.25%) is in the top 25% of dividend payers in the UK market (5.39%)


Stability and Growth of Payments

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (263.7%), 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 well covered by earnings (49.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Martin Ward (53 yo)

0.67

Tenure

UK£390,774

Compensation

Mr. Martin Ward has been Chief Executive Officer and Director of Redde Northgate plc since February 2020. Mr. Ward served as Chief Executive Officer at Redde plc since October 2011. Mr. Ward served as Grou ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD507.31K) is below average for companies of similar size in the UK market ($USD907.46K).

Compensation vs Earnings: Insufficient data to compare Martin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Ward
CEO & Director0.67yrUK£390.77k0.66%
£ 2.9m
Philip Vincent
Group CFO & Executive Director2.25yrsUK£406.00k0.015%
£ 63.7k
Nick Tilley
Company Secretary0.42yrno datano data

0.7yrs

Average Tenure

Experienced Management: REDD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Ward
CEO & Director0.67yrUK£390.77k0.66%
£ 2.9m
Philip Vincent
Group CFO & Executive Director2.25yrsUK£406.00k0.015%
£ 63.7k
Mark McCafferty
Independent Non-Executive Director0.67yrUK£9.00k0.0045%
£ 19.6k
John Pattullo
Senior Independent Non-Executive Director1.08yrsUK£60.00k0.012%
£ 53.3k
Avril Palmer-Baunack
Non-Executive Chairman1.17yrsUK£127.00k0.045%
£ 196.2k
Alexander Butcher
Independent Non-Executive Director1.08yrsUK£38.00k0.010%
£ 43.8k
John Davies
Independent Non-Executive Director0.67yrUK£10.00kno data

1.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: REDD's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 86.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Redde Northgate plc
  • Ticker: REDD
  • Exchange: LSE
  • Founded: 1897
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£435.796m
  • Shares outstanding: 245.38m
  • Website: https://reddenorthgate.co.uk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REDDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
REDDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
21WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980

Biography

Redde Northgate plc provides light commercial vehicle rental services in the United Kingdom, Spain, and the Republic of Ireland. It also sells used vehicles; and offers service maintenance parts and repair ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:01
End of Day Share Price2020/10/29 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.