LSE:SGC

Stock Analysis Report

Executive Summary

Stagecoach Group plc, together with its subsidiaries, provides public transportation services in the United Kingdom.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.1%

SGC

6.6%

GB Transportation

1.9%

GB Market


1 Year Return

2.3%

SGC

4.1%

GB Transportation

2.4%

GB Market

Return vs Industry: SGC matched the UK Transportation industry which returned 4.1% over the past year.

Return vs Market: SGC matched the UK Market which returned 2.4% over the past year.


Shareholder returns

SGCIndustryMarket
7 Day12.1%6.6%1.9%
30 Day11.3%2.9%-1.1%
90 Day10.0%4.2%-1.8%
1 Year8.1%2.3%11.1%4.1%7.4%2.4%
3 Year-12.9%-26.4%32.0%14.4%18.2%3.7%
5 Year-51.2%-61.9%27.9%3.3%35.7%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SGC (£1.48) is trading above our estimate of fair value (£0.48)

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


Price To Earnings Ratio

PE vs Industry: SGC is good value based on its PE Ratio (8.5x) compared to the Transportation industry average (9.4x).

PE vs Market: SGC is good value based on its PE Ratio (8.5x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SGC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SGC is overvalued based on its PB Ratio (6.6x) compared to the GB Transportation industry average (1.9x).


Next Steps

Future Growth

How is Stagecoach Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGC's earnings are forecast to decline over the next 3 years (-16.7% per year).

Earnings vs Market: SGC's earnings are forecast to decline over the next 3 years (-16.7% per year).

High Growth Earnings: SGC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SGC's revenue is expected to decline over the next 3 years (-8.9% per year).

High Growth Revenue: SGC's revenue is forecast to decline over the next 3 years (-8.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SGC's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has Stagecoach Group performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SGC's earnings have declined by -30.8% per year over the past 5 years.

Accelerating Growth: SGC's earnings growth over the past year (82%) exceeds its 5-year average (-30.8% per year).

Earnings vs Industry: SGC earnings growth over the past year (82%) exceeded the Transportation industry 18.9%.


Return on Equity

High ROE: Whilst SGC's Return on Equity (79.21%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Stagecoach Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGC's short term assets (£331.5M) do not cover its short term liabilities (£470.6M)

Long Term Liabilities: SGC's short term assets (331.5M) do not cover its long term liabilities (697.9M)


Debt to Equity History and Analysis

Debt Level: SGC's debt to equity ratio (331.3%) is considered high

Reducing Debt: SGC's debt to equity ratio has reduced from 759.3% to 331.3% over the past 5 years.

Debt Coverage: SGC's debt is well covered by operating cash flow (25.1%).

Interest Coverage: SGC's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SGC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

5.20%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.0%markettop25%5.4%industryaverage6.9%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SGC's dividend (5.2%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: SGC's dividend (5.2%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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

Growing Dividend: SGC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), SGC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGC's dividends in 3 years are forecast to be covered by earnings (60.3% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Martin Griffiths (53yo)

6.4yrs

Tenure

UK£1,803,000

Compensation

Mr. Martin Andrew Griffiths, L.L.B. (Hons), C.A., has been the Chief Executive of Stagecoach Group Plc since May 1, 2013. Mr. Griffiths has been an Executive Director at Stagecoach Group Plc since 2000. He ...


CEO Compensation Analysis

Compensation vs. Market: Martin's total compensation ($USD2.30M) is above average for companies of similar size in the UK market ($USD1.18M).

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


Management Age and Tenure

6.6yrs

Average Tenure

48yo

Average Age

Experienced Management: SGC's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SGC's board of directors are considered experienced (6.4 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.


Ownership Breakdown


Management Team

  • Martin Griffiths (53yo)

    Chief Executive & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£1.80m
  • Ann Gloag (77yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£56.00k
  • Steve Stewart

    Director of Corporate Communications

    • Tenure: 0yrs
  • Ross Paterson (48yo)

    Finance Director & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£1.22m
  • Tim Shoveller (46yo)

    Managing Director of The UK Rail Division

    • Tenure: 12.8yrs
  • Jake Kelly

    Managing Director of East Midlands Trains

    • Tenure: 0yrs
  • David Horne

    Managing Director of Virgin Trains East Coast

    • Tenure: 0yrs
  • Edward Hodgson

    Managing Director of Stagecoach South

    • Tenure: 7.8yrs
  • Dale Moser

    Chairman of North America Business

    • Tenure: 4yrs
  • Bob Dennison (42yo)

    Managing Director of South West

    • Tenure: 4.3yrs

Board Members

  • Brian Souter (65yo)

    Co-Founder & Chairman

    • Tenure: 7.2yrs
    • Compensation: UK£217.00k
  • Martin Griffiths (53yo)

    Chief Executive & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£1.80m
  • Ann Gloag (77yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£56.00k
  • Karen Thomson (58yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£61.00k
  • Ewan Brown (77yo)

    Non-Executive Director

    • Tenure: 31.8yrs
    • Compensation: UK£53.00k
  • Gregor Alexander (56yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: UK£61.00k
  • Ray O’Toole (64yo)

    Deputy Chairman

    • Tenure: 0.2yrs
    • Compensation: UK£61.00k
  • Will Whitehorn (59yo)

    Deputy Chairman & Senior Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£153.00k
  • Ross Paterson (48yo)

    Finance Director & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£1.22m
  • James Bilefield (50yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£61.00k

Company Information

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


Key Information

  • Name: Stagecoach Group plc
  • Ticker: SGC
  • Exchange: LSE
  • Founded: 1980
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£815.374m
  • Shares outstanding: 550.19m
  • Website: https://www.stagecoach.com

Number of Employees


Location

  • Stagecoach Group plc
  • 10 Dunkeld Road
  • Perth
  • Perthshire
  • PH1 5TW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAGK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1993
SGCLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 1993
SHP5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1993
SGCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 1993

Biography

Stagecoach Group plc, together with its subsidiaries, provides public transportation services in the United Kingdom. It operates through three segments: UK Bus (Regional Operations), UK Bus (London), and U ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:54
End of Day Share Price2019/10/16 00:00
Earnings2019/04/27
Annual Earnings2019/04/27


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.