LSE:SGC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with proven 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

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


Market Performance


7 Day Return

8.7%

SGC

9.0%

GB Transportation

1.7%

GB Market


1 Year Return

-43.0%

SGC

-39.8%

GB Transportation

-21.8%

GB Market

Return vs Industry: SGC matched the UK Transportation industry which returned -42.4% over the past year.

Return vs Market: SGC underperformed the UK Market which returned -23.6% over the past year.


Shareholder returns

SGCIndustryMarket
7 Day8.7%9.0%1.7%
30 Day-33.5%-27.6%-12.0%
90 Day-52.5%-40.9%-25.3%
1 Year-39.7%-43.0%-35.8%-39.8%-17.9%-21.8%
3 Year-57.1%-64.0%-31.2%-40.7%-11.8%-22.8%
5 Year-73.7%-79.8%-26.3%-40.4%0.1%-22.4%

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?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGC (£0.76) is trading below our estimate of fair value (£0.91)

Significantly Below Fair Value: SGC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SGC is good value based on its PE Ratio (3.7x) compared to the Transportation industry average (6.4x).

PE vs Market: SGC is good value based on its PE Ratio (3.7x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

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 (8.7x) compared to the GB Transportation industry average (1.5x).


Next Steps

Future Growth

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

-14.2%

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 (-14.2% per year).

Earnings vs Market: SGC's earnings are forecast to decline over the next 3 years (-14.2% 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 (-3.8% per year).

High Growth Revenue: SGC's revenue is forecast to decline over the next 3 years (-3.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGC's Return on Equity is forecast to be very high in 3 years time (42.3%).


Next Steps

Past Performance

How has Stagecoach Group performed over the past 5 years?

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGC has high quality earnings.

Growing Profit Margin: SGC's current net profit margins (6.9%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: SGC's earnings have declined by -17.1% per year over the past 5 years.

Accelerating Growth: SGC's earnings growth over the past year (575.6%) exceeds its 5-year average (-17.1% per year).

Earnings vs Industry: SGC earnings growth over the past year (575.6%) exceeded the Transportation industry 9.4%.


Return on Equity

High ROE: Whilst SGC's Return on Equity (242.03%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Stagecoach Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGC's short term assets (£239.5M) do not cover its short term liabilities (£408.4M).

Long Term Liabilities: SGC's short term assets (£239.5M) do not cover its long term liabilities (£816.1M).


Debt to Equity History and Analysis

Debt Level: SGC's debt to equity ratio (857.3%) is considered high.

Reducing Debt: SGC's debt to equity ratio has reduced from 863.8% to 857.3% over the past 5 years.

Debt Coverage: SGC's debt is well covered by operating cash flow (44%).

Interest Coverage: SGC's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

10.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGC's dividend (10.14%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: SGC's dividend (10.14%) is in the top 25% of dividend payers in the UK market (7.08%)


Stability and Growth of Payments

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 (38%), 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 (58.1% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Martin Griffiths (53yo)

6.92s

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 ($USD2.23M) is above average for companies of similar size in the UK market ($USD990.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Griffiths
Chief Executive & Executive Director6.92yrsUK£1.80m0.12% £488.7k
Ross Paterson
Finance Director & Executive Director6.92yrsUK£1.22m0.066% £276.4k
Steven Stewart
Director of Corporate Communicationsno datano datano data
Tim Shoveller
Managing Director of The UK Rail Division13.25yrsno datano data
David Horne
Managing Director of Virgin Trains East Coastno datano datano data
Edward Hodgson
Managing Director of Stagecoach South8.33yrsno datano data
Dale Moser
Chairman of North America Business4.5yrsno datano data
Jake Kelly
Managing Director of East Midlands Trainsno datano datano data
Bob Dennison
Managing Director of South West4.75yrsno datano data
Matthew Cranwell
Managing Director of Cumbria & North Lancashire Bus Operations4.58yrsno datano data

6.9yrs

Average Tenure

46yo

Average Age

Experienced Management: SGC's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Griffiths
Chief Executive & Executive Director6.92yrsUK£1.80m0.12% £488.7k
Ross Paterson
Finance Director & Executive Director6.92yrsUK£1.22m0.066% £276.4k
Brian Souter
Independent Non-Executive Directorno dataUK£217.00k15.79% £66.0m
Karen Thomson
Independent Non-Executive Director4.08yrsUK£61.00k0.0020% £8.4k
Gregor Alexander
Former Senior Independent Director7yrsUK£61.00k0.0019% £7.9k
Raymond O'Toole
Independent Chairman0.25yrUK£61.00kno data
William Whitehorn
Deputy Chairman & Senior Independent Non-Executive Director4yrsUK£153.00k0.016% £66.3k
James Bilefield
Independent Non-Executive Director4.17yrsUK£61.00kno data

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: SGC's board of directors are considered experienced (4.2 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£417.864m
  • Shares outstanding: 550.18m
  • 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 UK Rail. The company offers bus, coach, rail, and tram services. It operates city buses primarily in Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield, Cambridge, and Exeter through a fleet of approximately 6,900 buses and coaches; inter-urban services linking major towns within its regional operating areas, as well as megabus.com, an inter-city coach service; and buses from 10 depots with a fleet of approximately 1,200 buses serving routes in and around east and south-east London. The company also operates South West Trains in south west England out of London Waterloo railway station, as well as Island Line services on the Isle of Wight; East Midlands main line train services to London St Pancras, regional rail services in the East Midlands area, and inter-regional services between Norwich and Liverpool; and Supertram, a 28 km light rail network with three routes in the city of Sheffield. The company was founded in 1980 and is headquartered in Perth, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 22:31
End of Day Share Price2020/04/07 00:00
Earnings2019/10/26
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.