LSE:STOB

Stock Analysis Report

Executive Summary

Stobart Group Limited, together with its subsidiaries, provides various services to the aviation, energy, rail, and civil engineering industries in the United Kingdom, Europe, Ireland, and internationally.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

STOB

12.0%

GB Airlines

1.7%

GB Market


1 Year Return

-45.9%

STOB

0.4%

GB Airlines

2.9%

GB Market

Return vs Industry: STOB underperformed the UK Airlines industry which returned 0.4% over the past year.

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


Shareholder returns

STOBIndustryMarket
7 Day4.7%12.0%1.7%
30 Day1.4%18.6%-0.7%
90 Day7.3%14.8%-1.8%
1 Year-43.8%-45.9%8.2%0.4%8.0%2.9%
3 Year-6.4%-21.4%65.7%44.2%18.2%3.8%
5 Year74.9%29.6%50.2%23.5%35.6%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: STOB (£1.26) is trading below our estimate of fair value (£3.91)

Significantly Undervalued: STOB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STOB is unprofitable, so we can't compare its PE Ratio to the Airlines industry average.

PE vs Market: STOB is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate STOB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: STOB is good value based on its PB Ratio (1.6x) compared to the GB Airlines industry average (1.9x).


Next Steps

Future Growth

How is Stobart Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

63.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STOB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: STOB is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: STOB's loss is forecast to worsen by 0% next year.

Revenue vs Market: STOB's revenue (17.1% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: STOB's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: STOB's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Stobart Group performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STOB is unprofitable, but has reduced losses over the past 5 years at a rate of 37.2% per year.

Accelerating Growth: Unable to compare STOB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STOB is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-3%).


Return on Equity

High ROE: STOB has a negative Return on Equity (-14.36%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: STOB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: STOB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Stobart Group's financial position?


Financial Position Analysis

Short Term Liabilities: STOB's short term assets (£79.7M) do not cover its short term liabilities (£112.5M)

Long Term Liabilities: STOB's short term assets (79.7M) do not cover its long term liabilities (137.7M)


Debt to Equity History and Analysis

Debt Level: STOB's debt to equity ratio (19.4%) is considered satisfactory

Reducing Debt: STOB's debt to equity ratio has reduced from 41.8% to 19.4% over the past 5 years.

Debt Coverage: STOB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if STOB's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: STOB's debt is covered by short term assets (assets are 1.385090x debt).


Next Steps

Dividend

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

7.14%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.0%markettop25%5.4%industryaverage4.9%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STOB's dividend (7.14%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: STOB's dividend (7.14%) is in the top 25% of dividend payers in the UK market (5.41%)

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

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


Current Payout to Shareholders

Dividend Coverage: STOB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: STOB's dividends in 3 years are not forecast to be well covered by earnings (105.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Warwick Brady (55yo)

2.3yrs

Tenure

UK£915,800

Compensation

Mr. Warwick Brady, MBA has been Chief Executive Officer and Director of Stobart Group Limited since July 1, 2017. Mr. Brady served as Deputy Chief Executive Officer of Stobart Group Limited from January 3, ...


CEO Compensation Analysis

Compensation vs. Market: Warwick has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Warwick's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.1yrs

Average Tenure

55yo

Average Age

Experienced Management: STOB's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

60yo

Average Age

Experienced Board: STOB's board of directors are not considered experienced ( 1 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.


Recent Insider Transactions

BuyUK£31,03006 Jun 19
David Blackwood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares29,000
Max PriceUK£1.07
BuyUK£53005 Jun 19
Iain G. Ferguson
EntityIndividual
Shares50,000
Max PriceUK£0.011
BuyUK£24,31105 Jun 19
Warwick Brady
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares23,500
Max PriceUK£1.03
BuyUK£62,95031 May 19
Warwick Brady
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,000
Max PriceUK£1.26
BuyUK£59,13029 May 19
Iain G. Ferguson
EntityIndividual
Shares50,000
Max PriceUK£1.18
BuyUK£29,50029 May 19
John Coombs
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares25,000
Max PriceUK£1.18
BuyUK£28,94629 May 19
Lewis Girdwood
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares23,522
Max PriceUK£1.23
BuyUK£5,92029 May 19
Virginia Pulbrook
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceUK£1.18
BuyUK£80,22529 May 19
Nicholas Dilworth
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares61,998
Max PriceUK£1.29
BuyUK£61,00029 May 19
Warwick Brady
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,000
Max PriceUK£1.22
BuyUK£18,95129 May 19
David Blackwood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,534
Max PriceUK£1.22

Ownership Breakdown


Management Team

  • Jon Horne

    Chief Operating Officer of Stobart Aviation

    • Tenure: 0yrs
  • Ben Whawell (46yo)

    Chief Executive Officer of Energy Division

    • Tenure: 0yrs
    • Compensation: UK£211.10k
  • Richard Butcher

    Chief Executive Officer of Infrastructure

    • Tenure: 0yrs
    • Compensation: UK£1.38m
  • Glyn Jones (60yo)

    Chief Executive Officer of Stobart Aviation

    • Tenure: 0yrs
  • Warwick Brady (55yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£915.80k
  • Andy Bathgate

    Divisional Co-Head

    • Tenure: 0yrs
  • Kirk Taylor

    Managing Director of Stobart Rail & Civils

    • Tenure: 0yrs
  • Charlie Geller

    Head of Group Communications

    • Tenure: 0yrs
  • Nick Dilworth

    COO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£376.60k
  • Lewis Girdwood

    CFO & Executive Director

    • Tenure: 0.5yrs

Board Members

  • John Coombs

    Non Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£102.50k
  • David James Shearer (60yo)

    Chairman

    • Tenure: 0.3yrs
  • David Blackwood (60yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • Warwick Brady (55yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£915.80k
  • Nick Dilworth

    COO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£376.60k
  • Ginny Pulbrook

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£21.90k
  • Lewis Girdwood

    CFO & Executive Director

    • Tenure: 0.5yrs

Company Information

Stobart Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stobart Group Limited
  • Ticker: STOB
  • Exchange: LSE
  • Founded:
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£466.526m
  • Shares outstanding: 370.26m
  • Website: https://www.stobartgroup.co.uk

Number of Employees


Location

  • Stobart Group Limited
  • Trafalgar Court
  • Floor 2
  • Saint Peter Port
  • GY1 4LY
  • Guernsey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STOBLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2004
STOBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2004
1SJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004

Biography

Stobart Group Limited, together with its subsidiaries, provides various services to the aviation, energy, rail, and civil engineering industries in the United Kingdom, Europe, Ireland, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:31
End of Day Share Price2019/10/17 00:00
Earnings2019/02/28
Annual Earnings2019/02/28


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.