AIM:AMPH

Stock Analysis Report

Aggregated Micro Power Holdings

Executive Summary

Aggregated Micro Power Holdings plc operates as a distributed energy company in the United Kingdom.

Rewards

Trading at 48.6% below its fair value

Earnings are forecast to grow 61.25% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£56M)



Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Aggregated Micro Power Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.0%

AMPH

-0.8%

GB Renewable Energy

-1.1%

GB Market


1 Year Return

0%

AMPH

-13.7%

GB Renewable Energy

12.7%

GB Market

Return vs Industry: AMPH exceeded the UK Renewable Energy industry which returned -13.1% over the past year.

Return vs Market: AMPH underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

AMPHIndustryMarket
7 Day4.0%-0.8%-1.1%
30 Day8.2%-6.5%0.07%
90 Day26.0%-3.5%6.2%
1 Year0%0%-8.6%-13.7%18.6%12.7%
3 Year35.3%35.3%-21.0%-27.9%21.8%6.2%
5 Year-8.5%-8.5%-10.8%-22.3%42.4%9.6%

Price Volatility Vs. Market

How volatile is Aggregated Micro Power Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aggregated Micro Power Holdings undervalued compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMPH (£0.89) is trading below our estimate of fair value (£1.72)

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


Price To Earnings Ratio

PE vs Industry: AMPH is poor value based on its PE Ratio (62.6x) compared to the Renewable Energy industry average (24.1x).

PE vs Market: AMPH is poor value based on its PE Ratio (62.6x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AMPH is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AMPH is overvalued based on its PB Ratio (2.3x) compared to the GB Renewable Energy industry average (1.6x).


Next Steps

Future Growth

How is Aggregated Micro Power Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMPH's forecast earnings growth (61.2% per year) is above the savings rate (0.5%).

Earnings vs Market: AMPH's earnings (61.2% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: AMPH's revenue (8.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: AMPH's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AMPH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aggregated Micro Power Holdings performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMPH has a high level of non-cash earnings.

Growing Profit Margin: AMPH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AMPH has become profitable over the past 5 years, growing earnings by 19% per year.

Accelerating Growth: AMPH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AMPH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (22.8%).


Return on Equity

High ROE: AMPH's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aggregated Micro Power Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AMPH's short term assets (£9.5M) do not cover its short term liabilities (£14.5M).

Long Term Liabilities: AMPH's short term assets (£9.5M) exceed its long term liabilities (£3.9M).


Debt to Equity History and Analysis

Debt Level: AMPH's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: AMPH's debt to equity ratio has increased from 11.5% to 22% over the past 5 years.

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

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


Balance Sheet

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

Debt Coverage by Assets: AMPH's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Aggregated Micro Power Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%5.0%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMPH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMPH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMPH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMPH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMPH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Aggregated Micro Power Holdings's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average board tenure


CEO

Richard Burrell (53yo)

0yrs

Tenure

UK£125,460

Compensation

Mr. Richard C. M. Burrell serves as the Chief Executive Officer of Aggregated Micro Power Holdings plc and has been its Executive Director since 2013. Mr. Burrell founded Assura and serves as its Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Board Age and Tenure

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: AMPH's board of directors are considered experienced (7 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.


Recent Insider Transactions

SellUK£19,72011 Apr 19
Richard Burrell
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares29,000
Max PriceUK£0.68
BuyUK£19,74911 Apr 19
Richard Burrell
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares29,000
Max PriceUK£0.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.4%.


Management Team

  • Neil Eckert (57yo)

    Executive Chairman

    • Tenure: 7yrs
    • Compensation: UK£211.11k
  • Richard Burrell (53yo)

    CEO & Executive Director

    • Compensation: UK£125.46k
  • Peter Solly

    Managing Director of Wood Fuels

    • Lauren Paton

      In-House Legal Director & Company Secretary

      • Mark Tarry (40yo)

        CFO, Head of Projects & Executive Director

        • Tenure: 5.7yrs
        • Compensation: UK£158.10k
      • Helene Crook

        Head of Investor Relations & P.A. to Chairman

        • John Bailey

          Managing Director of AMP Biomass Boilers

          • David Newman

            Head of Sales and Business Development - Wood Fuels

            • Tenure: 3.6yrs

          Board Members

          • Neil Eckert (57yo)

            Executive Chairman

            • Tenure: 7yrs
            • Compensation: UK£211.11k
          • Laurie Magnus (62yo)

            Senior Non-Executive Director

            • Tenure: 7yrs
            • Compensation: UK£25.00k
          • Richard Burrell (53yo)

            CEO & Executive Director

            • Compensation: UK£125.46k
          • Robert Williamson (74yo)

            Non-Executive Director

            • Tenure: 7yrs
            • Compensation: UK£15.00k
          • Nicholas Soames (71yo)

            Non-Executive Director

            • Tenure: 7yrs
            • Compensation: UK£15.00k
          • Mark Tarry (40yo)

            CFO, Head of Projects & Executive Director

            • Tenure: 5.7yrs
            • Compensation: UK£158.10k
          • Robert Bland (68yo)

            Non-Executive Director

            • Tenure: 3.3yrs
            • Compensation: UK£15.00k

          Company Information

          Aggregated Micro Power Holdings plc's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Aggregated Micro Power Holdings plc
          • Ticker: AMPH
          • Exchange: AIM
          • Founded: 2013
          • Industry: Renewable Electricity
          • Sector: Utilities
          • Market Cap: UK£64.542m
          • Shares outstanding: 70.15m
          • Website: https://www.ampplc.co.uk

          Number of Employees


          Location

          • Aggregated Micro Power Holdings plc
          • 1 Dover Street
          • London
          • Greater London
          • W1S 4LD
          • United Kingdom

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          AMPHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2014

          Biography

          Aggregated Micro Power Holdings plc operates as a distributed energy company in the United Kingdom. The company’s Project Development segment develops, finances, and manages distributed energy projects focusing on biomass heat and combined heat and power, as well as gas-fired peaking plants. Its Wood Fuels segment sells wood chips and pellets to customers in the form of fuel only contracts, heat contracts, and/or fuels plus operation and maintenance. The company is also involved in the fuel supply, operation and maintenance, installation, and financing activities. The company was formerly known as De Facto 2011 plc and changed its name to Aggregated Micro Power Holdings plc in January 2013. Aggregated Micro Power Holdings plc was incorporated in 2013 and is headquartered in London, the United Kingdom. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/20 22:11
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          Annual Earnings2019/03/31


          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.