AIM:FCRM

Stock Analysis Report

Fulcrum Utility Services

Executive Summary

Fulcrum Utility Services Limited provides multi-utility infrastructure and related services in the United Kingdom.

Rewards

Trading at 46.4% below its fair value

Earnings are forecast to grow 0.78% per year

Risk Analysis

Dividend of 8.77% is not well covered by earnings

Profit margins (10.1%) are lower than last year (16.4%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£57M)



Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Fulcrum Utility Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCRM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

FCRM

-2.5%

GB Gas Utilities

-0.8%

GB Market


1 Year Return

-50.5%

FCRM

5.2%

GB Gas Utilities

8.5%

GB Market

Return vs Industry: FCRM underperformed the UK Gas Utilities industry which returned 5.2% over the past year.

Return vs Market: FCRM underperformed the UK Market which returned 8.5% over the past year.


Shareholder returns

FCRMIndustryMarket
7 Day-4.1%-2.5%-0.8%
30 Day1.6%-4.7%-0.9%
90 Day2.6%-1.2%1.5%
1 Year-46.5%-50.5%10.2%5.2%14.1%8.5%
3 Year-41.7%-49.7%45.8%26.7%19.2%4.0%
5 Year309.6%236.4%53.2%14.6%41.8%9.5%

Price Volatility Vs. Market

How volatile is Fulcrum Utility Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fulcrum Utility Services undervalued compared to its fair value and its price relative to the market?

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCRM (£0.26) is trading below our estimate of fair value (£0.48)

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


Price To Earnings Ratio

PE vs Industry: FCRM is good value based on its PE Ratio (11.3x) compared to the Gas Utilities industry average (15.8x).

PE vs Market: FCRM is good value based on its PE Ratio (11.3x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: FCRM is poor value based on its PEG Ratio (14.4x)


Price to Book Ratio

PB vs Industry: FCRM is good value based on its PB Ratio (1.2x) compared to the XE Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Fulcrum Utility Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCRM's forecast earnings growth (0.8% per year) is above the savings rate (0.5%).

Earnings vs Market: FCRM's earnings (0.8% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: FCRM's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCRM's revenue (11.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: FCRM's revenue (11.1% 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 FCRM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fulcrum Utility Services performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCRM has high quality earnings.

Growing Profit Margin: FCRM's current net profit margins (10.1%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: FCRM has become profitable over the past 5 years, growing earnings by 36.3% per year.

Accelerating Growth: FCRM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FCRM had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (11.9%).


Return on Equity

High ROE: FCRM's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fulcrum Utility Services's financial position?


Financial Position Analysis

Short Term Liabilities: FCRM's short term assets (£23.0M) do not cover its short term liabilities (£40.4M).

Long Term Liabilities: FCRM's short term assets (£23.0M) exceed its long term liabilities (£5.2M).


Debt to Equity History and Analysis

Debt Level: FCRM's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: FCRM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FCRM's debt is well covered by operating cash flow (116.5%).

Interest Coverage: FCRM's interest payments on its debt are well covered by EBIT (124.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: FCRM's debt is covered by short term assets (assets are 7.7x debt).


Next Steps

Dividend

What is Fulcrum Utility Services's current dividend yield, its reliability and sustainability?

8.77%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%2.0%markettop25%5.3%industryaverage5.4%forecastin3Years9.1%

Current dividend yield vs market & industry

Notable Dividend: FCRM's dividend (8.77%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: FCRM's dividend (8.77%) is in the top 25% of dividend payers in the UK market (5.25%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FCRM has been paying a dividend for less than 10 years.

Growing Dividend: FCRM's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.1%), FCRM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCRM's dividends in 3 years are forecast to be covered by earnings (86.6% payout ratio).


Next Steps

Management

What is the CEO of Fulcrum Utility Services's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Fulcrum Utility Services has no CEO, or we have no data on them.


Board Age and Tenure

1.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: FCRM's board of directors are not considered experienced ( 1.8 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£17,11002 Apr 19
Philip Holder
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares50,000
Max PriceUK£0.34
BuyUK£10,23802 Apr 19
Stephen Gutteridge
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares30,000
Max PriceUK£0.34
BuyUK£19,98802 Apr 19
Martin Harrison
EntityIndividual
Shares56,543
Max PriceUK£0.35
BuyUK£20,00010 Dec 18
Hazel Griffiths
EntityIndividual
Shares38,182
Max PriceUK£0.52

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.6%.


Management Team

  • Richard Jupp (55yo)

    Chief Operating Officer of Electricity

    • Tenure: 0yrs
  • Daren Harris (54yo)

    CFO & Director

    • Tenure: 0.5yrs
  • Craig Baugh (36yo)

    Director of Sales and Marketing

    • Tenure: 0yrs
  • Terry Dugdale (45yo)

    Chief Operating Officer of Gas and Multi-Utility

    • Tenure: 0yrs

Board Members

  • Phil Holder (70yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£80.00k
  • Steve Gutteridge (64yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: UK£44.00k
  • Wayne Hayes (57yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£40.00k
  • Daren Harris (54yo)

    CFO & Director

    • Tenure: 0.5yrs

Company Information

Fulcrum Utility Services Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Fulcrum Utility Services Limited
  • Sheffield Business Park
  • 2 Europa View
  • Sheffield
  • South Yorkshire
  • S9 1XH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCRMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2009

Biography

Fulcrum Utility Services Limited provides multi-utility infrastructure and related services in the United Kingdom. The company operates through three segments: Infrastructure Services, Utility Asset Owners ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:26
End of Day Share Price2019/12/06 00:00
Earnings2019/03/31
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.