OTCPK:ASHT.F

Stock Analysis Report

Executive Summary

Ashtead Group plc, together with its subsidiaries, rents a range of construction and industrial equipment.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

ASHT.F

-0.6%

US Trade Distributors

-1.1%

US Market


1 Year Return

36.2%

ASHT.F

9.2%

US Trade Distributors

17.8%

US Market

Return vs Industry: ASHT.F exceeded the US Trade Distributors industry which returned 9.2% over the past year.

Return vs Market: ASHT.F exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

ASHT.FIndustryMarket
7 Day1.4%-0.6%-1.1%
30 Day6.2%0.3%1.5%
90 Day14.2%-0.5%6.6%
1 Year36.2%36.2%11.3%9.2%20.2%17.8%
3 Year74.6%74.6%20.5%14.9%47.5%38.1%
5 Year97.3%97.3%42.9%32.2%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASHT.F ($35.75) is trading below our estimate of fair value ($49.9)

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


Price To Earnings Ratio

PE vs Industry: ASHT.F is good value based on its PE Ratio (15.5x) compared to the Trade Distributors industry average (15.9x).

PE vs Market: ASHT.F is good value based on its PE Ratio (15.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ASHT.F is poor value based on its PEG Ratio (13.1x)


Price to Book Ratio

PB vs Industry: ASHT.F is overvalued based on its PB Ratio (4.3x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

How is Ashtead Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASHT.F's forecast earnings growth (1.2% per year) is below the savings rate (1.7%).

Earnings vs Market: ASHT.F's earnings (1.2% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: ASHT.F's revenue (5.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ASHT.F's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASHT.F's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has Ashtead Group performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASHT.F has high quality earnings.

Growing Profit Margin: ASHT.F's current net profit margins (16.8%) are lower than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: ASHT.F's earnings have grown significantly by 25.4% per year over the past 5 years.

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

Earnings vs Industry: ASHT.F had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.2%).


Return on Equity

High ROE: Whilst ASHT.F's Return on Equity (28.65%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ashtead Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASHT.F's short term assets (£1.1B) exceed its short term liabilities (£897.8M).

Long Term Liabilities: ASHT.F's short term assets (£1.1B) do not cover its long term liabilities (£6.4B).


Debt to Equity History and Analysis

Debt Level: ASHT.F's debt to equity ratio (147%) is considered high.

Reducing Debt: ASHT.F's debt to equity ratio has reduced from 163.8% to 147% over the past 5 years.

Debt Coverage: ASHT.F's debt is not well covered by operating cash flow (18%).

Interest Coverage: ASHT.F's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASHT.F's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: ASHT.F's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ASHT.F's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: ASHT.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), ASHT.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASHT.F's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Brendan Horgan (45yo)

0.8yrs

Tenure

UK£4,022,000

Compensation

Mr. Brendan Horgan has been Chief Executive Officer of Ashtead Group plc since May 1, 2019. Mr. Horgan served as the Group Chief Operating Officer of Ashtead Group plc since January 1, 2018 until May 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD5.21M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Brendan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Brendan Horgan
CEO & Executive Director0.8yrsUK£4.02m0.089% £14.2m
Michael Pratt
Group Finance Director1.8yrsUK£1.41m0.060% £9.6m
Paul Walker
Non-Executive Chairman1.4yrsUK£292.00k0.0031% £497.0k
Tanya Fratto
Independent Non-Executive Director3.6yrsUK£83.00k0.00022% £35.2k
Angus Cockburn
Senior Independent Non-Executive Director1.1yrsUK£47.00k0.00022% £35.2k
Lucinda Riches
Independent Non-Executive Director3.7yrsUK£75.00k0.0011% £177.4k
Jill Easterbrook
Independent Non-Executive director0.08yrsno datano data
Lindsley Ruth
Independent Non-Executive Director0.8yrsno data0.00050% £79.9k

1.6yrs

Average Tenure

56yo

Average Age

Experienced Board: ASHT.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Ashtead Group plc
  • Ticker: ASHT.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£12.324b
  • Listing Market Cap: UK£15.980b
  • Shares outstanding: 449.63m
  • Website: https://www.ashtead-group.com

Number of Employees


Location

  • Ashtead Group plc
  • 100 Cheapside
  • London
  • Greater London
  • EC2V 6DT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASHT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AHTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
0LCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
AHTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
0LCBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJan 1992
ASHT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDApr 2011

Biography

Ashtead Group plc, together with its subsidiaries, rents a range of construction and industrial equipment. It provides equipment for use in lifting, powering, generation, moving, digging, compacting, drilling, supporting, scrubbing, pumping, directing, heating, and ventilating works. The company offers various types of construction equipment for non-residential construction markets; and facilities management equipment for the maintenance and repair of facilities. It also provides disaster relief equipment, such as pumps and power generation equipment for various applications, such as assisting at times of flooding due to weather and burst water supply; power generation, lighting, and other equipment for bowl events, sporting events, music concerts, and festivals; and climate control equipment, including cooling, heating, and dehumidification equipment to the construction, commercial, industrial, and events markets. In addition, the company rents and installs scaffolding solutions for access to new or existing structures; and offers portable traffic systems to facilitate engineering projects or clean-up after an accident. It serves construction, industrial, and homeowner customers, as well as government entities and specialist contractors. The company operates 773 stores under the Sunbelt Rentals name in the United States; 67 stores under the Sunbelt Rentals Canada name in Canada; and 196 stores under the A-Plant name in the United Kingdom. Ashtead Group plc was founded in 1984 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 Analysis2020/02/24 02:09
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.