OTCPK:ASHT.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

4.2%

ASHT.Y

3.9%

US Trade Distributors

1.0%

US Market


1 Year Return

17.9%

ASHT.Y

11.2%

US Trade Distributors

8.0%

US Market

Return vs Industry: ASHT.Y exceeded the US Trade Distributors industry which returned 11.2% over the past year.

Return vs Market: ASHT.Y exceeded the US Market which returned 8% over the past year.


Shareholder returns

ASHT.YIndustryMarket
7 Day4.2%3.9%1.0%
30 Day1.0%4.8%-0.07%
90 Day1.2%6.2%-1.0%
1 Year20.2%17.9%13.2%11.2%10.4%8.0%
3 Year85.5%76.4%47.5%41.2%46.2%36.7%
5 Year88.1%73.3%32.9%23.4%64.3%46.2%

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?

12.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASHT.Y ($114.37) is trading above our estimate of fair value ($67.2)

Significantly Below Fair Value: ASHT.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASHT.Y is good value based on its PE Ratio (12.7x) compared to the Trade Distributors industry average (16.8x).

PE vs Market: ASHT.Y is good value based on its PE Ratio (12.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ASHT.Y is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: ASHT.Y is overvalued based on its PB Ratio (3.3x) 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 16 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASHT.Y's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ASHT.Y's earnings (3.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ASHT.Y's revenue (5.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ASHT.Y's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASHT.Y's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has Ashtead Group performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASHT.Y's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: ASHT.Y'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.Y had negative earnings growth (-20.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (0.9%).


Return on Equity

High ROE: Whilst ASHT.Y's Return on Equity (26.68%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ASHT.Y has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: ASHT.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ashtead Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASHT.Y's short term assets (£1.1B) exceeds its short term liabilities (£957.4M)

Long Term Liabilities: ASHT.Y's short term assets (1.1B) do not cover its long term liabilities (6.3B)


Debt to Equity History and Analysis

Debt Level: ASHT.Y's debt to equity ratio (137.3%) is considered high

Reducing Debt: ASHT.Y's debt to equity ratio has reduced from 148.2% to 137.3% over the past 5 years.

Debt Coverage: ASHT.Y's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: ASHT.Y's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: ASHT.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASHT.Y'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?

1.82%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ASHT.Y's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ASHT.Y's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), ASHT.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASHT.Y's dividends in 3 years are forecast to be well covered by earnings (21.3% payout ratio).


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Brendan Horgan (45yo)

0.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.4yrs

Average Tenure

55yo

Average Age

Experienced Management: ASHT.Y's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

56yo

Average Age

Experienced Board: ASHT.Y's board of directors are not considered experienced ( 1.5 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.


Ownership Breakdown


Management Team

  • Geoff Drabble (60yo)

    Executive Officer

    • Tenure: 0.4yrs
    • Compensation: UK£5.62m
  • Rob Phillips

    Chief Executive of Ashtead Technology Rentals

    • Tenure: 0yrs
  • Brendan Horgan (45yo)

    CEO & Executive Director

    • Tenure: 0.4yrs
    • Compensation: UK£4.02m
  • Eric Watkins

    General Counsel & Secretary

    • Tenure: 0yrs
  • Michael Pratt (55yo)

    Group Finance Director

    • Tenure: 1.5yrs
    • Compensation: UK£1.41m
  • Will Shaw

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Paul Walker (62yo)

    Non-Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: UK£292.00k
  • Tanya Fratto (58yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£83.00k
  • Angus Cockburn (56yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£47.00k
  • Brendan Horgan (45yo)

    CEO & Executive Director

    • Tenure: 0.4yrs
    • Compensation: UK£4.02m
  • Michael Pratt (55yo)

    Group Finance Director

    • Tenure: 1.5yrs
    • Compensation: UK£1.41m
  • Lucinda Riches (57yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£75.00k
  • Lindsley Ruth (48yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Ashtead Group plc
  • Ticker: ASHT.Y
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£10.011b
  • Listing Market Cap: UK£12.993b
  • Shares outstanding: 456.71m
  • 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
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, drill ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:25
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
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.