OTCPK:MITF.Y

Stock Analysis Report

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Executive Summary

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally.


Snowflake Analysis

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.2%

MITF.Y

3.7%

US Commercial Services

2.9%

US Market


1 Year Return

-57.4%

MITF.Y

-1.2%

US Commercial Services

8.9%

US Market

Return vs Industry: MITF.Y underperformed the US Commercial Services industry which returned -0.7% over the past year.

Return vs Market: MITF.Y underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

MITF.YIndustryMarket
7 Day-2.2%3.7%2.9%
30 Day-9.0%13.9%10.6%
90 Day-54.2%-3.3%5.1%
1 Year-56.4%-57.4%2.5%-1.2%11.4%8.9%
3 Year-71.6%-73.1%40.6%31.7%34.3%25.4%
5 Year-80.9%-83.1%81.1%62.3%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Mitie 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

Below Fair Value: MITF.Y ($3.32) is trading below our estimate of fair value ($11.08)

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


Price To Earnings Ratio

PE vs Industry: MITF.Y is good value based on its PE Ratio (8.4x) compared to the Commercial Services industry average (21x).

PE vs Market: MITF.Y is good value based on its PE Ratio (8.4x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: MITF.Y is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MITF.Y is overvalued based on its PB Ratio (7x) compared to the US Commercial Services industry average (1.4x).


Next Steps

Future Growth

How is Mitie Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MITF.Y's forecast earnings growth (28.4% per year) is above the savings rate (2.2%).

Earnings vs Market: MITF.Y's earnings (28.4% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: MITF.Y's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: MITF.Y's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Mitie Group performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: MITF.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MITF.Y's earnings have declined by -27.6% per year over the past 5 years.

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

Earnings vs Industry: MITF.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (5.8%).


Return on Equity

High ROE: Whilst MITF.Y's Return on Equity (82.95%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Mitie Group's financial position?


Financial Position Analysis

Short Term Liabilities: MITF.Y's short term assets (£538.6M) do not cover its short term liabilities (£606.0M).

Long Term Liabilities: MITF.Y's short term assets (£538.6M) exceed its long term liabilities (£403.0M).


Debt to Equity History and Analysis

Debt Level: MITF.Y's debt to equity ratio (699.2%) is considered high.

Reducing Debt: MITF.Y's debt to equity ratio has increased from 72.1% to 699.2% over the past 5 years.

Debt Coverage: MITF.Y's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: MITF.Y's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.95%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MITF.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Phil Bentley (60yo)

3.5yrs

Tenure

UK£2,248,948

Compensation

Mr. Phillip Bentley, also known as Phil, has been the Chief Executive Officer of Mitie Group plc since December 12, 2016. Mr. Bentley served as the Chief Executive Officer and Executive Director of Cable & ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.83M) is above average for companies of similar size in the US market ($USD2.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phil Bentley
Group CEO & Executive Director3.5yrsUK£2.25m0.56% £1.9m
Andrew Peeler
Group CFO & Director0.42yrno datano data
David Cooper
Chief Information Officer3yrsno datano data
Anna Gavrilova
Head of Investor Relationsno datano datano data
Peter Dickinson
Chief of Staff & General Counsel3.25yrsno datano data
Chris Copeland
Chief Marketing & Strategy Officer2.58yrsno datano data
Alison Saunders
Managing Directorno datano datano data
Jason Towse
Managing Director of Soft Servicesno datano datano data
Tim Howell
Managing Director of Landscapes Business7.42yrsno datano data
James Gilding
Managing Director for Total Document Management Business6.08yrsno datano data

3.3yrs

Average Tenure

Experienced Management: MITF.Y's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phil Bentley
Group CEO & Executive Director3.5yrsUK£2.25m0.56% £1.9m
Andrew Peeler
Group CFO & Director0.42yrno datano data
Roger Yates
Senior Independent Director1.92yrsUK£59.00k0.014% £47.6k
Derek Mapp
Non-Executive Chairman2.92yrsUK£225.00k0.039% £133.2k
Jennifer Duvalier
Independent Non-Executive Director2.92yrsUK£57.00k0.0051% £17.6k
Mary Reilly
Independent Non-Executive Director2.75yrsUK£57.00k0.0032% £11.1k
Nivedita Bhagat
Independent Non-Executive Director3yrsUK£52.00kno data
Philippa Couttie
Independent Non-Executive Director2.58yrsUK£52.00kno data

2.8yrs

Average Tenure

64yo

Average Age

Experienced Board: MITF.Y's board of directors are not considered experienced ( 2.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Mitie Group plc
  • Ticker: MITF.Y
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£273.352m
  • Listing Market Cap: UK£344.007m
  • Shares outstanding: 361.58m
  • Website: https://www.mitie.com

Number of Employees


Location

  • Mitie Group plc
  • The Shard
  • Level 12
  • London
  • Greater London
  • SE1 9SG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MITF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1994
MTOLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1994
MZ4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1994
MTOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1994
MITF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMay 2011

Biography

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. It offers engineering services, such as technical and building maintenance services, as well as offers specialist services, such as heating, cooling, lighting, water treatment, and building controls; and security services and products, including security management, front of house, document management, employee vetting, and procius. The company also provides professional services, connected workspace, international, sustainability, waste management, risk management, and occupier Services; and cleaning and environmental services, such as commercial and technical cleaning, as well as specialist services, including and landscaping and healthcare services. In addition, it offers care and custody services, such as detention and escorting services, and forensic medical examiner and custody support services, as well as manages immigration removal centers; and indoor and outdoor event catering services. Mitie Group plc was founded in 1987 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 Analysis2020/06/05 04:34
End of Day Share Price2020/06/02 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.