OTCPK:ARWG.F

Stock Analysis Report

Executive Summary

Arrow Global Group PLC identifies, acquires, and manages secured and unsecured defaulted and non-core loan portfolios and real estate from and on behalf of financial institutions, such as banks, institutional investors, and credit card companies in the United Kingdom and internationally.


Snowflake Analysis

High growth potential, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ARWG.F

-14.1%

US Consumer Finance

-10.6%

US Market


1 Year Return

n/a

ARWG.F

-3.4%

US Consumer Finance

5.2%

US Market

Return vs Industry: Insufficient data to determine how ARWG.F performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how ARWG.F performed against the US Market.


Shareholder returns

ARWG.FIndustryMarket
7 Day0%-14.1%-10.6%
30 Dayn/a-12.8%-8.5%
90 Day33.1%-10.6%-4.6%
1 Yearn/a-1.7%-3.4%7.4%5.2%
3 Yearn/a20.7%14.8%31.7%23.2%
5 Yearn/a26.6%17.3%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Arrow Global 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: ARWG.F ($3.5) is trading below our estimate of fair value ($8.87)

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


Price To Earnings Ratio

PE vs Industry: ARWG.F is poor value based on its PE Ratio (11.1x) compared to the Consumer Finance industry average (7.6x).

PE vs Market: ARWG.F is good value based on its PE Ratio (11.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ARWG.F is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ARWG.F is overvalued based on its PB Ratio (2.2x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

How is Arrow Global Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARWG.F's forecast earnings growth (22.5% per year) is above the savings rate (1.7%).

Earnings vs Market: ARWG.F's earnings (22.5% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: ARWG.F's revenue (8.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ARWG.F's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARWG.F's Return on Equity is forecast to be high in 3 years time (28.2%)


Next Steps

Past Performance

How has Arrow Global Group performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARWG.F has a large one-off loss of £15.4M impacting its September 30 2019 financial results.

Growing Profit Margin: ARWG.F's current net profit margins (12.7%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: ARWG.F's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: ARWG.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: ARWG.F had negative earnings growth (-11%) over the past year, making it difficult to compare to the Consumer Finance industry average (8.6%).


Return on Equity

High ROE: Whilst ARWG.F's Return on Equity (20.15%) 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 Arrow Global Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ARWG.F has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: ARWG.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ARWG.F has a sufficient allowance for bad loans.

Low Risk Liabilities: ARWG.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ARWG.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ARWG.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ARWG.F has an appropriate level of bad loans.


Next Steps

Dividend

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

5.08%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.6%markettop25%4.1%industryaverage2.2%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: ARWG.F's dividend (5.08%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: ARWG.F's dividend (5.08%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

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

Growing Dividend: ARWG.F's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.1%), ARWG.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARWG.F's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Lee Rochford (52yo)

3.1yrs

Tenure

UK£1,011,000

Compensation

Mr. Lee Rochford, MA has been the Group Chief Executive Officer of Arrow Global Group PLC since January 3, 2017. Mr. Rochford served as the Chief Financial Officer of Virgin Money Holdings (UK) plc and Vir ...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD1.30M) is about average for companies of similar size in the US market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Rochford
Group CEO & Executive Director3.1yrsUK£1.01m0.21% £1.2m
Zachary Lewy
Founder & Chief Investment Officer0yrsUK£201.00k1.77% £10.0m
Matthew Hotson
Group Chief Financial Officer0.5yrsno datano data
Dave Sutherland
Group Chief Operating Officer2.1yrsno data0.0047% £26.3k
Duncan Browne
Head of Investor Relations0yrsno datano data
Stewart Hamilton
General Counsel & Group Company Secretary6.4yrsno data0.081% £457.9k
Tracy French
Group HR Director0yrsno data0.0056% £31.9k
Steven Greenwood
Chief Risk Officer0yrsno datano data
John Calvao
Country Head for Italy2.8yrsno datano data
Joao Bugalho
Country Head for Portugal2.8yrsno datano data

2.8yrs

Average Tenure

45yo

Average Age

Experienced Management: ARWG.F's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Rochford
Group CEO & Executive Director3.1yrsUK£1.01m0.21% £1.2m
Jonathan Bloomer
Non-Executive Chairman0yrsUK£170.00k0.029% £163.8k
Andrew Fisher
Senior Independent Non-Executive Director0.8yrsUK£65.00kno data
Maria Albuquerque
Independent Non-Executive Director3.9yrsUK£55.00kno data
Lan Tu
Independent Non-Executive Director4.9yrsUK£65.00k0.013% £75.0k

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ARWG.F's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARWG.F 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

Arrow Global Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arrow Global Group PLC
  • Ticker: ARWG.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£438.081m
  • Listing Market Cap: UK£564.007m
  • Shares outstanding: 175.23m
  • Website: https://www.arrowglobal.net

Number of Employees


Location

  • Arrow Global Group PLC
  • Belvedere
  • 12 Booth Street
  • Manchester
  • Greater Manchester
  • M2 4AW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARWLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2013
A0WDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013
ARWlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2013
ARWG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013

Biography

Arrow Global Group PLC identifies, acquires, and manages secured and unsecured defaulted and non-core loan portfolios and real estate from and on behalf of financial institutions, such as banks, institutional investors, and credit card companies in the United Kingdom and internationally. The company also engages in the debt purchase, and asset management servicing business. Arrow Global Group PLC was founded in 2005 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:07
End of Day Share Price2020/02/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.