OTCPK:QUPP.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Watchstone Group plc engages in the insurance telematics business in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

QUPP.F

-2.3%

US Healthcare

-0.8%

US Market


1 Year Return

n/a

QUPP.F

21.0%

US Healthcare

13.8%

US Market

Return vs Industry: Insufficient data to determine how QUPP.F performed against the US Healthcare industry.

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


Shareholder returns

QUPP.FIndustryMarket
7 Day0%-2.3%-0.8%
30 Day30.0%-4.9%-5.7%
90 Dayn/a0.4%8.6%
1 Yearn/a22.6%21.0%16.4%13.8%
3 Yearn/a23.9%18.5%36.9%27.8%
5 Yearn/a50.0%39.4%85.0%64.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Watchstone 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: QUPP.F ($0.78) is trading below our estimate of fair value ($108.33)

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


Price To Earnings Ratio

PE vs Industry: QUPP.F is unprofitable, so we can't compare its PE Ratio to the US Healthcare industry average.

PE vs Market: QUPP.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QUPP.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QUPP.F is good value based on its PB Ratio (0.4x) compared to the US Healthcare industry average (2.8x).


Next Steps

Future Growth

How is Watchstone Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.9%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Watchstone Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Watchstone Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Watchstone Group's filings and announcementshere.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has Watchstone Group performed over the past 5 years?

61.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QUPP.F is currently unprofitable.

Growing Profit Margin: QUPP.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QUPP.F is unprofitable, but has reduced losses over the past 5 years at a rate of 61% per year.

Accelerating Growth: Unable to compare QUPP.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QUPP.F is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (31.1%).


Return on Equity

High ROE: QUPP.F has a negative Return on Equity (-8.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Watchstone Group's financial position?


Financial Position Analysis

Short Term Liabilities: QUPP.F's short term assets (£102.6M) exceed its short term liabilities (£26.6M).

Long Term Liabilities: QUPP.F's short term assets (£102.6M) exceed its long term liabilities (£20.0K).


Debt to Equity History and Analysis

Debt Level: QUPP.F is debt free.

Reducing Debt: QUPP.F has no debt compared to 5 years ago when its debt to equity ratio was 5%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable QUPP.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: QUPP.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 44.2% per year.


Next Steps

Dividend

What is Watchstone Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate QUPP.F'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 QUPP.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: QUPP.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QUPP.F'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?

2.7yrs

Average management tenure


CEO

Stefan Borson (45 yo)

2.67yrs

Tenure

UK£1,164,000

Compensation

Mr. Stefan Leon Borson has been Group Chief Executive Officer and Executive Director at Watchstone Group Plc since January 2018 and serves as Company Secretary. Mr. Borson served as Group General counsel a ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD1.48M) is above average for companies of similar size in the US market ($USD603.09K).

Compensation vs Earnings: Stefan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Borson
Group CEO2.67yrsUK£1.16m0.72%
£ 285.0k
Lee James
Group Finance Director1.25yrsno datano data
Michael Bancroft
Head of Corporate Developmentno datano datano data
Mark Ford
Chief Executive Officer of Home Advisory Servicesno datano datano data
Richard King
Chief Executive Officer of Ingenie11.67yrsno datano data

2.7yrs

Average Tenure

Experienced Management: QUPP.F's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Borson
Group CEO2.67yrsUK£1.16m0.72%
£ 285.0k
Stephen Broughton
Member of Strategy & Integration Advisory Board7.92yrsno datano data
Richard Rose
Independent Non-Executive Chairman5.33yrsUK£185.00k0.22%
£ 86.4k
Michael Howard
Independent Senior Non-Executive Director5.33yrsUK£75.00k0.027%
£ 10.9k
David Young
Independent Non-Executive Director5.33yrsUK£75.00kno data
Paul Stanley
Member of Strategy & Integration Advisory Board8.58yrsno datano data

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: QUPP.F's board of directors are considered experienced (5.3 years average tenure).


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

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


Key Information

  • Name: Watchstone Group plc
  • Ticker: QUPP.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: UK£31.306m
  • Listing Market Cap: UK£39.767m
  • Shares outstanding: 46.04m
  • Website: https://www.watchstonegroup.com

Number of Employees


Location

  • Watchstone Group plc
  • Highgate Court
  • Tollgate
  • Eastleigh
  • Hampshire
  • SO53 3TY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2011
QUPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2011
M6FEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2011

Biography

Watchstone Group plc engages in the insurance telematics business in the United Kingdom. It offers ingenie, a cloud based platform for an insurance broker focuses on telematics technology. The company was ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 06:05
End of Day Share Price2020/09/15 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.