OTCPK:QUPP.F

Stock Analysis Report

Executive Summary

Watchstone Group plc provides technology solutions to the insurance, automotive, and healthcare industries in the United Kingdom, Canada, the United States, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Risks

  • Watchstone Group is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:QUPP.F

1.3%

US Healthcare

1.2%

US Market


1 Year Return

n/a

OTCPK:QUPP.F

-8.2%

US Healthcare

1.7%

US Market

No trading data on QUPP.F.

No trading data on QUPP.F.


Share holder returns

QUPP.FIndustryMarket
7 Day0%1.3%1.2%
30 Day21.5%-0.7%4.9%
90 Dayn/a0.01%3.7%
1 Yearn/a-6.8%-8.2%3.9%1.7%
3 Yearn/a30.1%24.9%47.2%37.7%
5 Year-65.1%-65.1%63.5%53.8%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

1.02x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Watchstone Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Watchstone Group to establish if it is available at substantial discount.


Price Based on Earnings

Watchstone Group is loss making, we can't compare its value to the US Healthcare industry average.

Watchstone Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Watchstone Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Watchstone Group is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

11.0%

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

Past Performance

How has Watchstone Group performed over the past 5 years?

50.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Watchstone Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Watchstone Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Watchstone Group's 1-year growth to the US Healthcare industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Watchstone Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Watchstone Group has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Watchstone Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Watchstone Group's financial position?


Financial Position Analysis

Watchstone Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Watchstone Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Watchstone Group's level of debt (7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (7% vs 7% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 16.8x debt.


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.

Watchstone Group has sufficient cash runway for 2.9 years based on current free cash flow.

Watchstone Group has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of -32.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Watchstone Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Watchstone Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Watchstone Group has not reported any payouts.

Unable to verify if Watchstone Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Watchstone Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Stefan Borson (44yo)

1.7yrs

Tenure

UK£1,080,000

Compensation

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


CEO Compensation Analysis

Stefan's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Stefan to compare compensation growth.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the Watchstone Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

The tenure for the Watchstone Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Stefan Borson (44yo)

    Group CEO

    • Tenure: 1.7yrs
    • Compensation: UK£1.08m
  • Mark Ford

    Chief Executive Officer of Home Advisory Services

    • Tenure: 0yrs
  • Richard King

    Chief Executive Officer of Ingenie

    • Tenure: 10.7yrs
  • Michael Bancroft

    Head of Corporate Development

    • Tenure: 0yrs
  • Lee James

    Group Finance Director

    • Tenure: 0.3yrs

Board Members

  • Steve Broughton (72yo)

    Member of Strategy & Integration Advisory Board

    • Tenure: 6.9yrs
  • Richard Rose (63yo)

    Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: UK£185.00k
  • Michael Howard (77yo)

    Senior Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£75.00k
  • Stefan Borson (44yo)

    Group CEO

    • Tenure: 1.7yrs
    • Compensation: UK£1.08m
  • David Young (57yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£75.00k
  • Paul Stanley

    Member of Strategy & Integration Advisory Board

    • Tenure: 7.6yrs

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£40.053m
  • Listing Market Cap: UK£49.871m
  • 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 provides technology solutions to the insurance, automotive, and healthcare industries in the United Kingdom, Canada, the United States, and internationally. It operates through two seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:19
End of Day Share Price2019/09/03 00:00
Earnings2019/06/30
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.