OTCPK:ROYM.F

Stock Analysis Report

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Executive Summary

Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Italy, France, Spain, Germany, North America, the Western United States, Canada, Croatia, the Czech Republic, Hungary, Romania, Slovakia, and Slovenia. More Details


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Royal Mail's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ROYM.F

-0.1%

US Logistics

-1.4%

US Market


1 Year Return

17.9%

ROYM.F

50.1%

US Logistics

17.8%

US Market

Return vs Industry: ROYM.F underperformed the US Logistics industry which returned 50% over the past year.

Return vs Market: ROYM.F matched the US Market which returned 18.5% over the past year.


Shareholder returns

ROYM.FIndustryMarket
7 Day0%-0.1%-1.4%
30 Day2.7%8.2%4.7%
90 Dayn/a37.3%8.2%
1 Year17.9%17.9%53.7%50.1%20.5%17.8%
3 Year-34.9%-34.9%47.8%38.2%42.2%32.7%
5 Year-53.4%-53.4%94.7%73.1%83.4%62.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Royal Mail undervalued compared to its fair value and its price relative to the market?

24.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROYM.F ($3.23) is trading below our estimate of fair value ($4.28)

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


Price To Earnings Ratio

PE vs Industry: ROYM.F is good value based on its PE Ratio (15.3x) compared to the US Logistics industry average (27.6x).

PE vs Market: ROYM.F is good value based on its PE Ratio (15.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ROYM.F is good value based on its PB Ratio (0.4x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is Royal Mail forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROYM.F's forecast earnings growth (27.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ROYM.F's earnings (27.8% 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: ROYM.F's revenue (2.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ROYM.F's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROYM.F's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Royal Mail performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROYM.F has a large one-off loss of £82.4M impacting its March 29 2020 financial results.

Growing Profit Margin: ROYM.F's current net profit margins (1.5%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: ROYM.F's earnings have declined by 7% per year over the past 5 years.

Accelerating Growth: ROYM.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: ROYM.F had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Logistics industry average (-22.4%).


Return on Equity

High ROE: ROYM.F's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Royal Mail's financial position?


Financial Position Analysis

Short Term Liabilities: ROYM.F's short term assets (£3.0B) do not cover its short term liabilities (£3.1B).

Long Term Liabilities: ROYM.F's short term assets (£3.0B) exceed its long term liabilities (£2.3B).


Debt to Equity History and Analysis

Debt Level: ROYM.F's debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: ROYM.F's debt to equity ratio has increased from 9.2% to 29.1% over the past 5 years.

Debt Coverage: ROYM.F's debt is well covered by operating cash flow (58.1%).

Interest Coverage: ROYM.F's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Royal Mail current dividend yield, its reliability and sustainability?

1.20%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Current Payout to Shareholders

Dividend Coverage: ROYM.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 ROYM.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?

2.2yrs

Average management tenure


CEO

Stuart Simpson

0.42

Tenure

UK£544,000

Compensation

Mr. Stuart Simpson has been Interim Chief Executive Officer of Royal Mail plc since May 15, 2020 and serves as its Member of Executive Board. He has been Interim Chief executive Officer of Royal Mail (UKPI ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD714.91K) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Williams
Interim Executive Chair & Member of Management Board1.42yrsUK£268.00k0.0050%
£ 161.6k
Stuart Simpson
CEO, Director0.42yrUK£544.00k0.0069%
£ 221.4k
Mick Jeavons
Interim Chief Financial Officer0.42yrno datano data
Shane O'Riordain
MD of Corporate Affairs2.33yrsno datano data
Mark Amsden
Group General Counsel1.5yrsno datano data
Mel Tomlin
Chief of Staff & Member of Executive Board2.33yrsno datano data
Sally Ashford
Chief HR Officer & Member of Executive Board2.33yrsno datano data
Christian Herrlich
Group Chief Information Officer & Member of the Executive Board2.17yrsno datano data
Achim Dünnwald
COO & Member of the Executive Board1.58yrsno datano data
James Rietkerk
Member of the Executive Board2.33yrsno datano data
John Crosse
Director of Investor Relationsno datano datano data
Stephen Agar
Managing Director of Consumer & Network Access9yrsno datano data

2.2yrs

Average Tenure

Experienced Management: ROYM.F's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Williams
Interim Executive Chair & Member of Management Board1.42yrsUK£268.00k0.0050%
£ 161.6k
Stuart Simpson
CEO, Director0.42yrUK£544.00k0.0069%
£ 221.4k
Michael Findlay
Independent Non-Executive Director1.42yrsUK£56.00k0.0017%
£ 54.0k
Sarah Elizabeth Hogg
Senior Independent Non-Executive Director1yrUK£38.00k0.0012%
£ 38.8k
Lynne Peacock
Non-Executive Director0.92yrUK£31.00k0.0011%
£ 36.5k
Maria da Cunha da Silva
Independent Non-Executive Director1.42yrsUK£51.00k0.0015%
£ 48.5k
Simon Thompson
Independent Non-Executive Director2.92yrsUK£71.00kno data
Rita Griffin
Independent Non-Executive Director3.83yrsUK£65.00k0.0020%
£ 64.6k

1.4yrs

Average Tenure

64yo

Average Age

Experienced Board: ROYM.F's board of directors are not considered experienced ( 1.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Royal Mail plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Mail plc
  • Ticker: ROYM.F
  • Exchange: OTCPK
  • Founded: 2013
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: UK£2.460b
  • Listing Market Cap: UK£3.232b
  • Shares outstanding: 999.05m
  • Website: https://www.royalmailgroup.com

Number of Employees


Location

  • Royal Mail plc
  • 100 Victoria Embankment
  • London
  • Greater London
  • EC4Y 0HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMGLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2013
RYEDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013
ROYM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013
RMGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2013
ROYM.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2013

Biography

Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Italy, France, Spain, Germany, North America, the Western United States, Canada, Croatia, the Czech Republ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:47
End of Day Share Price2020/10/14 00:00
Earnings2020/03/29
Annual Earnings2020/03/29


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.