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STM Group

AIM:STM
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STM
AIM
£25M
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

STM Group Plc, together with its subsidiaries, provides various financial services in Gibraltar, Malta, Jersey, Spain, the United Kingdom, and internationally. The last earnings update was 63 days ago. More info.


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STM Share Price and Events
7 Day Returns
0%
AIM:STM
-0.3%
GB Capital Markets
-0.5%
GB Market
1 Year Returns
-28.2%
AIM:STM
18.8%
GB Capital Markets
3.7%
GB Market
STM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
STM Group (STM) 0% -2.3% -1.2% -28.2% -10.6% 100%
GB Capital Markets -0.3% -1.2% 3.2% 18.8% 63.8% 107.4%
GB Market -0.5% 1.4% 3.1% 3.7% 7.8% 3.8%
1 Year Return vs Industry and Market
  • STM underperformed the Capital Markets industry which returned 18.8% over the past year.
  • STM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 3.7% over the past year.
Price Volatility
STM
Industry
5yr Volatility vs Market

Value

 Is STM Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of STM Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for STM Group.

AIM:STM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £0.52 * 11.8%
£0.06
Book Value of Equity per Share Median Book Value from the past 5 years. £0.52
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:STM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.753 (1 + (1- 19%) (13.47%))
0.89
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.89 * 6.65%)
7.14%

Discounted Cash Flow Calculation for AIM:STM using Excess Returns Model Model

The calculations below outline how an intrinsic value for STM Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

AIM:STM Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.8% – 7.14%) * £0.52)
£0.02
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.02 / (7.14% - 1.23%)
£0.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £0.52 + £0.41
£0.93
AIM:STM Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.93
Current discount Discount to share price of £0.42
= -1 x (£0.42 - £0.93) / £0.93
55%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price STM Group is available for.
Intrinsic value
>50%
Share price is £0.42 vs Future cash flow value of £0.93364
Current Discount Checks
For STM Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • STM Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • STM Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for STM Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are STM Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:STM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.09
AIM:STM Share Price ** AIM (2019-11-12) in GBP £0.42
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 42 Publicly-Listed Capital Markets Companies 20.19x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 16.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of STM Group.

AIM:STM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:STM Share Price ÷ EPS (both in GBP)

= 0.42 ÷ 0.09

4.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STM Group is good value based on earnings compared to the GB Capital Markets industry average.
  • STM Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does STM Group's expected growth come at a high price?
Raw Data
AIM:STM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
4.8%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 25 Publicly-Listed Capital Markets Companies 1.1x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 555 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

AIM:STM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.92x ÷ 4.8%

1.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STM Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on STM Group's assets?
Raw Data
AIM:STM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £0.58
AIM:STM Share Price * AIM (2019-11-12) in GBP £0.42
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 75 Publicly-Listed Capital Markets Companies 1.33x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,305 Publicly-Listed Companies 1.5x
AIM:STM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:STM Share Price ÷ Book Value per Share (both in GBP)

= 0.42 ÷ 0.58

0.72x

* Primary Listing of STM Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STM Group is good value based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess STM Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. STM Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is STM Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is STM Group expected to grow at an attractive rate?
  • STM Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • STM Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • STM Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:STM Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:STM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 4.8%
AIM:STM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 7.5%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:STM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:STM Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 28 7 5 1
2020-12-31 25 5 4 1
2019-12-31 24 5 4 1
2019-11-12
AIM:STM Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 23 2 5
2019-03-31 22 2 4
2018-12-31 21 3 4
2018-09-30 22 3 4
2018-06-30 22 2 4
2018-03-31 22 3 4
2017-12-31 22 4 4
2017-09-30 21 3 4
2017-06-30 20 3 3
2017-03-31 19 2 3
2016-12-31 17 1 2
2016-09-30 17 2 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • STM Group's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • STM Group's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:STM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from STM Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:STM Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.09 0.09 0.09 1.00
2020-12-31 0.06 0.06 0.06 1.00
2019-12-31 0.06 0.06 0.06 1.00
2019-11-12
AIM:STM Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.09
2019-03-31 0.07
2018-12-31 0.06
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.06
2017-12-31 0.07
2017-09-30 0.06
2017-06-30 0.06
2017-03-31 0.05
2016-12-31 0.04
2016-09-30 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • STM Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess STM Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
STM Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has STM Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare STM Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • STM Group has delivered over 20% year on year earnings growth in the past 5 years.
  • STM Group's 1-year earnings growth exceeds its 5-year average (41.9% vs 30.7%)
  • STM Group's earnings growth has exceeded the GB Capital Markets industry average in the past year (41.9% vs 4.7%).
Earnings and Revenue History
STM Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from STM Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:STM Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 22.56 5.07 18.17
2019-03-31 21.98 4.38 17.42
2018-12-31 21.40 3.68 16.67
2018-09-30 21.50 3.63 16.96
2018-06-30 21.61 3.58 17.25
2018-03-31 21.57 3.78 17.00
2017-12-31 21.53 3.97 16.76
2017-09-30 20.89 3.65 16.17
2017-06-30 20.25 3.33 15.58
2017-03-31 18.84 2.85 14.95
2016-12-31 17.43 2.37 14.32
2016-09-30 16.59 2.62 13.62
2016-06-30 15.74 2.88 12.92
2016-03-31 15.96 2.59 13.00
2015-12-31 16.18 2.30 13.08
2015-09-30 16.48 1.75 13.63
2015-06-30 16.78 1.20 14.18
2015-03-31 16.33 1.12 13.88
2014-12-31 15.88 1.05 13.58
2014-09-30 15.01 0.55 13.16
2014-06-30 14.13 0.06 12.74
2014-03-31 13.74 -0.03 12.58
2013-12-31 13.36 -0.11 12.42
2013-09-30 13.23 -1.95 12.15
2013-06-30 13.10 -3.79 11.88
2013-03-31 12.32 -4.03 11.22
2012-12-31 11.55 -4.27 10.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • STM Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • STM Group used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • STM Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess STM Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
STM Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is STM Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up STM Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • STM Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • STM Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of STM Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 29.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from STM Group Company Filings, last reported 4 months ago.

AIM:STM Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 34.48 0.83 18.14
2019-03-31 34.48 0.83 18.14
2018-12-31 33.06 1.65 17.34
2018-09-30 33.06 1.65 17.34
2018-06-30 31.82 2.48 18.84
2018-03-31 31.82 2.48 18.84
2017-12-31 30.77 3.30 18.44
2017-09-30 30.77 3.30 18.44
2017-06-30 29.39 3.30 19.96
2017-03-31 29.39 3.30 19.96
2016-12-31 27.66 3.30 16.11
2016-09-30 27.66 3.30 16.11
2016-06-30 26.87 0.00 9.28
2016-03-31 26.87 0.00 9.28
2015-12-31 26.05 0.33 8.04
2015-09-30 26.05 0.33 8.04
2015-06-30 24.53 0.36 7.12
2015-03-31 24.53 0.36 7.12
2014-12-31 22.25 2.61 5.71
2014-09-30 22.25 2.61 5.71
2014-06-30 21.85 2.61 5.47
2014-03-31 21.85 2.61 5.47
2013-12-31 21.26 3.61 4.09
2013-09-30 21.26 3.61 4.09
2013-06-30 21.84 4.25 4.36
2013-03-31 21.84 4.25 4.36
2012-12-31 21.41 4.42 3.38
  • STM Group's level of debt (2.4%) 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 (11.9% vs 2.4% today).
  • Debt is well covered by operating cash flow (267.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).
X
Financial health checks
We assess STM Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. STM Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.76%
Current annual income from STM Group dividends. Estimated to be 5.79% next year.
If you bought £2,000 of STM Group shares you are expected to receive £95 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • STM Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • STM Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.33%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:STM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 680 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:STM Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.03 1.00
2020-12-31 0.02 1.00
2019-12-31 0.02 1.00
2019-11-12
AIM:STM Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-11 0.020 4.470
2019-03-26 0.020 4.039
2018-04-25 0.018 3.114
2018-03-27 0.018 3.131
2017-04-26 0.020 4.361
2017-03-14 0.020 5.531
2016-09-13 0.010 2.147
2016-03-01 0.009 1.996
2012-09-18 0.000 0.000
2012-04-19 0.000 0.000
2012-03-06 0.000 0.000
2011-09-20 0.000 0.000
2011-04-04 0.006 2.717
2011-03-08 0.006 2.211
2010-03-09 0.006 2.586
2010-03-01 0.006 2.360
2009-09-08 0.006 2.158
2009-03-03 0.006 1.547
2008-12-31 0.006 1.389

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of STM Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess STM Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can STM Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. STM Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Kentish
COMPENSATION £0
AGE 53
TENURE AS CEO 3.2 years
CEO Bio

Mr. Alan Roy Kentish, ACA ACII AIRM has been the Chief Executive Officer at STM Group Plc since September 2016. Mr. Kentish served as an Interim Chief Executive Officer of STM Group Plc from April 1, 2016 to September 2016 and its Director of Product & Business Development from September 9, 2015 to September 2016. Mr. Kentish served as a Director of Business & Product Development at STM Group Plc since December 23, 2013. Mr. Kentish served as the Chief Financial Officer of STM Group Plc. He served as the Chief Executive Officer of the Fidecs Group and which he joined it in 1997. He served as Managing and Technical Director of FIM. Mr. Kentish has been an Executive Director of STM Group Plc since March 21, 2007. He serves as a Non-executive Director of Collingwood Insurance Company Limited. He serves as a Member of the Board of a number of insurance companies, including Admiral Insurance Company (Gibraltar) Limited. He served as a Director of Southern Rock Insurance Company Limited. Mr. Kentish qualified as a Chartered Accountant in 1989 with Ernst & Whinney, specializes in the financial services industry. In 1993, he moved to Ernst & Young, Gibraltar and shortly afterwards qualified as an Associate of the Chartered Insurance Institute.

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the STM Group management team in years:

3.3
Average Tenure
52
Average Age
  • The tenure for the STM Group management team is about average.
Management Team

Alan Kentish

TITLE
CEO & Executive Director
AGE
53
TENURE
3.2 yrs

Therese Neish

TITLE
CFO & Executive Director
AGE
42
TENURE
5.8 yrs

Peter Marr

TITLE
COO & Director
AGE
57
TENURE
0.8 yrs

Iain Farr

TITLE
Head of Distribution
AGE
47
TENURE
3.8 yrs

David Frier

TITLE
Managing Director of International Tax Planning
AGE
52

Sebastien Moerman

TITLE
Managing Director of Trust & Company Management Division
AGE
44

David Easton

TITLE
Head of Pensions
TENURE
3.3 yrs

Marina Steglich

TITLE
Head of Enterprise Risk Management
TENURE
2.8 yrs

Liz Plummer

TITLE
Company Secretary
AGE
64
Board of Directors Tenure

Average tenure and age of the STM Group board of directors in years:

2.9
Average Tenure
62
Average Age
  • The average tenure for the STM Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Duncan Crocker

TITLE
Non-Executive Chairman
AGE
60
TENURE
1.2 yrs

Alan Kentish

TITLE
CEO & Executive Director
AGE
53
TENURE
12.7 yrs

Therese Neish

TITLE
CFO & Executive Director
AGE
42
TENURE
5.8 yrs

Peter Marr

TITLE
COO & Director
AGE
57
TENURE
0.8 yrs

Malcolm Berryman

TITLE
Independent Non-Executive Director
AGE
64
TENURE
3.5 yrs

Robin Ellison

TITLE
Non-Executive Director
AGE
70
TENURE
2.9 yrs

Graham Kettleborough

TITLE
Independent Non-Executive Director
AGE
62
TENURE
1.3 yrs

Leslie Livens

TITLE
Director of Atlas Trust Company Limited
AGE
72

Irene Barnett

TITLE
Director of Bellwether Corporate Services Limited
AGE
66
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess STM Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. STM Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Type Of Shareholder Owns STM Group Plc's (LON:STM)?

STM Group is a smaller company with a market capitalization of UK£24m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for STM Group AIM:STM Ownership Summary, September 3rd 2019 What Does The Institutional Ownership Tell Us About STM Group? … We can see that STM Group does have institutional investors; and they hold 13% of the stock.

Simply Wall St -

If You Had Bought STM Group (LON:STM) Stock Five Years Ago, You Could Pocket A 87% Gain Today

During the five years of share price growth, STM Group moved from a loss to profitability. … This EPS growth is higher than the 5.6% average annual increase in the share price over the same three years. … We note that for STM Group the TSR over the last 5 years was 111%, which is better than the share price return mentioned above.

Simply Wall St -

Is STM Group (LON:STM) Using Too Much Debt?

AIM:STM Historical Debt, June 13th 2019 How Healthy Is STM Group's Balance Sheet? … While STM Group has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Summing up While it is always sensible to investigate a company's debt, in this case STM Group has UK£16m in net cash and a decent-looking balance sheet.

Simply Wall St -

STM Group Plc's (LON:STM) Earnings Dropped -7.3%, Did Its Industry Show Weakness Too?

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 38%, indicating the rate at which STM is growing has slowed down. … This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 17% to 5.0% over the past 5 years. … I recommend you continue to research STM Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for STM’s future growth?

Simply Wall St -

What Kind Of Shareholder Owns Most STM Group Plc (LON:STM) Stock?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … STM Group is a smaller company with a market capitalization of UK£30m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

What Should Investors Know About The Future Of STM Group Plc's (LON:STM)?

Looking at STM Group Plc's (LON:STM) earnings update on 31 December 2018, … with earnings expected to grow by -7.7% in the upcoming year … the higher past 5-year average growth rate of 38%.

Simply Wall St -

Why Fundamental Investors Might Love STM Group Plc (LON:STM)

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on STM Group Plc (LON:STM) due to its excellent fundamentals in more than one area.

Simply Wall St -

Does STM Group Plc's (LON:STM) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how STM Group Plc's (LON:STM) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is STM Group Plc (LON:STM) Potentially Underrated?

STM Group Plc (LON:STM) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Has STM Group Plc's (LON:STM) Earnings Momentum Changed Recently?

After reading STM Group Plc's (LON:STM) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. … Did STM beat its long-term earnings growth trend and its industry.

Simply Wall St -

Company Info

Description

STM Group Plc, together with its subsidiaries, provides various financial services in Gibraltar, Malta, Jersey, Spain, the United Kingdom, and internationally. It operates in four segments: Corporate Trustee Services, Pensions, Life Assurance, and Other Services. The company offers retirement, estate and succession planning, and wealth structuring services. It also provides life assurance solutions, trust and trustee, company management, international tax, and residency and citizenship services. STM Group PLC was founded in 1989 and is headquartered in London, the United Kingdom.

Details
Name: STM Group Plc
STM
Exchange: AIM
Founded: 1989
£24,586,089
58,538,308
Website: http://www.stmgroupplc.com
Address: STM Group Plc
5 Chancery Lane,
Suite 315,
London,
Greater London, EC4A 1BL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM STM Ordinary Shares London Stock Exchange AIM Market GB GBP 10. Apr 2007
Number of employees
Current staff
Staff numbers
199
STM Group employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/12 20:59
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/09/10
Last earnings filing: 2019/09/10
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.