GYG plc: Ready to set sail
GYG plc is a global leader in a specialist segment of the expanding superyacht market. The company operates in the new build, refit and retail areas of the lucrative superyacht painting and maintenance market, and given the financial strength and cash generation of the business, we believe it will enjoy growth via both organic and acquisitive means.Superyachts are owned by super high net worth individuals / billionaires. There is a strong correlation between the growth in the number of individuals with a net worth in excess of $1bn and growth in the number of superyachts in the world, and importantly, growth has been consistent throughout the past two decades despite economic cycles.
GYG is the market leader in the specialist painting / maintenance area and has a 17% market share of the growing global large superyacht refit market. With specialist knowledge, key relationships, financial strength and geographic reach, we think that the company's market share will grow.
The global superyacht market is an asset-light business that is driven by relationships. To this end the company has developed strong relationships with owners and representatives of many of the world’s largest yachts, as well as a reputation for quality workmanship, complex project management, timeliness and convenience of locations in key areas.
The stock has come to market on a forecast 2017 PER of 11.1x, falling to 8.9x in 2018, and 7.4x in 2019. This rating compares very favourably to a basket of other support services companies which we have used for comparative analysis that trades on 15.9x; especially given our forecasts suggest 19% CAGR in adjusted EPS over the forecast period. The shares at issue price also offer an annualised dividend yield of 6.4%.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.