YouGov

LN: YOU

£597m market cap

570p last close

YouGov is a global research data and analytics group, with over 8m online panellists across 42 countries. It offers a complementary data-led suite of products and services including YouGov BrandIndex, YouGov Profiles, YouGov Omnibus and custom research.

Investment summary

YouGov’s FY19 results showed strong revenue growth (+10% underlying) and a 200bp increase in operating margins. The continuing drive is on growing Data Products and Services and focusing Custom Research on more profitable business. The ambitious targets to improve profitability set in the original five-year plan have been met. The new five-year plan to FY23 targets doubling both revenue and adjusted operating profit margin, as well as achieving a 30% CAGR in EPS (25% EPS CAGR in the earlier plan). In this context, the valuation premium to slower-growing peers looks well underpinned.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 116.6 20.9 16.4 10.8 52.8 25.4
2019A 136.5 28.6 20.5 13.9 41.0 17.1
2020E 152.1 35.4 26.5 17.8 32.0 17.0
2021E 163.7 42.5 33.6 22.1 25.8 14.2
Industry outlook

Global MR continues to go through an extended period of change, fuelled by vast quantities of data leading to a proliferation of tools to manipulate it. This has attracted influential new players, from tech, but also from global consultants, and from in-house teams at clients. GDPR has challenged the industry in its assumptions and methodologies, with the full impact not yet being felt. A key differentiator for YouGov is its extensive and engaged panel, which, amongst the other benefits of cost and timeliness, allows for far more efficient re-contact studies. As part of the sign-up process, panellists give explicit consent for the way their data can be used.

Last updated on 19/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 46.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.3 3.3 31.8
Relative* 4.0 0.5 24.9
52-week high/low 596.0p/386.0p
*% relative to local index
Key management
Roger Parry Chairman
Stephan Shakespeare CEO
Alex McIntosh CFO
Tilly Heald Company Secretary