Download PDF

1. Company Snapshot

1.a. Company Description

YouGov plc provides online market research services in the United Kingdom, the United States, Germany, the Nordic countries, the Middle East, Mainland Europe, and the Asia Pacific.It operates through three divisions: Data Products, Data Services, and Custom Research.The Data Products division offers syndicated data products, which are available to clients on a subscription basis.


The Data Services division provides clients with fast-turnaround services.The Custom Research division offers a range of quantitative and qualitative research services.The company is also involved in the software development and media production businesses, as well as provision of operations services.


YouGov plc was founded in 2000 and is headquartered in London, the United Kingdom.

Show Full description

1.b. Last Insights on YOU

YouGov's recent performance was negatively impacted by the departure of its CEO, Steve Hatch, following investor pressure over the company's share slump. The sudden exit of the CEO may have created uncertainty and disrupted the company's operations, potentially affecting its ability to execute its strategy. Additionally, the UK's FTSE 100 index has faced downward pressure due to weak trade data from China, which may have contributed to a challenging market environment for YouGov.

1.c. Company Highlights

2. YouGov's Stable Growth Trajectory Continues

YouGov reported revenue of GBP 389 million, representing a significant milestone, with a 16% margin and an 8% increase in reported EPS to 0.06622, missing analyst estimates of 0.133. The company's core YouGov division grew at 1%, while the data products division turned from a decline to growth, driven by strong performance in the Americas and Asia Pacific. The cash conversion ratio remained stable, and technology expenditure was kept roughly flat.

Publication Date: Oct -28

📋 Highlights
  • Revenue Growth and Margin Expansion: Achieved GBP 389 million revenue, up from GBP 335 million, with a 16% margin and 8% EPS increase.
  • Strategic AI-Driven Data Platform: Focused on leveraging AI for real-time insights, combining 4,000 active clients with connected data for "best in class" analytics.
  • Global Market Performance: Strong growth in Americas and Asia-Pacific offset challenges in Europe/U.K., with Shopper division as the largest revenue contributor.
  • Financial Leverage Reduction: Paid down EUR 36 million of a EUR 240 million loan facility, maintaining covenant compliance and balance sheet stability.
  • Future Margin Targets: Aiming for 25% operating profit and GBP 500 million revenue (excluding M&A), driven by Yabble integration and cost discipline.

Segmental Performance

The biggest contributor to revenue growth was Shopper, which demonstrated the company's ability to expand its offerings and drive growth in key markets. The data products division's turnaround was a notable highlight, as it transitioned from a decline to growth, driven by the rollout of Cube-powered products and the establishment of a team specializing in selling and educating clients about connected data.

Balance Sheet and Investments

YouGov maintained a robust balance sheet position, with a EUR 240 million loan facility, having paid down EUR 36 million during the year. The company remains well within its loan covenants and is investing in panel and product innovation, data science, and AI, with a focus on becoming a data platform. As Stephan Shakespeare emphasized, "We're pioneers of synthetic data, but we focus on tracking change, which requires real people."

Valuation and Outlook

With a P/E Ratio of 232.7 and an EV/EBITDA of 7.44, the market appears to be pricing in significant growth expectations. Analysts estimate revenue growth at 2.8% for the next year. YouGov's commitment to stable growth, innovation, and becoming a data platform positions it for potential long-term success, driven by its strong brand, high-quality data, and investments in AI and data science.

Growth Drivers and Challenges

The company's new methodology combining AI-driven conversations with vast and connected data is expected to drive growth, with potential applications in areas such as fraud detection and data activation. However, YouGov faces challenges in finding and employing people for its data science teams, and the integration of Yabble is expected to be a key factor in its data products growth.

3. NewsRoom

Card image cap

What Could Shift the Story for YouGov as Analyst Views Evolve

Nov -28

Source:

Card image cap

How the Narrative Around YouGov Is Shifting After Recent Analyst Price Target Changes

Nov -12

Source:

Card image cap

How Recent Developments Are Rewriting the Story for YouGov

Oct -29

Source:

Card image cap

YouGov plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Oct -18

Source:

Card image cap

Co-Founder of YouGov Stephan Shakespeare Buys 4.8% More Shares

Sep -01

Source:

Card image cap

YouGov (LON:YOU) Is Reinvesting At Lower Rates Of Return

Aug -13

Source:

Card image cap

High Growth Tech Stocks in the United Kingdom to Watch

Jul -10

Source:

Card image cap

With 78% institutional ownership, YouGov plc (LON:YOU) is a favorite amongst the big guns

Jul -01

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.58%)

6. Segments

Custom Research

Expected Growth: 12%

YouGov plc's 12% custom research growth driven by increasing demand for data-driven insights, expansion into new markets, and strategic partnerships. Growing need for businesses to understand consumer behavior and preferences, coupled with advancements in AI and machine learning, fuels demand for custom research solutions.

Data Products

Expected Growth: 18%

YouGov plc's 18% growth in Data Products is driven by increasing demand for data-driven insights, expansion into new markets, and strategic partnerships. The company's ability to provide actionable consumer data and analytics has attracted new clients, while its investments in AI and machine learning have enhanced its product offerings, leading to higher revenue growth.

Data Services

Expected Growth: 10%

YouGov's 10% growth in Data Services is driven by increasing demand for data-driven insights, expansion into new markets, and strategic partnerships. Growing adoption of online surveys and analytics tools, coupled with the need for businesses to make data-informed decisions, fuels growth. Additionally, YouGov's expertise in providing actionable consumer data and its ability to integrate with existing systems contribute to its success.

Other Revenue, Eliminations and Unallocated Costs

Expected Growth: 8%

YouGov plc's 8% growth in Other Revenue is driven by increasing demand for data analytics and market research services. Eliminations are up due to higher inter-segment sales, while Unallocated Costs rise from investments in digital infrastructure and talent acquisition to support business expansion.

7. Detailed Products

YouGov Omnibus

A fast and cost-effective way to ask questions to a nationally representative sample of adults in the UK, US, and other countries.

YouGov Profiles

A data tool that provides detailed, media-rich profiles of consumers, including their attitudes, behaviors, and preferences.

YouGov Reports

In-depth reports that provide insights into public opinions, behaviors, and trends on various topics, including politics, finance, and technology.

YouGov Custom Research

Tailored research solutions that help clients answer specific business questions, test concepts, or measure brand performance.

YouGov Data Solutions

A range of data products that provide insights into consumer behavior, preferences, and attitudes, including data analytics and modeling.

8. YouGov plc's Porter Forces

Forces Ranking

Threat Of Substitutes

YouGov plc's online survey and data analytics services are highly specialized, making it difficult for substitutes to emerge. However, the company's reliance on online surveys and data analytics makes it vulnerable to substitutes in the form of alternative data sources and methodologies.

Bargaining Power Of Customers

YouGov plc's customers are primarily businesses and organizations that require customized data and analytics solutions. The company's strong brand reputation and specialized services reduce the bargaining power of customers.

Bargaining Power Of Suppliers

YouGov plc's suppliers are primarily technology and infrastructure providers. The company's scale and global presence reduce its dependence on any single supplier, minimizing the bargaining power of suppliers.

Threat Of New Entrants

The market for online surveys and data analytics is highly competitive, and new entrants may emerge with innovative technologies or methodologies. However, YouGov plc's strong brand reputation, global presence, and specialized services create barriers to entry for new entrants.

Intensity Of Rivalry

The market for online surveys and data analytics is highly competitive, with several established players competing for market share. YouGov plc faces intense competition from rivals such as Ipsos, Nielsen, and comScore, which may lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.39%
Debt Cost 5.77%
Equity Weight 94.61%
Equity Cost 7.93%
WACC 7.82%
Leverage 5.70%

11. Quality Control: YouGov plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexxen

A-Score: 5.2/10

Value: 9.4

Growth: 6.3

Quality: 7.8

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
4imprint

A-Score: 4.9/10

Value: 6.0

Growth: 8.9

Quality: 7.6

Yield: 3.8

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
M&C Saatchi

A-Score: 3.6/10

Value: 5.5

Growth: 4.3

Quality: 4.8

Yield: 0.6

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
S4 Capital

A-Score: 3.5/10

Value: 10.0

Growth: 2.8

Quality: 3.8

Yield: 3.8

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
YouGov

A-Score: 3.4/10

Value: 5.2

Growth: 4.9

Quality: 3.9

Yield: 3.8

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Ascential

A-Score: 3.3/10

Value: 5.0

Growth: 0.7

Quality: 3.7

Yield: 5.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.54$

Current Price

2.54$

Potential

-0.00%

Expected Cash-Flows