YouGov: A Well-Covered Dividend From A Survey And Polling Company

2025-05-10 11:40:00 ET

Summary

• YouGov's low-capex business model generates robust cash flows, with a net free cash flow of 24M GBP in H1 FY 2025, equating to 20 pence per share.
• The company expects modest growth in FY 2025 and stronger acceleration in FY 2026, with projected net free cash flow of 50M GBP next year.
• YouGov's dividend is currently 9 pence per share, with potential increases as earnings and free cash flow grow, aiming to reduce net debt significantly.
• I find YouGov's capex-light model appealing and expect the net debt ratio to drop below 1.5x EBITDA by FY 2026, making it a compelling investment.

Introduction

YouGov ( YUGVF ) is a UK-based research data and analytics group. YouGov recruits its own pool of respondents to surveys and currently has about 29 million registered panel members across 63 core markets. Last year, the company closed the acquisition of CPS, a provider of data intelligence focusing on the fast-moving consumer goods industry. ...

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