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System1 Group

SYS1.L
61
Advertising Agencies · Communication Services
Price
330.00 GBp
+0.00 (+0.00%)
Market Cap
41.9M GBp
Exchange
London Stock Exchange
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Strong
Stability
Exceptional
Valuation
Good
Dividends
Strong

Share count falling — buybacks

1.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 12.9M (2022) → 12.7M (2026)

Winston Score History

The full picture

System1 Group is a UK-based marketing research and advertising testing company. It helps brands figure out whether their ads will actually work before spending money to run them. Major customers include large consumer goods companies, retailers, and media agencies that want data-driven feedback on their creative content.

The company makes money by charging clients fees to test advertisements, packaging, and brand ideas using its proprietary database of emotional response data. It operates primarily in the UK, US, and Europe, and its competitive edge comes from a large historical dataset of ad performance benchmarks that is difficult for rivals to replicate quickly. The main growth driver is expanding its self-serve testing platform, which lets clients run tests faster and at lower cost — though a key risk is that larger research firms and AI-powered creative testing tools could erode its pricing power over time.

Score breakdown

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Quality

Profit per sale
Gross Margin
83.4%
Premium pricing power — 83.4% gross margin
Profit after running costs
Operating Margin
8.2%
Modest — 8.2% operating margin
Return on the money invested
ROCE
12.6%
Good — 12.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-1.3%
Shrinking sales (-1.3% YoY)
Profit growth
EPS YoY
-70.4%
Earnings shrinking (-70.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
153%
Turns 153% of profit into real cash
Spare cash per sale
FCF Margin
5.1%
Thin free cash flow (5.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.04
Conservative — low debt load (0.04)
Covers its interest
Interest Cover
52.11x
Comfortably covers interest (52.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
31.9x
Pricey — P/E 31.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+17.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (31.9 → 14.1)

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Dividends

Dividend
Dividend Yield
3.38%
Moderate income — 3.38% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+54.0%
Dividend growing fast (54.0% YoY)

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