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Paragon Banking Group

LSE:PAG
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PAG
LSE
£1B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Paragon Banking Group PLC provides financial services in the United Kingdom. The last earnings update was 2 days ago. More info.


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PAG Share Price and Events
7 Day Returns
-6.1%
LSE:PAG
-3%
GB Mortgage
-1.3%
GB Market
1 Year Returns
-15.1%
LSE:PAG
-4.2%
GB Mortgage
-5.9%
GB Market
PAG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Paragon Banking Group (PAG) -6.1% -3.9% 2.6% -15.1% 39.4% 15.6%
GB Mortgage -3% -3.6% 4% -4.2% 15.9% 2.1%
GB Market -1.3% -3.3% 0.8% -5.9% 12.6% 0.4%
1 Year Return vs Industry and Market
  • PAG underperformed the Mortgage industry which returned -4.2% over the past year.
  • PAG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.9% over the past year.
Price Volatility
PAG
Industry
5yr Volatility vs Market

PAG Value

 Is Paragon Banking Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Paragon Banking Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Paragon Banking Group.

LSE:PAG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= £4.84 * 12.9%
£0.62
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. £4.84
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PAG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.901 (1 + (1- 19%) (670.38%))
4.211
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 6.65%)
14.53%

Discounted Cash Flow Calculation for LSE:PAG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Paragon Banking Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:PAG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.9% – 14.53%) * £4.84)
£-0.08
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-0.08 / (14.53% - 1.23%)
£-0.61
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £4.84 + £-0.61
£4.23
LSE:PAG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.23
Current discount Discount to share price of £4.34
= -1 x (£4.34 - £4.23) / £4.23
-2.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Paragon Banking Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Paragon Banking Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Paragon Banking Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PAG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.55
LSE:PAG Share Price ** LSE (2019-05-24) in GBP £4.34
United Kingdom of Great Britain and Northern Ireland Mortgage Industry PE Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 7.66x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Paragon Banking Group.

LSE:PAG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PAG Share Price ÷ EPS (both in GBP)

= 4.34 ÷ 0.55

7.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paragon Banking Group is overvalued based on earnings compared to the GB Mortgage industry average.
  • Paragon Banking Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Paragon Banking Group's expected growth come at a high price?
Raw Data
LSE:PAG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
7.7%per year
Europe Mortgage Industry PEG Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 0.91x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:PAG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.92x ÷ 7.7%

1.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paragon Banking Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Paragon Banking Group's assets?
Raw Data
LSE:PAG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £4.21
LSE:PAG Share Price * LSE (2019-05-24) in GBP £4.34
United Kingdom of Great Britain and Northern Ireland Mortgage Industry PB Ratio Median Figure of 7 Publicly-Listed Mortgage Companies 1.1x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.48x
LSE:PAG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PAG Share Price ÷ Book Value per Share (both in GBP)

= 4.34 ÷ 4.21

1.03x

* Primary Listing of Paragon Banking Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paragon Banking Group is good value based on assets compared to the GB Mortgage industry average.
X
Value checks
We assess Paragon Banking Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Paragon Banking Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PAG Future Performance

 How is Paragon Banking Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Paragon Banking Group expected to grow at an attractive rate?
  • Paragon Banking Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Paragon Banking Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Paragon Banking Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PAG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PAG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 7.7%
LSE:PAG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6.7%
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 11.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PAG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PAG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 375 160 1
2021-09-30 363 161 7
2020-09-30 337 148 9
2019-09-30 309 125 5
LSE:PAG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 326 736 142
2018-12-31 318 905 144
2018-09-30 310 1,074 146
2018-06-30 290 1,370 134
2018-03-31 270 1,666 123
2017-12-31 266 1,571 120
2017-09-30 262 1,475 117
2017-06-30 258 1,211 117
2017-03-31 254 946 117
2016-12-31 251 906 116
2016-09-30 249 865 116
2016-06-30 240 565 115

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Paragon Banking Group's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Paragon Banking Group's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PAG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Paragon Banking Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PAG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 0.61 0.61 0.61 1.00
2021-09-30 0.61 0.65 0.58 6.00
2020-09-30 0.56 0.57 0.54 7.00
2019-09-30 0.50 0.51 0.49 6.00
LSE:PAG Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.55
2018-12-31 0.55
2018-09-30 0.56
2018-06-30 0.51
2018-03-31 0.46
2017-12-31 0.45
2017-09-30 0.43
2017-06-30 0.42
2017-03-31 0.42
2016-12-31 0.41
2016-09-30 0.40
2016-06-30 0.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Paragon Banking Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Paragon Banking Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Paragon Banking Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PAG Past Performance

  How has Paragon Banking Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Paragon Banking Group's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Paragon Banking Group's year on year earnings growth rate has been positive over the past 5 years.
  • Paragon Banking Group's 1-year earnings growth exceeds its 5-year average (15.6% vs 8.3%)
  • Paragon Banking Group's earnings growth has exceeded the GB Mortgage industry average in the past year (15.6% vs 9.4%).
Earnings and Revenue History
Paragon Banking Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Paragon Banking Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PAG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 325.50 141.90 2.90
2018-12-31 317.60 143.85 2.95
2018-09-30 309.70 145.80 3.00
2018-06-30 289.90 134.30 3.30
2018-03-31 270.10 122.80 3.60
2017-12-31 266.00 120.00 3.75
2017-09-30 261.90 117.20 3.90
2017-06-30 258.10 116.85 3.80
2017-03-31 254.30 116.50 3.70
2016-12-31 251.45 116.25 3.55
2016-09-30 248.60 116.00 3.40
2016-06-30 240.20 114.60 3.55
2016-03-31 228.90 113.20 3.30
2015-12-31 217.75 110.15 3.10
2015-09-30 206.60 107.10 2.90
2015-06-30 201.05 104.25 2.70
2015-03-31 196.80 101.40 2.50
2014-12-31 190.70 99.30 2.50
2014-09-30 184.60 97.20 2.50
2014-06-30 178.65 94.95 2.55
2014-03-31 172.70 92.70 2.60
2013-12-31 167.10 88.70 2.60
2013-09-30 161.50 84.70 2.60
2013-06-30 157.00 80.55 2.60
2013-03-31 152.80 76.10 3.00
2012-12-31 148.35 74.15 3.00
2012-09-30 143.90 72.20 3.00
2012-06-30 136.40 68.50 2.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Paragon Banking Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Paragon Banking Group used its assets less efficiently than the GB Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Paragon Banking Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Paragon Banking Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Paragon Banking Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PAG Health

 How is Paragon Banking Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Paragon Banking Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Paragon Banking Group Company Filings, last reported 1 month ago.

LSE:PAG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,087.00 7,526.50 1,823.30
2018-12-31 1,087.00 7,526.50 1,823.30
2018-09-30 1,095.90 7,965.90 2,166.30
2018-06-30 1,095.90 7,965.90 2,166.30
2018-03-31 1,020.60 7,897.90 1,826.00
2017-12-31 1,020.60 7,897.90 1,826.00
2017-09-30 1,009.40 8,934.30 2,403.50
2017-06-30 1,009.40 8,934.30 2,403.50
2017-03-31 994.20 9,852.90 1,173.60
2016-12-31 994.20 9,852.90 1,173.60
2016-09-30 969.50 10,518.40 2,604.00
2016-06-30 969.50 10,518.40 1,237.60
2016-03-31 964.40 10,341.50 895.30
2015-12-31 964.40 10,341.50 895.30
2015-09-30 969.50 10,112.30 1,056.00
2015-06-30 969.50 10,112.30 1,056.00
2015-03-31 952.50 9,997.80 812.60
2014-12-31 952.50 9,997.80 812.60
2014-09-30 947.10 9,808.30 848.80
2014-06-30 947.10 9,808.30 848.80
2014-03-31 909.90 9,660.60 716.30
2013-12-31 909.90 9,660.60 716.30
2013-09-30 873.30 9,386.40 587.30
2013-06-30 873.30 9,386.40 587.30
2013-03-31 819.90 9,532.30 561.40
2012-12-31 819.90 9,532.30 561.40
2012-09-30 803.50 9,161.00 504.80
2012-06-30 803.50 9,161.00 504.80
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if Paragon Banking Group has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if Paragon Banking Group's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • Paragon Banking Group reports no customer deposits, loans are made up entirely of borrowed funds.
  • Paragon Banking Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Paragon Banking Group has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if Paragon Banking Group has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess Paragon Banking Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Paragon Banking Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PAG Dividends

 What is Paragon Banking Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.47%
Current annual income from Paragon Banking Group dividends. Estimated to be 5.38% next year.
If you bought £2,000 of Paragon Banking Group shares you are expected to receive £89 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Paragon Banking Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.03%).
  • Paragon Banking Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.33%).
Upcoming dividend payment

Purchase Paragon Banking Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PAG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PAG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.25 1.00
2021-09-30 0.26 12.00
2020-09-30 0.23 12.00
2019-09-30 0.21 13.00
LSE:PAG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-29 0.194 4.542
2018-11-21 0.194 4.420
2018-01-12 0.157 3.264
2017-11-23 0.157 3.227
2017-01-09 0.135 3.121
2016-11-23 0.135 3.465
2016-01-11 0.110 3.621
2015-11-24 0.110 3.024
2014-11-27 0.090 2.145
2014-05-21 0.078 2.232
2014-01-03 0.072 1.902
2013-11-26 0.072 2.043
2013-05-21 0.069 2.139
2012-11-20 0.060 2.050
2011-11-22 0.040 2.152
2010-11-24 0.036 2.069
2009-11-24 0.033 2.350
2009-09-30 0.033 2.188

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Paragon Banking Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Paragon Banking Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Paragon Banking Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Paragon Banking Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PAG Management

 What is the CEO of Paragon Banking Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nigel Terrington
COMPENSATION £2,607,000
AGE 58
TENURE AS CEO 23.9 years
CEO Bio

Mr. Nigel S. Terrington has been the Chief Executive of Paragon Banking Group Plc since June 1995. Mr. Terrington is Chief Executive and Director of Paragon Bank PLC. Mr. Terrington joined Paragon Group of Companies PLC in 1987 as Treasurer and served as its Finance Director since 1990. He began his career in investment banking, working for UBS. He serves as a Director at Paragon Banking Group Plc. He serves as a Non Executive Director of Paragon Bank PLC. Mr. Terrington is Chairman of the Finance and Leasing Association's Consumer Finance Division. He is Chairman of the CML. He was the Chairman of the Intermediary Mortgage Lenders Association. He is a Board Member of the Finance and Leasing Association (FLA). He is a member of HM Treasury’s Home Finance Forum and the Bank of England’s Residential Property Forum. He is an Associate of the Chartered Institute of Bankers. In 2017, he received an Honorary Doctorate from Birmingham City University for services to the finance industry.

CEO Compensation
  • Nigel's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nigel's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Paragon Banking Group management team in years:

5.2
Average Tenure
58
Average Age
  • The average tenure for the Paragon Banking Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Nigel Terrington

TITLE
Chief Executive & Director
COMPENSATION
£3M
AGE
58
TENURE
23.9 yrs

Richard Woodman

TITLE
CFO & Director
COMPENSATION
£2M
AGE
52
TENURE
5 yrs

John Heron

TITLE
MD of Mortgages & Director
COMPENSATION
£1M
AGE
59

Pam Rowland

TITLE
Chief Operating Officer
TENURE
5.3 yrs

Anne Barnett

TITLE
People Director

Tony Armitage

TITLE
Head of Redbrick Landlords Insurance
TENURE
9.8 yrs

Dave Newcombe

TITLE
Managing Director of Idem Capital
TENURE
5.3 yrs

Richard Doe

TITLE
Managing Director of Commercial Lending
TENURE
1.5 yrs

Malcolm Hayes

TITLE
Chief Risk Officer
TENURE
3.9 yrs

Jan Greenhalgh

TITLE
Head of New Business-Asset Finance
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Paragon Banking Group board of directors in years:

1.7
Average Tenure
59
Average Age
  • The average tenure for the Paragon Banking Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fiona Clutterbuck

TITLE
Chairman
COMPENSATION
£164K
AGE
60
TENURE
1 yrs

Nigel Terrington

TITLE
Chief Executive & Director
COMPENSATION
£3M
AGE
58

Richard Woodman

TITLE
CFO & Director
COMPENSATION
£2M
AGE
52
TENURE
7.3 yrs

John Heron

TITLE
MD of Mortgages & Director
COMPENSATION
£1M
AGE
59
TENURE
16.3 yrs

Peter James Hartill

TITLE
Senior Independent Director
COMPENSATION
£88K
AGE
68

Hugo Tudor

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
AGE
54
TENURE
4.5 yrs

Finlay Williamson

TITLE
Non-Executive Director
COMPENSATION
£85K
AGE
58
TENURE
1.7 yrs

Barbara Ridpath

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
61
TENURE
1.7 yrs

Graeme Yorston

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
60
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • Paragon Banking Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
27. Feb 19 Sell Hugo Tudor Individual 27. Feb 19 27. Feb 19 -50,000 £4.30 £-214,660
18. Feb 19 Buy Barbara Ridpath Individual 18. Feb 19 18. Feb 19 2,358 £4.22 £9,948
23. Aug 18 Sell Alan Fletcher Individual 22. Aug 18 22. Aug 18 -20,000 £4.92 £-98,441
X
Management checks
We assess Paragon Banking Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Paragon Banking Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PAG News

Simply Wall St News

Should You Worry About Paragon Banking Group PLC's (LON:PAG) CEO Pay Cheque?

According to our data, Paragon Banking Group PLC has a market capitalization of UK£1.2b, and pays its CEO total annual compensation worth UK£2.6m. … It would therefore appear that Paragon Banking Group PLC pays Nigel Terrington more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at Paragon Banking Group PLC with the amount paid at companies with a similar market capitalization.

Simply Wall St -

What Does Paragon Banking Group PLC's (LON:PAG) Share Price Indicate?

Paragon Banking Group PLC (LON:PAG), operating in the financial services industry based in United Kingdom,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Paragon Banking Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Paragon Banking Group (LON:PAG) Shareholders Have Enjoyed A 51% Share Price Gain

For example, the Paragon Banking Group PLC (LON:PAG) share price is up 51% in the last three years, clearly besting than the market return of around 16% (not including dividends). … Paragon Banking Group was able to grow its EPS at 16% per year over three years, sending the share price higher. … We know that Paragon Banking Group has improved its bottom line lately, but is it going to grow revenue

Simply Wall St -

Paragon Banking Group PLC (LON:PAG) Insiders Have Been Selling

So before you buy or sell Paragon Banking Group PLC (LON:PAG), you may well want to know whether insiders have been buying or selling. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign … All up, insiders sold more shares in Paragon Banking Group than they bought, over the last year

Simply Wall St -

What Makes Paragon Banking Group PLC (LON:PAG) A Great Dividend Stock?

There is a lot to be liked about Paragon Banking Group PLC (LON:PAG) as an income stock. … The company currently pays out a dividend yield of 4.5% to shareholders, making it a relatively attractive dividend stock. … Does Paragon Banking Group tick all the boxes of a great dividend stock?

Simply Wall St -

Does Paragon Banking Group PLC (LON:PAG) Have A High Beta?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

What Should You Know About Paragon Banking Group PLC's (LON:PAG) Earnings Trend?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … Paragon Banking Group PLC's (LON:PAG) most recent earnings announcement in September 2018a

Simply Wall St -

Paragon Banking Group PLC (LON:PAG): Earnings Growth Remains Elusive

Help shape the future of investing tools and you could win a $250 gift card! … Based on Paragon Banking Group PLC's (LON:PAG) earnings update in September 2018, … with earnings expected to decline by -8.3% in the upcoming year

Simply Wall St -

Is There Now An Opportunity In Paragon Banking Group PLC (LON:PAG)?

Paragon Banking Group PLC (LON:PAG), operating in the financial services industry based in United Kingdom,. … A question to answer is whether Paragon Banking Group's current trading price of £4.14 reflective of the actual value of the? … Let’s take a look at Paragon Banking Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Before You Buy Paragon Banking Group PLC's (LON:PAG), Consider This

If you're interested in Paragon Banking Group PLC (LON:PAG), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St -

PAG Company Info

Description

Paragon Banking Group PLC provides financial services in the United Kingdom. The company operates through three segments: Mortgages, Commercial Lending, and Idem Capital. The Mortgages segment offers buy-to-let first charge, and owner-occupied first and second charge mortgages on residential property. The Commercial Lending segment provides asset and motor finance; and financing of waste collection vehicles for local authorities, construction equipment, and complex veterinary equipment. The Commercial Lending segment provides equipment and motor finance leasing, development finance, structured lending and other offerings to SME customers The Idem Capital segment offers secured and unsecured consumer finance. The company was formerly known as The Paragon Group of Companies PLC and changed its name to Paragon Banking Group PLC in September 2017. Paragon Banking Group PLC was founded in 1985 and is headquartered in Solihull, the United Kingdom.

Details
Name: Paragon Banking Group PLC
PAG
Exchange: LSE
Founded: 1985
£1,122,725,075
258,454,207
Website: http://www.paragonbankinggroup.co.uk
Address: Paragon Banking Group PLC
Paragon House,
51 Homer Road,
Solihull,
West Midlands, B91 3QJ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PAG Ordinary Shares London Stock Exchange GB GBP 07. Mar 1995
DB 46P1 Ordinary Shares Deutsche Boerse AG DE EUR 07. Mar 1995
BATS-CHIXE PAGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Mar 1995
Number of employees
Current staff
Staff numbers
1,350
Paragon Banking Group employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 21:14
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/05/22
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.