LSE:TCS

Stock Analysis Report

Executive Summary

TCS Group Holding PLC, through its subsidiaries, engages in online retail banking and insurance operations in Russia.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has TCS Group Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

TCS

-14.7%

GB Banks

-2.2%

GB Market


1 Year Return

-39.0%

TCS

-45.3%

GB Banks

-25.9%

GB Market

Return vs Industry: TCS exceeded the UK Banks industry which returned -45.3% over the past year.

Return vs Market: TCS underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day2.0%-14.7%-2.2%
30 Day-34.1%-29.8%-20.3%
90 Day-48.0%-44.1%-29.5%
1 Year-37.4%-39.0%-43.4%-45.3%-22.2%-25.9%
3 Year18.6%2.3%-42.9%-49.1%-16.1%-26.6%
5 Year373.7%286.2%-43.0%-53.2%-4.6%-26.1%

Price Volatility Vs. Market

How volatile is TCS Group Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TCS Group Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCS ($11.2) is trading below our estimate of fair value ($38.31)

Significantly Below Fair Value: TCS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCS is good value based on its PE Ratio (4.5x) compared to the Banks industry average (5x).

PE vs Market: TCS is good value based on its PE Ratio (4.5x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TCS is overvalued based on its PB Ratio (1.8x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is TCS Group Holding forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (15.2% per year) is above the savings rate (0.5%).

Earnings vs Market: TCS's earnings (15.2% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCS's revenue (18.8% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: TCS's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCS's Return on Equity is forecast to be high in 3 years time (33.5%)


Next Steps

Past Performance

How has TCS Group Holding performed over the past 5 years?

46.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (45.1%) are higher than last year (43.9%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have grown significantly by 46.7% per year over the past 5 years.

Accelerating Growth: TCS's earnings growth over the past year (33.4%) is below its 5-year average (46.7% per year).

Earnings vs Industry: TCS earnings growth over the past year (33.4%) exceeded the Banks industry 26.6%.


Return on Equity

High ROE: TCS's Return on Equity (37.6%) is considered high.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TCS has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCS's debt is covered by short term assets (assets are 4.6x debt).


Financial Institutions Analysis

Asset Level: TCS's level of assets compared to its equity is low.

Allowance for Bad Loans: TCS has a sufficient allowance for bad loans.

Low Risk Liabilities: TCS's liabilities are made up of primarily low risk sources of funding.

Loan Level: TCS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCS's loans are broadly funded by customer deposits.

Level of Bad Loans: TCS has a high level of bad loans (8.46%)


Next Steps

Dividend

What is TCS Group Holding's current dividend yield, its reliability and sustainability?

7.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCS's dividend (7.01%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: TCS's dividend (7.01%) is low compared to the top 25% of dividend payers in the UK market (7.43%).


Stability and Growth of Payments

Stable Dividend: TCS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TCS's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), TCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCS's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.08yrs

Average management tenure


CEO

Oliver Hughes (49yo)

no data

Tenure

Mr. Oliver Charles Hughes serves as the Chief Executive Officer at Joint Stock Company Tinkoff Bank since 2007. Mr. Hughes serves as the Chief Executive Officer at TCS Group Holding PLC. Mr. Hughes serves  ...


Leadership Team

NamePositionTenureCompensationOwnership
Oliver Hughes
Chief Executive Officerno datano datano data
Ilya Pisemsky
Chief Financial Officer & Deputy Chairman of the Management Board0.083yrno datano data
Anatoly Makeshin
Head of Payment Systems & Deputy Chairman of the Management Board0.083yrno datano data
Evgeny Ivashkevich
Risk Director & Deputy Chairman of the Management Board0.083yrno datano data
Valeria Pavlyukova
Chief Legal Officer & Deputy Chairman of the Management Boardno datano datano data
Oleg Tinkov
no datano data18.59% RUB406.2m
Natalia Izyumova
Chief Accountant & Member of the Management Board0.083yrno datano data
Pavel Khristolyubov
Chief Operating Officer0.083yrno datano data
Sergei Pirogov
Head of Corporate Finance & Member of the Board of Directors0.083yrno datano data
Viacheslav Tsyganov
Chief Information Officer & Member of Management Board11.17yrsno datano data

0.08yrs

Average Tenure

49yo

Average Age

Experienced Management: TCS's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sergei Pirogov
Head of Corporate Finance & Member of the Board of Directors0.083yrno datano data
Jacque Der Megreditchian
Independent Non-Executive Director6.5yrsno datano data
Martin Cocker
Independent Non-Executive Director6.5yrsno datano data
Maria Trimitiothou
Director7.92yrsno datano data
Constantinos Economides
Chairman of the Board of Directors4.83yrsno datano data
Alexios Ionnides
Director11.42yrsno datano data

6.5yrs

Average Tenure

46.5yo

Average Age

Experienced Board: TCS's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

TCS Group Holding PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TCS Group Holding PLC
  • Ticker: TCS
  • Exchange: LSE
  • Founded: 1999
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$2.185b
  • Shares outstanding: 195.12m
  • Website: https://www.tinkoff.ru

Number of Employees


Location

  • TCS Group Holding PLC
  • 25 Spyrou Araouzou
  • 5th Floor
  • Limassol
  • 3036
  • Cyprus

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCSLSE (London Stock Exchange)YesGDR REG SGBUSDOct 2013
TCSALSE (London Stock Exchange)GDR 144AGBUSDOct 2013
TCSLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR REG SGBUSDOct 2013
13T1DB (Deutsche Boerse AG)YesGDR REG SDEEUROct 2013
TCSGMISX (Micex - Rts)YesGDR REG SRURUBOct 2013

Biography

TCS Group Holding PLC, through its subsidiaries, engages in online retail banking and insurance operations in Russia. The company operates through four segments: Retail Banking, SME Accounts Services, Insurance Operations, and MVNO Services. It offers customer current accounts; savings, deposits, and investment savings products; custody services; credit and debit cards; consumer loans; and brokerage services. The company also provides insurance products, including accident, property, travelers', financial risks, and auto insurance products; and mobile virtual network services. TCS Group Holding PLC offers its products and services to individuals, and small and medium sized enterprises through Internet, mobile, and direct sales agents channels and partnerships. The company was formerly known as Egidaco Investments PLC and changed its name to TCS Group Holding PLC in September 2013. TCS Group Holding PLC was founded in 1999 and is based in Limassol, Cyprus. TCS Group Holding PLC is a subsidiary of Guaranty Nominees Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 07:19
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.