AIM:TCN

Stock Analysis Report

Executive Summary

Tricorn Group plc manufactures and supplies pipe and tubing assemblies for companies worldwide.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

TCN

-0.02%

GB Machinery

0.7%

GB Market


1 Year Return

-52.0%

TCN

1.6%

GB Machinery

3.6%

GB Market

Return vs Industry: TCN underperformed the UK Machinery industry which returned 1.6% over the past year.

Return vs Market: TCN underperformed the UK Market which returned 3.6% over the past year.


Shareholder returns

TCNIndustryMarket
7 Day-4.1%-0.02%0.7%
30 Day-36.5%-6.3%-0.5%
90 Day-39.7%-11.4%-1.8%
1 Year-51.5%-52.0%4.5%1.6%9.1%3.6%
3 Year18.8%17.5%20.7%11.8%19.3%4.2%
5 Year-13.6%-14.5%21.7%5.2%35.7%4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tricorn Group 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: TCN (£0.12) is trading below our estimate of fair value (£0.24)

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


Price To Earnings Ratio

PE vs Industry: TCN is good value based on its PE Ratio (4.5x) compared to the Machinery industry average (16.3x).

PE vs Market: TCN is good value based on its PE Ratio (4.5x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCN is good value based on its PB Ratio (0.5x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

How is Tricorn Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCN's forecast earnings growth (15.8% per year) is above the savings rate (1.2%).

Earnings vs Market: TCN's earnings (15.8% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: TCN's revenue (4.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: TCN's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCN's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Tricorn Group performed over the past 5 years?

62.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCN has become profitable over the past 5 years, growing earnings by 62.1% per year.

Accelerating Growth: TCN's earnings growth over the past year (30.8%) is below its 5-year average (62.1% per year).

Earnings vs Industry: TCN earnings growth over the past year (30.8%) exceeded the Machinery industry 8.7%.


Return on Equity

High ROE: TCN's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: TCN has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TCN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tricorn Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCN's short term assets (£8.4M) exceeds its short term liabilities (£7.6M)

Long Term Liabilities: TCN's short term assets (8.4M) exceeds its long term liabilities (134.0K)


Debt to Equity History and Analysis

Debt Level: TCN's debt to equity ratio (49.3%) is considered high

Reducing Debt: TCN's debt to equity ratio has reduced from 64.5% to 49.3% over the past 5 years.

Debt Coverage: TCN's debt is well covered by operating cash flow (26.2%).

Interest Coverage: TCN's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: TCN has a high level of physical assets or inventory.

Debt Coverage by Assets: TCN's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.0%markettop25%5.3%industryaverage3.0%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TCN's dividend (1.7%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: TCN's dividend (1.7%) is low compared to the top 25% of dividend payers in the UK market (5.33%).

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

Growing Dividend: TCN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.6%), TCN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCN's dividends in 3 years are forecast to be well covered by earnings (19% payout ratio).


Next Steps

Management

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

10.7yrs

Average management tenure


CEO

Mike Welburn (57yo)

11.9yrs

Tenure

UK£203,000

Compensation

Mr. Michael Ian Welburn, also known as Mike, serves as Sales Director of Redman Fittings Limited. Mr. Welburn has been the Chief Executive Officer of Tricorn Group plc. since November 2007. Mr. Welburn ser ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD261.58K) is about average for companies of similar size in the UK market ($USD319.21K).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.7yrs

Average Tenure

57yo

Average Age

Experienced Management: TCN's management team is seasoned and experienced (10.7 years average tenure).


Board Age and Tenure

10.7yrs

Average Tenure

59yo

Average Age

Experienced Board: TCN's board of directors are seasoned and experienced ( 10.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUK£10,00810 Jul 19
Phillip Lee
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares55,600
Max PriceUK£0.18
BuyUK£19,50005 Dec 18
Andrew Moss
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceUK£0.20

Ownership Breakdown


Management Team

  • Mike Welburn (57yo)

    CEO & Executive Director

    • Tenure: 11.9yrs
    • Compensation: UK£203.00k
  • Phil Lee (49yo)

    Group Finance Director

    • Tenure: 10.7yrs
    • Compensation: UK£189.00k
  • David Leakey (59yo)

    Group Sales Director & Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£153.00k

Board Members

  • Roger Allsop (76yo)

    Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: UK£15.00k
  • Andrew Moss (62yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£40.00k
  • Mike Welburn (57yo)

    CEO & Executive Director

    • Tenure: 11.9yrs
    • Compensation: UK£203.00k
  • Phil Lee (49yo)

    Group Finance Director

    • Tenure: 10.7yrs
    • Compensation: UK£189.00k
  • David Leakey (59yo)

    Group Sales Director & Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£153.00k

Company Information

Tricorn Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tricorn Group plc
  • Ticker: TCN
  • Exchange: AIM
  • Founded: 1986
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£3.783m
  • Shares outstanding: 34.30m
  • Website: https://www.tricorn.uk.com

Number of Employees


Location

  • Tricorn Group plc
  • Spring Lane
  • Malvern Link
  • Malvern
  • Worcestershire
  • WR14 1DA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCNAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1996

Biography

Tricorn Group plc manufactures and supplies pipe and tubing assemblies for companies worldwide. It operates through two segments, Transportation and Energy. The Energy segment provides manipulated tubular  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:32
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.