LSE:JTC

Stock Analysis Report

Executive Summary

JTC PLC provides fund, corporate, and private wealth services to institutional and private clients in Africa, Asia, the Americas, the Caribbean, the Channel Islands, Europe, Isle of Man, the Middle East, and the United Kingdom.

Rewards

Trading at 26.3% below its fair value

Earnings are forecast to grow 20.68% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

JTC

3.0%

GB Professional Services

1.4%

GB Market


1 Year Return

18.0%

JTC

23.5%

GB Professional Services

12.4%

GB Market

Return vs Industry: JTC underperformed the UK Professional Services industry which returned 25.2% over the past year.

Return vs Market: JTC exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

JTCIndustryMarket
7 Day-0.2%3.0%1.4%
30 Day5.0%3.9%2.0%
90 Day12.0%14.7%8.8%
1 Year19.1%18.0%26.4%23.5%18.3%12.4%
3 Yearn/a58.8%48.0%23.8%8.0%
5 Yearn/a110.7%86.0%41.8%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is JTC undervalued compared to its fair value and its price relative to the market?

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JTC (£4.24) is trading below our estimate of fair value (£5.76)

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


Price To Earnings Ratio

PE vs Industry: JTC is poor value based on its PE Ratio (33.2x) compared to the Professional Services industry average (24.2x).

PE vs Market: JTC is poor value based on its PE Ratio (33.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: JTC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: JTC is overvalued based on its PB Ratio (3.9x) compared to the GB Professional Services industry average (3x).


Next Steps

Future Growth

How is JTC forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JTC's forecast earnings growth (20.7% per year) is above the savings rate (0.5%).

Earnings vs Market: JTC's earnings (20.7% per year) are forecast to grow faster than the UK market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JTC's revenue (9.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: JTC's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JTC's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has JTC performed over the past 5 years?

44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JTC has high quality earnings.

Growing Profit Margin: JTC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: JTC has become profitable over the past 5 years, growing earnings by 44.9% per year.

Accelerating Growth: JTC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: JTC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (16%).


Return on Equity

High ROE: JTC's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JTC's financial position?


Financial Position Analysis

Short Term Liabilities: JTC's short term assets (£69.2M) exceed its short term liabilities (£37.6M).

Long Term Liabilities: JTC's short term assets (£69.2M) do not cover its long term liabilities (£124.6M).


Debt to Equity History and Analysis

Debt Level: JTC's debt to equity ratio (72.5%) is considered high.

Reducing Debt: Insufficient data to determine if JTC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: JTC's debt is well covered by operating cash flow (26%).

Interest Coverage: JTC's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: JTC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.8%markettop25%5.0%industryaverage2.0%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: JTC's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: JTC's dividend (0.94%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: JTC is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: JTC is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: JTC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JTC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Nigel Le Quesne (58yo)

0yrs

Tenure

0

Mr. Nigel Anthony Le Quesne serves as the Group Chief Executive Officer and Executive Director of JTC plc (formerly, JTC Group Holdings Limited) and served as its Chairman. He served as Non-Executive Chair ...


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: JTC's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

58yo

Average Age

Experienced Board: JTC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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 39.2%.


Management Team

  • David Vieira

    Chief Communications Officer

    • Nigel Le Quesne (58yo)

      Group CEO & Executive Director

      • Martin Fotheringham (54yo)

        Group Chief Financial Officer & Executive Director

        • Tenure: 2yrs
      • Tony Underwood-Whitney

        Chief Commercial Officer

        • Wendy Holley

          Group Chief Operating Officer & Executive Director

          • Naomi Wright

            Associate Director and Group Secretariat

            • Adam Jeffries

              Group Chief Information Officer

              • Tenure: 6yrs
            • Carol Graham

              Group Director for Human Resources

              • Zoe Dixon-Smith

                Group Director of Risk & Compliance

                • Bill Byrne

                  Chief Group Counsel

                  • Tenure: 1yrs

                Board Members

                • Dermot Colin Mathias (70yo)

                  Independent Senior Non-Executive Director

                  • Mike Liston (68yo)

                    Non-Executive Chairman

                    • Tenure: 1.8yrs
                  • Michael Gray (53yo)

                    Non-Executive Director

                    • Tenure: 1.9yrs
                  • Nigel Le Quesne (58yo)

                    Group CEO & Executive Director

                    • Martin Fotheringham (54yo)

                      Group Chief Financial Officer & Executive Director

                      • Tenure: 2yrs
                    • Wendy Holley

                      Group Chief Operating Officer & Executive Director

                      • Vincent Goy

                        Chairman- JTC Signes Services S.A.

                        Company Information

                        JTC PLC's company bio, employee growth, exchange listings and data sources


                        Key Information

                        • Name: JTC PLC
                        • Ticker: JTC
                        • Exchange: LSE
                        • Founded: 1987
                        • Industry: Research and Consulting Services
                        • Sector: Commercial Services
                        • Market Cap: UK£462.647m
                        • Shares outstanding: 110.15m
                        • Website: https://www.jtcgroup.com

                        Number of Employees


                        Location

                        • JTC PLC
                        • 28 Esplanade
                        • JTC House
                        • St Helier
                        • JE2 3QA
                        • Jersey

                        Listings

                        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                        2N9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2018
                        JTCLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2018
                        JTCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2018

                        Biography

                        JTC PLC provides fund, corporate, and private wealth services to institutional and private clients in Africa, Asia, the Americas, the Caribbean, the Channel Islands, Europe, Isle of Man, the Middle East, and the United Kingdom. It operates through two segments, Institutional Client Services and Private Client Services. The company offers fund services for the administration of various listed and unlisted funds in a range of asset classes, including real estate, private equity, renewables, hedge, debt, and other alternatives for fund managers. It also provides company secretarial and administration services to a range of corporate clients comprising small and medium sized enterprises, public companies, multinationals, sovereign wealth funds, family offices, and private clients. In addition, the company offers private client services, including the formation and administration of vehicles, such as trusts, companies, and partnerships on behalf of high net worth individuals and ultra high net worth individuals comprising private wealth and family offices. JTC PLC was founded in 1987 and is headquartered in St Helier, Jersey. 


                        Company Analysis and Financial Data Status

                        All financial data provided by Standard & Poor's Capital IQ.
                        DataLast Updated (UTC time)
                        Company Analysis2020/01/18 21:48
                        End of Day Share Price2020/01/17 00:00
                        Earnings2019/06/30
                        Annual Earnings2018/12/31


                        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.