AIM:TEF

Stock Analysis Report

Executive Summary

Telford Homes Plc engages in the housebuilding and property development businesses in the United Kingdom.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TEF

0.8%

GB Consumer Durables

-0.5%

GB Market


1 Year Return

-15.1%

TEF

40.8%

GB Consumer Durables

6.0%

GB Market

Return vs Industry: TEF underperformed the UK Consumer Durables industry which returned 34.2% over the past year.

Return vs Market: TEF underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

TEFIndustryMarket
7 Day0%0.8%-0.5%
30 Day0.1%4.7%-1.8%
90 Day-2.4%25.0%2.4%
1 Year-10.1%-15.1%50.9%40.8%11.5%6.0%
3 Year29.3%12.4%86.5%55.6%18.2%3.5%
5 Year26.8%3.2%138.4%79.1%34.3%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Telford Homes 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: TEF (£3.5) is trading below our estimate of fair value (£32.14)

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


Price To Earnings Ratio

PE vs Industry: TEF is good value based on its PE Ratio (7.8x) compared to the Consumer Durables industry average (12.1x).

PE vs Market: TEF is good value based on its PE Ratio (7.8x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TEF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TEF is good value based on its PB Ratio (1x) compared to the GB Consumer Durables industry average (1.7x).


Next Steps

Future Growth

How is Telford Homes forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEF's earnings are forecast to decline over the next 3 years (-6.2% per year).

Earnings vs Market: TEF's earnings are forecast to decline over the next 3 years (-6.2% per year).

High Growth Earnings: TEF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TEF's revenue (16% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: TEF's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEF's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Telford Homes performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEF has high quality earnings.

Growing Profit Margin: TEF's current net profit margins (10%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: TEF's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: TEF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEF had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (4.4%).


Return on Equity

High ROE: TEF's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Telford Homes's financial position?


Financial Position Analysis

Short Term Liabilities: TEF's short term assets (£337.5M) exceed its short term liabilities (£169.3M).

Long Term Liabilities: TEF's short term assets (£337.5M) exceed its long term liabilities (£3.7M).


Debt to Equity History and Analysis

Debt Level: TEF's debt to equity ratio (42.1%) is considered high.

Reducing Debt: TEF's debt to equity ratio has increased from 26.9% to 42.1% over the past 5 years.

Debt Coverage: TEF's debt is well covered by operating cash flow (64.9%).

Interest Coverage: TEF's interest payments on its debt are well covered by EBIT (62.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: TEF's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

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

4.86%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.8%markettop25%5.0%industryaverage4.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: TEF's dividend (4.86%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: TEF's dividend (4.86%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: TEF's dividends per share have been stable in the past 10 years.

Growing Dividend: TEF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), TEF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEF's dividends in 3 years are forecast to be well covered by earnings (46.5% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Jon Di-Stefano (44yo)

8.3yrs

Tenure

UK£585,224

Compensation

Mr. Jonathan Graham Di-Stefano, also known as Jon, MA (Econ), ACA has been the Chief Executive Officer of Telford Homes PLC since July 1, 2011. Mr. Di-Stefano served as Financial Director of Telford Homes  ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD716.79K) is about average for companies of similar size in the UK market ($USD864.74K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Wiseman
Executive Chairman7.8yrsUK£177.14k2.91% £7.7m
Jonathan Di-Stefano
CEO & Director8.3yrsUK£585.22k0.76% £2.0m
Katie Rogers
CFO & Director8.3yrsUK£456.61k0.18% £474.9k
John Fitzgerald
Group MD & Director12.2yrsUK£460.98k0.20% £531.7k
Jerome Geoghegan
Group Land & Planning Director and Director1.7yrsUK£382.28k0.0016% £4.4k
Guy Lambert
Head of Corporate Communications0yrsno datano data
Mark Duffield
Managing Director of Metro0yrsUK£123.96kno data
Monique Woudberg
Company Secretary0yrsno datano data

8.3yrs

Average Tenure

48yo

Average Age

Experienced Management: TEF's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Wiseman
Executive Chairman7.8yrsUK£177.14k2.91% £7.7m
Jonathan Di-Stefano
CEO & Director8.3yrsUK£585.22k0.76% £2.0m
Katie Rogers
CFO & Director8.3yrsUK£456.61k0.18% £474.9k
John Fitzgerald
Group MD & Director12.2yrsUK£460.98k0.20% £531.7k
Jerome Geoghegan
Group Land & Planning Director and Director1.7yrsUK£382.28k0.0016% £4.4k
Jane Earl
Non-Executive Director3.7yrsUK£59.00k0.0090% £23.9k

7.8yrs

Average Tenure

49.5yo

Average Age

Experienced Board: TEF's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TEF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Telford Homes Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telford Homes Plc
  • Ticker: TEF
  • Exchange: AIM
  • Founded: 2000
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£265.671m
  • Shares outstanding: 76.01m
  • Website: https://www.telfordhomes.london

Number of Employees


Location

  • Telford Homes Plc
  • Telford House
  • Queensgate
  • Waltham Cross
  • Hertfordshire
  • EN8 7TF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2001

Biography

Telford Homes Plc engages in the housebuilding and property development businesses in the United Kingdom. The company develops residential and mixed use properties. Its customers include institutional investors in the build to rent sector, housing associations, individual buy-to-let investors, and owner-occupiers. The company was founded in 2000 and is headquartered in Waltham Cross, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/01 20:39
End of Day Share Price2019/10/01 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.