AIM:CPC

Stock Analysis Report

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Executive Summary

The City Pub Group plc, together with its subsidiaries, owns, operates, and manages an estate of pubs.


Snowflake Analysis

Proven track record with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

16.8%

CPC

4.3%

GB Hospitality

3.7%

GB Market


1 Year Return

-54.1%

CPC

-25.8%

GB Hospitality

-9.5%

GB Market

Return vs Industry: CPC underperformed the UK Hospitality industry which returned -27.1% over the past year.

Return vs Market: CPC underperformed the UK Market which returned -11% over the past year.


Shareholder returns

CPCIndustryMarket
7 Day16.8%4.3%3.7%
30 Day18.2%7.3%10.8%
90 Day-34.3%-17.4%-5.0%
1 Year-54.1%-54.1%-23.2%-25.8%-5.1%-9.5%
3 Yearn/a-17.8%-26.8%-1.7%-13.7%
5 Yearn/a3.6%-14.9%16.4%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is City Pub 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: CPC (£0.98) is trading below our estimate of fair value (£3.75)

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


Price To Earnings Ratio

PE vs Industry: CPC is poor value based on its PE Ratio (35.3x) compared to the Hospitality industry average (18x).

PE vs Market: CPC is poor value based on its PE Ratio (35.3x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: CPC is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CPC is good value based on its PB Ratio (0.7x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is City Pub Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPC's forecast earnings growth (22.9% per year) is above the savings rate (1.2%).

Earnings vs Market: CPC's earnings (22.9% per year) are forecast to grow faster than the UK market (20.5% per year).

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

Revenue vs Market: CPC's revenue (4.1% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: CPC's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CPC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has City Pub Group performed over the past 5 years?

57.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPC has a large one-off loss of £2.1M impacting its June 30 2019 financial results.

Growing Profit Margin: CPC's current net profit margins (3.3%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: CPC has become profitable over the past 5 years, growing earnings by 57.4% per year.

Accelerating Growth: CPC's earnings growth over the past year (1995.6%) exceeds its 5-year average (57.4% per year).

Earnings vs Industry: CPC earnings growth over the past year (1995.6%) exceeded the Hospitality industry -10.9%.


Return on Equity

High ROE: CPC's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is City Pub Group's financial position?


Financial Position Analysis

Short Term Liabilities: CPC's short term assets (£6.9M) do not cover its short term liabilities (£9.2M).

Long Term Liabilities: CPC's short term assets (£6.9M) do not cover its long term liabilities (£31.9M).


Debt to Equity History and Analysis

Debt Level: CPC's debt to equity ratio (38.6%) is considered satisfactory.

Reducing Debt: CPC's debt to equity ratio has increased from 27.9% to 38.6% over the past 5 years.

Debt Coverage: CPC's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: CPC's interest payments on its debt are well covered by EBIT (47.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPC's dividend (2.82%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: CPC's dividend (2.82%) is low compared to the top 25% of dividend payers in the UK market (5.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CPC has been paying a dividend for less than 10 years.

Growing Dividend: CPC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.6%), CPC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPC's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).


Next Steps

Management

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

4.2yrs

Average board tenure


CEO

Rupert Clark (47yo)

5.75yrs

Tenure

UK£183,000

Compensation

Rupert Clark serves as Managing Director & Executive Director of The City Pub Company Plc. Rupert Clark served as Joint-Chief Executive of The City Pub Company (East) PLC in April 2013 and Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Rupert's total compensation ($USD229.39K) is below average for companies of similar size in the UK market ($USD341.00K).

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


Board Members

NamePositionTenureCompensationOwnership
Clive Watson
Executive Chairman5.75yrsUK£178.00k2.97% £3.0m
Rupert Clark
MD & Executive Director5.75yrsUK£183.00k0.59% £592.8k
Alexander Derrick
MD & Executive Director2.67yrsUK£180.00k0.42% £421.0k
Tarquin Williams
CFO, Finance Director & Executive Directorno dataUK£161.00k0.28% £284.1k
Richard Roberts
Non-Executive Director8.5yrsUK£71.00k0.41% £419.3k
Richard Prickett
Senior Independent Non-Executive Directorno dataUK£40.00k0.071% £72.3k
Neil Ceidrych Griffiths
Independent Non-Executive Director2.42yrsUK£29.00k0.053% £53.3k

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: CPC's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CPC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 74.7%.


Top Shareholders

Company Information

The City Pub Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The City Pub Group plc
  • Ticker: CPC
  • Exchange: AIM
  • Founded: 2011
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£101.165m
  • Shares outstanding: 103.76m
  • Website: https://www.citypubcompany.com

Number of Employees


Location

  • The City Pub Group plc
  • Essel House
  • 2nd Floor
  • London
  • Greater London
  • W1W 7TH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2017

Biography

The City Pub Group plc, together with its subsidiaries, owns, operates, and manages an estate of pubs. The company’s pub estate comprises 44 free houses located primarily in London, Cathedral cities, and market towns. Its portfolio primarily consists of freehold, managed pubs that provide a range of drinks and food tailored for its pubs’ customers. The City Pub Group plc sells craft ales, craft spirits, and independent coffee at its pubs to residents, office workers, students, tourists, and shoppers. The company was formerly known as The City Pub Company (East) PLC and changed its name to The City Pub Group plc in November 2017. The City Pub Group plc was founded in 2011 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 01:21
End of Day Share Price2020/06/03 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.