Morses Club PLC, together with its subsidiaries, provides home collected credit and online financial services in the United Kingdom. More Details
Excellent balance sheet with high growth potential.
Share Price & News
How has Morses Club's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCL is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: MCL's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.
7 Day Return
GB Consumer Finance
1 Year Return
GB Consumer Finance
Return vs Industry: MCL underperformed the UK Consumer Finance industry which returned 48.2% over the past year.
Return vs Market: MCL exceeded the UK Market which returned 17% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Morses Club's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StWe Think Morses Club PLC's (LON:MCL) CEO Compensation Package Needs To Be Put Under A Microscope
2 months ago | Simply Wall StInsider Buying: The Morses Club PLC (LON:MCL) COO & Executive Director Just Bought 250% More Shares
3 months ago | Simply Wall StConsider This Before Buying Morses Club PLC (LON:MCL) For The 3.9% Dividend
Is Morses Club undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCL (£0.78) is trading below our estimate of fair value (£1.54)
Significantly Below Fair Value: MCL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCL is poor value based on its PE Ratio (472.4x) compared to the UK Consumer Finance industry average (19.6x).
PE vs Market: MCL is poor value based on its PE Ratio (472.4x) compared to the UK market (23.2x).
Price to Earnings Growth Ratio
PEG Ratio: MCL is poor value based on its PEG Ratio (7.2x)
Price to Book Ratio
PB vs Industry: MCL is overvalued based on its PB Ratio (1.5x) compared to the GB Consumer Finance industry average (1x).
How is Morses Club forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCL's forecast earnings growth (65.6% per year) is above the savings rate (0.9%).
Earnings vs Market: MCL's earnings (65.6% per year) are forecast to grow faster than the UK market (16.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MCL's revenue (9.7% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: MCL's revenue (9.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCL's Return on Equity is forecast to be high in 3 years time (25.7%)
How has Morses Club performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCL has a large one-off loss of £26.1M impacting its February 27 2021 financial results.
Growing Profit Margin: MCL's current net profit margins (0.2%) are lower than last year (7.3%).
Past Earnings Growth Analysis
Earnings Trend: MCL's earnings have declined by 4.9% per year over the past 5 years.
Accelerating Growth: MCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MCL had negative earnings growth (-97.7%) over the past year, making it difficult to compare to the Consumer Finance industry average (-38.4%).
Return on Equity
High ROE: MCL's Return on Equity (0.3%) is considered low.
How is Morses Club's financial position?
Financial Position Analysis
Short Term Liabilities: MCL's short term assets (£68.1M) exceed its short term liabilities (£12.8M).
Long Term Liabilities: MCL's short term assets (£68.1M) exceed its long term liabilities (£9.3M).
Debt to Equity History and Analysis
Debt Level: MCL's debt to equity ratio (11.8%) is considered satisfactory.
Reducing Debt: MCL's debt to equity ratio has reduced from 16.2% to 11.8% over the past 5 years.
Debt Coverage: MCL's debt is well covered by operating cash flow (398.1%).
Interest Coverage: Insufficient data to determine if MCL's interest payments on its debt are well covered by EBIT.
What is Morses Club current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCL's dividend (3.85%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).
High Dividend: MCL's dividend (3.85%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
Stability and Growth of Payments
Stable Dividend: MCL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MCL has only been paying a dividend for 4 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (1817.1%), MCL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCL's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Smith (54 yo)
Mr. Paul Mark Smith serves as Chief Executive Officer of Morses Club Plc. Mr. Smith joined Morses Club in October 2014. He serves as the Director at Consumer Credit Trade Association since March 2021. He h...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD663.88K) is above average for companies of similar size in the UK market ($USD331.17K).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Experienced Management: MCL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: MCL's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Morses Club PLC's company bio, employee growth, exchange listings and data sources
- Name: Morses Club PLC
- Ticker: MCL
- Exchange: AIM
- Founded: 2009
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: UK£103.374m
- Shares outstanding: 132.53m
- Website: https://www.morsesclubplc.com
Number of Employees
- Morses Club PLC
- Building 1
- The Phoenix Centre
- NG8 6AT
- United Kingdom
Morses Club PLC, together with its subsidiaries, provides home collected credit and online financial services in the United Kingdom. It offers a range of credit and digital e-money current account products...
Company Analysis and Financial Data Status
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|Company Analysis||2021/07/22 22:10|
|End of Day Share Price||2021/07/22 00:00|
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.