AIM:MCL

Stock Analysis Report

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Market Cap

UK£103.4m

Last Updated

2021/07/22 22:10 UTC

Data Sources

Company Financials +

Executive Summary

Morses Club PLC, together with its subsidiaries, provides home collected credit and online financial services in the United Kingdom. More Details


Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

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.


Market Performance


7 Day Return

-3.6%

MCL

-0.1%

GB Consumer Finance

-0.4%

GB Market


1 Year Return

34.5%

MCL

51.0%

GB Consumer Finance

16.6%

GB Market

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.


Shareholder returns

MCLIndustryMarket
7 Day-3.6%-0.1%-0.4%
30 Day-16.1%1.9%-1.2%
90 Day41.8%14.5%0.7%
1 Year42.1%34.5%52.7%51.0%21.9%16.6%
3 Year-47.6%-53.9%-57.1%-60.3%11.7%-1.1%
5 Year-11.5%-29.4%-71.5%-80.3%40.1%13.1%

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

Valuation

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

49.2%

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).


Future Growth

How is Morses Club forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

65.6%

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%)


Past Performance

How has Morses Club performed over the past 5 years?

-4.9%

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.


Financial Health

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.


Balance Sheet


Dividend

What is Morses Club current dividend yield, its reliability and sustainability?

3.85%

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).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Paul Smith (54 yo)

no data

Tenure

UK£482,589

Compensation

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.


Leadership Team

Experienced Management: MCL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: MCL's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • 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


Location

  • Morses Club PLC
  • Building 1
  • The Phoenix Centre
  • Nottingham
  • Nottinghamshire
  • NG8 6AT
  • United Kingdom

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/22 22:10
End of Day Share Price2021/07/22 00:00
Earnings2021/02/27
Annual Earnings2021/02/27


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.