AIM:MCL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued average dividend payer.


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 +/- 11% a week.

Volatility Over Time: MCL's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

12.0%

MCL

0.1%

GB Consumer Finance

2.2%

GB Market


1 Year Return

-62.8%

MCL

-29.8%

GB Consumer Finance

-5.6%

GB Market

Return vs Industry: MCL underperformed the UK Consumer Finance industry which returned -29.8% over the past year.

Return vs Market: MCL underperformed the UK Market which returned -5.6% over the past year.


Shareholder returns

MCLIndustryMarket
7 Day12.0%0.1%2.2%
30 Day47.8%18.3%12.1%
90 Day-12.3%20.6%10.9%
1 Year-62.1%-62.8%-29.0%-29.8%-1.8%-5.6%
3 Year-59.6%-64.2%-36.2%-51.3%4.8%-7.9%
5 Yearn/a-78.3%-85.5%35.9%5.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCL (£0.48) is trading below our estimate of fair value (£1.28)

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


Price To Earnings Ratio

PE vs Industry: MCL is good value based on its PE Ratio (6.6x) compared to the GB Consumer Finance industry average (9.1x).

PE vs Market: MCL is good value based on its PE Ratio (6.6x) compared to the UK market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: MCL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MCL is good value based on its PB Ratio (0.9x) compared to the GB Consumer Finance industry average (1.1x).


Next Steps

Future Growth

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

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCL's forecast earnings growth (13.5% per year) is above the savings rate (1.2%).

Earnings vs Market: MCL's earnings (13.5% per year) are forecast to grow slower than the UK market (26.2% per year).

High Growth Earnings: MCL's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCL's revenue (6.2% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: MCL's revenue (6.2% 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 low in 3 years time (16.6%).


Next Steps

Past Performance

How has Morses Club performed over the past 5 years?

-18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCL has a large one-off loss of £39.2M impacting its February 29 2020 financial results.

Growing Profit Margin: MCL's current net profit margins (7.3%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: MCL's earnings have declined by 18.4% 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 (-41.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (5.9%).


Return on Equity

High ROE: MCL's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Morses Club's financial position?


Financial Position Analysis

Short Term Liabilities: MCL's short term assets (£89.5M) exceed its short term liabilities (£8.0M).

Long Term Liabilities: MCL's short term assets (£89.5M) exceed its long term liabilities (£35.4M).


Debt to Equity History and Analysis

Debt Level: MCL's debt to equity ratio (47.9%) is considered high.

Reducing Debt: MCL's debt to equity ratio has increased from 0.05% to 47.9% over the past 5 years.

Debt Coverage: MCL's debt is well covered by operating cash flow (63.3%).

Interest Coverage: Insufficient data to determine if MCL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

7.56%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MCL's dividend (7.56%) is higher than the bottom 25% of dividend payers in the UK market (1.67%).

High Dividend: MCL's dividend (7.56%) is in the top 25% of dividend payers in the UK market (4.79%)


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 reasonably low payout ratio (49.6%), MCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCL's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Paul Smith (53 yo)

no data

Tenure

UK£708,810

Compensation

Mr. Paul Mark Smith serves as Chief Executive Officer of Morses Club Plc. Mr. Smith joined Morses Club in October 2014. He has been responsible for growing Morses Club by acquisition and organically. He ha...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD340.62K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Paul Smith
CEO & Directorno dataUK£708.81k0.25%
£ 139.2k
Graeme Campbell
CFO & Executive Director0.17yrno datano data
Leslie Easson
Director1.25yrsno datano data
Nigel Knowles
Senior Independent Non-Executive Director3.83yrsUK£56.67k0.027%
£ 14.9k
Stephen Karle
Independent Non-Executive Chairmanno dataUK£122.16k0.17%
£ 96.9k
Peter Ward
Non-Executive Director5.75yrsUK£51.00k0.30%
£ 170.0k
Joanne Lake
Independent Non-Executive Director4.67yrsUK£57.52k0.018%
£ 9.8k
Simone Finn
Independent Non-Executive Director1.58yrsno datano data

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: MCL's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

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 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£55.779m
  • Shares outstanding: 131.24m
  • Website: https://www.morsesclubplc.com

Number of Employees


Location

  • Morses Club PLC
  • Kingston House
  • Centre 27 Business Park
  • Batley
  • West Yorkshire
  • WF17 9TD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2016

Biography

Morses Club PLC, together with its subsidiaries, provides home collected credit services in the United Kingdom. It offers small cash loans between £100 and £1000. The company offers consumer credit through...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 18:48
End of Day Share Price2020/12/04 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.