AIM:OCT

Stock Analysis Report

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Executive Summary

Octagonal Plc, through its subsidiaries, provides settlement, safe custody, and other ancillary services to investors, hedge funds, institutions, family offices, and high net worth individuals primarily in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

OCT

-4.7%

GB Capital Markets

-3.1%

GB Market


1 Year Return

0%

OCT

-5.0%

GB Capital Markets

-17.0%

GB Market

Return vs Industry: OCT exceeded the UK Capital Markets industry which returned -5.2% over the past year.

Return vs Market: OCT exceeded the UK Market which returned -17.2% over the past year.


Shareholder returns

OCTIndustryMarket
7 Day0%-4.7%-3.1%
30 Day0%-4.4%-3.3%
90 Day0%-0.9%-4.0%
1 Year7.7%0%-1.8%-5.0%-13.7%-17.0%
3 Year-38.9%-47.5%21.3%6.8%-8.3%-19.3%
5 Year76.0%51.2%69.0%38.5%18.5%-7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCT (£0.02) is trading below our estimate of fair value (£0.02)

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


Price To Earnings Ratio

PE vs Industry: OCT is good value based on its PE Ratio (6.3x) compared to the GB Capital Markets industry average (16.5x).

PE vs Market: OCT is good value based on its PE Ratio (6.3x) compared to the UK market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OCT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OCT is good value based on its PB Ratio (0.9x) compared to the GB Capital Markets industry average (1.1x).


Next Steps

Future Growth

How is Octagonal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Octagonal has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Octagonal performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCT has a large one-off gain of £1.5M impacting its September 30 2019 financial results.

Growing Profit Margin: OCT's current net profit margins (34.8%) are higher than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: OCT's earnings have grown significantly by 32% per year over the past 5 years.

Accelerating Growth: OCT's earnings growth over the past year (16.4%) is below its 5-year average (32% per year).

Earnings vs Industry: OCT earnings growth over the past year (16.4%) exceeded the Capital Markets industry 1.3%.


Return on Equity

High ROE: OCT's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Octagonal's financial position?


Financial Position Analysis

Short Term Liabilities: OCT's short term assets (£6.9M) exceed its short term liabilities (£639.0K).

Long Term Liabilities: OCT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: OCT is debt free.

Reducing Debt: OCT has not had any debt for past 5 years.

Debt Coverage: OCT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OCT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Octagonal current dividend yield, its reliability and sustainability?

12.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCT's dividend (12.9%) is higher than the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: OCT's dividend (12.9%) is in the top 25% of dividend payers in the UK market (5.18%)


Stability and Growth of Payments

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

Growing Dividend: OCT has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.7%), OCT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average board tenure


CEO

Sam Esqulant (38 yo)

2yrs

Tenure

UK£186,000

Compensation

Ms. Samantha Dru Esqulant, also known as Sam, has been Chief Executive Officer at Octagonal Plc since September 25,2018 and has been Chief Operating Officer and Executive Director at Octagonal Plc since No ...


Board Members

NamePositionTenureCompensationOwnership
John Gunn
Executive Chairman3.25yrsUK£530.00k52.89%
£ 4.7m
Samantha Esqulant
CEO & Executive Director2yrsUK£186.00kno data
Nilesh Jagatia
CFO, Secretary & Executive Director5.25yrsUK£78.00kno data
Anthony Hugh Binnie
Independent Non Executive Director2.5yrsUK£12.00kno data

4.0yrs

Average Tenure

48yo

Average Age

Experienced Board: OCT's board of directors are considered experienced (4 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

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


Key Information

  • Name: Octagonal Plc
  • Ticker: OCT
  • Exchange: AIM
  • Founded: 2007
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£8.813m
  • Shares outstanding: 568.58m
  • Website: https://www.octagonalplc.com

Number of Employees


Location

  • Octagonal Plc
  • 2 London Wall Buildings
  • 2nd Floor
  • London
  • Greater London
  • EC2M 5PP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2015

Biography

Octagonal Plc, through its subsidiaries, provides settlement, safe custody, and other ancillary services to investors, hedge funds, institutions, family offices, and high net worth individuals primarily in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 03:07
End of Day Share Price2020/09/25 00:00
Earnings2019/09/30
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.