AIM:OCT

Stock Analysis Report

Executive Summary

Octagonal Plc, through its subsidiary, Global Investment Strategy UK Ltd, 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.

Snowflake

Fundamentals

Good value with questionable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OCT

1.1%

GB Capital Markets

1.7%

GB Market


1 Year Return

-34.1%

OCT

19.7%

GB Capital Markets

2.9%

GB Market

Return vs Industry: OCT underperformed the UK Capital Markets industry which returned 19.7% over the past year.

Return vs Market: OCT underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

OCTIndustryMarket
7 Day0%1.1%1.7%
30 Day3.8%-2.8%-0.7%
90 Day0%2.9%-1.8%
1 Year-29.1%-34.1%22.6%19.7%8.0%2.9%
3 Year-28.6%-38.6%78.1%65.5%18.2%3.8%
5 Yearn/a147.4%118.1%35.6%6.1%

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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OCT (£0.01) is trading below our estimate of fair value (£0.02)

Significantly Undervalued: OCT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OCT is good value based on its PE Ratio (7.2x) compared to the Capital Markets industry average (18.7x).

PE vs Market: OCT is good value based on its PE Ratio (7.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low 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 (1.4x).


Next Steps

Future Growth

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

-3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCT's earnings are forecast to decline over the next 3 years (-3.5% per year).

Earnings vs Market: OCT's earnings are forecast to decline over the next 3 years (-3.5% per year).

High Growth Earnings: OCT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if OCT's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if OCT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Octagonal performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OCT's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: OCT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OCT had negative earnings growth (-16.9%) over the past year, making it difficult to compare to the Capital Markets industry average (4.6%).


Return on Equity

High ROE: OCT's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: OCT has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate OCT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Octagonal's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OCT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if OCT's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: OCT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if OCT has a sufficient allowance for bad loans.

Low Risk Liabilities: OCT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OCT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OCT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OCT has an appropriate level of bad loans.


Next Steps

Dividend

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

14.81%

Current Dividend Yield


Dividend Yield vs Market

company14.8%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OCT's dividend (14.81%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: OCT's dividend (14.81%) is in the top 25% of dividend payers in the UK market (5.41%)

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 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.1%), OCT's dividend payments are not well 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

What is the CEO of Octagonal's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average board tenure


CEO

Sam Esqulant (37yo)

1.1yrs

Tenure

UK£98,000

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 Age and Tenure

3.1yrs

Average Tenure

47yo

Average Age

Experienced Board: OCT's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£3,18010 May 19
Chris Rollason
EntityIndividual
Shares200,000
Max PriceUK£0.016
BuyUK£25,13907 May 19
John Gunn
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,700,000
Max PriceUK£0.015

Ownership Breakdown


Management Team

  • Nilesh Jagatia (52yo)

    CFO, Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£42.00k
  • John Gunn (49yo)

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£154.00k
  • Sam Esqulant (37yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£98.00k

Board Members

  • Nilesh Jagatia (52yo)

    CFO, Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£42.00k
  • John Gunn (49yo)

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£154.00k
  • Sam Esqulant (37yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£98.00k
  • Anthony Hugh Binnie (45yo)

    Non Executive Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: Octagonal Plc
  • Ticker: OCT
  • Exchange: AIM
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£6.937m
  • 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 subsidiary, Global Investment Strategy UK Ltd, provides settlement, safe custody, and other ancillary services to investors, hedge funds, institutions, family offices, and high n ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:04
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
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.