AIM:OPM

Stock Analysis Report

Executive Summary

1pm plc, together with its subsidiaries, provides financial products and services to consumers and businesses in the United Kingdom.

Snowflake

Fundamentals

Very undervalued second-rate dividend payer.

Share Price & News

How has 1pm's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OPM

-0.6%

GB Diversified Financial

-0.3%

GB Market


1 Year Return

-38.6%

OPM

-41.0%

GB Diversified Financial

3.0%

GB Market

Return vs Industry: OPM exceeded the UK Diversified Financial industry which returned -41% over the past year.

Return vs Market: OPM underperformed the UK Market which returned 3% over the past year.


Shareholder returns

OPMIndustryMarket
7 Day0%-0.6%-0.3%
30 Day-6.5%4.7%-0.9%
90 Day2.3%8.0%-2.0%
1 Year-38.2%-38.6%-31.8%-41.0%8.0%3.0%
3 Year-56.1%-57.4%19.9%10.9%18.0%3.6%
5 Year-54.6%-56.4%68.3%48.0%35.8%6.4%

Price Volatility Vs. Market

How volatile is 1pm's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 1pm undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OPM (£0.29) is trading below our estimate of fair value (£1.04)

Significantly Undervalued: OPM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OPM is good value based on its PE Ratio (4x) compared to the Diversified Financial industry average (15x).

PE vs Market: OPM is good value based on its PE Ratio (4x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: OPM is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: OPM is good value based on its PB Ratio (0.5x) compared to the GB Diversified Financial industry average (1.3x).


Next Steps

Future Growth

How is 1pm forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPM's forecast earnings growth (12.1% per year) is above the savings rate (1.2%).

Earnings vs Market: OPM's earnings (12.1% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: OPM's revenue (7.9% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: OPM's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OPM's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has 1pm performed over the past 5 years?

36.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OPM's earnings have grown significantly by 36.9% per year over the past 5 years.

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

Earnings vs Industry: OPM had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Diversified Financial industry average (3.5%).


Return on Equity

High ROE: OPM's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: OPM has a higher Return on Assets than the Diversified Financial industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is 1pm'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: OPM has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPM's debt is covered by short term assets (assets are 33.891910x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is 1pm's current dividend yield, its reliability and sustainability?

3.86%

Current Dividend Yield


Upcoming Dividend Payment

Purchase 1pm before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%2.0%markettop25%5.4%industryaverage3.2%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OPM's dividend (3.86%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: OPM's dividend (3.86%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: OPM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OPM's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.5%), OPM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPM's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

What is the CEO of 1pm's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

R. Smith (57yo)

3.7yrs

Tenure

UK£267,000

Compensation

Mr. R. Ian Smith, BA, FCA, has been the Group Chief Executive Officer of 1pm PLC since February 1, 2016. Mr. Smith serves as Finance Director of Derwent Living. Mr. Smith has been with Derwent for 14 years ...


CEO Compensation Analysis

Compensation vs. Market: R.'s total compensation ($USD343.69K) is about average for companies of similar size in the UK market ($USD320.52K).

Compensation vs Earnings: R.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: OPM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: OPM's board of directors are considered experienced (3.7 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.


Ownership Breakdown


Management Team

  • Carol Roberts (71yo)

    Head of Asset Division

    • Tenure: 0.6yrs
  • R. Smith (57yo)

    Group CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£267.00k
  • Helen Walker

    Executive Officer

    • Tenure: 2.4yrs
    • Compensation: UK£137.00k
  • Ed Rimmer

    MD - Commercial Finance Division

    • Tenure: 2.3yrs
    • Compensation: UK£221.00k
  • James Matthew Roberts (41yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£181.00k
  • Jennifer Bodey

    Secretary

    • Tenure: 1.3yrs
  • Lorraine Neyland

    Head of Risk Function

    • Tenure: 0.6yrs
  • David Jones

    Head of Group IT

    • Tenure: 0.3yrs

Board Members

  • John Newman (73yo)

    Non-Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: UK£33.00k
  • Julian Telling (58yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£26.00k
  • R. Smith (57yo)

    Group CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£267.00k
  • Ron Russell (63yo)

    Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: UK£24.00k
  • Ed Rimmer

    MD - Commercial Finance Division

    • Tenure: 2.3yrs
    • Compensation: UK£221.00k
  • James Matthew Roberts (41yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£181.00k

Company Information

1pm plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 1pm plc
  • Ticker: OPM
  • Exchange: AIM
  • Founded: 2000
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: UK£24.471m
  • Shares outstanding: 88.99m
  • Website: https://www.1pm.co.uk

Number of Employees


Location

  • 1pm plc
  • St James House, The Square
  • 2nd Floor
  • Bath
  • Somerset
  • BA2 3BH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2006
OPMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2006

Biography

1pm plc, together with its subsidiaries, provides financial products and services to consumers and businesses in the United Kingdom. It offers lease financial products and services, such as vehicle finance ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:46
End of Day Share Price2019/10/18 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


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.