AIM:PCF

Stock Analysis Report

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Executive Summary

PCF Group plc, together with its subsidiaries, provides hire purchase and finance lease services in the United Kingdom.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PCF

4.4%

GB Consumer Finance

2.7%

GB Market


1 Year Return

-31.5%

PCF

-55.0%

GB Consumer Finance

-12.4%

GB Market

Return vs Industry: PCF exceeded the UK Consumer Finance industry which returned -55% over the past year.

Return vs Market: PCF underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

PCFIndustryMarket
7 Day0%4.4%2.7%
30 Day-3.6%2.7%0.2%
90 Day-26.0%-2.8%4.0%
1 Year-29.4%-31.5%-53.8%-55.0%-8.8%-12.4%
3 Year-17.7%-21.3%-75.7%-81.7%-4.9%-16.3%
5 Year-0.4%-5.1%-82.4%-88.0%14.2%-11.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCF (£0.19) is trading below our estimate of fair value (£0.21)

Significantly Below Fair Value: PCF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PCF is poor value based on its PE Ratio (7.9x) compared to the GB Consumer Finance industry average (5.4x).

PE vs Market: PCF is good value based on its PE Ratio (7.9x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PCF is good value based on its PB Ratio (0.8x) compared to the GB Consumer Finance industry average (0.9x).


Next Steps

Future Growth

How is PCF Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

29.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PCF's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if PCF's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PCF's revenue (29.9% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: PCF's revenue (29.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCF's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has PCF Group performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCF has a large one-off loss of £4.2M impacting its March 31 2020 financial results.

Growing Profit Margin: PCF's current net profit margins (22.3%) are lower than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: PCF's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: PCF's earnings growth over the past year (13.7%) is below its 5-year average (24.7% per year).

Earnings vs Industry: PCF earnings growth over the past year (13.7%) exceeded the Consumer Finance industry 8.4%.


Return on Equity

High ROE: PCF's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is PCF Group's financial position?


Financial Position Analysis

Short Term Liabilities: PCF's short term assets (£433.2M) exceed its short term liabilities (£340.2M).

Long Term Liabilities: PCF's short term assets (£433.2M) exceed its long term liabilities (£46.4M).


Debt to Equity History and Analysis

Debt Level: PCF's debt to equity ratio (59%) is considered high.

Reducing Debt: PCF's debt to equity ratio has reduced from 746.5% to 59% over the past 5 years.

Debt Coverage: PCF's debt is well covered by operating cash flow (64.1%).

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


Balance Sheet


Next Steps

Dividend

What is PCF Group current dividend yield, its reliability and sustainability?

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCF's dividend (2.16%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: PCF's dividend (2.16%) is low compared to the top 25% of dividend payers in the UK market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: PCF'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 (17.1%), PCF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCF's dividends in 3 years are forecast to be well covered by earnings (15.3% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Scott Maybury (59 yo)

11.75yrs

Tenure

UK£476,000

Compensation

Mr. Scott David Maybury serves as Chief Executive Officer and Executive Director at PCF Bank Limited since December 29, 1994. Mr. Maybury has been the Chief Executive Officer at PCF Group plc since Novemb ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD622.65K) is above average for companies of similar size in the UK market ($USD349.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Maybury
CEO & Director11.75yrsUK£476.00k0.69%
£ 316.5k
David Bull
Finance Director & Executive Director5yrsUK£296.00k0.095%
£ 43.7k
Robert Murray
MD, Company Secretary & Director26.83yrsUK£285.00k0.40%
£ 183.9k
Jason McCabe
Head of Risk & Complianceno datano datano data
Andrew Currie
Head of Business & Broker Developmentno datano datano data
Suzie Yong
Head of Human Resources1.58yrsno datano data
Peter Larcombe
Head of New Businessno datano datano data
Robert Hobbs
Head of Financeno datano datano data
Dan Kench
Head of Credit Controlno datano datano data
Andrew Barber
Head of ITno datano datano data
Jim Coleman
Head of Treasuryno datano datano data

5.0yrs

Average Tenure

59yo

Average Age

Experienced Management: PCF's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Maybury
CEO & Director11.75yrsUK£476.00k0.69%
£ 316.5k
David Bull
Finance Director & Executive Director5yrsUK£296.00k0.095%
£ 43.7k
Robert Murray
MD, Company Secretary & Director26.83yrsUK£285.00k0.40%
£ 183.9k
Mark Brown
Non-Executive Director4.67yrsUK£43.00k0.080%
£ 36.8k
Timothy Franklin
Non-Executive Chairman3.67yrsUK£95.00k0.050%
£ 23.2k
Marian Martin
Non-Executive Director1.08yrsUK£11.00k0.015%
£ 6.9k
David Morgan
Non-Executive Director8.08yrsUK£43.00k0.20%
£ 92.1k
Christine Higgins
Independent Non-Executive Director3.17yrsUK£57.00k0.013%
£ 6.1k
David Titmuss
Independent Non-Executive Director3.08yrsUK£52.00k0.020%
£ 9.2k

4.7yrs

Average Tenure

58yo

Average Age

Experienced Board: PCF's board of directors are considered experienced (4.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

PCF Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PCF Group plc
  • Ticker: PCF
  • Exchange: AIM
  • Founded: 1993
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£45.968m
  • Shares outstanding: 249.49m
  • Website: https://pcf.bank/investors

Number of Employees


Location

  • PCF Group plc
  • Pinners Hall
  • 105-108 Old Broad Street
  • London
  • Greater London
  • EC2N 1ER
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1998

Biography

PCF Group plc, together with its subsidiaries, provides hire purchase and finance lease services in the United Kingdom. It operates through four segments: Consumer Finance, Business Finance, Azule Finance, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 21:27
End of Day Share Price2020/08/10 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.