AIM:PCF

Stock Analysis Report

Executive Summary

PCF Group plc provides hire purchase and finance lease services in the United Kingdom.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • PCF Group has significant price volatility in the past 3 months.
  • PCF Group is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

AIM:PCF

-4.4%

GB Consumer Finance

-1.7%

GB Market


1 Year Return

-31.1%

AIM:PCF

-37.8%

GB Consumer Finance

-5.7%

GB Market

PCF outperformed the Consumer Finance industry which returned -37.6% over the past year.

PCF underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

PCFIndustryMarket
7 Day-5.6%-4.4%-1.7%
30 Day-13.0%-10.2%-4.6%
90 Day-22.7%-22.4%-3.2%
1 Year-30.5%-31.1%-34.8%-37.8%-1.3%-5.7%
3 Year-9.6%-11.3%-64.4%-74.6%17.8%4.0%
5 Year112.1%108.2%-58.1%-71.9%26.9%0.2%

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 based on future cash flows and its price relative to the stock market?

10.68x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

PCF Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

PCF Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

PCF Group is overvalued based on earnings compared to the GB Consumer Finance industry average.

PCF Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

PCF Group is good value based on expected growth next year.


Price Based on Value of Assets

PCF Group is good value based on assets compared to the GB Consumer Finance industry average.


Next Steps

Future Growth

How is PCF Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

36.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PCF Group's revenue is expected to grow significantly at over 20% yearly.

PCF Group's earnings are expected to grow significantly at over 20% yearly.

PCF Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

PCF Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

PCF Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

PCF Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PCF Group performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PCF Group has delivered over 20% year on year earnings growth in the past 5 years.

PCF Group's 1-year earnings growth exceeds its 5-year average (67.3% vs 27.7%)

PCF Group's earnings growth has exceeded the GB Consumer Finance industry average in the past year (67.3% vs 9.2%).


Return on Equity

PCF Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PCF Group used its assets less efficiently than the GB Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if PCF Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is PCF Group's financial position?


Financial Position Analysis

PCF Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

PCF Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

PCF Group's level of debt (93.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (781.6% vs 93.6% today).

Debt is well covered by operating cash flow (30.9%, greater than 20% of total debt).

Unable to confirm if the interest payments on PCF Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5.9x debt.


Next Steps

Dividend

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

1.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PCF Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).

PCF Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

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

Dividend payments have increased, but PCF Group only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.4x coverage).


Next Steps

Management

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

3.7yrs

Average board tenure


CEO

Scott Maybury

10.8yrs

Tenure

UK£439,000

Compensation

Mr. Scott D. Maybury serves as Chief Executive Officer and Director at PCF Bank Limited. Mr. Maybury has been the Chief Executive Officer at PCF Group plc since November 2008 and serves as its Director sin ...


CEO Compensation Analysis

Scott's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Scott's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

The tenure for the PCF Group board of directors is about average.


Insider Trading

Information is not available.


Recent Insider Transactions

BuyUK£20,23822 Jul 19
Scott Maybury
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares68,166
Max PriceUK£0.30
SellUK£19,60522 Jul 19
Scott Maybury
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares68,166
Max PriceUK£0.29
SellUK£10,73303 May 19
Timothy Franklin
EntityIndividual
Role
Chairman of the Board
Shares33,333
Max PriceUK£0.32
BuyUK£14,28011 Dec 18
Timothy Franklin
EntityIndividual
Role
Chairman of the Board
Shares40,000
Max PriceUK£0.36

Ownership Breakdown


Management Team

  • Andrew Currie

    Head of Business & Broker Development

  • Dan Kench

    Head of Credit Control

  • Gerald Grimes (55yo)

    Head of Commercial Development

  • Robert Hobbs

    Head of Finance

  • Peter Larcombe

    Head of New Business

  • Andrew Barber

    Head of IT

  • Jason McCabe

    Head of Risk & Compliance

  • Robert Murray

    MD, Company Secretary & Director

    • Compensation: £297.00k
  • David Bull (48yo)

    Finance Director & Executive Director

    • Tenure: 4.0yrs
    • Compensation: £332.00k
  • Scott Maybury

    CEO & Director

    • Tenure: 10.8yrs
    • Compensation: £439.00k

Board Members

  • Mark Brown (56yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: £37.00k
  • Tim Franklin (57yo)

    Non-Executive Chairman

    • Tenure: 2.7yrs
    • Compensation: £90.00k
  • David Morgan (62yo)

    Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: £37.00k
  • Marian Martin (52yo)

    Non-Executive Director

    • Tenure: 0.1yrs
  • Robert Murray

    MD, Company Secretary & Director

    • Tenure: 25.8yrs
    • Compensation: £297.00k
  • David Bull (48yo)

    Finance Director & Executive Director

    • Tenure: 4.0yrs
    • Compensation: £332.00k
  • Christine Higgins (60yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: £52.00k
  • David Titmuss (56yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: £47.00k
  • Scott Maybury

    CEO & Director

    • Tenure: 25.6yrs
    • Compensation: £439.00k

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£63.484m
  • Shares outstanding: 248.96m
  • Website: Click here

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 provides hire purchase and finance lease services in the United Kingdom. It operates through two divisions, Consumer Finance and Business Finance. The Consumer Finance Division provides finan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company AnalysisN/A
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.