Peel Hunt (AIM:PEEL) - Share price, News & Analysis

Q: What is the Fair Price of PEEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PEEL (£1.04) is trading below our estimate of [[fair value]] (£12.31)

PEEL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

PEEL Stock Overview

Peel Hunt Limited operates as a mid and small-cap focused investment bank in the United Kingdom.

Rewards

Trading at 91.6% below our estimate of its fair value

Earnings are forecast to grow 21.14% per year

Earnings grew by 194.1% over the past year

Risk Analysis

Dividend of 3% is not well covered by earnings

Peel Hunt Competitors

Argentex Group

AIM:AGFX

UK£90.5m

Jarvis Securities

AIM:JIM

UK£72.7m

Numis

AIM:NUM

UK£283.7m

FRP Advisory Group

AIM:FRP

UK£366.0m

Price History & Performance

Summary of all time highs, changes and price drops for Peel Hunt
Historical stock prices
Current Share Price	UK£1.04
52 Week High	UK£2.35
52 Week Low	UK£1.01
Beta	0
1 Month Change	-7.18%
3 Month Change	-13.39%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-55.58%

Shareholder Returns

	PEEL	GB Capital Markets	GB Market
7D	0.5%	2.3%	0.3%
1Y	n/a	-14.0%	-8.9%

Return vs Industry: Insufficient data to determine how PEEL performed against the UK Capital Markets industry.

Return vs Market: Insufficient data to determine how PEEL performed against the UK Market.

Price Volatility

Is PEEL's price volatile compared to industry and market?
PEEL volatility
PEEL Average Weekly Movement	1.8%
Capital Markets Industry Average Movement	4.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.9%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: PEEL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PEEL's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	309	Steven Fine	https://www.peelhunt.com

Peel Hunt Limited operates as a mid and small-cap focused investment bank in the United Kingdom. The company operates through Investment Banking, Research & Distribution, and Execution & Trading segments. The Investment Banking segment provides equity and debt capital markets; private and retail capital markets; mergers and acquisitions; investor relations, debt advisory, private equity, and corporate broking services.

Peel Hunt Fundamentals Summary

How do Peel Hunt's earnings and revenue compare to its market cap?
PEEL fundamental statistics
Market Cap	UK£127.11m
Earnings (TTM)	UK£10.95m
Revenue (TTM)	UK£128.45m

11.6x

P/E Ratio

1.0x

P/S Ratio

Is PEEL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEEL income statement (TTM)
Revenue	UK£128.45m
Cost of Revenue	UK£31.32m
Gross Profit	UK£97.13m
Other Expenses	UK£86.17m
Earnings	UK£10.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.089
Gross Margin	75.61%
Net Profit Margin	8.53%
Debt/Equity Ratio	27.0%

How did PEEL perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PEEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEEL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PEEL. This is calculated by dividing PEEL's market cap by their current preferred multiple.
What is PEEL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£127.11m

PEEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does PEEL's PE Ratio compare to its peers?

PEEL PE Ratio vs Peers

The above table shows the PE ratio for PEEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16x
AGFX Argentex Group	12.2x	n/a	UK£90.5m
JIM Jarvis Securities	14.6x	n/a	UK£72.7m
NUM Numis	6.3x	n/a	UK£283.7m
FRP FRP Advisory Group	30.7x	17.1%	UK£366.0m
PEEL Peel Hunt	11.6x	21.1%	UK£127.1m

Price-To-Earnings vs Peers: PEEL is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (16x).

Price to Earnings Ratio vs Industry

How does PEEL's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: PEEL is expensive based on its Price-To-Earnings Ratio (11.6x) compared to the UK Capital Markets industry average (10x)

Price to Earnings Ratio vs Fair Ratio

What is PEEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.6x
Fair PE Ratio	18.9x

Price-To-Earnings vs Fair Ratio: PEEL is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Share Price vs Fair Value

What is the Fair Price of PEEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PEEL (£1.04) is trading below our estimate of fair value (£12.31)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEEL's forecast earnings growth (21.1% per year) is above the savings rate (0.9%).

Earnings vs Market: PEEL's earnings (21.1% per year) are forecast to grow faster than the UK market (9.8% per year).

High Growth Earnings: PEEL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PEEL's revenue (2.4% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: PEEL's revenue (2.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PEEL's Return on Equity is forecast to be low in 3 years time (15%).

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Past Performance

How has Peel Hunt performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

194.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: PEEL has high quality earnings.

Growing Profit Margin: PEEL's current net profit margins (8.5%) are higher than last year (1.9%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PEEL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PEEL's past year earnings growth to its 5-year average.

Earnings vs Industry: PEEL earnings growth over the past year (194.1%) exceeded the Capital Markets industry 23.2%.

Return on Equity

High ROE: PEEL's Return on Equity (35.9%) is considered high.

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Financial Health

How is Peel Hunt's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PEEL's short term assets (£699.7M) exceed its short term liabilities (£585.9M).

Long Term Liabilities: PEEL's short term assets (£699.7M) exceed its long term liabilities (£41.6M).

Debt to Equity History and Analysis

Debt Level: PEEL has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PEEL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PEEL's operating cash flow is negative, therefore debt is not well covered.

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

Balance Sheet

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Dividend

What is Peel Hunt current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PEEL's dividend (3%) is higher than the bottom 25% of dividend payers in the UK market (1.85%).

High Dividend: PEEL's dividend (3%) is low compared to the top 25% of dividend payers in the UK market (5.17%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether PEEL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PEEL's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.2%), PEEL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: PEEL is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

6.6yrs

Average management tenure

CEO

Steven Fine

6.58yrs

Tenure

Mr. Steven Harvey Fine is Chief Executive & Director of Peel Hunt LLP. He serves as Chief Executive Officer at Peel Hunt Limited since 2016 in which capacity he oversees all of Peel Hunt’s activity across...

Leadership Team

Experienced Management: PEEL's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: PEEL's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: PEEL insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: PEEL only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31