Funding Circle Holdings (LSE:FCH) - Share price, News & Analysis

FCH fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

FCH Stock Overview

Funding Circle Holdings plc, together with its subsidiaries, provides online lending platforms in the United Kingdom, the United States, and internationally.

Rewards

Price-To-Earnings ratio (3.3x) is below the UK market (13.8x)

Earnings are forecast to grow 23.29% per year

Became profitable this year

Risk Analysis

Volatile share price over the past 3 months

Funding Circle Holdings Competitors

S&U

LSE:SUS

UK£246.7m

International Personal Finance

LSE:IPF

UK£171.1m

H&T Group

AIM:HAT

UK£128.2m

ASA International Group

LSE:ASAI

UK£83.8m

Price History & Performance

Summary of all time highs, changes and price drops for Funding Circle Holdings
Historical stock prices
Current Share Price	UK£0.57
52 Week High	UK£1.70
52 Week Low	UK£0.54
Beta	1.11
1 Month Change	-18.71%
3 Month Change	-23.83%
1 Year Change	-62.32%
3 Year Change	-58.41%
5 Year Change	n/a
Change since IPO	-87.07%

Shareholder Returns

	FCH	GB Consumer Finance	GB Market
7D	-0.2%	-10.4%	-1.1%
1Y	-62.3%	-53.3%	-9.7%

Return vs Industry: FCH underperformed the UK Consumer Finance industry which returned -53.3% over the past year.

Return vs Market: FCH underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is FCH's price volatile compared to industry and market?
FCH volatility
FCH Average Weekly Movement	10.4%
Consumer Finance Industry Average Movement	6.7%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: FCH is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: FCH's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2010	804	Lisa Jacobs	https://www.fundingcircle.com

Funding Circle Holdings plc, together with its subsidiaries, provides online lending platforms in the United Kingdom, the United States, and internationally. The company offers small business loans, recovery loan schemes, and business finance solutions to small and medium enterprises. It also provides flexipay and flexipay card solutions.

Funding Circle Holdings Fundamentals Summary

How do Funding Circle Holdings's earnings and revenue compare to its market cap?
FCH fundamental statistics
Market Cap	UK£203.35m
Earnings (TTM)	UK£61.20m
Revenue (TTM)	UK£235.50m

3.3x

P/E Ratio

0.9x

P/S Ratio

Is FCH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FCH income statement (TTM)
Revenue	UK£235.50m
Cost of Revenue	UK£77.70m
Gross Profit	UK£157.80m
Other Expenses	UK£96.60m
Earnings	UK£61.20m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 08, 2022

Earnings per share (EPS)	0.17
Gross Margin	67.01%
Net Profit Margin	25.99%
Debt/Equity Ratio	74.1%

How did FCH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is FCH 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FCH. This is calculated by dividing FCH's market cap by their current preferred multiple.
What is FCH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£203.35m

FCH 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	0.3x
Enterprise Value/EBITDA	0.9x
PEG Ratio	0.1x

Price to Earnings Ratio vs Peers

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

FCH PE Ratio vs Peers

The above table shows the PE ratio for FCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.8x
SUS S&U	6.5x	-1.6%	UK£246.7m
IPF International Personal Finance	4.1x	15.1%	UK£171.1m
HAT H&T Group	21.2x	32.0%	UK£128.2m
ASAI ASA International Group	11.5x	43.6%	UK£83.8m
FCH Funding Circle Holdings	3.3x	23.3%	UK£203.4m

Forward PE

Price-To-Earnings vs Peers: FCH is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does FCH's PE Ratio compare vs other companies in the European Consumer Finance Industry?

Price-To-Earnings vs Industry: FCH is good value based on its Price-To-Earnings Ratio (3.3x) compared to the UK Consumer Finance industry average (9.7x)

Price to Earnings Ratio vs Fair Ratio

What is FCH'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.

FCH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.3x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: FCH is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate FCH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate FCH's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: FCH is good value based on its PEG Ratio (0.1x)

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Future Growth

How is Funding Circle Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

23.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCH's forecast earnings growth (23.3% per year) is above the savings rate (0.9%).

Earnings vs Market: FCH's earnings (23.3% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: FCH's revenue (7.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: FCH's revenue (7.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FCH's Return on Equity is forecast to be low in 3 years time (9%).

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Past Performance

How has Funding Circle Holdings 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

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FCH has high quality earnings.

Growing Profit Margin: FCH became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: FCH has become profitable over the past 5 years, growing earnings by 11.8% per year.

Accelerating Growth: FCH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FCH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Finance industry (43.4%).

Return on Equity

High ROE: FCH's Return on Equity (21.3%) is considered high.

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Financial Health

How is Funding Circle Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: FCH's short term assets (£401.9M) exceed its short term liabilities (£187.0M).

Long Term Liabilities: FCH's short term assets (£401.9M) exceed its long term liabilities (£90.9M).

Debt to Equity History and Analysis

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

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

Debt Coverage: FCH's debt is well covered by operating cash flow (46.9%).

Interest Coverage: FCH's interest payments on its debt are well covered by EBIT (68x coverage).

Balance Sheet

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Dividend

What is Funding Circle Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FCH's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FCH has not reported any payouts.

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Management

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

3.5yrs

Average management tenure

CEO

Lisa Jacobs

0.50

Tenure

Ms. Lisa Jacobs serves as Chief Executive Officer and an Executive Director at Funding Circle Limited. She served as Managing Director of Europe at Funding Circle Limited since 2020 until 2021 and also ser...

Leadership Team

Experienced Management: FCH's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: FCH's board of directors are considered experienced (4.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31