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FCH

Funding Circle HoldingsLSE:FCH Stock Report

Market Cap

UK£434.2m

7D

-10.6%

1Y

41.2%

Updated

03 Dec, 2021

Data

Company Financials +
FCH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health5/6
Dividends0/6

FCH Stock Overview

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

Funding Circle Holdings Competitors

Provident Financial

LSE:PFG

UK£877.7m

S&U

LSE:SUS

UK£310.9m

Amigo Holdings

LSE:AMGO

UK£36.6m

Amazon.com

NasdaqGS:AMZN

US$1.7t

Price History & Performance

Summary of all time highs, changes and price drops for Funding Circle Holdings
Historical stock prices
Current Share PriceUK£1.22
52 Week HighUK£1.90
52 Week LowUK£0.76
Beta1.17
1 Month Change-23.75%
3 Month Change-17.79%
1 Year Change41.20%
3 Year Change-69.35%
5 Year Changen/a
Change since IPO-72.27%

Recent News & Updates

Shareholder Returns

FCHGB Consumer FinanceGB Market
7D-10.6%-1.7%-2.2%
1Y41.2%123.4%10.5%

Return vs Industry: FCH underperformed the UK Consumer Finance industry which returned 123.4% over the past year.

Return vs Market: FCH exceeded the UK Market which returned 10.5% over the past year.

Price Volatility

Is FCH's price volatile compared to industry and market?
FCH volatility
FCH Average Weekly Movement4.8%
Consumer Finance Industry Average Movement5.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: FCH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FCH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010931Samir Desaihttps://www.fundingcircle.com

Funding Circle Holdings plc, together with its subsidiaries, provides online lending platforms in the United Kingdom, the United States, and internationally. Its platforms originate small and medium enterprises loans through asset management companies, government-backed entities, public and private funds, individuals, banks, other institutional investors, national entities, and retail investors, as well as provide business loans for small and medium sized businesses. The company acts as a special purpose bankruptcy remote entity that issues loan payment dependent debt securities to accredited investors.

Funding Circle Holdings Fundamentals Summary

How do Funding Circle Holdings's earnings and revenue compare to its market cap?
FCH fundamental statistics
Market CapUK£434.15m
Earnings (TTM)UK£40.30m
Revenue (TTM)UK£227.30m

10.8x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FCH income statement (TTM)
RevenueUK£227.30m
Cost of RevenueUK£80.20m
Gross ProfitUK£147.10m
ExpensesUK£106.80m
EarningsUK£40.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin64.72%
Net Profit Margin17.73%
Debt/Equity Ratio202.2%

How did FCH perform over the long term?

See historical performance and comparison

Valuation

Is Funding Circle Holdings undervalued compared to its fair value and its price relative to the market?

10.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FCH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FCH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FCH is good value based on its PE Ratio (10.8x) compared to the UK Consumer Finance industry average (11.8x).

PE vs Market: FCH is good value based on its PE Ratio (10.8x) compared to the UK market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: FCH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: FCH is overvalued based on its PB Ratio (1.7x) compared to the GB Consumer Finance industry average (1.4x).


Future Growth

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

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCH's forecast earnings growth (22.7% per year) is above the savings rate (0.9%).

Earnings vs Market: FCH's earnings (22.7% per year) are forecast to grow faster than the UK market (12.5% per year).

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

Revenue vs Market: FCH's revenue (8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: FCH's revenue (8% 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 (6.6%).


Past Performance

How has Funding Circle Holdings performed over the past 5 years?

-12.7%

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 -12.7% 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 (-18%).


Return on Equity

High ROE: FCH's Return on Equity (15.9%) is considered low.


Financial Health

How is Funding Circle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FCH's short term assets (£542.9M) exceed its short term liabilities (£353.2M).

Long Term Liabilities: FCH's short term assets (£542.9M) exceed its long term liabilities (£249.6M).


Debt to Equity History and Analysis

Debt Level: FCH's net debt to equity ratio (11.7%) is considered satisfactory.

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 (21%).

Interest Coverage: FCH's interest payments on its debt are well covered by EBIT (45.2x coverage).


Balance Sheet


Dividend

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

0.99%

Forecast Dividend Yield


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FCH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Samir Desai (38 yo)

11.92yrs

Tenure

UK£201,000

Compensation

Mr. Samir Desai, CBE, Co-founded Funding Circle Holdings plc in 2010 and serves as its Chief Executive Officer and Director since January 2010. Mr. Desai co-founded Funding Circle Limited in 2009 and has b...


CEO Compensation Analysis

Compensation vs Market: Samir's total compensation ($USD265.77K) is below average for companies of similar size in the UK market ($USD1.03M).

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


Leadership Team

Experienced Management: FCH's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: FCH's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FCH 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

Funding Circle Holdings plc's employee growth, exchange listings and data sources


Key Information

  • Name: Funding Circle Holdings plc
  • Ticker: FCH
  • Exchange: LSE
  • Founded: 2010
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£434.151m
  • Shares outstanding: 355.86m
  • Website: https://www.fundingcircle.com

Number of Employees


Location

  • Funding Circle Holdings plc
  • 71 Queen Victoria Street
  • London
  • Greater London
  • EC4V 4AY
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 21:23
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.