LSE:HGT

Stock Analysis Report

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Executive Summary

HgCapital Trust plc 2017 specializes in direct, quoted and unquoted companies and fund of funds investments.

Rewards


Snowflake Analysis

Share Price & News

How has HgCapital Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

HGT

-1.2%

GB Capital Markets

2.0%

GB Market


1 Year Return

10.2%

HGT

9.7%

GB Capital Markets

-12.8%

GB Market

Return vs Industry: HGT matched the UK Capital Markets industry which returned 9.7% over the past year.

Return vs Market: HGT exceeded the UK Market which returned -12.5% over the past year.


Shareholder returns

HGTIndustryMarket
7 Day1.1%-1.2%2.0%
30 Day7.0%8.4%5.7%
90 Day-2.7%1.2%-8.2%
1 Year13.0%10.2%12.2%9.7%-8.6%-12.8%
3 Year66.0%54.1%57.2%46.0%-6.2%-17.6%
5 Year148.1%115.9%127.6%102.2%12.7%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

2 years ago | Simply Wall St

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Valuation

Is HgCapital Trust undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HGT (£2.36) is trading below our estimate of fair value (£3.98)

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


Price To Earnings Ratio

PE vs Industry: HGT is good value based on its PE Ratio (5.2x) compared to the Capital Markets industry average (15.4x).

PE vs Market: HGT is good value based on its PE Ratio (5.2x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HGT is good value based on its PB Ratio (0.9x) compared to the GB Capital Markets industry average (1.6x).

Future Growth

How is HgCapital Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HgCapital Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has HgCapital Trust performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGT has a high level of non-cash earnings.

Growing Profit Margin: HGT's current net profit margins are higher than last year (91.2%).


Past Earnings Growth Analysis

Earnings Trend: HGT's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: HGT's earnings growth over the past year (75.5%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: HGT earnings growth over the past year (75.5%) exceeded the Capital Markets industry 16.4%.


Return on Equity

High ROE: HGT's Return on Equity (17.1%) is considered low.

Financial Health

How is HgCapital Trust's financial position?


Financial Position Analysis

Short Term Liabilities: HGT's short term assets (£252.5M) exceed its short term liabilities (£1.2M).

Long Term Liabilities: HGT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HGT is debt free.

Reducing Debt: HGT has no debt compared to 5 years ago when its debt to equity ratio was 0.05%.

Debt Coverage: HGT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HGT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Dividend

What is HgCapital Trust's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HGT's dividend (2.03%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: HGT's dividend (2.03%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


Stability and Growth of Payments

Stable Dividend: HGT's dividend payments have been volatile in the past 10 years.

Growing Dividend: HGT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.5%), HGT's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

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

9.5yrs

Average board tenure


CEO

HgCapital Trust has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Robin Lincoln
Director of HGCapital and Executive Officer of London Office - HGcapitalno datano datano data
Jill Ridley-Smith
Director of HGCapital and Executive Officer of London Office - HGcapitalno datano datano data
Richard Brooman
Non-Executive Director12.58yrsUK£39.00k0.0054% £51.7k
Anne West
Senior Independent Director6yrsno datano data
Roger Mountford
Chairman of the Board15yrsUK£49.00kno data
James M. Strang
Directorno datano datano data
Peter Dunscombe
Non-Executive Director6.33yrsno datano data

9.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HGT's board of directors are considered experienced (9.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.3%.


Top Shareholders

Company Information

HgCapital Trust plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HgCapital Trust plc
  • Ticker: HGT
  • Exchange: LSE
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£962.703m
  • Shares outstanding: 407.92m
  • Website: https://www.hgcapitaltrust.com

Location

  • HgCapital Trust plc
  • 2 More London Riverside
  • London
  • Greater London
  • SE1 2AP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
5ACDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HGTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
5ACMUN (Boerse Muenchen)YesOrdinary SharesDEEURJan 1992
HGCT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

HgCapital Trust plc 2017 specializes in direct, quoted and unquoted companies and fund of funds investments. The funds maximum exposure to unlisted investments is 100% of the gross assets and single investment in an unlisted company or closed-ended investments fund, whether made directly or indirectly, will exceed a maximum of 15% of gross assets. It primarily invests in middle-market buyouts across Technology, TMT, Services and Industrials Technology with enterprise values of between £80 million ($97.43 million) and £500 million ($608.95 million), lower mid-market buyouts in the TMT sector between £20 million ($24.35 million) and £80 million ($97.43 million). In direct investments in seeks to invest in middle market buyouts investment in hotels, restaurants, leisure, consumer durables and apparel, services, and renewable energy. The fund prefers to invest in Europe with a focus on Northern Europe, United Kingdom, Germany, France Benelux, and the Nordic region as well as some part of Europe. It seeks to invest between £100 million ($202.89 million) and £500 million ($1014.45 million) in its portfolio companies. For fund of funds investments it also invests in limited partnership vehicles managed by HgCapital. It prefers to take majority stake in companies. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 08:51
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.