LSE:IPF

Stock Analysis Report

International Personal Finance

Executive Summary

International Personal Finance plc, together with its subsidiaries, provides consumer credit products in Europe and Mexico.


Snowflake Analysis

Very undervalued with limited growth.

Share Price & News

How has International Personal Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-17.8%

IPF

-11.6%

GB Consumer Finance

1.7%

GB Market


1 Year Return

-74.8%

IPF

-72.6%

GB Consumer Finance

-21.8%

GB Market

Return vs Industry: IPF underperformed the UK Consumer Finance industry which returned -72.6% over the past year.

Return vs Market: IPF underperformed the UK Market which returned -21.8% over the past year.


Shareholder returns

IPFIndustryMarket
7 Day-17.8%-11.6%1.7%
30 Day-64.0%-49.5%-12.0%
90 Day-70.4%-58.7%-25.3%
1 Year-72.6%-74.8%-71.3%-72.6%-17.9%-21.8%
3 Year-62.6%-69.7%-82.5%-87.4%-11.8%-22.8%
5 Year-86.3%-89.5%-82.5%-88.3%0.1%-22.4%

Price Volatility Vs. Market

How volatile is International Personal Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is International Personal Finance undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPF (£0.51) is trading below our estimate of fair value (£3.85)

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


Price To Earnings Ratio

PE vs Industry: IPF is good value based on its PE Ratio (1.6x) compared to the Consumer Finance industry average (4.9x).

PE vs Market: IPF is good value based on its PE Ratio (1.6x) compared to the UK market (13x).


Price to Earnings Growth Ratio

PEG Ratio: IPF is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: IPF is good value based on its PB Ratio (0.3x) compared to the GB Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is International Personal Finance forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPF's forecast earnings growth (2.7% per year) is above the savings rate (0.5%).

Earnings vs Market: IPF's earnings (2.7% per year) are forecast to grow slower than the UK market (15.6% per year).

High Growth Earnings: IPF's earnings are forecast to grow, but not significantly.

Revenue vs Market: IPF's revenue (3.7% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: IPF's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPF's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has International Personal Finance performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPF has high quality earnings.

Growing Profit Margin: IPF's current net profit margins (8.1%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: IPF's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: IPF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IPF had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (12.7%).


Return on Equity

High ROE: IPF's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is International Personal Finance's financial position?


Financial Position Analysis

Short Term Liabilities: IPF's short term assets (£783.0M) exceed its short term liabilities (£291.8M).

Long Term Liabilities: IPF's short term assets (£783.0M) exceed its long term liabilities (£594.5M).


Debt to Equity History and Analysis

Debt Level: IPF's debt to equity ratio (155%) is considered high.

Reducing Debt: IPF's debt to equity ratio has increased from 132.4% to 155% over the past 5 years.

Debt Coverage: IPF's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: IPF's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is International Personal Finance's current dividend yield, its reliability and sustainability?

24.99%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: IPF is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IPF'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?

4.1yrs

Average management tenure


CEO

Gerard Ryan (54yo)

8s

Tenure

UK£1,260,000

Compensation

Mr. Gerard Jude Ryan has been the Chief Executive Officer of International Personal Finance Plc since April 1, 2012. Mr. Ryan served as the Chief Financial Officer of Garanti Bank, Turkey. He served as the ...


CEO Compensation Analysis

Compensation vs Market: Gerard's total compensation ($USD1.56M) is above average for companies of similar size in the UK market ($USD328.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerard Ryan
CEO & Executive Director8yrsUK£1.26m0.57% £652.3k
Justin Lockwood
CFO & Executive Director3.17yrsUK£700.00k0.044% £49.7k
Chris Robinson
Chief Information Officer4.08yrsno datano data
Rachel Moran
Investor Relations Managerno datano datano data
James Ormrod
Chief Legal Officer & Company Secretary2.83yrsno datano data
Gergely Mikola
Group Corporate Affairs Directorno datano datano data
Lyndsey Hamilton-Scott
Chief Human Resources Officerno datano datano data
Christof Nelischer
Group Treasurerno datano datano data
Craig Shannon
Executive Officer9.67yrsUK£189.00kno data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: IPF's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerard Ryan
CEO & Executive Director8yrsUK£1.26m0.57% £652.3k
Justin Lockwood
CFO & Executive Director3.17yrsUK£700.00k0.044% £49.7k
Daniel O'Connor
Chairman5yrsUK£200.00k0.019% £21.2k
Stuart Sinclair
Independent Non-Executive Director0.083yrno datano data
Bronwyn Syiek
Independent Non-Executive Director1.5yrsUK£55.00k0.0090% £10.2k
Cathryn Riley
Independent Non-Executive Director6.17yrsUK£65.00k0.0067% £7.6k
Richard Moat
Senior Independent Non Executive Director0.92yrUK£83.00k0.0068% £7.7k
William Holmes
Independent Non-Executive Director0.083yrno datano data
Deborah Davis
Independent Non-Executive Director1.5yrsUK£55.00kno data
John Mangelaars
Independent Non-Executive Director4.75yrsUK£65.00k0.023% £25.5k

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: IPF's board of directors are not considered experienced ( 2.3 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: 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.


Top Shareholders

Company Information

International Personal Finance plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: International Personal Finance plc
  • Ticker: IPF
  • Exchange: LSE
  • Founded: 1997
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£113.452m
  • Shares outstanding: 222.02m
  • Website: https://www.ipfin.co.uk

Number of Employees


Location

  • International Personal Finance plc
  • Number Three
  • Leeds City Office Park
  • Leeds
  • West Yorkshire
  • LS11 5BD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPFLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2007
IPFP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
3I8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
IPFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2007
IPFWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNJul 2007

Biography

International Personal Finance plc, together with its subsidiaries, provides consumer credit products in Europe and Mexico. It offers home credit products, such as home credit cash loans with agent service; money transfer loans direct to bank account; home, medical, and life insurances; micro-business loans; and provident-branded digital loans. The company also digital loan products, including instalment and monthly repayments loans, and revolving credit facility. It offers its products under the Provident, Credit24, hapiloans, Sving, and Creditea brands. The company serves approximately 2.3 million customers. International Personal Finance plc was founded in 1997 and is headquartered in Leeds, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:42
End of Day Share Price2020/04/07 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.