JTC (LSE:JTC) - Share price, News & Analysis

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

JTC (£5.82) is trading below our estimate of [[fair value]] (£6.45)

JTC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	4/6
Financial Health	4/6
Dividends	2/6

JTC Stock Overview

JTC PLC provides fund, corporate, and private wealth services to institutional and private clients worldwide.

Rewards

Trading at 9.8% below our estimate of its fair value

Earnings are forecast to grow 19.28% per year

Earnings grew by 153% over the past year

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year

JTC Competitors

Jupiter Fund Management

LSE:JUP

UK£748.4m

Oakley Capital Investments

LSE:OCI

UK£675.1m

Impax Asset Management Group

AIM:IPX

UK£754.7m

Cordiant Digital Infrastructure

LSE:CORD

UK£800.6m

Price History & Performance

Summary of all time highs, changes and price drops for JTC
Historical stock prices
Current Share Price	UK£5.82
52 Week High	UK£9.45
52 Week Low	UK£5.75
Beta	0.15
1 Month Change	-17.68%
3 Month Change	-32.09%
1 Year Change	-8.06%
3 Year Change	63.48%
5 Year Change	n/a
Change since IPO	83.60%

Recent News & Updates

Jun 25

Here's Why We Think JTC (LON:JTC) Might Deserve Your Attention Today

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 02

JTC (LON:JTC) Is Increasing Its Dividend To UK£0.051

JTC PLC ( LON:JTC ) has announced that it will be increasing its dividend on the 8th of July to UK£0.051. Despite this...

May 17

JTC's (LON:JTC) Dividend Will Be Increased To UK£0.051

The board of JTC PLC ( LON:JTC ) has announced that it will be increasing its dividend on the 8th of July to UK£0.051...

Shareholder Returns

	JTC	GB Capital Markets	GB Market
7D	-8.5%	-2.9%	-1.1%
1Y	-8.1%	-18.2%	-9.3%

Return vs Industry: JTC exceeded the UK Capital Markets industry which returned -17.9% over the past year.

Return vs Market: JTC exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is JTC's price volatile compared to industry and market?
JTC volatility
JTC Average Weekly Movement	7.2%
Capital Markets Industry Average Movement	4.2%
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: JTC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: JTC's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	1,167	Nigel Le Quesne	https://www.jtcgroup.com

JTC PLC provides fund, corporate, and private wealth services to institutional and private clients worldwide. The company operates through two segments, Institutional Client Services and Private Client Services. It offers fund services in a range of asset classes, including real estate, private equity, renewables, hedge, debt, and alternative asset classes, as well as other administration services.

JTC Fundamentals Summary

How do JTC's earnings and revenue compare to its market cap?
JTC fundamental statistics
Market Cap	UK£840.49m
Earnings (TTM)	UK£26.65m
Revenue (TTM)	UK£147.50m

31.5x

P/E Ratio

5.7x

P/S Ratio

Is JTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
JTC income statement (TTM)
Revenue	UK£147.50m
Cost of Revenue	UK£89.54m
Gross Profit	UK£57.96m
Other Expenses	UK£31.31m
Earnings	UK£26.65m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 13, 2022

Earnings per share (EPS)	0.18
Gross Margin	39.30%
Net Profit Margin	18.07%
Debt/Equity Ratio	44.3%

How did JTC perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

37%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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 JTC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for JTC. This is calculated by dividing JTC's market cap by their current preferred multiple.
What is JTC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£840.49m

JTC 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	6.8x
Enterprise Value/EBITDA	39.9x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

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

JTC PE Ratio vs Peers

The above table shows the PE ratio for JTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.4x
JUP Jupiter Fund Management	5x	-23.5%	UK£748.4m
OCI Oakley Capital Investments	2.7x	n/a	UK£675.1m
IPX Impax Asset Management Group	14.3x	8.8%	UK£754.7m
CORD Cordiant Digital Infrastructure	19.5x	n/a	UK£800.6m
JTC JTC	31.5x	19.3%	UK£840.5m

Forward PE

Price-To-Earnings vs Peers: JTC is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: JTC is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the UK Capital Markets industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is JTC'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.

JTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.5x
Fair PE Ratio	20.5x

Price-To-Earnings vs Fair Ratio: JTC is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

Share Price vs Fair Value

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

Below Fair Value: JTC (£5.82) is trading below our estimate of fair value (£6.45)

Significantly Below Fair Value: JTC is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: JTC is poor value based on its PEG Ratio (1.6x)

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Future Growth

How is JTC forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

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

19.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: JTC's forecast earnings growth (19.3% per year) is above the savings rate (0.9%).

Earnings vs Market: JTC's earnings (19.3% per year) are forecast to grow faster than the UK market (11% per year).

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

Revenue vs Market: JTC's revenue (10.4% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: JTC's revenue (10.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: JTC's Return on Equity is forecast to be low in 3 years time (14.2%).

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Past Performance

How has JTC 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

60.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JTC has a large one-off gain of £19.2M impacting its December 31 2021 financial results.

Growing Profit Margin: JTC's current net profit margins (18.1%) are higher than last year (9.2%).

Past Earnings Growth Analysis

Earnings Trend: JTC has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: JTC's earnings growth over the past year (153%) exceeds its 5-year average (60.8% per year).

Earnings vs Industry: JTC earnings growth over the past year (153%) exceeded the Capital Markets industry 43.8%.

Return on Equity

High ROE: JTC's Return on Equity (7.7%) is considered low.

Discover strong past performing companies

Financial Health

How is JTC's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: JTC's short term assets (£106.9M) exceed its short term liabilities (£36.8M).

Long Term Liabilities: JTC's short term assets (£106.9M) do not cover its long term liabilities (£240.4M).

Debt to Equity History and Analysis

Debt Level: JTC's net debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: JTC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: JTC's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: JTC's interest payments on its debt are well covered by EBIT (4.8x coverage).

Balance Sheet

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Dividend

What is JTC 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

1.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: JTC's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: JTC's dividend (1.32%) is low compared to the top 25% of dividend payers in the UK market (5.29%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, JTC has been paying a dividend for less than 10 years.

Growing Dividend: JTC's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.4%), JTC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.5%), JTC's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure

CEO

Nigel Le Quesne (61 yo)

no data

Tenure

UK£1,318,417

Compensation

Mr. Nigel Anthony Le Quesne served as Non-Executive Director at Brooks Macdonald International Investment Funds Ltd (formerly Lloyds Investment Funds Ltd) since December 1, 2021 until December 31, 2021. He...

CEO Compensation Analysis

Compensation vs Market: Nigel's total compensation ($USD1.60M) is about average for companies of similar size in the UK market ($USD1.32M).

Compensation vs Earnings: Nigel's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: JTC's management team is not considered experienced ( 2 years average tenure), which suggests a new team.

Board Members

Experienced Board: JTC's board of directors are considered experienced (4.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: JTC 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 21%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31