LSE:OSEC

Stock Analysis Report

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Executive Summary

Octopus AIM VCT 2 plc is a venture capital trust specializing in investments in AIM quoted companies.


Snowflake Analysis

Share Price & News

How has Octopus AIM VCT 2's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OSEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

OSEC

-1.2%

GB Capital Markets

2.0%

GB Market


1 Year Return

-14.0%

OSEC

9.7%

GB Capital Markets

-12.8%

GB Market

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

Return vs Market: OSEC underperformed the UK Market which returned -12.5% over the past year.


Shareholder returns

OSECIndustryMarket
7 Day0.8%-1.2%2.0%
30 Day1.6%8.4%5.7%
90 Day-7.9%1.2%-8.2%
1 Year-2.9%-14.0%12.2%9.7%-8.6%-12.8%
3 Year-6.9%-25.5%57.2%46.0%-6.2%-17.6%
5 Year17.4%-15.4%127.6%102.2%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Octopus AIM VCT 2's share price compared to the market and industry in the last 5 years?


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Valuation

Is Octopus AIM VCT 2 undervalued compared to its fair value and its price relative to the market?

0.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OSEC (£0.65) is trading above our estimate of fair value (£0.27)

Significantly Below Fair Value: OSEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OSEC is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: OSEC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

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

Future Growth

How is Octopus AIM VCT 2 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 Octopus AIM VCT 2 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 Octopus AIM VCT 2 performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSEC is currently unprofitable.

Growing Profit Margin: OSEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OSEC is unprofitable, and losses have increased over the past 5 years at a rate of -21.2% per year.

Accelerating Growth: Unable to compare OSEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OSEC is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (16.4%).


Return on Equity

High ROE: OSEC has a negative Return on Equity (-0.59%), as it is currently unprofitable.

Financial Health

How is Octopus AIM VCT 2's financial position?


Financial Position Analysis

Short Term Liabilities: OSEC's short term assets (£21.9M) exceed its short term liabilities (£153.0K).

Long Term Liabilities: OSEC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: OSEC is debt free.

Reducing Debt: OSEC has not had any debt for past 5 years.

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

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


Balance Sheet

Dividend

What is Octopus AIM VCT 2's current dividend yield, its reliability and sustainability?

6.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OSEC's dividend (6.51%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: OSEC's dividend (6.51%) is in the top 25% of dividend payers in the UK market (5.68%)


Stability and Growth of Payments

Stable Dividend: OSEC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: OSEC is paying a dividend but the company is unprofitable.


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?

9.8yrs

Average board tenure


CEO

Octopus AIM VCT 2 has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Andrew Raynor
Director14.58yrsUK£17.00kno data
Alastair Ritchie
Director9.75yrsUK£15.00kno data
Elizabeth Kennedy
Director9.75yrsUK£15.00kno data
Keith Mullins
Chairmanno dataUK£20.00kno data

9.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: OSEC's board of directors are considered experienced (9.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

Octopus AIM VCT 2 plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Octopus AIM VCT 2 plc
  • Ticker: OSEC
  • Exchange: LSE
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£77.787m
  • Shares outstanding: 120.60m
  • Website: https://www.octopusinvestments.com

Number of Employees


Location

  • Octopus AIM VCT 2 plc
  • 33 Holborn
  • London
  • Greater London
  • EC1N 2HT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSECLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2007

Biography

Octopus AIM VCT 2 plc is a venture capital trust specializing in investments in AIM quoted companies. It seeks to invest in various sectors such as financial services, healthcare equipment, food producers, business services, pharmaceuticals and biotechnology, travel and leisure, industrial engineering, oil equipment, support services, general retailers, software, and media. The fund typically makes investments in the United Kingdom region. It typically makes investments between $23.27 million and $465.38 million. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:42
End of Day Share Price2020/05/29 00:00
Earnings2019/11/30
Annual Earnings2019/11/30


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.