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PFG

Provident FinancialLSE:PFG Stock Report

Market Cap

UK£911.3m

7D

1.2%

1Y

33.3%

Updated

29 Nov, 2021

Data

Company Financials +
PFG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

PFG Stock Overview

Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland.

Provident Financial Competitors

Funding Circle Holdings

LSE:FCH

UK£485.4m

S&U

LSE:SUS

UK£327.9m

Morses Club

AIM:MCL

UK£77.7m

Amigo Holdings

LSE:AMGO

UK£50.8m

Price History & Performance

Summary of all time highs, changes and price drops for Provident Financial
Historical stock prices
Current Share PriceUK£3.69
52 Week HighUK£3.84
52 Week LowUK£1.75
Beta1.31
1 Month Change0.22%
3 Month Change3.82%
1 Year Change33.26%
3 Year Change-39.12%
5 Year Change-87.04%
Change since IPO1.84%

Recent News & Updates

Shareholder Returns

PFGGB Consumer FinanceGB Market
7D1.2%3.8%-1.9%
1Y33.3%128.1%13.8%

Return vs Industry: PFG underperformed the UK Consumer Finance industry which returned 125.5% over the past year.

Return vs Market: PFG exceeded the UK Market which returned 11.6% over the past year.

Price Volatility

Is PFG's price volatile compared to industry and market?
PFG volatility
PFG Average Weekly Movement5.4%
Consumer Finance Industry Average Movement5.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
18804,232Malcolm Le Mayhttps://www.providentfinancial.com

Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company operates through Vanquis Bank, Moneybarn, and Consumer Credit Division segments. The company offers credit cards products, unsecured personal loans, and savings products.

Provident Financial Fundamentals Summary

How do Provident Financial's earnings and revenue compare to its market cap?
PFG fundamental statistics
Market CapUK£911.32m
Earnings (TTM)-UK£109.80m
Revenue (TTM)UK£403.20m

2.3x

P/S Ratio

-8.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFG income statement (TTM)
RevenueUK£403.20m
Cost of RevenueUK£474.70m
Gross Profit-UK£71.50m
ExpensesUK£38.30m
Earnings-UK£109.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.44
Gross Margin-17.73%
Net Profit Margin-27.23%
Debt/Equity Ratio270.3%

How did PFG perform over the long term?

See historical performance and comparison

Valuation

Is Provident Financial undervalued compared to its fair value and its price relative to the market?

8.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFG (£3.69) is trading below our estimate of fair value (£4.05)

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


Price To Earnings Ratio

PE vs Industry: PFG is unprofitable, so we can't compare its PE Ratio to the UK Consumer Finance industry average.

PE vs Market: PFG 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 PFG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PFG's PB Ratio (1.5x) is in line with the GB Consumer Finance industry average.


Future Growth

How is Provident Financial forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

54.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: PFG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PFG's is expected to become profitable in the next 3 years.

Revenue vs Market: PFG's revenue (8.7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: PFG's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFG's Return on Equity is forecast to be low in 3 years time (18%).


Past Performance

How has Provident Financial performed over the past 5 years?

-44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFG is currently unprofitable.

Growing Profit Margin: PFG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PFG is unprofitable, and losses have increased over the past 5 years at a rate of 44.2% per year.

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

Earnings vs Industry: PFG is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-18%).


Return on Equity

High ROE: PFG has a negative Return on Equity (-18.21%), as it is currently unprofitable.


Financial Health

How is Provident Financial's financial position?


Financial Position Analysis

Short Term Liabilities: PFG's short term assets (£2.2B) exceed its short term liabilities (£108.0M).

Long Term Liabilities: PFG's short term assets (£2.2B) exceed its long term liabilities (£1.8B).


Debt to Equity History and Analysis

Debt Level: PFG's net debt to equity ratio (189.8%) is considered high.

Reducing Debt: PFG's debt to equity ratio has increased from 221.9% to 270.3% over the past 5 years.

Debt Coverage: PFG's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: Insufficient data to determine if PFG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Provident Financial current dividend yield, its reliability and sustainability?

3.62%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PFG'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 PFG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.6yrs

Average management tenure


CEO

Malcolm Le May (63 yo)

3.67yrs

Tenure

UK£818,000

Compensation

Mr. Malcolm John Le May was Senior Independent Non-Executive Director at IG Group Holdings plc since 2021. Mr. Le May serves as Non-Executive Director at IG Group Holdings Plc since September 17, 2020. He...


CEO Compensation Analysis

Compensation vs Market: Malcolm's total compensation ($USD1.09M) is about average for companies of similar size in the UK market ($USD1.53M).

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


Leadership Team

Experienced Management: PFG's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: PFG's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Provident Financial plc's employee growth, exchange listings and data sources


Key Information

  • Name: Provident Financial plc
  • Ticker: PFG
  • Exchange: LSE
  • Founded: 1880
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£911.322m
  • Shares outstanding: 250.78m
  • Website: https://www.providentfinancial.com

Number of Employees


Location

  • Provident Financial plc
  • No. 1 Godwin Street
  • Bradford
  • West Yorkshire
  • BD1 2SU
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/29 22:55
End of Day Share Price2021/11/29 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.