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PFG

Provident Financial LSE:PFG Stock Report

Last Price

UK£1.99

Market Cap

UK£498.7m

7D

2.7%

1Y

-34.9%

Updated

07 Aug, 2022

Data

Company Financials +
PFG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance5/6
Financial Health2/6
Dividends2/6

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

Price History & Performance

Summary of all time highs, changes and price drops for Provident Financial
Historical stock prices
Current Share PriceUK£1.99
52 Week HighUK£3.84
52 Week LowUK£1.82
Beta1.4
1 Month Change0.91%
3 Month Change-11.30%
1 Year Change-34.89%
3 Year Change-48.52%
5 Year Change-89.94%
Change since IPO-45.22%

Recent News & Updates

Shareholder Returns

PFGGB Consumer FinanceGB Market
7D2.7%3.8%0.5%
1Y-34.9%-38.0%-6.8%

Return vs Industry: PFG exceeded the UK Consumer Finance industry which returned -38% over the past year.

Return vs Market: PFG underperformed the UK Market which returned -6.8% over the past year.

Price Volatility

Is PFG's price volatile compared to industry and market?
PFG volatility
PFG Average Weekly Movement5.9%
Consumer Finance Industry Average Movement6.5%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.7%

Stable Share Price: PFG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PFG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18802,535Malcolm 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 and Moneybarn segments. It 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£498.67m
Earnings (TTM)UK£103.50m
Revenue (TTM)UK£446.50m

4.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFG income statement (TTM)
RevenueUK£446.50m
Cost of RevenueUK£296.20m
Gross ProfitUK£150.30m
Other ExpensesUK£46.80m
EarningsUK£103.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin33.66%
Net Profit Margin23.18%
Debt/Equity Ratio291.3%

How did PFG perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

41%

Payout Ratio

Does PFG pay a reliable dividends?

See PFG dividend history and benchmarks
When do you need to buy PFG by to receive an upcoming dividend?
Provident Financial dividend dates
Ex Dividend DateAug 11 2022
Dividend Pay DateSep 22 2022
Days until Ex dividend3 days
Days until Dividend pay date45 days

Does PFG pay a reliable dividends?

See PFG dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PFG?

Other financial metrics that can be useful for relative valuation.

PFG 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

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

PFG PE Ratio vs Peers
The above table shows the PE ratio for PFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.5x
IPF International Personal Finance
4.8x5.6%UK£236.9m
SUS S&U
6.8x-1.6%UK£260.0m
HAT H&T Group
26.8x32.0%UK£161.8m
ASAI ASA International Group
11.7x43.6%UK£85.0m
PFG Provident Financial
4.8x14.5%UK£498.7m

Price-To-Earnings vs Peers: PFG is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (12.5x).


Price to Earnings Ratio vs Industry

How does PFG's PE Ratio compare vs other companies in the European Consumer Finance Industry?

Price-To-Earnings vs Industry: PFG is good value based on its Price-To-Earnings Ratio (4.8x) compared to the UK Consumer Finance industry average (5.8x)


Price to Earnings Ratio vs Fair Ratio

What is PFG'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.

PFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: PFG is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

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

Below Fair Value: PFG (£1.99) is trading below our estimate of fair value (£7.35)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Provident Financial 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


14.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFG's forecast earnings growth (14.5% per year) is above the savings rate (0.9%).

Earnings vs Market: PFG's earnings (14.5% per year) are forecast to grow faster than the UK market (10% per year).

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

Revenue vs Market: PFG's revenue (9.5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: PFG's revenue (9.5% 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 (19.9%).


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Past Performance

How has Provident Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFG has high quality earnings.

Growing Profit Margin: PFG's current net profit margins (23.2%) are higher than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: PFG's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: PFG's earnings growth over the past year (110.4%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: PFG earnings growth over the past year (110.4%) exceeded the Consumer Finance industry 77.4%.


Return on Equity

High ROE: PFG's Return on Equity (17.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Provident Financial's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PFG's short term assets (£2.3B) exceed its short term liabilities (£70.5M).

Long Term Liabilities: PFG's short term assets (£2.3B) exceed its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: PFG's net debt to equity ratio (195.5%) is considered high.

Reducing Debt: PFG's debt to equity ratio has increased from 265.4% to 291.3% over the past 5 years.

Debt Coverage: PFG's debt is not well covered by operating cash flow (1.4%).

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


Balance Sheet


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Dividend

What is Provident Financial 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


5.03%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 08 2022Ex Dividend DateAug 11 2022Dividend Pay DateSep 22 202242 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PFG's dividend (5.03%) is higher than the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: PFG's dividend (5.03%) is low compared to the top 25% of dividend payers in the UK market (5.13%).


Stability and Growth of Payments

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

Growing Dividend: PFG's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41%), PFG's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PFG is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Malcolm Le May (64 yo)

4.5yrs

Tenure

UK£1,972,000

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 ($USD2.38M) is above average for companies of similar size in the UK market ($USD1.35M).

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


Leadership Team

Experienced Management: PFG's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: PFG's board of directors are considered experienced (4.1 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
  • Implied Market Cap: UK£498.665m
  • Shares outstanding: 250.96m
  • 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 Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.