LSE:TCAP

Stock Analysis Report

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Executive Summary

TP ICAP plc, through its portfolio of businesses, provides intermediary services, contextual insights and intelligence, trade execution solutions, and data and analytics.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has TP ICAP's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

TCAP

0.2%

GB Capital Markets

5.5%

GB Market


1 Year Return

27.1%

TCAP

12.7%

GB Capital Markets

-9.2%

GB Market

Return vs Industry: TCAP exceeded the UK Capital Markets industry which returned 15.2% over the past year.

Return vs Market: TCAP exceeded the UK Market which returned -10% over the past year.


Shareholder returns

TCAPIndustryMarket
7 Day2.9%0.2%5.5%
30 Day-1.8%6.8%10.8%
90 Day-8.1%5.9%-0.4%
1 Year34.1%27.1%15.3%12.7%-4.8%-9.2%
3 Year-12.1%-24.2%57.1%45.9%-0.8%-12.9%
5 Yearn/a126.3%101.1%18.1%-8.2%

Price Volatility Vs. Market

How volatile is TP ICAP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TP ICAP undervalued compared to its fair value and its price relative to the market?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCAP (£3.5) is trading below our estimate of fair value (£4.66)

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


Price To Earnings Ratio

PE vs Industry: TCAP is poor value based on its PE Ratio (29.2x) compared to the Capital Markets industry average (16.1x).

PE vs Market: TCAP is poor value based on its PE Ratio (29.2x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: TCAP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TCAP is good value based on its PB Ratio (1.1x) compared to the GB Capital Markets industry average (1.5x).


Next Steps

Future Growth

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

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCAP's forecast earnings growth (22% per year) is above the savings rate (1.2%).

Earnings vs Market: TCAP's earnings (22% per year) are forecast to grow faster than the UK market (21.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCAP's revenue (3.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: TCAP's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCAP's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has TP ICAP performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCAP has a large one-off loss of £89.0M impacting its December 31 2019 financial results.

Growing Profit Margin: TCAP's current net profit margins (3.8%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: TCAP's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: TCAP's earnings growth over the past year (109.4%) exceeds its 5-year average (11% per year).

Earnings vs Industry: TCAP earnings growth over the past year (109.4%) exceeded the Capital Markets industry 16.4%.


Return on Equity

High ROE: TCAP's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is TP ICAP's financial position?


Financial Position Analysis

Short Term Liabilities: TCAP's short term assets (£50.2B) exceed its short term liabilities (£49.4B).

Long Term Liabilities: TCAP's short term assets (£50.2B) exceed its long term liabilities (£927.0M).


Debt to Equity History and Analysis

Debt Level: TCAP's debt to equity ratio (77.5%) is considered high.

Reducing Debt: TCAP's debt to equity ratio has reduced from 105.8% to 77.5% over the past 5 years.

Debt Coverage: TCAP's debt is not well covered by operating cash flow (11%).

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


Balance Sheet


Next Steps

Dividend

What is TP ICAP's current dividend yield, its reliability and sustainability?

4.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCAP's dividend (4.81%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: TCAP's dividend (4.81%) is low compared to the top 25% of dividend payers in the UK market (5.5%).


Stability and Growth of Payments

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

Growing Dividend: TCAP's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (140.7%), TCAP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCAP's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Nicolas Noel Breteau (51yo)

1.92yrs

Tenure

UK£2,184,000

Compensation

Mr. Nicolas Noel Andre Breteau serves as Director at ICAP WCLK Ltd. Since December 9, 2019. He has been an Executive Director of ICAP Securities Limited since November 30, 2018. He serves as Director of Tu ...


CEO Compensation Analysis

Compensation vs Market: Nicolas Noel's total compensation ($USD2.78M) is about average for companies of similar size in the UK market ($USD2.39M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicolas Noel Breteau
Group CEO & Executive Director1.92yrsUK£2.18m0.0027% £52.4k
Robin Stewart
Group CFO & Executive Director1.92yrsUK£1.21m0.0034% £65.5k
Philip Price
Group General Counsel & Executive Director1.75yrsUK£1.22m0.0058% £112.7k
Martin Ryan
Group Chief Operating Officer1.5yrsno datano data
Alevizos Alevizakos
Head of Investor Relations and FP&Ano datano datano data
Amir Zaidi
Global Head of Compliance0.75yrno datano data
William Baldwin-Charles
Group Media Relations Directorno datano datano data
John Abularrage
Chief Executive Officer of Global Broking1.42yrsno datano data
Nick Deflora
Chief Executive Officer of ICAP Americas and Deputy Chief Executive Officer of TP ICAP Americas no datano datano data
James Potter
Chief Executive Officer of Tullett Prebon EMEA and Deputy Chief Executive Officer of TP ICAP EMEA no datano datano data

1.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: TCAP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicolas Noel Breteau
Group CEO & Executive Director1.92yrsUK£2.18m0.0027% £52.4k
Robin Stewart
Group CFO & Executive Director1.92yrsUK£1.21m0.0034% £65.5k
Philip Price
Group General Counsel & Executive Director1.75yrsUK£1.22m0.0058% £112.7k
Angela Knight
Senior Independent Non-Executive Director8.75yrsUK£102.00k0.00038% £7.4k
Mark Hemsley
Independent Non-Executive Director0.25yrno datano data
Richard David Berliand
Independent Chairman of the Board1.08yrsUK£285.00k0.0089% £175.0k
Roger Perkin
Independent Non-Executive Director7.92yrsUK£93.00k0.00089% £17.4k
Michael Heaney
Independent Non-Executive Director2.42yrsUK£138.00k0.0072% £140.0k
Angela Crawford-Ingle
Independent Non-Executive Director0.25yrno datano data
Chin Ng
Independent Non-Executive Director2.58yrsUK£135.00k0.0036% £70.0k

1.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TCAP's board of directors are not considered experienced ( 1.9 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

TP ICAP plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TP ICAP plc
  • Ticker: TCAP
  • Exchange: LSE
  • Founded: 2006
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: UK£1.956b
  • Shares outstanding: 558.80m
  • Website: https://www.tpicap.com

Number of Employees


Location

  • TP ICAP plc
  • 155 Bishopsgate
  • Floor 2
  • London
  • Greater London
  • EC2M 3TQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCAPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 2017
N5CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2017
TULL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2017
TCAPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 2017

Biography

TP ICAP plc, through its portfolio of businesses, provides intermediary services, contextual insights and intelligence, trade execution solutions, and data and analytics. It operates in four divisions: Global Broking, Energy & Commodities, Institutional Services, and Data & Analytics. The Global Broking division offers professional intermediary services that enable buyers and sellers to execute trades covering rates, foreign exchange and money markets, local markets, equities, and credit asset classes. The Energy & Commodities division assists its clients in energy and commodity transactions ranging from canvassing the market for expressions of interest to intelligence gathering, negotiations, commercial implementation, and post-transaction processing, as well as provides insights on unpredictable factors that affect energy and commodities markets. This division primarily focuses on the oil, gas, power, renewables, ferrous metals, base metals, precious metals, soft commodities, and coal markets. The Institutional Services division provides an agency sales and execution service in a range of asset classes for hedge funds, asset managers, and asset owners. The Data & Analytics division offers pricing, reference data, and analytical tools for making investment, portfolio analysis, valuation, risk management, and compliance decisions for various asset classes and markets. The company’s clients include banks, insurance companies, pension funds, asset managers, hedge funds, governmental organizations, central banks, charities and endowment funds, energy producers and refiners, corporate treasurers, information analysts, risk and compliance managers, and those responsible for trading activities in their business. It primarily operates in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was incorporated in 2006 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:38
End of Day Share Price2020/06/05 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.