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. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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

-6.7%

TCAP

-1.9%

GB Capital Markets

-1.9%

GB Market


1 Year Return

-37.0%

TCAP

1.1%

GB Capital Markets

-14.5%

GB Market

Return vs Industry: TCAP underperformed the UK Capital Markets industry which returned 1.5% over the past year.

Return vs Market: TCAP underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

TCAPIndustryMarket
7 Day-6.7%-1.9%-1.9%
30 Day-31.2%-1.5%-1.7%
90 Day-39.4%-0.9%-4.4%
1 Year-32.9%-37.0%4.5%1.1%-11.3%-14.5%
3 Year-53.6%-60.6%22.9%8.2%-9.0%-20.3%
5 Yearn/a66.3%36.0%15.3%-10.6%

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?

21.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCAP (£2.12) is trading above our estimate of fair value (£0.93)

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


Price To Earnings Ratio

PE vs Industry: TCAP is poor value based on its PE Ratio (21.5x) compared to the GB Capital Markets industry average (17x).

PE vs Market: TCAP is poor value based on its PE Ratio (21.5x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: TCAP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: TCAP is good value based on its PB Ratio (0.7x) compared to the GB Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is TP ICAP forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCAP's forecast earnings growth (29.4% per year) is above the savings rate (1.2%).

Earnings vs Market: TCAP's earnings (29.4% per year) are forecast to grow faster than the UK market (24.2% per year).

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

Revenue vs Market: TCAP's revenue (2.5% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: TCAP's revenue (2.5% 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 (11.3%).


Next Steps

Past Performance

How has TP ICAP performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCAP has a large one-off loss of £94.0M impacting its June 30 2020 financial results.

Growing Profit Margin: TCAP's current net profit margins (3%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: TCAP's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: TCAP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCAP had negative earnings growth (-35.2%) over the past year, making it difficult to compare to the Capital Markets industry average (0.9%).


Return on Equity

High ROE: TCAP's Return on Equity (3.1%) 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 (£38.6B) exceed its short term liabilities (£37.7B).

Long Term Liabilities: TCAP's short term assets (£38.6B) exceed its long term liabilities (£995.0M).


Debt to Equity History and Analysis

Debt Level: TCAP's debt to equity ratio (40.9%) is considered high.

Reducing Debt: Insufficient data to determine if TCAP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TCAP's debt is well covered by operating cash flow (35.1%).

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 current dividend yield, its reliability and sustainability?

7.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCAP's dividend (7.96%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: TCAP's dividend (7.96%) is in the top 25% of dividend payers in the UK market (5.36%)


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 (171%), 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 (48.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Nicolas Noel Breteau (52 yo)

2.25yrs

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 ($USD2.84M) is above average for companies of similar size in the UK market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicolas Noel Breteau
Group CEO & Executive Director2.25yrsUK£2.18m0.0080%
£ 95.3k
Robin Stewart
Group CFO & Executive Director2.25yrsUK£1.21m0.0060%
£ 71.4k
Philip Price
Group General Counsel & Executive Director2.08yrsUK£1.22m0.0088%
£ 103.8k
Martin Ryan
Group Chief Operating Officer1.83yrsno datano data
Alevizos Alevizakos
Head of Investor Relations and FP&Ano datano datano data
Amir Zaidi
Global Head of Compliance1.08yrsno datano data
William Baldwin-Charles
Group Media Relations Directorno datano datano data
John Abularrage
Chief Executive Officer of Global Broking1.75yrsno 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
Jonathan Gane
Managing Director of Institutional Services Division3yrsno datano data
David Fell-Clark
Head of Rates for EMEA - Institutional Services Division3yrsno datano data

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: TCAP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicolas Noel Breteau
Group CEO & Executive Director2.25yrsUK£2.18m0.0080%
£ 95.3k
Robin Stewart
Group CFO & Executive Director2.25yrsUK£1.21m0.0060%
£ 71.4k
Philip Price
Group General Counsel & Executive Director2.08yrsUK£1.22m0.0088%
£ 103.8k
Angela Knight
Senior Independent Non-Executive Director9.08yrsUK£102.00k0.00038%
£ 4.5k
Mark Hemsley
Independent Non-Executive Director0.58yrno datano data
Richard David Berliand
Independent Non-Executive Chairman of the Board1.42yrsUK£285.00k0.013%
£ 158.8k
Roger Perkin
Independent Non-Executive Director8.25yrsUK£93.00k0.00089%
£ 10.5k
Michael Heaney
Independent Non-Executive Director2.75yrsUK£138.00k0.0072%
£ 84.7k
Angela Crawford-Ingle
Independent Non-Executive Director0.58yrno datano data
Chin Ng
Independent Non-Executive Director2.92yrsUK£135.00k0.0036%
£ 42.4k

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: TCAP's board of directors are not considered experienced ( 2.3 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: TCAP 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£1.184b
  • 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: Glo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:35
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.