LSE:TCAP

Stock Analysis Report

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

Fundamentals

Acceptable track record with moderate growth potential.


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


Market Performance


7 Day Return

1.0%

TCAP

-0.08%

GB Capital Markets

1.1%

GB Market


1 Year Return

17.7%

TCAP

24.2%

GB Capital Markets

2.7%

GB Market

Return vs Industry: TCAP underperformed the UK Capital Markets industry which returned 24.2% over the past year.

Return vs Market: TCAP exceeded the UK Market which returned 2.7% over the past year.


Shareholder returns

TCAPIndustryMarket
7 Day1.0%-0.08%1.1%
30 Day-4.2%-3.5%-1.7%
90 Day1.4%3.6%-2.7%
1 Year24.4%17.7%27.3%24.2%7.8%2.7%
3 Yearn/a82.1%69.2%19.3%4.7%
5 Yearn/a159.1%127.4%38.0%8.1%

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?

21.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TCAP (£3.25) is trading above our estimate of fair value (£1.08)

Significantly Undervalued: 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 (21.4x) compared to the Capital Markets industry average (18.2x).

PE vs Market: TCAP is poor value based on its PE Ratio (21.4x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: TCAP is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TCAP is good value based on its PB Ratio (1x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCAP's forecast earnings growth (27.1% per year) is above the savings rate (1.2%).

Earnings vs Market: TCAP's earnings (27.1% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: TCAP's revenue (3.3% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: TCAP's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TCAP's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has TP ICAP performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCAP's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: TCAP's earnings growth over the past year (97.7%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: TCAP earnings growth over the past year (97.7%) exceeded the Capital Markets industry 4.6%.


Return on Equity

High ROE: TCAP's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: TCAP's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate TCAP's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is TP ICAP's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TCAP has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCAP's debt is covered by short term assets (assets are 80.280990x debt).


Financial Institutions Analysis

Asset Level: TCAP's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if TCAP has a sufficient allowance for bad loans.

Low Risk Liabilities: TCAP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TCAP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCAP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TCAP has an appropriate level of bad loans.


Next Steps

Dividend

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

5.18%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TCAP's dividend (5.18%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: TCAP's dividend (5.18%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.1%), 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 covered by earnings (52% payout ratio).


Next Steps

Management

What is the CEO of TP ICAP's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Nicolas Noel Breteau (51yo)

1.3yrs

Tenure

UK£1,100,824

Compensation

Mr. Nicolas Noel Andre Breteau has been an Executive Director of ICAP Securities Limited since November 30, 2018. Mr. Breteau serves as Executive Director at Tullet Prebon (Securities) Limited and iSwap Eu ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Nicolas Noel's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Nicolas Noel's compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

52yo

Average Age

Experienced Management: TCAP's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: TCAP's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TCAP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£39,78714 Aug 19
David Shalders
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares14,801
Max PriceUK£2.69

Ownership Breakdown


Management Team

  • Nicolas Noel Breteau (51yo)

    Group CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.10m
  • Martin Ryan

    Group Chief Operating Officer

    • Tenure: 0.8yrs
  • Philip Price (54yo)

    Group General Counsel & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£580.14k
  • Mihiri Jayaweera

    Group Head of Strategy

    • Tenure: 0yrs
  • James Potter

    Chief Executive Officer of Tullett Prebon EMEA and Deputy Chief Executive Officer of TP ICAP EMEA

    • Tenure: 0yrs
  • Nick Deflora

    Chief Executive Officer of ICAP Americas and Deputy Chief Executive Officer of TP ICAP Americas

    • Tenure: 0yrs
  • Amir Zaidi

    Global Head of Compliance

    • Tenure: 0.08yrs
  • Jamie Dunkley

    Group Media Relations Director

    • Tenure: 0yrs
  • Robin Stewart (52yo)

    CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£659.81k
  • Sarah Lewis

    Group Head of Human Resource

    • Tenure: 0.8yrs

Board Members

  • Angela Knight (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£90.00k
  • Margaret Trainer (67yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Richard David Berliand (57yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
  • Nicolas Noel Breteau (51yo)

    Group CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.10m
  • Philip Price (54yo)

    Group General Counsel & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£580.14k
  • Roger Perkin (71yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: UK£90.00k
  • David Shalders (52yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£80.00k
  • Michael Heaney (55yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£121.00k
  • Edmund Ng

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£125.00k
  • Robin Stewart (52yo)

    CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£659.81k

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£1.816b
  • 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 Analysis2019/10/14 21:51
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.