LSE:PURE

Stock Analysis Report

Executive Summary

PureCircle Limited, an investment holding company, engages in the production, marketing, and distribution of natural sweeteners and flavors.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-12.3%

PURE

0.6%

GB Food

1.1%

GB Market


1 Year Return

-50.3%

PURE

-3.2%

GB Food

2.7%

GB Market

Return vs Industry: PURE underperformed the UK Food industry which returned -3.2% over the past year.

Return vs Market: PURE underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

PUREIndustryMarket
7 Day-12.3%0.6%1.1%
30 Day-35.7%-5.0%-1.7%
90 Day-37.6%-3.6%-2.7%
1 Year-50.3%-50.3%-0.6%-3.2%7.8%2.7%
3 Year-44.8%-44.8%-2.1%-9.2%19.3%4.7%
5 Year-73.1%-73.1%2.9%-7.3%38.0%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PURE (£1.6) is trading below our estimate of fair value (£7.29)

Significantly Undervalued: PURE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PURE is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: PURE is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PURE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PURE is overvalued based on its PB Ratio (1.8x) compared to the GB Food industry average (1.2x).


Next Steps

Future Growth

How is PureCircle forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PURE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PURE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PURE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PURE's revenue (10.1% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: PURE's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PURE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PureCircle performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PURE is unprofitable, but has reduced losses over the past 5 years at a rate of 4.6% per year.

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

Earnings vs Industry: PURE is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (4.5%).


Return on Equity

High ROE: PURE has a negative Return on Equity (-4.7%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PURE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PURE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PureCircle's financial position?


Financial Position Analysis

Short Term Liabilities: PURE's short term assets ($178.8M) exceeds its short term liabilities ($45.6M)

Long Term Liabilities: PURE's short term assets (178.8M) exceeds its long term liabilities (109.0M)


Debt to Equity History and Analysis

Debt Level: PURE's debt to equity ratio (59.1%) is considered high

Reducing Debt: PURE's debt to equity ratio has reduced from 81.8% to 59.1% over the past 5 years.

Debt Coverage: PURE's debt is not well covered by operating cash flow (5%).

Interest Coverage: PURE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: PURE has a high level of physical assets or inventory.

Debt Coverage by Assets: PURE's debt is covered by short term assets (assets are 1.512970x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate PURE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PURE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PURE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Magomet Malsagov (45yo)

17.8yrs

Tenure

0

Mr. Magomet Malsagov co-founded PureCircle Limited in 2002 and has been its Managing Director and Chief Executive Officer since 2002. Mr. Malsagov is primarily responsible for leading the successful establ ...


CEO Compensation Analysis

Compensation vs. Market: Magomet's total compensation ($USD0.00) is too low to compare against companies of similar size in the UK market ($USD875.41K).

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


Management Age and Tenure

2.9yrs

Average Tenure

45yo

Average Age

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


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PURE's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Stéphane Ducroux (43yo)

    Chief Commercial Officer

    • Tenure: 1.2yrs
  • Magomet Malsagov (45yo)

    Co-Founder

    • Tenure: 17.8yrs
  • Oon Su Tiah

    Head of Group Corporate & Legal and Vice President

    • Tenure: 0yrs
  • Gary Juncosa

    Chief Operating Officer

    • Tenure: 2.9yrs
  • Avetik Markosyan (39yo)

    Head of Group Research & Development

    • Tenure: 0yrs
  • Amber Dossey (45yo)

    Vice President of Group Human Resources

    • Tenure: 4.1yrs
  • Rakesh Sinha (50yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
  • Jackson Pillow

    Manager of Media Relations

    • Tenure: 0yrs
  • Navneet Singh

    Head of South East Asia Region

    • Tenure: 1.1yrs
  • Alina Slotnik

    Vice President of Global Marketing

    • Tenure: 0.3yrs

Board Members

  • John Gibney (58yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
  • Mitch Adamek (57yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
  • John Robert Slosar (62yo)

    Independent Chairman

    • Tenure: 0.9yrs
  • Magomet Malsagov (45yo)

    Co-Founder

    • Tenure: 17.8yrs
  • Guy Wollaert (59yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
  • Ann Scichili (59yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • Rakesh Sinha (50yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
  • Rosemarie Andolino (51yo)

    Non-Executive Director

    • Tenure: 1.1yrs

Company Information

PureCircle Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PureCircle Limited
  • Ticker: PURE
  • Exchange: LSE
  • Founded: 2001
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£295.128m
  • Shares outstanding: 184.45m
  • Website: https://www.purecircle.com

Number of Employees


Location

  • PureCircle Limited
  • 200 West Jackson Boulevard
  • 8th Floor
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PURELSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2007
PCRT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007
4PCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
PURELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2007

Biography

PureCircle Limited, an investment holding company, engages in the production, marketing, and distribution of natural sweeteners and flavors. The company offers natural ingredients based on stevia for the f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:03
End of Day Share Price2019/10/14 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.