AIM:FPO

Stock Analysis Report

Executive Summary

First Property Group plc is a real estate investment firm.

Rewards


Snowflake Analysis

Share Price & News

How has First Property Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FPO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

FPO

-0.5%

GB Real Estate

-1.8%

GB Market


1 Year Return

-11.0%

FPO

28.2%

GB Real Estate

10.8%

GB Market

Return vs Industry: FPO underperformed the UK Real Estate industry which returned 33.7% over the past year.

Return vs Market: FPO underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

FPOIndustryMarket
7 Day-0.6%-0.5%-1.8%
30 Day-4.3%0.9%-1.6%
90 Day6.6%14.2%4.5%
1 Year-7.4%-11.0%31.5%28.2%16.6%10.8%
3 Year3.2%-6.3%15.3%6.9%21.4%5.8%
5 Year56.2%32.8%27.8%13.5%38.3%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Property Group undervalued compared to its fair value and its price relative to the market?

8.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FPO (£0.48) is trading above our estimate of fair value (£0.21)

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


Price To Earnings Ratio

PE vs Industry: FPO is good value based on its PE Ratio (8.9x) compared to the Real Estate industry average (15x).

PE vs Market: FPO is good value based on its PE Ratio (8.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FPO is good value based on its PB Ratio (1.1x) compared to the GB Real Estate industry average (1.2x).

Future Growth

How is First Property Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FPO's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if FPO's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: FPO's revenue (0.9% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: FPO's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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

Past Performance

How has First Property Group performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPO has a large one-off gain of £1.8M impacting its September 30 2019 financial results.

Growing Profit Margin: FPO's current net profit margins (34.2%) are higher than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: FPO's earnings have declined by -5.5% per year over the past 5 years.

Accelerating Growth: FPO's earnings growth over the past year (11.8%) exceeds its 5-year average (-5.5% per year).

Earnings vs Industry: FPO earnings growth over the past year (11.8%) exceeded the Real Estate industry 2.2%.


Return on Equity

High ROE: FPO's Return on Equity (12.8%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is First Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: FPO's short term assets (£28.5M) exceed its short term liabilities (£11.9M).

Long Term Liabilities: FPO's short term assets (£28.5M) do not cover its long term liabilities (£63.5M).


Debt to Equity History and Analysis

Debt Level: FPO's debt to equity ratio (88%) is considered high.

Reducing Debt: FPO's debt to equity ratio has reduced from 152.6% to 88% over the past 5 years.

Debt Coverage: FPO's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: FPO's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: FPO's debt is not covered by short term assets (assets are 0.7x debt).

Dividend

What is First Property Group's current dividend yield, its reliability and sustainability?

3.73%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.9%markettop25%5.1%industryaverage2.5%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: FPO's dividend (3.49%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: FPO's dividend (3.49%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: FPO's dividends per share have been stable in the past 10 years.

Growing Dividend: FPO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), FPO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

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

3.0yrs

Average management tenure


CEO

Ben Habib 0

20yrs

Tenure

UK£1,596,000

Compensation

Mr. Benyamin N. Habib, also known as Ben, MA (Cantab) founded First Property Group PLC in 2000 and has been its Chief Executive Officer since 2000. He served as Chief Investment Officer of First Property  ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD2.07M) is above average for companies of similar size in the UK market ($USD326.78K).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: FPO's management team is considered experienced (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.


Recent Insider Transactions

BuyUK£43,50008 Aug 19
Benyamin Habib
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares100,000
Max PriceUK£0.43
BuyUK£41,68007 Aug 19
Benyamin Habib
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares100,000
Max PriceUK£0.42

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Thomas (61yo)

    Head of Sales & Marketing

    • Ben Habib

      Group CEO & Director

      • Tenure: 20yrs
      • Compensation: UK£1.60m
    • George Richard Digby (63yo)

      Group Finance Director

      • Compensation: UK£477.00k
    • Jeremy Barkes

      Director of Business Development

      • Jay Dodhia

        Associate Fund Manager of First Property Asset Management Limited

        • Del Chandler

          Senior Adviser to First Property Poland Sp. Z O.O.

          • Jill Aubrey

            Director of Fund Operations

            • Tenure: 0.5yrs
          • Robert Wozniak

            General Counsel Lawyer of First Property Poland Sp. z.o.o.

            • Laura James

              Group Financial Controller

              • John Dunkley

                Chief Technical Officer

                • Tenure: 3yrs

              Board Members

              • Alasdair James Locke (65yo)

                Non-Executive Chairman

                • Compensation: UK£30.00k
              • Peter Moon (69yo)

                Independent Non-Executive Director

                • Tenure: 9.7yrs
                • Compensation: UK£30.00k
              • Ben Habib

                Group CEO & Director

                • Tenure: 20yrs
                • Compensation: UK£1.60m
              • George Richard Digby (63yo)

                Group Finance Director

                • Compensation: UK£477.00k

              Company Information

              First Property Group plc's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: First Property Group plc
              • Ticker: FPO
              • Exchange: AIM
              • Founded:
              • Industry: Diversified Real Estate Activities
              • Sector: Real Estate
              • Market Cap: UK£49.113m
              • Shares outstanding: 110.37m
              • Website: https://www.fprop.com

              Number of Employees


              Location

              • First Property Group plc
              • 32 St James’s Street
              • London
              • Greater London
              • SW1A 1HD
              • United Kingdom

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              FPOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 1995

              Biography

              First Property Group plc is a real estate investment firm. It provides fund management, financial, and technical services to the property industry in the United Kingdom and other European countries. The firm manages commercial properties of various fund investors, as well as involves in property investment and trading, property equity finance, and online activities. It also engages in the facilities management of properties, which include contract installation and maintenance of air conditioning and ventilation systems for office working environments. The firm prefers to invest in offices that can be converted into flats . First Property Group plc is based 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 Analysis2020/01/28 20:33
              End of Day Share Price2020/01/28 00:00
              Earnings2019/09/30
              Annual Earnings2019/03/31


              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.