AIM:TPFG

Stock Analysis Report

Property Franchise Group

Executive Summary

The Property Franchise Group PLC manages real estate properties in the United Kingdom.

Rewards

Trading at 44.8% below its fair value

Revenue is forecast to grow 4.23% per year

Earnings grew by 8% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (£43M)



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.5%

TPFG

5.5%

GB Real Estate

5.9%

GB Market


1 Year Return

25.0%

TPFG

-18.8%

GB Real Estate

-22.7%

GB Market

Return vs Industry: TPFG exceeded the UK Real Estate industry which returned -16.5% over the past year.

Return vs Market: TPFG exceeded the UK Market which returned -18.8% over the past year.


Shareholder returns

TPFGIndustryMarket
7 Day-3.5%5.5%5.9%
30 Day-25.3%-35.1%-23.1%
90 Day-17.5%-35.7%-28.1%
1 Year31.9%25.0%-16.6%-18.8%-18.6%-22.7%
3 Year31.5%12.6%-20.7%-27.3%-13.4%-24.7%
5 Year63.5%30.4%-13.7%-23.7%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPFG (£1.65) is trading below our estimate of fair value (£2.99)

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


Price To Earnings Ratio

PE vs Industry: TPFG is good value based on its PE Ratio (12x) compared to the Real Estate industry average (12.4x).

PE vs Market: TPFG is good value based on its PE Ratio (12x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: TPFG is poor value based on its PEG Ratio (98.3x)


Price to Book Ratio

PB vs Industry: TPFG is overvalued based on its PB Ratio (2.7x) compared to the GB Real Estate industry average (0.8x).


Next Steps

Future Growth

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

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPFG's forecast earnings growth (0.1% per year) is below the savings rate (0.5%).

Earnings vs Market: TPFG's earnings (0.1% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: TPFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: TPFG's revenue (4.2% per year) is forecast to grow faster than the UK market (2.7% per year).

High Growth Revenue: TPFG's revenue (4.2% 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 TPFG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPFG has high quality earnings.

Growing Profit Margin: TPFG's current net profit margins (31.7%) are higher than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: TPFG's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: TPFG's earnings growth over the past year (8%) is below its 5-year average (19.6% per year).

Earnings vs Industry: TPFG earnings growth over the past year (8%) exceeded the Real Estate industry -2.2%.


Return on Equity

High ROE: TPFG's Return on Equity (22.4%) is considered high.


Next Steps

Financial Health

How is Property Franchise Group's financial position?


Financial Position Analysis

Short Term Liabilities: TPFG's short term assets (£5.1M) exceed its short term liabilities (£3.1M).

Long Term Liabilities: TPFG's short term assets (£5.1M) exceed its long term liabilities (£1.8M).


Debt to Equity History and Analysis

Debt Level: TPFG's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: TPFG's debt to equity ratio has increased from 0.2% to 7.3% over the past 5 years.

Debt Coverage: TPFG's debt is well covered by operating cash flow (406.7%).

Interest Coverage: TPFG's interest payments on its debt are well covered by EBIT (85.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: TPFG's debt is covered by short term assets (assets are 4.4x debt).


Next Steps

Dividend

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

5.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPFG's dividend (5.09%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: TPFG's dividend (5.09%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


Stability and Growth of Payments

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

Growing Dividend: TPFG's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.7%), TPFG's dividend payments are 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.


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Ian Wilson (57yo)

6.25s

Tenure

UK£335,000

Compensation

Mr. Ian Wilson has been the Chief Executive Officer of Martinco Plc since December 17, 2013. Mr. Wilson has worked in the property industry for almost thirty years. His first job after graduation was to ma ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD415.82K) is about average for companies of similar size in the UK market ($USD330.32K).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Wilson
CEO & Director6.25yrsUK£335.00k5.73% £2.4m
David Raggett
CFO, Secretary & Director6.42yrsUK£252.00k0.88% £375.2k
Paul Latham
Independent Non-Executive Director6.25yrsUK£40.00k0.19% £82.5k
Richard Martin
Non-Executive Chairman6.25yrsUK£40.00k34.43% £14.7m
Philip Crooks
Independent Non-Executive Director4.83yrsUK£40.00kno data

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: TPFG's board of directors are considered experienced (6.3 years average tenure).


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

The Property Franchise Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Property Franchise Group PLC
  • Ticker: TPFG
  • Exchange: AIM
  • Founded: 1986
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: UK£42.608m
  • Shares outstanding: 25.82m
  • Website: https://www.propertyfranchise.co.uk

Number of Employees


Location

  • The Property Franchise Group PLC
  • 2 St Stephen’s Court
  • St Stephen’s Road
  • Bournemouth
  • Dorset
  • BH2 6LA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPFGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2013

Biography

The Property Franchise Group PLC manages real estate properties in the United Kingdom. The company provides residential letting, estate agency, and property management services to tenants and landlords. It offers its services under the CJ Hole, Ellis & Co, Ewemove, Martin & Co, Parkers, and Whitegates brands. The company was formerly known as MartinCo PLC and changed its name to The Property Franchise Group PLC in March 2017. The Property Franchise Group PLC was founded in 1986 and is headquartered in Bournemouth, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 23:17
End of Day Share Price2020/03/27 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.