Property Franchise Group (AIM:TPFG) - Share price, News & Analysis

TPFG fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	2/6
Financial Health	4/6
Dividends	2/6

TPFG Stock Overview

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

Rewards

Trading at 70.4% below our estimate of its fair value

Earnings are forecast to grow 26.67% per year

Risk Analysis

Dividend of 3.88% is not well covered by earnings

Profit margins (15.1%) are lower than last year (34%)

Property Franchise Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Property Franchise Group
Historical stock prices
Current Share Price	UK£2.99
52 Week High	UK£3.72
52 Week Low	UK£2.44
Beta	0.68
1 Month Change	-1.97%
3 Month Change	-8.84%
1 Year Change	-0.33%
3 Year Change	82.88%
5 Year Change	84.57%
Change since IPO	155.56%

Recent News & Updates

May 10

These 4 Measures Indicate That Property Franchise Group (LON:TPFG) Is Using Debt Safely

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

	TPFG	GB Real Estate	GB Market
7D	-1.6%	-0.8%	2.3%
1Y	-0.3%	-18.1%	-8.6%

Return vs Industry: TPFG exceeded the UK Real Estate industry which returned -18.1% over the past year.

Return vs Market: TPFG exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is TPFG's price volatile compared to industry and market?
TPFG volatility
TPFG Average Weekly Movement	3.3%
Real Estate Industry Average Movement	3.9%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: TPFG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TPFG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	183	Gareth Samples	https://www.propertyfranchise.co.uk

The Property Franchise Group PLC manages residential real estate properties in the United Kingdom. The company provides residential letting, estate agency, and property management services to tenants and landlords; and financial services. The company was formerly known as MartinCo PLC and changed its name to The Property Franchise Group PLC in March 2017.

Property Franchise Group Fundamentals Summary

How do Property Franchise Group's earnings and revenue compare to its market cap?
TPFG fundamental statistics
Market Cap	UK£95.81m
Earnings (TTM)	UK£3.64m
Revenue (TTM)	UK£24.04m

26.3x

P/E Ratio

4.0x

P/S Ratio

Is TPFG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPFG income statement (TTM)
Revenue	UK£24.04m
Cost of Revenue	UK£3.70m
Gross Profit	UK£20.35m
Other Expenses	UK£16.71m
Earnings	UK£3.64m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.11
Gross Margin	84.62%
Net Profit Margin	15.13%
Debt/Equity Ratio	33.3%

How did TPFG perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

98%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TPFG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TPFG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TPFG. This is calculated by dividing TPFG's market cap by their current preferred multiple.
What is TPFG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£95.81m

TPFG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.2x
Enterprise Value/EBITDA	11.4x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does TPFG's PE Ratio compare to its peers?

TPFG PE Ratio vs Peers

The above table shows the PE ratio for TPFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.2x

Forward PE

Price-To-Earnings vs Peers: TPFG is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (12.2x).

Price to Earnings Ratio vs Industry

How does TPFG's PE Ratio compare vs other companies in the U.K. Real Estate Industry?

Price-To-Earnings vs Industry: TPFG is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the UK Real Estate industry average (9.1x)

Price to Earnings Ratio vs Fair Ratio

What is TPFG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TPFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.3x
Fair PE Ratio	17.1x

Price-To-Earnings vs Fair Ratio: TPFG is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).

Share Price vs Fair Value

What is the Fair Price of TPFG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TPFG (£2.99) is trading below our estimate of fair value (£10.11)

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

Price to Earnings Growth Ratio

PEG Ratio: TPFG is good value based on its PEG Ratio (1x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPFG's forecast earnings growth (26.7% per year) is above the savings rate (0.9%).

Earnings vs Market: TPFG's earnings (26.7% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: Insufficient data to determine if TPFG's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if TPFG's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TPFG's Return on Equity is forecast to be high in 3 years time (22.6%)

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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TPFG has high quality earnings.

Growing Profit Margin: TPFG's current net profit margins (15.1%) are lower than last year (34%).

Past Earnings Growth Analysis

Earnings Trend: TPFG's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: TPFG had negative earnings growth (-3%) over the past year, making it difficult to compare to the Real Estate industry average (51.4%).

Return on Equity

High ROE: TPFG's Return on Equity (11%) is considered low.

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Financial Health

How is Property Franchise Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TPFG's short term assets (£11.2M) exceed its short term liabilities (£9.7M).

Long Term Liabilities: TPFG's short term assets (£11.2M) do not cover its long term liabilities (£17.3M).

Debt to Equity History and Analysis

Debt Level: TPFG's net debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: TPFG's debt to equity ratio has increased from 27.8% to 33.3% over the past 5 years.

Debt Coverage: TPFG's debt is well covered by operating cash flow (80.6%).

Interest Coverage: TPFG's interest payments on its debt are well covered by EBIT (23.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TPFG's dividend (3.88%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: TPFG's dividend (3.88%) is low compared to the top 25% of dividend payers in the UK market (5.18%).

Stability and Growth of Payments

Stable Dividend: TPFG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TPFG's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (97.6%), TPFG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.5%), TPFG's dividend payments are well covered by cash flows.

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Management

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

7.8yrs

Average board tenure

CEO

Gareth Samples (53 yo)

2.17yrs

Tenure

UK£440,000

Compensation

Mr. Gareth M. Samples is a Director of LSL Property Services Plc. He serves as Chief Executive Offcier and Director at The Property Franchise Group PLC since April 30, 2020. He has industry experience.He...

CEO Compensation Analysis

Compensation vs Market: Gareth's total compensation ($USD540.79K) is above average for companies of similar size in the UK market ($USD335.04K).

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

Board Members

Experienced Board: TPFG's board of directors are considered experienced (7.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31