LSE:DIGS

Stock Analysis Report

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Executive Summary

GCP Student Living plc, a FTSE 250 company, was the first real estate investment trust in the UK to focus on student residential assets. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has GCP Student Living's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DIGS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DIGS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

DIGS

0.8%

GB REITs

-2.3%

GB Market


1 Year Return

-18.6%

DIGS

-41.7%

GB REITs

1.1%

GB Market

Return vs Industry: DIGS exceeded the UK REITs industry which returned -42.3% over the past year.

Return vs Market: DIGS underperformed the UK Market which returned -0.2% over the past year.


Shareholder returns

DIGSIndustryMarket
7 Day4.3%0.8%-2.3%
30 Day4.6%1.7%-0.1%
90 Day9.4%4.7%4.2%
1 Year-16.4%-18.6%-8.0%-41.7%7.1%1.1%
3 Year23.8%11.7%0.6%-0.7%9.7%-3.4%
5 Year36.5%13.6%7.4%1.5%36.9%10.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GCP Student Living undervalued compared to its fair value and its price relative to the market?

13.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIGS (£1.54) is trading above our estimate of fair value (£0.77)

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


Price To Earnings Ratio

PE vs Industry: DIGS is good value based on its PE Ratio (13.8x) compared to the GB REITs industry average (18.1x).

PE vs Market: DIGS is good value based on its PE Ratio (13.8x) compared to the UK market (24x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DIGS's PB Ratio (0.9x) is in line with the GB REITs industry average.


Next Steps

Future Growth

How is GCP Student Living forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIGS's forecast earnings growth (16.6% per year) is above the savings rate (1%).

Earnings vs Market: DIGS's earnings (16.6% per year) are forecast to grow slower than the UK market (23.3% per year).

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

Revenue vs Market: DIGS's revenue (0.7% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: DIGS's revenue (0.7% 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 DIGS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GCP Student Living performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIGS has a large one-off gain of £30.1M impacting its June 30 2020 financial results.

Growing Profit Margin: DIGS's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: DIGS's earnings have grown significantly by 24.8% per year over the past 5 years.

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

Earnings vs Industry: DIGS had negative earnings growth (-47.6%) over the past year, making it difficult to compare to the REITs industry average (-4.2%).


Return on Equity

High ROE: DIGS's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is GCP Student Living's financial position?


Financial Position Analysis

Short Term Liabilities: DIGS's short term assets (£78.3M) exceed its short term liabilities (£15.8M).

Long Term Liabilities: DIGS's short term assets (£78.3M) do not cover its long term liabilities (£291.0M).


Debt to Equity History and Analysis

Debt Level: DIGS's debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: DIGS's debt to equity ratio has reduced from 111.3% to 35.8% over the past 5 years.

Debt Coverage: DIGS's debt is not well covered by operating cash flow (6.1%).

Interest Coverage: DIGS's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is GCP Student Living current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIGS's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: DIGS's dividend (0.65%) is low compared to the top 25% of dividend payers in the UK market (4.52%).


Stability and Growth of Payments

Stable Dividend: DIGS is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: DIGS is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DIGS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

GCP Student Living has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Russell Chambers
Independent Non-Executive Directorno datano datano data
David Hunter
Independent Non Executive Chairman0.25yrUK£39.64k0.0046%
£ 32.6k
Robert Naish
Senior Independent Non Executive Director2.25yrsUK£39.20k0.0069%
£ 48.3k
Marlene Wood
Independent Non Executive Director5.92yrsUK£46.18k0.0044%
£ 30.9k
Gillian Lyndsay Day
Independent Non-Executive Director3yrsUK£39.25k0.00050%
£ 3.5k

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: DIGS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

GCP Student Living plc's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • GCP Student Living plc
  • Beaufort House
  • 51 New North Road
  • Exeter
  • Devon
  • EX4 4EP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIGSLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2013
DIGSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2013

Biography

GCP Student Living plc, a FTSE 250 company, was the first real estate investment trust in the UK to focus on student residential assets. The Company seeks to provide shareholders with attractive total retu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 19:38
End of Day Share Price2021/02/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.