LSE:ESP

Stock Analysis Report

Empiric Student Property

Executive Summary

Empiric Student Property plc is a leading provider and operator of modern, direct-let, nominated or leased student accommodation across the UK.


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

ESP

-1.4%

GB REITs

0.3%

GB Market


1 Year Return

3.7%

ESP

13.4%

GB REITs

6.5%

GB Market

Return vs Industry: ESP underperformed the UK REITs industry which returned 13.4% over the past year.

Return vs Market: ESP underperformed the UK Market which returned 6.5% over the past year.


Shareholder returns

ESPIndustryMarket
7 Day-1.0%-1.4%0.3%
30 Day0.2%-0.1%-1.4%
90 Day5.2%4.5%2.9%
1 Year9.4%3.7%18.4%13.4%12.0%6.5%
3 Year7.4%-7.6%27.9%9.9%18.7%3.8%
5 Year24.8%-3.3%29.2%3.6%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Empiric Student Property undervalued compared to its fair value and its price relative to the market?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESP (£1.01) is trading below our estimate of fair value (£1.16)

Significantly Below Fair Value: ESP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ESP is good value based on its PE Ratio (12.8x) compared to the REITs industry average (15.2x).

PE vs Market: ESP is good value based on its PE Ratio (12.8x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ESP is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ESP is good value based on its PB Ratio (0.9x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

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

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESP's forecast earnings growth (7.7% per year) is above the savings rate (0.5%).

Earnings vs Market: ESP's earnings (7.7% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: ESP's revenue (5.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ESP's revenue (5.1% 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 ESP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Empiric Student Property performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESP has a large one-off gain of £24.5M impacting its June 30 2019 financial results.

Growing Profit Margin: ESP's current net profit margins (69.1%) are higher than last year (48.2%).


Past Earnings Growth Analysis

Earnings Trend: ESP's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: ESP's earnings growth over the past year (69.4%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: ESP earnings growth over the past year (69.4%) exceeded the REITs industry -20.8%.


Return on Equity

High ROE: ESP's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Empiric Student Property's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: ESP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: ESP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ESP has a sufficient allowance for bad loans.

Low Risk Liabilities: ESP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ESP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ESP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ESP has an appropriate level of bad loans.


Next Steps

Dividend

What is Empiric Student Property's current dividend yield, its reliability and sustainability?

4.95%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Empiric Student Property before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.0%marketbottom25%1.8%markettop25%5.1%industryaverage3.8%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: ESP's dividend (4.95%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: ESP's dividend (4.95%) is low compared to the top 25% of dividend payers in the UK market (5.07%).


Stability and Growth of Payments

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

Growing Dividend: ESP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.8%), ESP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESP's dividends in 3 years are not forecast to be well covered by earnings (100.4% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Tim Attlee (57yo)

2.2yrs

Tenure

UK£539,500

Compensation

Mr. Timothy Attlee, also known as Tim, BSc (Hons) MRICS has been Chief Executive Officer of Empiric Student Property Plc since November 29, 2018. Mr. Attlee served as the Chief Investment Officer of Empiri ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD699.51K) is below average for companies of similar size in the UK market ($USD1.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Attlee
CEO & Director2.2yrsUK£539.50k0.16% £966.1k
Lynne Fennah
CFO, COO & Director2.7yrsUK£454.16k0.0092% £55.9k
Clint Bartman
Operations Director0yrsno datano data
Charles Taylor
Consultant and Acquisitions Manager5.4yrsno datano data
Martyn Roe
Consultant0yrsno datano data

2.7yrs

Average Tenure

Experienced Management: ESP's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Attlee
CEO & Director2.2yrsUK£539.50k0.16% £966.1k
Lynne Fennah
CFO, COO & Director2.7yrsUK£454.16k0.0092% £55.9k
Mark Pain
Non-Executive Chairman1.4yrsUK£38.33k0.017% £101.0k
Alice Mary Avis
Non-Executive Director0.9yrsno datano data
Stuart R. Beevor
Non-Executive Director4.1yrsUK£75.92k0.0033% £20.2k
Aubyn James Prower
Senior Independent Non-Executive Director0yrsUK£52.50k0.0063% £38.3k

2.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ESP's board of directors are not considered experienced ( 2.7 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

Empiric Student Property plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empiric Student Property plc
  • Ticker: ESP
  • Exchange: LSE
  • Founded:
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: UK£609.193m
  • Shares outstanding: 603.16m
  • Website: https://www.empiric.co.uk

Number of Employees


Location

  • Empiric Student Property plc
  • 6th Floor Swan House
  • 17-19 Stratford Place
  • London
  • East Lothian
  • W1C 1BQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2014

Biography

Empiric Student Property plc is a leading provider and operator of modern, direct-let, nominated or leased student accommodation across the UK. Investing in both operating and development assets, Empiric is a multi-niche student property company focused on, (i) providing good quality first year accommodation managed through its Hello Student® operating platform in partnership with universities, (ii) offering a variety of second and third year purpose-built accommodation options for individual students and those wanting a group living environment, and (iii) continuing to expand the Group's existing premium, studio-led accommodation portfolio which is attractive to international and postgraduate students. The Company, an internally managed real estate investment trust ("REIT") incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 22:35
End of Day Share Price2020/02/24 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.