LSE:HCFT

Stock Analysis Report

Executive Summary

Highcroft Investments PLC is a Real Estate Investment Trust with a premium listing on the main market of the London Stock Exchange (Stock Code: HCFT).


Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

How has Highcroft Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

HCFT

1.5%

GB REITs

1.7%

GB Market


1 Year Return

-26.0%

HCFT

-17.9%

GB REITs

-21.8%

GB Market

Return vs Industry: HCFT underperformed the UK REITs industry which returned -24.4% over the past year.

Return vs Market: HCFT matched the UK Market which returned -25.9% over the past year.


Shareholder returns

HCFTIndustryMarket
7 Day-2.9%1.5%1.7%
30 Day-26.8%-17.8%-12.0%
90 Day-28.9%-25.7%-25.3%
1 Year-21.3%-26.0%-14.7%-17.9%-17.9%-21.8%
3 Year-13.7%-26.4%-6.3%-18.5%-11.8%-22.8%
5 Year-1.4%-22.5%-6.4%-23.9%0.1%-22.4%

Price Volatility Vs. Market

How volatile is Highcroft Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Highcroft Investments undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCFT (£6.65) is trading below our estimate of fair value (£10.81)

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


Price To Earnings Ratio

PE vs Industry: HCFT is good value based on its PE Ratio (10.8x) compared to the REITs industry average (12.6x).

PE vs Market: HCFT is good value based on its PE Ratio (10.8x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HCFT is good value based on its PB Ratio (0.6x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Highcroft Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.3%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Highcroft Investments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Highcroft Investments performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCFT has high quality earnings.

Growing Profit Margin: HCFT's current net profit margins (59.5%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: HCFT's earnings have declined by -8.3% per year over the past 5 years.

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

Earnings vs Industry: HCFT had negative earnings growth (-54.9%) over the past year, making it difficult to compare to the REITs industry average (-21.6%).


Return on Equity

High ROE: HCFT's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Highcroft Investments's financial position?


Financial Position Analysis

Short Term Liabilities: HCFT's short term assets (£1.3M) do not cover its short term liabilities (£2.1M).

Long Term Liabilities: HCFT's short term assets (£1.3M) do not cover its long term liabilities (£26.2M).


Debt to Equity History and Analysis

Debt Level: HCFT's debt to equity ratio (42.4%) is considered high.

Reducing Debt: HCFT's debt to equity ratio has increased from 8.7% to 42.4% over the past 5 years.

Debt Coverage: HCFT's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: HCFT's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Highcroft Investments's current dividend yield, its reliability and sustainability?

7.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCFT's dividend (7.89%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: HCFT's dividend (7.89%) is in the top 25% of dividend payers in the UK market (7.4%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.1%), HCFT's 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?

7.0yrs

Average board tenure


CEO

Simon Gill (62yo)

6.67s

Tenure

UK£209,000

Compensation

Mr. Simon Gill, BSc FRICS, has been the Chief Executive at Highcroft Investments plc since August 2013. Mr. Gill served as the Property Director at Highcroft Investments from April 1, 2013 to July 31, 2013 ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD255.90K) is about average for companies of similar size in the UK market ($USD335.89K).

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


Board Members

NamePositionTenureCompensationOwnership
Simon Gill
CEO & Director6.67yrsUK£209.00kno data
Roberta Miles
Finance Director9.75yrsUK£149.80k0.12% £39.6k
David Kingerlee
Executive Director23.58yrsUK£69.50k1.01% £345.8k
Charles Alistair Butler
Non-Executive chairman2.25yrsUK£30.00kno data
Charles Costa
Senior Independent Director4.92yrsUK£25.00kno data

7.0yrs

Average Tenure

56yo

Average Age

Experienced Board: HCFT's board of directors are considered experienced (7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Highcroft Investments Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highcroft Investments Plc
  • Ticker: HCFT
  • Exchange: LSE
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£34.362m
  • Shares outstanding: 5.17m
  • Website: https://www.highcroftplc.com

Number of Employees


Location

  • Highcroft Investments Plc
  • Thomas House
  • Langford Locks
  • Kidlington
  • East Lothian
  • OX5 1HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCFTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992

Biography

Highcroft Investments PLC is a Real Estate Investment Trust with a premium listing on the main market of the London Stock Exchange (Stock Code: HCFT). The group owns a portfolio of commercial properties based in England and Wales. Highcroft aims to deliver sustainable income and capital growth for its shareholders through accretive asset management initiatives and the recycling of capital. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:45
End of Day Share Price2020/04/07 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.