LSE:HLCL

Stock Analysis Report

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Executive Summary

Helical plc engages in the investment, rental, and development of real estate properties in the United Kingdom. More Details


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

HLCL

-2.4%

GB Real Estate

-2.0%

GB Market


1 Year Return

-14.2%

HLCL

-18.7%

GB Real Estate

-17.2%

GB Market

Return vs Industry: HLCL exceeded the UK Real Estate industry which returned -17.3% over the past year.

Return vs Market: HLCL exceeded the UK Market which returned -16.4% over the past year.


Shareholder returns

HLCLIndustryMarket
7 Day0.8%-2.4%-2.0%
30 Day33.9%0.9%-0.5%
90 Day4.6%2.6%-4.4%
1 Year-12.1%-14.2%-17.6%-18.7%-14.1%-17.2%
3 Year16.2%7.3%-18.8%-24.9%-10.3%-21.4%
5 Year-16.0%-26.2%3.5%-11.1%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLCL (£3.3) is trading above our estimate of fair value (£1.48)

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


Price To Earnings Ratio

PE vs Industry: HLCL is good value based on its PE Ratio (10.2x) compared to the GB Real Estate industry average (14.2x).

PE vs Market: HLCL is good value based on its PE Ratio (10.2x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: HLCL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HLCL is good value based on its PB Ratio (0.7x) compared to the GB Real Estate industry average (0.8x).


Next Steps

Future Growth

How is Helical forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLCL's forecast earnings growth (20.3% per year) is above the savings rate (1.2%).

Earnings vs Market: HLCL's earnings (20.3% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: HLCL's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: HLCL's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLCL's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Helical performed over the past 5 years?

-26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLCL has a large one-off gain of £44.5M impacting its March 31 2020 financial results.

Growing Profit Margin: HLCL's current net profit margins (76.2%) are lower than last year (90.7%).


Past Earnings Growth Analysis

Earnings Trend: HLCL's earnings have declined by 26.3% per year over the past 5 years.

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

Earnings vs Industry: HLCL had negative earnings growth (-9%) over the past year, making it difficult to compare to the Real Estate industry average (-17.3%).


Return on Equity

High ROE: HLCL's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is Helical's financial position?


Financial Position Analysis

Short Term Liabilities: HLCL's short term assets (£117.2M) exceed its short term liabilities (£51.4M).

Long Term Liabilities: HLCL's short term assets (£117.2M) do not cover its long term liabilities (£373.7M).


Debt to Equity History and Analysis

Debt Level: HLCL's debt to equity ratio (59.9%) is considered high.

Reducing Debt: HLCL's debt to equity ratio has reduced from 149.6% to 59.9% over the past 5 years.

Debt Coverage: HLCL's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: HLCL's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Helical current dividend yield, its reliability and sustainability?

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLCL's dividend (2.64%) is higher than the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: HLCL's dividend (2.64%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), HLCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLCL's dividends in 3 years are forecast to be covered by earnings (80.6% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Gerald Kaye (62 yo)

4.25yrs

Tenure

UK£2,555,000

Compensation

Mr. Gerald A. Kaye, B.Sc (Est. Man), FRICS has been the Chief Executive Officer of Helical plc (a/k/a, Helical Bar plc) since July 25, 2016 and has been its Executive Director since September 1994 and resp ...


CEO Compensation Analysis

Compensation vs Market: Gerald's total compensation ($USD3.34M) is above average for companies of similar size in the UK market ($USD885.82K).

Compensation vs Earnings: Gerald's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gerald Kaye
CEO & Executive Director4.25yrsUK£2.56m1.7%
£ 6.9m
Timothy Murphy
Finance Director & Executive Director8.25yrsUK£1.51m0.65%
£ 2.6m
Matthew Bonning-Snook
Property Director & Executive Director13.17yrsUK£2.03m1.05%
£ 4.2m
James Moss
Company Secretary & Group Financial Controllerno datano datano data
John Inwood
Head of Asset Managementno datano datano data
Jim Roxburgh
Head of Executive Logistics & Transportation5.92yrsno datano data

5.9yrs

Average Tenure

54yo

Average Age

Experienced Management: HLCL's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald Kaye
CEO & Executive Director4.25yrsUK£2.56m1.7%
£ 6.9m
Timothy Murphy
Finance Director & Executive Director8.25yrsUK£1.51m0.65%
£ 2.6m
Matthew Bonning-Snook
Property Director & Executive Director13.17yrsUK£2.03m1.05%
£ 4.2m
Joseph Lister
Independent Non-Executive Director2.08yrsUK£55.00k0.0026%
£ 10.6k
Susan Farr
Independent Non-Executive Director1.33yrsUK£39.00k0.0050%
£ 20.3k
Richard Cotton
Senior Independent Director2.58yrsUK£70.00k0.021%
£ 83.1k
Susan Clayton
Independent Non-Executive Director4.67yrsUK£58.00kno data
Richard Grant
Independent Non-Executive Chairman1.25yrsUK£128.00k0.012%
£ 49.9k

3.6yrs

Average Tenure

62yo

Average Age

Experienced Board: HLCL's board of directors are considered experienced (3.6 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

Helical plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Helical plc
  • Ticker: HLCL
  • Exchange: LSE
  • Founded: 1919
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: UK£403.208m
  • Shares outstanding: 121.27m
  • Website: https://www.helical.co.uk

Number of Employees


Location

  • Helical plc
  • 5 Hanover Square
  • London
  • Greater London
  • W1S 1HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLCLLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
HLCLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980

Biography

Helical plc engages in the investment, rental, and development of real estate properties in the United Kingdom. The company’s property portfolio includes mixed-use commercial/residential projects and offic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 21:00
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.