LSE:HLCL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair 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


Market Performance


7 Day Return

-1.9%

HLCL

1.2%

GB Real Estate

-0.4%

GB Market


1 Year Return

18.8%

HLCL

3.2%

GB Real Estate

2.9%

GB Market

Return vs Industry: HLCL exceeded the UK Real Estate industry which returned 3.2% over the past year.

Return vs Market: HLCL exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

HLCLIndustryMarket
7 Day-1.9%1.2%-0.4%
30 Day4.5%3.4%-1.4%
90 Day6.2%5.4%-2.1%
1 Year22.1%18.8%7.4%3.2%7.9%2.9%
3 Year53.8%41.4%-5.3%-11.9%18.0%3.6%
5 Year24.8%10.2%20.3%5.7%35.8%6.4%

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?

10.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HLCL (£3.86) is trading above our estimate of fair value (£1.26)

Significantly Undervalued: 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 (10.8x) compared to the Real Estate industry average (11.2x).

PE vs Market: HLCL is good value based on its PE Ratio (10.8x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HLCL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HLCL is good value based on its PB Ratio (0.8x) compared to the GB Real Estate industry average (1.1x).


Next Steps

Future Growth

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

-52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLCL's earnings are forecast to decline over the next 3 years (-52.2% per year).

Earnings vs Market: HLCL's earnings are forecast to decline over the next 3 years (-52.2% per year).

High Growth Earnings: HLCL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HLCL's revenue (3.4% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: HLCL's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HLCL's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

Past Performance

How has Helical performed over the past 5 years?

-22.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLCL's earnings have declined by -22.1% per year over the past 5 years.

Accelerating Growth: HLCL's earnings growth over the past year (62.1%) exceeds its 5-year average (-22.1% per year).

Earnings vs Industry: HLCL earnings growth over the past year (62.1%) exceeded the Real Estate industry 8%.


Return on Equity

High ROE: HLCL's Return on Equity (7.5%) is considered low.


Return on Assets

ROA vs Industry: HLCL's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: HLCL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Helical's financial position?


Financial Position Analysis

Short Term Liabilities: HLCL's short term assets (£258.6M) exceeds its short term liabilities (£146.2M)

Long Term Liabilities: HLCL's short term assets (258.6M) do not cover its long term liabilities (351.1M)


Debt to Equity History and Analysis

Debt Level: HLCL's debt to equity ratio (75.7%) is considered high

Reducing Debt: HLCL's debt to equity ratio has reduced from 111.1% to 75.7% over the past 5 years.

Debt Coverage: HLCL's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: HLCL's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet

Inventory Level: HLCL has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLCL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HLCL's dividend (2.62%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: HLCL's dividend (2.62%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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 (28.2%), HLCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLCL's dividends in 3 years are not forecast to be well covered by earnings (122% payout ratio).


Next Steps

Management

What is the CEO of Helical's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Gerald Kaye (61yo)

3.3yrs

Tenure

UK£1,703,000

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. Mr. Kay ...


CEO Compensation Analysis

Compensation vs. Market: Gerald's total compensation ($USD2.19M) is about average for companies of similar size in the UK market ($USD875.35K).

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


Management Age and Tenure

4.9yrs

Average Tenure

56yo

Average Age

Experienced Management: HLCL's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

61yo

Average Age

Experienced Board: HLCL's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£126,87507 Jun 19
Timothy Murphy
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Director
Shares35,000
Max PriceUK£3.63
SellUK£81,25023 Jan 19
Timothy Murphy
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Director
Shares25,000
Max PriceUK£3.25

Ownership Breakdown


Management Team

  • Tim Murphy (59yo)

    Finance Director & Director

    • Tenure: 7.3yrs
    • Compensation: UK£971.00k
  • Gerald Kaye (61yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.70m
  • John Inwood (53yo)

    Head of Asset Management

    • Tenure: 0yrs
  • Matthew Bonning-Snook (51yo)

    Property Director & Executive Director

    • Tenure: 12.2yrs
    • Compensation: UK£1.34m
  • James Moss

    Company Secretary & Group Financial Controller

    • Tenure: 0yrs
  • Jim Roxburgh

    Head of Executive Logistics & Transportation

    • Tenure: 4.9yrs

Board Members

  • Joe Lister (48yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£26.00k
  • Tim Murphy (59yo)

    Finance Director & Director

    • Tenure: 7.3yrs
    • Compensation: UK£971.00k
  • Gerald Kaye (61yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.70m
  • Matthew Bonning-Snook (51yo)

    Property Director & Executive Director

    • Tenure: 12.2yrs
    • Compensation: UK£1.34m
  • Sue Farr (63yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Richard Cotton (64yo)

    Senior Independent Director

    • Tenure: 1.7yrs
    • Compensation: UK£70.00k
  • Sue Clayton (61yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£55.00k
  • Richard Grant (65yo)

    Independent Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: UK£70.00k

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£463.033m
  • Shares outstanding: 119.96m
  • 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, construction, development, rental, and trading of real estate properties in the United Kingdom. The company operates through Investment Properties and Developments se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:38
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.