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MCKS

McKay Securities LSE:MCKS Stock Report

Last Price

UK£2.81

Market Cap

UK£256.9m

7D

-0.4%

1Y

23.2%

Updated

09 May, 2022

Data

Company Financials +
MCKS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends2/6

MCKS Stock Overview

McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange.

McKay Securities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for McKay Securities
Historical stock prices
Current Share PriceUK£2.81
52 Week HighUK£3.08
52 Week LowUK£2.08
Beta0.67
1 Month Change-6.02%
3 Month Change24.34%
1 Year Change23.25%
3 Year Change16.12%
5 Year Change22.44%
Change since IPO201.07%

Recent News & Updates

Shareholder Returns

MCKSGB REITsGB Market
7D-0.4%2.0%0.8%
1Y23.2%-0.8%-5.0%

Return vs Industry: MCKS exceeded the UK REITs industry which returned -1.4% over the past year.

Return vs Market: MCKS exceeded the UK Market which returned -5.2% over the past year.

Price Volatility

Is MCKS's price volatile compared to industry and market?
MCKS volatility
MCKS Average Weekly Movement9.4%
REITs Industry Average Movement3.6%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.2%

Stable Share Price: MCKS is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MCKS's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
194618Simon Perkinshttps://www.mckaysecurities.plc.uk

McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange. It specialises in the development and refurbishment of office, industrial and logistics buildings within proven markets of South East England and London. The portfolio at 30 September 2020 comprised 33 properties, valued at £438.95m, located in established areas, predominantly along the M4 corridor, where McKay has deep expertise, with a focus on growing satellite towns benefitting from strong connectively to London and robust demand amongst leading occupiers.

McKay Securities Fundamentals Summary

How do McKay Securities's earnings and revenue compare to its market cap?
MCKS fundamental statistics
Market CapUK£256.89m
Earnings (TTM)UK£14.01m
Revenue (TTM)UK£27.26m

18.3x

P/E Ratio

9.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCKS income statement (TTM)
RevenueUK£27.26m
Cost of RevenueUK£6.68m
Gross ProfitUK£20.59m
Other ExpensesUK£6.58m
EarningsUK£14.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin75.51%
Net Profit Margin51.39%
Debt/Equity Ratio52.0%

How did MCKS perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

139%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


18.34x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: MCKS (£2.81) is trading above our estimate of fair value (£1.69)

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


Price To Earnings Ratio

PE vs Industry: MCKS is poor value based on its PE Ratio (18.3x) compared to the UK REITs industry average (9.4x).

PE vs Market: MCKS is poor value based on its PE Ratio (18.3x) compared to the UK market (15.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

How is McKay Securities forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCKS's earnings are forecast to decline over the next 3 years (-12.5% per year).

Earnings vs Market: MCKS's earnings are forecast to decline over the next 3 years (-12.5% per year).

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

Revenue vs Market: MCKS's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: MCKS's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCKS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has McKay Securities performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-40.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MCKS has a large one-off gain of £5.1M impacting its September 30 2021 financial results.

Growing Profit Margin: MCKS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MCKS's earnings have declined by 40.8% per year over the past 5 years.

Accelerating Growth: MCKS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MCKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).


Return on Equity

High ROE: MCKS's Return on Equity (4.7%) is considered low.


Financial Health

How is McKay Securities's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MCKS's short term assets (£21.4M) exceed its short term liabilities (£11.5M).

Long Term Liabilities: MCKS's short term assets (£21.4M) do not cover its long term liabilities (£159.3M).


Debt to Equity History and Analysis

Debt Level: MCKS's net debt to equity ratio (50.9%) is considered high.

Reducing Debt: MCKS's debt to equity ratio has reduced from 61.4% to 52% over the past 5 years.

Debt Coverage: MCKS's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: MCKS's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MCKS's dividend (2.99%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: MCKS's dividend (2.99%) is low compared to the top 25% of dividend payers in the UK market (4.81%).


Stability and Growth of Payments

Stable Dividend: MCKS's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (139.2%), MCKS's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (138.5%), MCKS's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

9.7yrs

Average management tenure


CEO

Simon Perkins (56 yo)

19.33yrs

Tenure

UK£703,000

Compensation

Mr. Simon C. Perkins, BSc (Hons), M.R.I.C.S., has been the Chief Executive Officer and Managing Director of McKay Securities PLC since January 2003 and its Executive Director since April 2001. Mr. Perkins...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD865.41K) is about average for companies of similar size in the UK market ($USD958.90K).

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


Leadership Team

Experienced Management: MCKS's management team is seasoned and experienced (9.7 years average tenure).


Board Members

Experienced Board: MCKS's board of directors are considered experienced (6.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

McKay Securities Plc's employee growth, exchange listings and data sources


Key Information

  • Name: McKay Securities Plc
  • Ticker: MCKS
  • Exchange: LSE
  • Founded: 1946
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: UK£256.885m
  • Shares outstanding: 91.42m
  • Website: https://www.mckaysecurities.plc.uk

Number of Employees


Location

  • McKay Securities Plc
  • 20 Greyfriars Road
  • Reading
  • East Lothian
  • RG1 1NL
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/09 00:00
End of Day Share Price2022/05/06 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.